Ikeas Global Sourcing Challenge Indian Rugs And Child Labor Pdf

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ikeas global sourcing challenge indian rugs and child labor pdf

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IKEAs Global Sourcing Challenge: Indian Rugs and Child Labor (A) Harvard Case Solution & Analysis

The problems identified and outlined in the case are all related to one another. The major problem faced by the company was firstly the environmental wake up with Formaldehyde emission by the suppliers of IKEA was found to be in excess of the allowed limit. This was the first issue where IKEA because of being a low cost manufacturer of furniture outsourced its manufacturing. Another problem identified in the case is when IKEA faced the social wake up Child Labor issue were a Swedish television documentary identified that IKEA was involved in manufacturing rugs in Pakistan was using child labor to produce its rugs in India and Pakistan. The issue was raised publicly because child labor was banned internationally. IKEA had to face the issue because the rugs were being manufactured by the suppliers and the company was unaware of the fact that child labor was involved. As discussed above both the issues are interrelated to the social and environmental factor where IKEA faced the issue because of the dependency on suppliers to manufacture low cost products.

IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A)

Below are the available bulk discount rates for each individual item when you purchase a certain amount. Register as a Premium Educator at hbsp. Publication Date: May 03, Source: Harvard Business School. The Inside the Case video that accompanies this case includes teaching tips and insight from the author. Describes IKEA's growth, including the importance of a sourcing strategy based on its close relationships with suppliers in developing countries.

IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A

How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? Marianne Barners response to the allegation raised by the German broadcaster is dependent on the pros and cons for taking either decision. We look at both actions objectively and then decide on the course of action based on the route that each of them is going to take in future. Decision 1: Reject the Proposal for debate; dont go Assuming the video is authentic An accusation without substantial proof of authenticity is not something that IKEA can afford to address in every country they operate in 17 countries The pros for this decision are 1. IKEA can avoid the uncomfortable blame and by appointing a 3rd party show they are keen to put an end to the matter 2.

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The Inside the Case video that accompanies this case includes teaching tips and insight from the author. Describes IKEA's growth, including the importance of a sourcing strategy based on its close relationships with suppliers in developing countries. Details the development of IKEA's strong culture and values that include a commitment "to create a better everyday life for many people. She immediately implements a strict policy that provides for contract cancellation if any IKEA supplier uses child labor. Then Barner is confronted by a German TV producer who advises her that he is about to broadcast an investigative program documenting the use of child labor in one of the company's major suppliers.

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  1. Eilal P. 12.06.2021 at 19:44

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