Ikeas Global Sourcing Challenge Indian Rugs Essay

The case â€Å"IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A)† is about IKEA’s development from a backyard company to one of the world’s largest furniture retailers, which has to deal with the issues of child labor and how they should behave considering economical issues and the company’s policy! Conclusions made in this study are only based on the facts given in the case, considering pros and cons of an action. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? A live discussion would give IKEA the possibility to explain themselves and their intention concerning their engagement in India. Especially Marianne Barner could†¦show more content†¦What actions should she take regarding the IKEA supply contract with Rangan? What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should they exit? IKEA aims for long-term relationships with its suppliers and also supports them in order to get a reliable but competitive supplier. The same attempt could be done in India as they did in Poland several years before. Of course at first sight it seems as if IKEA would risk to lose some of its reputation and sales power for continuing relationship with the Indian supplier but it would have an even more positive effect on its reputation if IKEA will maintain its connections and help them developing new systems, involving the public. Involving the public by marketing actions helps them to understand IKEA’s intentions so it won’t be misunderstood and will also have a marketing effect itself. To continue their engagement would also match the company’s policy and Kamprad’s view â€Å"create a better everyday life for many people†. This was originally meant to insure affordable sales to customers but they also haven’t had the problem of child labor at that time. So by the time values change and should be extended to broader meanings. As it is a question of moral IKEA canShow MoreRelatedIkea’s Global Sourcing Challenge: Indian Rugs and Child Labor1548 Words   |  7 PagesIKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor Ethics in Business and Society Professor Stephen Griffith Otis West Tuesday, November 6, 2012 IKEA is the world’s largest furniture store that offers well-designed, functional home furnishing products at low prices. The store offers home furnishings to meet the needs of everyone. The company vision is to create a better everyday life for the many people. Ikea is able to back their vision with their products and prices. 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The company was established in 1943 by Ingvar Kamprad in Sweden when he was just 17 years old. Kamprad himself, who still owns the private company, is rumored to be the world’s richest man. IKEA is currently the worldRead MoreIkea s Global Sourcing Challenge Indian Rugs And Child Labor1532 Words   |  7 PagesIKEA’S GLOBAL SOURCING CHALLENGE INDIAN RUGS AND CHILD LABOR In 1995, Marianne Barner, IKEA’s manager for carpets, faced a difficult situation when one of their Indian rug supplier apparently was involved with the use of child labor in the manufacture of its products for IKEA. Even though they had a contract where IKEA explicitly forbid the use of child labor. These Allegations generated mixed opinion regarding the future of all the Indian carpet suppliers and the company was studying the futureRead MoreIKEA Global Sourcing Challenge: Indian Rugs and Child Labor1176 Words   |  5 PagesProposal Case: IKEA Global Sourcing Challenge: Indian Rugs and Child Labor 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 procurement philosophy and assessment of suppliers mainly include four aspects: continuous price improvement; strict supplier performance and service levels;