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The Worldwide Development Plan for IKEA - Case Study Example

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The paper "The Worldwide Development Plan for IKEA" is a perfect example of a management case study. To promote the worldwide development plan for IKEA, we were appointed as a project team to renovate the Beijing SYQ store and office with a square foot of 12916669 and 120,000 square meters. The main objectives of the project are to ensure that there is a relaxed environment for the clients as well as the staff by using the enhanced technologies…
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Extract of sample "The Worldwide Development Plan for IKEA"

Table of Contents Table of Contents 1 Scope statement 5 A. Purpose of document 5 B. Project Background 5 d. Project stakeholders 5 2. Project Scope 5 Project objective 5 Project deliverables 6 Milestones 6 Phase 1 7 Phase 2 7 Phase 3 7 Technical requirements 7 Limits and exclusions 8 3. Timeframe and Milestones 8 Work Breakdown Structure (WBS) 8 Project schedule (Gantt chart) 9 Where. 9 ESis the Earliest start time, 9 LSis the latest start time, 9 EF is the Earliest finished time, 10 LF is the latest finished time 10 Slack is the difference between the latest start time and Earliest start time. (LF-EF) 10 The Gantt chart 10 11 4. Risk Management 11 Project Organization and Management 11 Time management 11 Over expenditure and Workers underperformance 11 Risk register 12 How the project schedule is affected when the implementation of risk treatment  13 5. Resources 14 5.5 Revise project management Gantt _chat 3 14 6. Communications Management 14 Communication plan 14 Monthly Status Reports 15 Scope statement 16 A. Purpose of document 16 B. Project Background 16 d. Project stakeholders 16 2. Project Scope 16 Project objective 17 Project deliverables 17 Milestones 17 Phase 1 18 Phase 2 18 Phase 3 18 Technical requirements 18 Limits and exclusions 19 3. Timeframe and Milestones 19 Work Breakdown Structure (WBS) 19 Project schedule (Gantt chart) 20 Where. 20 ESis the Earliest start time, 20 LSis the latest start time, 20 EF is the Earliest finished time, 21 LF is the latest finished time 21 Slack is the difference between the latest start time and Earliest start time. (LF-EF) 21 The Gantt chart 21 22 4. Risk Management 22 Project Organization and Management 22 Time management 22 Over expenditure and Workers underperformance 22 Risk register 23 How the project schedule is affected when the implementation of risk treatment  24 5. Resources 25 5.5 Revise project management Gantt _chat 3 25 6. Communications Management 25 Communication plan 25 Monthly Status Reports 26 Beckon, S. (2013). Making Things Happen: Mastering Project Management. Sydney: https://books.google.com/books?isbn=0596555393. 28 Appendices 29 Scope statement A. Purpose of document To promote the worldwide development plan for IKEA, we were appointed as project team to renovate the Beijing SYQ store and office with a square foot of 12916669 and 120,000 square meter. The main objectives of the project are to ensure that there is relaxed environment for the clients as well as the staff by using the enhanced technologies. The project is therefore estimated to take 21 months with an estimated cost of $5,350,000. B. Project Background The project team making a consideration of renovating the whole store and office will cause minimal interruption in business operations. The property is in bad shape and requires some renovation. This is caused by poor management of the building in the past leading to decline in reputation of the store (Dick Billows, 2008). d. Project stakeholders The stakeholders in the project are the IKEA Company and the Beijing stores because; they are concerned with the project success. IKEA is concerned with the project since; the company will increase its development across the globe. 2. Project Scope Project objective The project objectives involve the three aims which are; Reinstatement and reconstruction of the Beijing store estimates to cost $5,350,000 for a period of 21 months Operationalization of new stores structure approximated to be completed in phases and re-evaluated in phase tow subsequently. Re-opening and rehabilitation approximated to take 6 months after re-opening of the Beijing store. Subsequent to re-opening, it is estimated that the project will take 12 months before the store considered to be fully operational, After which is fully operational, the project will be closed (Dick Billows, 2008). Project deliverables Wholly constructed store – approved by construction manager Recommendations for future of store maintenance Productivity 12 months post re-opening. At least 65% tenancy rate in the first 12 months 91% guest contentment Endorsement to continued accomplishment – continual staff training, continual property maintained Accomplishment