Indian rugs and child labor 6 June Economics How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? The film may contains some images that would not give any chance for IKEA to explain.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. In previous years, IKEA has encountered problems with child labor and has worked diligently to educate themselves and respond to the problem.
The filmmaker of the documentary will be exposing IKEA as an affiliate with the supplier and reporting on their usage of child labor in Pakistan. The Rugmark Foundation, a company that develops label certification without the use of child labor, is also a resource she could use to combat the problem.
Barner must respond to the use of child labor in the Indian carpet industry with a short term decision and long term action. He worked to achieve this goal by offering low prices to consumers whenever possible.
Innovation within the company always led to savings for customers which only helped increase his consumer following. Kamprad wanted to gain relationships with suppliers that would benefit the company in the long run. He viewed adversity as a business opportunity and an opportunity to correct problems.
He emphasized good quality, simplicity, attention to detail, and cost consciousness to the culture and management at IKEA. Alternatives Considered At this point in time there are many possibilities to consider. Marianne Barner has the option of dropping Rangan Exports as a supplier.
Ridding themselves of this supplier and breaking all ties shows consumers that IKEA is opposed to sweat shops and has no interest in working with individuals who encourage such behavior.
Dropping the supplier could also result in dire consequences since consumers might think that IKEA was running away from the problem. Alternatively, the company could work with the supplier to end the use of child labor.
Enforcing the law and working with the supplier to attend to the issue tells consumers that although IKEA may have been unaware of the issue, they care about those who are being affected. This portrays IKEA as a trustworthy brand that consumers can continue to use. In regards to the German documentary, IKEA has the option of speaking in the film or putting out their own statement.
Speaking in the film may be dangerous since interviews often get misworded and portray the speaker in a negative light. IKEA would have very little control if the film were to cut out certain clips. This may result in the loss of consumers.
Unfortunately a statement like this can easily become misconstrued and perceived as ignorance and carelessness. Releasing a personal statement could benefit IKEA since the company would have no affiliation with the documentary. A personal statement could prevent out lash and the company could proceed by making the issue a public concern.
Recommendation IKEA is founded on beliefs that benefit the consumers and has worked in the past though adversity. That being said, I believe that the best decision for IKEA would be to release a personal statement and keep Rangan Exports as a supplier. A scandal focused on sweatshops and child labor is too controversial to approach through a third party.
The company does not want to be viewed as supporters of child labor nor do they want to be viewed as insensitive to the workers.IKEA Global Sourcing Case Study Essay Sample. IKEA is being forced to make a difficult decision after a German documentary maker announced the prevalence of children working at looms at Rangan Exports, a major supplier of the furniture company.
Free Essay: IKEA's GLOBAL SOURCING CHALLENGE EXECUTIVE SUMMARY The IKEA Group, one of the world’s top furniture retailers, has emerged as the fastest-growing.
IKEA Global Sourcing Case Study Essay Sample. IKEA is being forced to make a difficult decision after a German documentary maker announced the prevalence of children working at looms at Rangan Exports, a major supplier of the furniture company.
Summary. In this case, it is known that IKEA’s procurement model is the mode of global sourcing. IKEA products are shipped to the 26 distribution centres from the trade area after procurement, and then delivered to the shopping malls in the world. IKEA’S global sourcing challenge: Indian rugs and child labor; IKEA’S global sourcing challenge: Indian rugs and child labor IKEA’S global sourcing challenge: Indian rugs and child labor.
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IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor Executive Summary Ingvar Kamprad founded IKEA in the early s and served as CEO until By the mids the company was the world’s.