Macro Environment Essay

415 WordsOct 19, 20142 Pages
Q1. Identify and describe your suggested, specific location for the new store and recommend the store size in square metres. The area that I have chosen for the new IKEA store is Fermoy in county Cork. After taking the Fermoy/Kilworth exit at junction 14 on the M8 motorway. If travelling north bound on the M8 (heading away from Cork) after taking your exit off the M8 you will come to a roundabout, take the Fermoy exit off this. After half a mile you will see IKEA on your right hand side. If travelling south bound on the M8 (heading for Cork) after taking you exit off this at the first roundabout take the second exit, at the next roundabout take the Fermoy exit. After half a mile you will see IKEA on your right hand side. I would recommend a 25000 square meters, not quiet as big as the flagship store in Dublin but still spacious enough to provide for the needs of the surrounding area. Q2. Describe what you expect to be the national, macro-environment for the region in which the planned store will be located at the time of the store launch. Demographic forces The Demographics for Ikea when selecting the Fermoy location would be the catchment area of Cork city which has a population of 120000 people and that does not include the surrounding areas of Cork. The population in Cork has jumped by 100000 in a 15 year period from 1996-2011. A lot of Ikea customers characteristics is that they are family orientated, inquisitive, diverse, opinionated and street smart. Most notably the younger family’s who have less disposable income and ikea products suit their price range and taste. Cork and Fermoy both have a lot of land in their surrounding areas and in time there will be an urban sprawl in years to come which will lead to the growth of the young families and will also increase the population fourfold. Economic forces The unemployment figure in Ireland has decreased

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