You need to answer all questions about the case "IKEA Entering India, Finally" Make sure that your submission (paper) should ref
lect a deep understanding of the content of international expansion and global economy (see Chapter 13). Your paper should have 3 to 4 pages (except for a cover page and references) for this assignment. An electronic document will be required. Format your paper according to APA style. Use double-spacing, Times New Roman, 12-point font with a 1-inch margin
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Answer:
1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market?
We are missing the cost structure, so I looked for similar question. The company's current segment margin for the medical market is 30%. So this campaign would increase segment profit by $42,000 x 30% = $12,600. Since its cost is $4,800, net profit will increase by $12,600 - $4,800 = $7,800
2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?
The dental market's segment profit is 24%, so this campaign would increase revenue by $36,000 x 24% = $8,640. To calculate net profit we must again subtract the campaign's cost. Net profit = $8,640 - $4,800 = $3,840
3. In which of the markets would you recommend that the company focus its advertising campaign?
They should focus on the medical market since their profit will be higher.
Explanation:
