Indeed, even on a weekday morning, this store is pressed. In only a couple of minutes, clients spread out over each edge of the four-story Building.
Indian Rugs and Child Labor Ikea: We will write a custom essay sample on Ikea: These effects can lead to significant losses financially with respect to sales because the public will not want to support a company who condones or allows child labor.
It would be best to address the problem as a whole and make sure all suppliers are in compliance to the terms of their contract agreements. Any other suppliers in addition to Rangan Exports that are in violation of their supply contract and are currently participating in child labor should be fired.
Even if Rangan Exports or several other exports are in violation of the contract, with nearly 2, other suppliers it should be relatively easy to drop Rangan Exports and utilize another supplier s unless Rangan Exports changes their processes immediately.
Should the company stay or should it exit?
Be prepared to describe the impact of such a decision and how you would manage it With respect to a long term strategy IKEA should take regarding its continued operations, IKEA needs to seriously consider the damaging and tarnishing effects a big story about child labor could have on their company and take this very seriously.
However, stricter and more effective checks and balances need to be put into place to make sure that the contracts are not being violated. There should be routine check-ups at all of the suppliers to ensure that they are within the bounds of their contract. There could not only be a huge loss in trust in IKEA from such a circumstance, but also a huge drop in sales, which as previously mentioned would be costlier than putting in a strategic system of checks and balances.
Ultimately, I believe IKEA can achieve its goals of being cost effective in its outsourcing endeavors to India, however new levels of caution need to be taken to make sure the suppliers are behaving in the ethical manner as redetermined and agreed upon by the contract signed between both parties.
At this point I believe it is critical that IKEA takes a bold stance against child labor to maintain a strong brand name in the market. Because Rugmark was founded on the basis of consumer awareness of the issue I believe some membership to Rugmark would improve the overall public image of IKEA in this arena.
I would allow Rugmark to have a certain amount of oversight in the strategy of eliminating child labor throughout the supply chain. However I would ensure that at all times IKEA has complete control of the process so an effective and ethical approach can be taken in the best interests of the company.
In conclusion, I believe effective and ethical use of the supply chain can be reached while still maintaining a strong public image if the issues IKEA is now aware of are taken seriously and correction action is taken swiftly.IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor Jordan de Jong Case Study _ The case I will analyze and discuss in this case study is “IKEA’s .
It is necessary to continue prove IKEA’s engagement in India, since child labor is deeply implemented in India’s culture. I think if IKEA solve the child labor issue and use effective and ethical supply chain, they would still maintain a strong brand image in future.
Ikea's Global Sourcing Challenge: Indian Rugs Essay Words Apr 11th, 5 Pages The case “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.
IKEA should investigate all of IKEA’s suppliers to make sure that all of them are in accord with IKEA’s policies and the terms of their contract agreements. Meanwhile, fire all of child labor and hire adults even if for an easy job position. IKEA operates around the world and have to follow different political and legal factors in different country for e.g.
IKEA has to adopt a complete new policy to make business working in China (“IKEA's Globalization Strategies and its Foray in China”, n.d.). View Essay - IKEA timberdesignmag.com from MGT at California State University, Dominguez Hills. Business Model and Competitive Strategy of IKEA in India Case Study The case will analyze and evaluate one%(12).