Ikea Global Sourcing Challenges - Case Study Example

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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…
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Ikea Global Sourcing Challenges
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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
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