Such department should be made a mix of the ForeignExpatriateand the local players both to keep the balance of understandingthestance, culture, values, working situation and other operation complexities effectively. Moreover, since the Rangan Exports is a huge supplier to the company, the company should revise the terms and conditions with thesupplier.
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.
This would provide IKEA a positive image and might strengthen their engagement.
Movies have the power to suggest a certain image especially if negative scenes are shown. There for it is indispensable to IKEA to review the movie before attending the discussion. The discussion might have an aggressive and confrontational attitude towards IKEA for using a supplier, which employs children and suggesting IKEA a reckless company just caring about profit.
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.
So by the time values change and should be extended to broader meanings. As it is a question of moral IKEA can also use this as a marketing strategy to bolster its image.
This shows that pulling out would not abolish child labor but threaten Indian people even more as a resource of earning money would disappear. In return a negative image could be established towards IKEA for not taking further actions in the Indian market.
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The leading source for e-commerce news, strategies and research. Including webinars, blogs and e-retailer rankings, Top 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 behave considering economical issues and the company s policy!
IKEA's global sourcing challenges case study are examined. The national and global laws you need to consider for this case are determined.
10 ¶ And he called the multitude, and said unto them, Hear, and understand: Not that which goeth into the mouth defileth a man; but that which cometh out of the mouth, this defileth a man.
IKEA is a Swedish company producing home furnishing products at low prices. The company was founded in by Ingvar Kamprad and kept growing tremendously from 2 .