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Ikea's Entry Into South America Executive Summary Ikea seeks to continue expanding its retail presence around the world through worldwide franchising of the Ikea concept. We propose an immediate expansion of Ikea into South America, specifically a storefront in Brazil. Using a balanced scorecard approach we address the primary issues in such an expansion. We also believe Brazil is a logical candidate for longer term expansion on the manufacturing (sourcing) side of Ikea and provide supporting analysis for such expansion. Although we have limited access to actual Financials, we believe the initial investment required to be about $20 million. Sales estimates exceed $70million per year. Since costs should also be typical of other sites around the world, expected earnings after tax are 8% of sales. In addition to the need for access to capital, a well-located site for retail activity must be secured. This site would be at the edge of...

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