ASSIGNMENT

Topic:

International & Multinational

Organizations
Subject:
Principle of Marketing
Submitted to:
Sir Hamid Cheema Sahib
Submitted by:

Rida Roll No.

Rimsha Roll No.
Hamza Roll No.
Usama Roll No.
BBA (14 Year’s)

NOON BUSINESS SCHOOL

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 UNIVERSITY OF
SARGODHA
IKEA:

EICEA is a European multinational group that is designs and sells ready

to assemble furniture kitchen appliances and home accessories among
other useful goods and occasionally home services. It was founded in
Sweden in 1943 by Ingvar Kampard.

Affect Demand of IKEA

There are five main determinants that affect the demand of IKEA.

They are as follow:

1. Preference
2. Income
3. Price of related goods
4. Expected future price

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5. Population.

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Quantity of purchase

To keep prices low IKEA store buy and transport product in bulk. So
IKEA due to low prices make large sales and provide self-service and
assembly concept.

Buying procedure

The main raw materials used in IKEA products are wood cotton, metal,
plastic, glass and rattan so IKEA make arrangement for transport of
material in specified time. It buys the material which can fulfill market
demand.

Major suppliers

IKEA major Suppliers are:

1. Nordic Lights
2. PT Findora
3. Sanikey Sera

Supplier Development

IKEA has development programs to give value to suppler and in return

capture value form supplier.

Buying Situation

IKEA is involved in all these buying situations i.e. modified rebuy, new
tasks and straight rebuy either with its upstream business suppliers or
with down steam business customers.

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There are many factors that affect IKEA

1. Political
2. Economic
3. Social
4. Technological
5. Legal

Business decision process

Yes!, business decision process is followed by IKEA in which they first

recognize the customer need and quality of products. After the product
specification, supplier’s search and proposal solicitation the desired
product in provided.

System Solution Selling

Yes!, solution selling concept is done in IKEA because they are selling
things that need repairs etc.

E-Procurement:-

Yes IKEA does e-procurement in its business. IKEA does outstanding on

its raw material and constantly stay in contract with its suppliers through
various electronic channel.

Major Buying Centres:-

IKEA have more than 267 stores in 25 countries. The major buying
centres are in United States, Sweden and Netherlands.

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 NESTLE INC.

Nestle:

Nestle S.A. is a Swiss multinational food & drink processing co-

operation. It is the largest food company in the world, measured by
revenues and other metrics. It was founded in 1866.

Affect Demand of Nestle.

Nestle demand is affected by:-

1. Price
2. Competition
3. Income Level
4. Consumer Taste
5. Preferences

Quantity of Purchase:-

They purchase there raw material in bulk from the 700,000 farmers
directly, all around the world.

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Buying Procedure:-

Nestle buy raw material from farmers directly and issue invoices in
return. They provide transport for the delivery of raw material in
specified time.

Major Centers:-

Nestle headquarters is in Vevey, Vaud, Switzerland and their other major

centers are in US and Middle East. They have 477 factories operates in
189 countries and employees around 339,000.

Major Suppliers:

Major supplier of Nestle are.

 Sawait Sumbermas Sarana

 Wilmar Apical
 Golden Agri Resources.

Suppliers Development:-

Yes supplier development concept is maintained in nestle to give value

to the supplier and in return capture value from supplier in form of better
customer innovative product as well as value chain.

Buying Situation:-

Nestle is involved in all buying situations such as modified rebuy, new

task and straight rebuy either with its upstream business supplier or with
downstream business customers.

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Factors that affects Nestle

Several factors that affect nestle are:

1. Political.
2. Economical.
3. Social.
4. Technological.
5. Environmental.
6. Legal.

Business Decision Process:

Yes!. Business decision process is followed by Nestle. Nestle first

recognize the customer need and quality of products. After the product
specification, supplier search and proposal solicitation. Nestle provide
best product for customer.

System Solution Selling:-

No, solution selling concept is not done in nestle. Because it is a food

manufacturing company and their usually no faults in product.

E. Procurement:-

Yes, nestle does use e-procurement in its business. Nestle does

outstanding in its raw material and remain in contact with its supplier
through various electronic channels.

