Cross-cultural issues need to be carefully considered during the operation of IKEA, as different countries will have different values, beliefs and attitudes. This would help ensure that IKEA operates ethically and responsibly in its countries of operation. Cross-cultural issues are an example of a major factor that encourages the success of multinational companies. The majority of successful businesses have increased their competition and emerged in more countries. Multinational companies such as IKEA benefit so that cross-cultural differences are conscious and experienced in all their countries of operation. IKEA will have strengths and weaknesses that can be beneficial or disadvantageous and these usually manifest themselves through changes in the PESTLE factors. With the current recession and different countries developing and changing their overall business practices, it affects international companies like IKEA and domestic companies like Nissan in terms of expansion and cultural differences. IKEA should adapt to change, in order to keep up with the changes and stay competitive. Being adaptable to change will help IKEA in circumstances such as changes in behavior, beliefs, customs or communication. According to Schwartz et al. (2008), it is proven that culture is an essential factor that plays a key role in the development and performance of various companies, including IKEA. Although IKEA originated in Sweden, it has successfully developed and expanded its operations to other countries. Currently, they operate in 33 countries, which helps them better understand the country's overall economy and the cultural differences in how things are done. Cros... middle of paper ...... B&Q and similar furniture companies. 3.6 Franchise Opportunities IKEA may consider franchising as it will help it expand its customer base and become more ethical in its operations. Franchising would help expand their operations to other countries without debt risk or cost of equity (Entrepreneur, 2004). IKEA is franchised by Inter IKEA Systems BV of the Netherlands (Inter IKEA Systems BV, 2012e). Franchising helped IKEA resolve cross-cultural issues and create appropriate policies and procedures (Schneider and Barsoux, 2003). As IKEA expanded its business through franchising, it was found that different product designs influenced cross-cultural differences. Based on this, culture impacts product design, which is why IKEA ensured that products and design are tailored to their diverse customer base..