Walk into an IKEA store anywhere in the world, and you would recognize it instantly. The warehouse-type stores all sell the same broad range of affordable home furnishings, kitchens, and accessories. Most of the products are instantly recognizable as IKEA merchandise, with their clean yet tasteful lines and functional design. The outside of the store will be wrapped in the blue and yellow colors of the Swedish flag. The store itself will be laid out as a maze that requires customers to walk through every department before they reach the checkout stations. Immediately before the checkout, there is an in-store warehouse where customers can pick up the items they purchased. The furniture is all flat, packed for ease of transportation, and requires assembly by the customer. If you look at the customers in the store, you will see that many of them are in their 20s and 30s. IKEA sells to the same basic customers all across the world: young, upwardly mobile people who are looking for tasteful yet inexpensive “disposable” furniture. A global network of about 978 suppliers based in 50 countries manufactures most of the 12,000 products that IKEA sells. IKEA itself focuses on the design of products and works closely with suppliers to bring down manufacturing costs. Developing a new product line can be a painstaking process that takes years. IKEA’s designers will develop a prototype design—a small couch, for example—look at the price that rivals charge for a similar piece, and then work with suppliers to figure out a way to cut prices by 40 percent without compromising on quality. IKEA also manufactures about 10 percent of what it sells in-house and uses the knowledge gained to help its suppliers improve their productivity, thereby lowering costs across the entire supply chain. It’s a formula that has worked remarkably well. From its roots in Scandinavia, in 2015 IKEA had grown to become the largest furniture retailer in the world with 328 stores in 28 countries and revenues of $36 billion (32 billion euro). IKEA had 771 million store visits and 1.9 billion online visits (IKEA.com). With its Swedish heritage, IKEA is particularly strong in Europe, where it has more than 200 stores, but it also has around 50 stores in North America. Its strongest growth recently has been in China, where it had 17 stores, and Russia, where it had 14 stores. Look a little closer, however, and you will see subtle differences between the IKEA offerings in North America, Europe, and China. In North Chapter Twelve The Strategy of International Business 353354 Part Five The Strategy of International BusinessAmerica, sizes are different to reflect the American demand for bigger beds, furnishings, and kitchenware. This adaptation to local tastes and preferences was the result of a painful learning experience for IKEA. When the company first entered the United States in the late 1980s, it thought that consumers would flock to their stores the same way that they had in Europe. At first they did, but they didn’t buy as much, and sales fell short of expectations. IKEA discovered that its European-style sofas were not big enough, wardrobe drawers were not deep enough, glasses were too small, and kitchens didn’t fit U.S. appliances. So the company set about redesigning its offerings to better match American tastes and was rewarded with accelerating sales growth. Lesson learned, when IKEA entered China in the 2000s, it made adaptations to the local market. The store layout reflects the layout of many Chinese apartments, where most people live, and because many Chinese apartments have balconies, IKEA’s Chinese stores include a balcony section. IKEA has also had to shift its locations in China, where car ownership lags behind that in Europe and North America. In the West, IKEA stores are located in suburban areas and have lots of parking space. In China, stores are located near public transportation, and IKEA offers a delivery service so that Chinese customers can get their purchases home. Sources: J. Leland, “How the Disposable Sofa Conquered America,” The New York Times Magazine, October 5, 2005, p. 45; “The Secret of IKEA’s Success,” The Economist, February 24, 2011; B. Torekull, Leading by Design: The IKEA Story (New York: HarperCollins, 1998); P. M. Miller, “IKEA with Chinese Characteristics,” Chinese Business Review, July–August 2004, pp. 36–69.CASE DISCUSSION QUESTIONS 1. Why do you think IKEA uses a floorplan that “forces” the customers to move along a certain path in the store? 2. Is it appropriate for IKEA to customize their furniture to each geographic location, for example, differences between U.S. and European furniture? Some companies do not make these changes, but IKEA does; why?