will be established by bill Young (Beijing liaison staff) and he will consider as success or not. Milestones The following is the high-level milestone plan: Phase 1 Entails the renovation as well as extension of existing Beijing stores. The objectives are to grow the current size in terms of rooms and numbers and facilities and bring up the store to fully operations which is estimated to take 8 months. Phase 2 Execution of latest organization structure which will be inclusive of the appropriate safety exist path and possible recommendation of the best management reorganization structure in order to improve the productivity of the stores. Phase 3 Phase three entails the renovations of the existing Beijing SYQ store facilities and rooms. This is because phase three is ideal and provides the store to operate and have more cash flows whilst being under renovation which is estimated to take 9-012 months (Heldman, Project Management JumpStart, 2011). Technical requirements Personnel Resources Role Name(s) Dates Hours Project manager Hang Liu May 1st to Aug. 30th 2,000 Budget planning director Wendy Victor May 1st to Aug. 30th 300 Design consultant Martin Smith and Rachel May 1st to May 29th 300 Construction team Jim Ken, Ji Lyang May 30th to Oct. 2nd 5,000 Technical team Amy jones, and other for members Aug.19th to Oct. 16th 400 Equipment resources Equipment Dates Estimated cost ($) Construction materials May 30th to Sept. 2nd 165,000 Computers and software Aug.19th to Sept. 16th 75,000 New furniture Aug.19th to Sept. 16th 35,000 Office supplies May 1st to Oct. 30th 7,500 Total $257,000 Financial resources ($) Resources Estimated cost ($) Personnel resource 261,000 Equipment cost 257,000 Total $518,000 Limits and exclusions The project will be renovated to the global standards of the finalized project design The store will be held responsible for future maintenance of the Beijing SYQ store The project management team shall be response for failure of the project completion. The renovation is restricted to weekdays ending Friday 5pm Project Manager must approve any process during the project renovation of Beijing SYQ stores (Harvard Business Review, 2013). 3. Timeframe and Milestones Work Breakdown Structure (WBS) Project schedule (Gantt chart) Activity ES LS EF LF Slack (LF-EF) A 2 0 5 7 3 B 2 4 12 12 0 C 4 9 23 26 0 D 5 10 22 23 0 E 6 11 24 27 0 F 7 12 23 32 0 G 8 26 31 42 0 H 9 21 25 36 0 I 10 23 41 52 0 10 41 50 0 0 The critical path the longest path which is {A-B-D-F-I} which is {5+12+22+11} = 50days Where. ESis the Earliest start time, LSis the latest start time, EF is the Earliest finished time, LF is the latest finished time Slack is the difference between the latest start time and Earliest start time. (LF-EF) The Gantt chart Start Duration End General condition 1/4/2016 16 2/5/2016 Site Grading and utilities 4/4/2016 69 5/6/2016 Renovation 2/7/2016 102 2/10/2016 Construction 4/8/2016 115 5/12/2016 Integration 5/9/2016 150 5/01/2017 Testing 2/10/2016 130 3/02/2017 Release 2/12/2016 45 3/1/2017 4. Risk Management Project Organization and Management Time management The time management was what the project manager forecast as the likelihood of risk affecting the project t. the effect of time management is that it has effect on the contract leading to penalized and unnecessary cost to the IKEA project team in terms of machines breakdowns which lead to project inefficiency. To avoid this, the project team guarantees that there is a steady growth in every stage of project. The project team must have a detailed plan of the whole aspect of the project which implies that in case of intricacies, it might be rectified right way. This will guarantee smooth running of the project and timely completion (Schmidt, 2009). Over expenditure and Workers underperformance The effect of the over expenditure on budget will be handled by the project management team with steady report and evaluation of project phases in order to guarantee that intricacies identified in the project life cycle are rectified immediately hence making sure that the project is within the set budget and time. All project identified should be registered in the risk registers. The risk recognized at the onset of the project should be listed in the project risk register. Risk register Risk identified: Inefficiency due to poor time management Strategies/activities to minimize the risk By when By whom To stop breakdown of Machines, project team need to ensure that machine servicing and use of later machine is necessary As from the following financial period The project Operations Manager To minimize the Changes in Price and Cost of input, the project team should purchase goods in bulk in order to take advantage of the economies of scale and discount Adjusting the inventory at the start of the month The project Operations Manager Risk identified: Workers underperformance To progress the workers standards