1. Economic project Members: 4C Cheng Lok Yi (6) 4C Li Yin Lam (20)
4E Kan Chui Yi (9)
4E Lau Pui kwan (12)

2. Content Introduction Type of Production Privatization
Type of Ownership
Type of integration
Division of labor
Market structure
Objectives of firm

3. Introduction
IKEA International Group was founded in Sweden in 1943, "for most people to create a better everyday life" is the IKEA company since its inception has been working for. IKEA brand has always been, and improve people's quality of life associated with and adhering to the "customers as much as they can afford it, well-designed, functional and inexpensive household goods" business purpose.

4. Type of Production
It belongs to secondary production and tertiary production
Provision of different kinds of services
E.g. food service,
furniture service

5. Type of ownership Ownership of Firm: partnership with Graybar Inc
advantages: 1) decreass average cost A portion of the workforce at the factories used consisted of political prisoners.
2) Enjoy Economies of Scale marketing eos:bulk purchase will be given discount fincial eos:a lower interest rate will be charged due to its goodwill Managerial Economic of Scale:more division of labour can be practiced

6. Privatization
IKEA is a privately held, Dutch company with Swedish origins, that designs and sells ready-to-assemble furnitur, appliances, and home accessories. The company is the world's largest furniture retailer.Founded in Sweden in 1943.

7. Type of Ownership About the IKEA Group
The founder of the IKEA Operations, Ingvar Kamprad, wanted to create an ownership structure and an organization that stand for independence and a long-term approach. That is why, since 1982, the IKEA Group has been owned by a foundation.   The IKEA Group itself encompasses many IKEA operations – the Swedwood industrial group, distribution and warehousing divisions and companies owning stores in countries around the globe.

8. Division of labor complex division of labor advantage :
1)chossing the best people to do the job
2)learning by doing
3)saving time in training

9. Market structure -monopolistic competition
(1.)There are many sellers and many buyers, none of which is large in relation to total sales or purchases. (2.) Each firm produces and sells a homogeneous product. (3.) Buyers and sellers have all relevant information about prices, product quality, sources of supply, and so forth. (4.) Firms have easy entry and exit.

10. Non-Price Competition
Advertisement Direct at difference customer group For instance: Family, lover, baby
Taiwan: direct at family Name:陪孩子一起成長

11. Objectives of firm
Profit Maximization(basic objective): -Unique strategy More than 20,000 kinds of products, divided into three series, established different brands, diversified development. -provide different services like catering, furniture, toys etc. -Global Procurement model cause the lowest cost

12. Other Objective
Corporate social responsibiltiy -charity responsibility
From now on till Dec 29, 2012, the IKEA Foundation will donate HK$10 to UNICEF and Save the Children to help educate kids for every soft toy you buy. IKEA's soft toys have prepared this video and wish you all a Merry Christmas & Happy New Year!

13. NEWS
掛牛頭賣馬肉　宜家肉丸全線下架
due to hourse meat was founed in meatball ,demand for it and supply of it decreass

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