Ikea Global Sourcing Challenges - Case Study Example

Comments (0) Cite this document
Summary
The discussion will give IKEA the likelihood to account for themselves and their goal concerning their engagement in India. Particularly Marianne Barner could make her aims clear as she is feeling that IKEA's obligation is much more extensive than simply stopping…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Ikea Global Sourcing Challenges
Read TextPreview

Extract of sample "Ikea Global Sourcing Challenges"

Download file to see previous pages As the discussion stresses if the child labor evidence being utilized at Rangan Exports is precise, the supplier is in direct infringement of IKEA's clause of no child labor. Barner has two clear option decisions in managing this circumstance. In the first place, she can end the contract with the supplier in light of their rupture of the no child labor procurement. This option is legitimate and reliable with. The potential disservice of this option is that it may deny IKEA of a lucrative supplier relationship, and it might briefly slice off access to Indian floor covering sources. In that capacity, it might antagonistically effect IKEA's main concern. Barner's other alternative is to give the supplier a "notice" however look after relations, with the admonition that the supplier quit utilizing child laborers. This would have the upside of keeping up a conceivably lucrative supplier relationship.

This paper highlights that it would likewise give IKEA the chance to "instruct" suppliers about the perils of child labor. On the drawback, this activity would be in spite of IKEA's set up policies. It could make an impression on different suppliers that IKEA may furtively excuse child labor while straightforwardly censoring it. Neglecting to do as such would send the wrong message to different suppliers, expanding their dealing power, and damages IKEA's particular policies. Besides, it leaves IKEA open to charges of exploitative conduct. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Ikea Global Sourcing Challenges Case Study Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/social-science/1701310-ikea-global-sourcing-challenges
(Ikea Global Sourcing Challenges Case Study Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/social-science/1701310-ikea-global-sourcing-challenges.
“Ikea Global Sourcing Challenges Case Study Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/social-science/1701310-ikea-global-sourcing-challenges.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Ikea Global Sourcing Challenges

The Global Strategy of IKEA

...IKEA has become one of the most successful furniture retailer’s in the world. IKEA low-cost-approach to doing business and innovative marketing and brand identity has allowed IKEA to mold and convert their brand image and company to become a lifestyle oriented company. IKEA was one of the pioneers towards globalization by offering furniture that was sold unassembled to its clientele therefore it could be shipped more securely and economically and consequently sold at the lowest possible costs to their customers. The company carefully adapted their corporate structure, business model, and culture to maintain and build their brand image, while carefully...
2 Pages(500 words)Essay

Global challenges

...Global challenges Table of contents TOPICS PAGE NO.S I. Introduction A. Management definition ……………………………………………………. 3 B. Different management schools of thought………………………………. 3 C. Management hierarchical levels..………………………………………….4 D. Competing values framework………………………………………………4-5 II. Application- RBS and globalization A. RBS- its foundation, turnover, workforce……………………………….5 III. PESTLE analysis A. Pestle analysis of RBS……………………………………………………5-6 IV. PORTERS five forces analysis of RBS A. Availability of substitutes Rivalry amongst the existing firms Threat of new entrants and entry barriers Power of buyer Bargaining power of suppliers…………………………………………….6-7 V. SWOT...
6 Pages(1500 words)Research Paper

IKEA's global sourcing challenge

...would decrease its sales in the rugs marketplace in the short term if it exited the Indian marketplace. The labor cost advantage in India should be further exploited by IKEA by expanding its supply chain operations in India. IKEA also has to improve its relations with the governmental agencies and non-profit organizations in the forefront of the battle to eradicate child labor from India and other parts of the world. d. Only for those recommending that IKEA continue to source carpets in India, would you suggest that she: 1) Continue IKEA’s own monitoring and control processes or sign-up to Rugmark? 2) Continue to focus only on eliminating the use of...
3 Pages(750 words)Essay