performance, there must exist incentives At the time of project operations The project production manager To reduce the risk of shortage of workers, the human resource must guarantee for flexibility of causal labor Anytime when there is need of more casual laborers The project Hr. manager To reduced underperformance, workers must be motivated in a way of incentives Any time during project Operation The project CFO and Senior accountant How the project schedule is affected when the implementation of risk treatment  The project schedule will be improved which implies that the project time management, cost reduction and quality work will be realized since, the problem will be identified in every phase of project success and correction made immediately to ensure that the project runs smooth and competed on time as planned (Wirick, 2011). The revised Gantt chart to reflect changes made Start Duration End General condition 1/4/2016 16 2/5/2016 Site Grading and utilities 4/4/2016 69 5/4/2016 Renovation 2/7/2016 95 2/8/2016 Construction 4/8/2016 92 5/8/2016 Integration 5/9/2016 110 5/10/2016 Testing 2/10/2016 75 3/11/2016 Release 2/12/2016 65 3/2/2016 5. Resources 5.5 Revise project management Gantt _chat 3 Start Duration End General condition 1/4/2016 16 2/5/2016 Site Grading and utilities 4/4/2016 69 5/4/2016 Labor requirement 6/4/2016 60 15/4/2016 Renovation 2/7/2016 95 2/8/2016 Construction 4/8/2016 92 5/8/2016 Integration 5/9/2016 110 5/10/2016 Testing 2/10/2016 75 3/11/2016 Release 2/12/2016 65 3/2/2016 6. Communications Management Communication plan Supplying the knowledge on project is significant to the growth of the IKEA project team. The project contributors need the knowledge of what the circumstance of the project is and also the extent to which they are affected. Furthermore, they are concern on contributing. The more the project team is well versed on the project procedure and how they support them in the future, the more likely they will engage and take advantage. The plan proved the structure for notifying and getting the buy-in from sponsors at all time of the project (Berkun, 2013). Audience This communication plan is intended for the following audiences: Project Sponsor Steering Committee Project Manager User Group Participants Communications Outreach The following is the list of communication events that are established for the project Monthly Status Reports The project executives will create the report of the project success to the steering committee. The report is inclusive of the following Summary of tasks finished in the past month The summary of matters and their solutions The monthly steering committee conference The status of the conference are held on a monthly basis as well as they are steered by the project manager each team member is engaged in the conference. The project manager supply the status report to each ember prior to start of the conference in order each member to evaluate the report (Dick Billows, 2008) Scope statement A. Purpose of document To promote the worldwide development plan for IKEA, we were appointed as project team to renovate the Beijing SYQ store and office with a square foot of 12916669 and 120,000 square meter. The main objectives of the project are to ensure that there is relaxed environment for the clients as well as the staff by using the enhanced technologies. The project is therefore estimated to take 21 months with an estimated cost of $5,350,000. B. Project Background The project team making a consideration of renovating the whole store and office will cause minimal interruption in business operations. The property is in bad shape and requires some renovation. This is caused by poor management of the building in the past leading to decline in reputation of the store (Dick Billows, 2008). d. Project stakeholders The stakeholders in the project are the IKEA Company and the Beijing stores because; they are concerned with the project success. IKEA is concerned with the project since; the company will increase its development across the globe. 2. Project Scope Project objective The project objectives involve the three aims which are; Reinstatement and reconstruction of the Beijing store estimates to cost $5,350,000 for a period of 21 months Operationalization of new stores structure approximated to be completed in phases and re-evaluated in phase tow subsequently. Re-opening and rehabilitation approximated to take 6 months after re-opening of the Beijing store. Subsequent to re-opening, it is estimated that the project will take 12 months before the store considered to be fully operational, After which is fully operational, the project will be closed (Dick Billows, 2008). Project deliverables Wholly constructed store – approved by construction manager Recommendations for future of store maintenance Productivity 12 months post re-opening. At least 65% tenancy rate in the first 12 months 91% guest contentment