However, even if there is laws regulating the issue of child labor, the problem persist because there is no severe punishment related to offence. Another option for Ikea is to withdraw from form the rug market because the child labor problem is too deeply embedded in the culture of a country like India for Ikea to be able to have any impact on it.
Activists will use these types of situations to create public awareness of the issue.
That is the reason why IKEA had to look abroad for manufacturers because it was impossible to meet demand with their actual situation. That is the reason why IKEA had to look abroad for manufacturers because it was impossible to meet demand with their actual situation.
In a short-term perspective, it is a good way to discontinue the supply contract with Rangan Exports. IKEA has a distinctive way of managing people in an informal manner and constantly search for creative and cheap solution to keep the lowest prices possible.
IKEA already realized the damaging and negative effects that child labor brought. The film maker just provides IKEA some shots taken from the movie, the rest of them are not allowed to be watched by IKEA, which leaves many unpredictable factor.
How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? Evaluation of alternatives All the proposed alternatives brings out some pros and cons that will be described in the next paragraphs in order to choose the best option for Ikea in this situation.
We must say that India is the biggest purchasing source for carpets and rugs. Furthermore, IKEA could make a proposal about how to prevent such thing happen again in the future and gain experience from learning the lesson.
In order for IKEA to maintain the strongest brand image and to maintain a good relationship with consumers, IKEA should monitor Rangan Exports and other suppliers who in violation of their contracts from now on.
Moreover, the work of children in craft industries is permitted to allow the passage of specialized handicraft skills in a family. Therefore, by using Rukmark label, IKEA will gain an advantage in using the Rukmark process in control and monitor the production of rugs in India.
By doing this, it would not hurt the relationship between IKEA and those suppliers, also give them the chance to correct their fault. Because it is immediately removes IKEA from complain of child labor.
The solution requires IKEA to address the issue with Rangan Exports head on through direct communication with the supplier regarding the breach in contract and with regards to their relationship in the future. So, IKEA should consider the issue in a long term perspective.
On the other hand, in that particular situation, doing nothing has an impact of children that are forced to work at really young age, often in dangerous working conditions. This option allows more expertise for intervention against child labor and avoids Ikea to engage capital in a field within which they are not really competent.
By withdrawing they would not improve the company image and would be seen as a company that is not involves in the well being of the society and that does not take part of a solution for the child labor problem.
Also IKEA can give suppliers a warning regarding to the child labor issue. On the other hand, to stay in the rug market and try to deal this issue with the suppliers can be unsafe for the company and its image because it is almost impossible to be totally sure that suppliers are not using child labor or that they will never do it in the future.
Also, no investment is needed from Ikea since it is simply withdrawing from India since there is no insurance of result even if they try to fight against child labor.
IKEA already realized the damaging and negative effects that child labor brought. Rugmark has a bigger power and influence in the child labor issue and is able to do more than Ikea since it is dealing with much more suppliers. However, dealing only with Rugmark can bring less flexibility to Ikea in for the supply of Indian rug and oblige Ikea to take what is provided and authorised by Rugmark.
Conclusions made in this study are only based on the facts given in the case, considering pros and cons of an action.Read this Business Case Study and over 88, other research documents. Ikea’s Global Sourcing Challenge: Indian Rugs.
The case вЂњIKEAвЂ™s Global Sourcing Challenge: Indian Rugs and Child Labor (A)вЂќ is about IKEAвЂ™s development from a backyard company /5(1).
IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor. If I were Marianne Barner, I would use the following strategies regarding IKEA’s continued operations in India - IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor introduction.
* Avoiding social and environmental issues since from the beginning as when these issues emerge.
View Essay - Summary of IKEA Case from BADM at University of Illinois, Urbana Champaign. IKEAs Global Sourcing Challenge: Indian Rugs and Child labor (A) case deals with environmental%(7). IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A) Marianne Barner Response to the Invitation.
The German video program informed IKEA that they were going to broadcast a documentary showing children working at looms at Rangan Exports/5(1).
Proposal 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 Global Sourcing Challenge: Indian Rugs and Child Labor (A) polonyauniversitem.com the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis.
polonyauniversitem.comt a SWOT Analysis: Write down any principles, frameworks or.Download