Global Challenges

...Global Challenges Compare and contrast any country’s recent economic development (since 1980s) with that of another. India is one country that hashad recent economic successes and when one compares the same with that of Ethiopia, there has been a considerable difference ever since the early 1980s. This means that the economic indicators within India are doing something right as compared to Ethiopia which is on a constant famine for a number of decades now. Ethiopia’s problems have been filled with deprivation of resources as far as its people are concerned and there is no proper infrastructure in place while the economic developments within India have increased in the last two decades or so and one can...
2 Pages(500 words)Essay

Strategic analysis of IKEA

...at a low price within a world-wide integrated supply chain. Tarnovskaya et al. conducted two case studies in connection with IKEA’s strategic alliance formation: one was a backward-looking review of IKEA’s oldest supplier country, Poland, which produces about one third of all products in the IKEA range, and the other a forward looking study of Russia, which produces less than 1% of IKEA’s global output, mostly in solid wood. (Tanovskaya et al., undated, p. 8). Swedish engineers and managers first entered Poland in 1961 and pursued a joint strategy of sourcing products in Polish firms and also building IKEA factories in...
18 Pages(4500 words)Essay

Global Challenges

...Urban Planning and Future Challenges The issue of urban planning has always been a challenge to urban planners and policy makers. Urban cities are sprouting each day due to different factors such as population increase and the changing demands of urban migration and ecological effects (Levy, 2011). This is a brief outlook at the challenges facing urban centers planners and policy makers as well as how these challenges will affect the US in the near future. One major challenge that policy makers need to address is the rapid urban migration and sprouting slum population. This is due to the rapid increase in rural urban migration, which affects most cities in the third world countries, such as India, South Africa, and Kenya. Migrants... ...
1 Pages(250 words)Research Paper

Ikea

..., would require large finances Therefore, IKEA can enter into new international marketplaces either through joint ventures or assembling. Through the process of assembling, the company can easily produce intermediate products in its domestic market and finally, assemble and sell those in the new marketplaces. Motivation for International Expansion Since emergence of globalization and trade liberalization, extent of business internationalization has considerably increased across most nations. Figure 3: Increasing Scope of Business Internationalization (Source: Chu, Girdhar and Sood, 2013) The above figure shows that across most of the nations, degree of commercial international...
20 Pages(5000 words)Research Paper

IKEA

...to rise to the environmental and ethical challenges can immensely improve the procurement profile and develop a firm’s access to future prospects. IKEA has got some of the best practices in procurement and has successfully integrated sustainability and margin concerns into innovative and impressive sourcing policies where sustainability is utilized as a basis of competitive advantage. IKEA implements best practices since they are instructive as starting point of inspiration to develop sustainable sourcing and procurement in IKEA so that they can maintain their competitive edge. Over the last ten years, the principle of purchasing power...
15 Pages(3750 words)Research Paper

IKEA Challenges and HR Solutions

..., hardware and plastic among other important assets the manufacturer requires. The challenge therefore becomes the lack of a properly trained manpower that has internalized the brand and culture of the organization for effective production of the furniture and marketing as well as distribution to local customers for maximum mutual gains (Shintaro et al, 2014). The end result has been a weaker IKEA brand, especially among many international consumers who feel that any cheaper, locally produced products which are similar to IKEA’s will just be fine. Reproduction of IKEA products The presence of many global chains and corporations that reproduce...
8 Pages(2000 words)Case Study

What is global sourcing

...Global Sourcing al Affiliation Global Sourcing Global sourcing is a term used to refer to the practice of acquiring goods and services from foreign countries through buying (Schneid, 2010). For instance, one sovereign state may decide to develop a strategy that ensures that it buys a variety of goods and services from other sovereign states rather than producing them on its own. It is important to understand that countries do not always engage in global sourcing due to their inadequacy to manufacture such products of services. However, they always engage in the practice of global...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Ikea Global Sourcing Challenges for FREE!

Contact Us