You watch the following video of a short speech of self-introduction titled "A Heart Worn on My Hand" and then critique it. " The analysis should be two full pages, double space and typewritten. In the analysis, you should:- Briefly describe the central idea and content of the speech.- Identify TWO areas that you like. Be specific.- Identify ONE support material discussed in class (Supporting Your Ideas - The powerpoint which is attached below). Be specific. For example, the speaker used ‘example’ when she described…DefinitionVivid ImageExampleNarrativeComparison and ContrastAnalogyTestimonyStatistics- Identify THREE areas for improvement. Do not simply say “bad” or “weak”. You should explain how or why the speaker is doing poorly. For example, do not simply say that the speaker’s eye contact was poor. Tell the speaker that her eye contact favored the left side of the class room. Or she looked too much at the floor. - Tell the speaker how to repair the THREE areas for improvement. Make sure your advices are measurable and specific.

Davy Jones provides the following information for Davy Jones’ Nautical Tours, LLC, a Limited Liability Company he operates with his business partner, William Turner You’re required to prepare a 1065 U.S. Return of Partnership Income, a 1065 Statement 1 – Other Deductions, a 1065 Schedule K1 – Partner’s Share of Income, Deductions, Credits, etc., and a 1065 Schedule B1 – Information on Partners Owning 50% or More of a PartnershipDavy Jones’ Nautical Tours, LLC is operated by David K. Jones (SSN 000-00-0000) and William W. Turner (SSN 111-11-1111). They are each 50% members in the LLC.Principal Business or Professional Activity Code; 114110Principal business; Charter fishing toursEmployer Identification Number 867530950Business address Home address (David K. Jones)1008 North Harbor Drive 8700 Lake Murray Blvd #2San Diego, CA 92103 San Diego, 92119The cash accounting method and GAAP are utilizedThe business started January 1st, 2012Wages consist of $25,000 paid to one employee and $15,000 to anotherGuaranteed Payments; $42,000 payments to each member; Jones and Turner Jones and Turner are considered self-employed, therefore no FICA was withheld on their behalfDepreciation expense; The Jolly Roger was purchased for $850,000. The depreciation on the income statement is book depreciation and will differ from what is actually used on Line 16 Depreciation of form 1065. The boat is depreciated using the Modified Accelerated Cost Recovery System (MACRS), half year convention, is in its 4th year of service and the 10-year recovery period is used. Utilize Publication 946 How to Depreciate Property to calculate the correct depreciation amount to enter on the 1065 Lines 16a and 16c (Form 4562 is not required). Locate Table A1 in the Appendix to calculate the tax-deductible depreciation. Interest expense is interest paid on the loan for the boat; the boat loan is considered nonrecourseInsurance payments were made to cover liability for guests and for the boatPayroll taxes; Federal Insurance Contributions Act (FICA); Social Security and Medicare payments made on the behalf of employeesFederal Insurance Contributions Act (FUTA) made on behalf of employeesTravel was purely for business purposesParking fines are tickets Jones received for parking illegallyLease expense was paid to Honda Motors for his mother’s car lease, who is not involved in the business in any wayIncome StatementDecember 31, 20XXRevenue $400,950.00Wages ($40,000.00)Guaranteed Payments ($84,000.00)FICA ($3,060.00)FUTA ($85.00)Depreciation ($85,000.00)Interest ($43,900.00)Advertising ($6,350.00)Supplies ($23,795.00)Legal fees ($6,940.00)Insurance ($26,700.00)Boat slip rental ($33,010.00)Travel ($6,250.00)Office expense ($7,940.00)Parking fines ($1,350.00)Lease expense ($3,650.00)Net Profit $28,920.00Balance Sheet 1/1/2016 12/31/2016Cash $15,500.00 $22,010.00 Boat $850,000.00 $850,000.00 Accumulated Depreciation ($255,000.00) ($340,000.00)Total Assets $610,500.00 $532,010.00 Loans $525,000.00 $417,590.00 Equity Investment $50,000.00 $50,000.00 Retained Earnings $35,500.00 $64,420.00 Total Equity + Liability $610,500.00 $532,010.00 You will be required to fill out and submit the following forms (find these forms online)1065 U.S. Return of Partnership Income1065 Statement 1 – Other Deductions - This is not online, you just need to show your OTHER DEDUCTIONS1065 Schedule K1 – Partner’s Share of Income, Deductions, Credits, etc.1065 Schedule B1 – Information on Partners Owning 50% or More of a Partnership(although a tax preparer is required to fill out a 1065 Schedule K1 for each partner/member, you may fill out just one for Davy Jones only since you have his address)