Swedish furniture giant Ikea is privately held, which means it does not have to worry about declaring dividends to shareholders. As such, its strategy is driven by long term growth, not short term profits. The company therefore adheres to a management style that is not always the norm. For example, Ikea will not form joint ventures even if local law requires it. This week, Ikea CEO Mikael Ohlsson (above) announced IKEA is scrapping plans to open stores in India because of the local requirement that foreign retailers partner with an Indian partner and own a maximum of 51% of the Indian operation. In spite of that, Ikea plans to spend about 1 Billion Euros in the next three to four years on Indian suppliers, mainly in textiles and fabrics.
Ikea Expects to Double Buying of Goods in India -- NY Times.com
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