Endorsement to continuedaccomplishment – continual staff training, continual property maintained Accomplishment will be established by bill Young (Beijing liaison staff) and he will consider as success or not. Milestones The following is the high-level milestone plan: Phase 1 Entails the renovation as well as extension of existing Beijing stores. The objectives are to grow the current size in terms of rooms and numbers and facilities and bring up the store to fully operations which is estimated to take 8 months. Phase 2 Execution of latest organization structure which will be inclusive of the appropriate safety exist path and possible recommendation of the best management reorganization structure in order to improve the productivity of the stores. Phase 3 Phase three entails the renovations of the existing Beijing SYQ store facilities and rooms. This is because phase three is ideal and provides the store to operate and have more cash flows whilst being under renovation which is estimated to take 9-012 months (Heldman, Project Management JumpStart, 2011). Technical requirements Personnel Resources Role Name(s) Dates Hours Project manager Hang Liu May 1st to Aug. 30th 2,000 Budget planning director Wendy Victor May 1st to Aug. 30th 300 Design consultant Martin Smith and Rachel May 1st to May 29th 300 Construction team Jim Ken, Ji Lyang May 30th to Oct. 2nd 5,000 Technical team Amy jones, and other for members Aug.19th to Oct. 16th 400 Equipment resources Equipment Dates Estimated cost ($) Construction materials May 30th to Sept. 2nd 165,000 Computers and software Aug.19th to Sept. 16th 75,000 New furniture Aug.19th to Sept. 16th 35,000 Office supplies May 1st to Oct. 30th 7,500 Total $257,000 Financial resources ($) Resources Estimated cost ($) Personnel resource 261,000 Equipment cost 257,000 Total $518,000 Limits and exclusions The project will be renovated to the global standards of the finalized project design The store will be held responsible for future maintenance of the Beijing SYQ store The project management team shall be response for failure of the project completion. The renovation is restricted to weekdays ending Friday 5pm Project Manager must approve any process during the project renovation of Beijing SYQ stores (Harvard Business Review, 2013). 3. Timeframe and Milestones Work Breakdown Structure (WBS) Project schedule (Gantt chart) Activity ES LS EF LF Slack (LF-EF) A 2 0 5 7 3 B 2 4 12 12 0 C 4 9 23 26 0 D 5 10 22 23 0 E 6 11 24 27 0 F 7 12 23 32 0 G 8 26 31 42 0 H 9 21 25 36 0 I 10 23 41 52 0 10 41 50 0 0 The critical path the longest path which is {A-B-D-F-I} which is {5+12+22+11} = 50days Where. ESis the Earliest start time, LSis the latest start time, EF is the Earliest finished time, LF is the latest finished time Slack is the difference between the latest start time and Earliest start time. (LF-EF) The Gantt chart Start Duration End General condition 1/4/2016 16 2/5/2016 Site Grading and utilities 4/4/2016 69 5/4/2016 Renovation 2/7/2016 102 2/8/2016 Construction 4/8/2016 115 5/8/2016 Integration 5/9/2016 150 5/10/2016 Testing 2/10/2016 130 3/11/2016 Release 2/12/2016 45 3/2/2016 4. Risk Management Project Organization and Management Time management The time management was what the project manager forecast as the likelihood of risk affecting the project t. the effect of time management is that it has effect on the contract leading to penalized and unnecessary cost to the IKEA project team into terms of machines breakdowns which lead to project inefficiency. To avoid this, the project team guarantees that there is a steady growth in every stage of project. The project team must have a detailed plan of the whole aspect of the project which implies that in case of intricacies, it might be rectified right way. This will guarantee smooth running of the project and timely completion (Schmidt, 2009). Over expenditure and Workers underperformance The effect of the over expenditure on budget will be handled by the project management team with steady report and evaluation of project phases in order to guarantee that intricacies identified in the project life cycle are rectified immediately hence making sure that the project is within the set budget and time. All project identified should be registered in the risk registers. The risk recognized at the onset of the project should be listed in the project risk register. Risk register Risk identified: Inefficiency due to poor time management Strategies/activities to minimize the risk By when By whom To stop breakdown of Machines, project team need to ensure that machine servicing and use of later machine is necessary As from the following financial period The project Operations Manager To minimize the Changes in Price and Cost of input, the project team should purchase goods in bulk in order to take advantage of the economies of scale and discount Adjusting the inventory at the start of the month