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 PUMA

Puma is a German Multinational Company that designs and

manufacture athletic and casual footwear, apparel and accessories,
which is headquartered in Herzogenaurach, Bavaria, Germany. PUMA
is a third largest sportswear manufacturers in the world. The company
was founded, in 1948 by Rudolf Dassler.

Factors that affect the demand.

1. Price.
2. Change in weather
3. Out dated

Quantity of Purchase.

They purchase in bulk quantity.

Major Supplier

Supplier from Singapore Bellevue, US supplier from

Beijing, China.

Buying Procedure

i. Planning the capacity requirements and ability to meet

the market demand.
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 ii. Planning the arrival of material on right time in right
quantities for shoe, shirts etc.
iii. Ensuring appropriate utilization of capital equipment
and facilities.
iv. Maintaining needed quantities of inventories , work in
progress and finished goods in all the locations.

Major Buying center

Herzogenaurach, Germany.

Concept of supplier develop.

Yes, it is present, they constantly remain in contact with the

suppliers.

Buying Situations

They do all if they continue to buy some things for new suppliers.
They also make modified rebuy and sometimes new task.

System selling

It is followed by them.

Major Factors Influence When They Buying

 Cultural
 Social
 Personal
 Psychological

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Business Decision Process.

Yes!, it is followed by them they are searching for new

suppliers and make selection regarding suppliers least and
the quality of product they deliver.

E- Procurement

Yes! We can assess the things through different websites e.g.

Facebook, Google, Instagram.

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 NIKE

Nike, Inc. is an American national corporation that is engaged in the

design, development, manufacturing and worldwide marketing and
sales of apparel, footwear, equipment, accessories and services.

The company was founded on “January 25, 1964” as Blue Ribbon

Sports by “Bill Bowerman” and officially became Nike Inc. on “May
30, 1971”. The company takes its name Nike from Greek goddess of
victory.

Affect demand of Nike:-

 Consumer Taste
 Quality of Products
 Increase or Decrease in prices
 Competitors Threats
 Trade Restrictions
 Political Climate in Most major markets
 Economic stability of developed markets.
 Rapid Growth of developing markets.
 Increase / Decrease in individual wealth.

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Page 13 of 17
Quantity of Purchase.

Nike is an international brand providing their products across the globe.

This makes the company produce on a very large scale and for production
on a global level scale requires a very large amount of purchase of raw
material.

Buying Procedure

1. Planning the capacity requirements and availability to meet the

market demand.
2. Planning the arrival of material on right time in right quantities for
shoe, shirts etc. production.
3. Ensuring appropriate utilization of capital equipment and facilities.
4. Maintaining needed quantities of inventories work in progress and
finished goods in all the contracted locations.
5. Scheduling the production activities to ensure that the process is
proceeding in accordance with the plan.

Major Suppliers

Major suppliers include Pou Chen, PT Pan Brothers, Fulgent Sun

International, Detla Galil, Eagle Nice. Nike’s major suppliers also do
business with other shoe and apparel makers, including “New Balance”.
“Adidas”, “Under Armor”, “ Puma” and the North face”.

Major Buying Centers

No of Nike stores are 1152. 384 stores are located in US and 784
internationally. And the major buying centers are in Washington country,
Oregon US.

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Page 15 of 17
Suppliers Development

IKEA has development programs to give value to suppler and in return

capture value form supplier.

Buying Situation

Nike Inc is involved in all these buying situations such as modified

rebuy, new task, straight rebuy either with its upstream business suppliers
or with downstream business customers.

Which factors influence Nike

 Organizational
 Individual

These factor affect the Nike most.

Business Decision Process.

Yes!, business decision process is followed by Nike Inc in which they

first recognize the customer need and quality of products. After the
product specification, supplier’s search and proposal solicitation the
desired product in provided.

System Solution Selling

No! Solution selling concept is not done in Nike Inc. because Nike brand
is dealing with those things that don’t have many problems.

E-Procurement

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Yes! Nike Inc. does e-procurement in its business. Nike Inc. does
outstanding on its raw material and constantly stay in contract with its
suppliers through various electronic channel.

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