The project Operations Manager Risk identified: Workers underperformance To progress the workers standards performance, there must exist incentives At the time of project operations The project production manager To reduce the risk of shortage of workers, the human resource must guarantee for flexibility of causal labor Anytime when there is need of more casual laborers The project Hr. manager To reduced underperformance, workers must be motivated in a way of incentives Any time during project Operation The project CFO and Senior accountant How the project schedule is affected when the implementation of risk treatment  The project schedule will be improved which implies that the project time management, cost reduction and quality work will be realized since, the problem will be identified in every phase of project success and correction made immediately to ensure that the project runs smooth and competed on time as planned (Wirick, 2011). The revised Gantt chart to reflect changes made Start Duration End General condition 1/4/2016 16 2/5/2016 Site Grading and utilities 4/4/2016 69 5/4/2016 Renovation 2/7/2016 95 2/8/2016 Construction 4/8/2016 92 5/8/2016 Integration 5/9/2016 110 5/10/2016 Testing 2/10/2016 75 3/11/2016 Release 2/12/2016 65 3/2/2016 5. Resources 5.5 Revise project management Gantt _chat 3 Start Duration End General condition 1/4/2016 16 2/5/2016 Site Grading and utilities 4/4/2016 69 5/4/2016 Labor requirement 6/4/2016 60 15/4/2016 Renovation 2/7/2016 95 2/8/2016 Construction 4/8/2016 92 5/8/2016 Integration 5/9/2016 110 5/10/2016 Testing 2/10/2016 75 3/11/2016 Release 2/12/2016 65 3/2/2016 6. Communications Management Communication plan Supplying the knowledge on project is significant to the growth of the IKEA project team. The project contributors need the knowledge of what the circumstance of the project is and also the extent to which they are affected. Furthermore, they are concern on contributing. The more the project team is well versed on the project procedure and how they support them in the future, the more likely they will engage and take advantage. The plan proved the structure for notifying and getting the buy-in from sponsors at all time of the project (Berkun, 2013). Audience This communication plan is intended for the following audiences: Project Sponsor Steering Committee Project Manager User Group Participants Communications Outreach The following is the list of communication events that are established for the project Monthly Status Reports The project executives will create the report of the project success to the steering committee. The report is inclusive of the following Summary of tasks finished in the past month The summary of matters and their solutions The monthly steering committee conference The status of the conference are held on a monthly basis as well as they are steered by the project manager each team member is engaged in the conference. The project manager supply the status report to each ember prior to start of the conference in order each member to evaluate the report (Dick Billows, 2008) Reference list Beckon, S. (2013). Making Things Happen: Mastering Project Management. Sydney: https://books.google.com/books?isbn=0596555393. Dick Billows. (2008). Managing Complex Projects. London: https://books.google.com/books?isbn=0967976154. Harvard Business Review. (2013). HBR Guide to Project Management. https://books.google.com/books?isbn=1422187314. Heldman, K. (2011). Project Management JumpStart. New York: https://books.google.com/books?isbn=1118094476. Heldman, K. (2010). Project Manager's Spotlight on Risk Management - Page 178. Schmidt, T. (2009). Strategic Project Management Made Simple: Practical Tools. New York: https://books.google.com/books?isbn=047044293X. Wallace, C. (2001). The Gantt Chart, a Working Tool of Management. New York: https://books.google.com/books?isbn=1313415901. Wirick, D. (2011). Public-Sector Project Management: Meeting the Challenges. Sydney: https://books.google.com/books?isbn=1118276361. Appendices The budget   PHASE 1   Material Costs   Wood ¥ 200,000.00 Concrete ¥ 300,000.00 Steel ¥ 300,000.00 Cosmetic ¥ 500,000.00 Fittings/Ornaments ¥ 900,000.00 TOTAL ¥ 2,200,000.00 Trade Costs   Electrician ¥ 300,000.00 Plumber ¥ 300,000.00 Builder ¥ 500,000.00 Carpenter ¥ 400,000.00 Concreters ¥ 300,000.00 Labour ¥ 200,000.00 TOTAL PHASE 1 ¥ 2,000,000.00 TOTAL PHASE 1$ 2 ¥ 4,200,000.00 PHASE 3   Material Costs   Cosmetic Material ¥ 350,000.00 Fittings/Ornaments ¥ 350,000.00 Miscellaneous ¥ 50,000.00 TOTAL ¥ 750,000.00     Trade Costs   Carpenter ¥ 50,000.00 Electrician ¥ 50,000.00 Builder ¥ 50,000.00 Miscellaneous ¥ 50,000.00 TOTAL ¥ 200,000.00 Staff/Operational Costs   Training/PD ¥ 50,000.00 Hiring ¥ 70,000.00 Consultants ¥ 80,000.00 TOTAL ¥ 200,000.00 Total Phase 3 ¥1,150,000.00 Net budget (Phase 1,2$3) ¥ 5,350,000.00 Read More
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