• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

ikea case study

Extracts from this document...

Introduction

IKEA's global Sourcing Challenge: Indian Rugs and Child Labor Company overview Founded in 1943 by Ingvar Kamprad who is 17 years old and have innovative values and beliefs in business, IKEA, started as a mail-order company selling small items at low prices, and is nowadays the world's largest furniture retailer. In 1948, he added furniture to his newsletter and had an immediate success. In 1951, the Swedish company opened the first display store in order to reduce the return rate. The success of the store led Kamprad to stop accepting mail-orders to concentrate his efforts on opening stores: the modern IKEA concept is born. At the time, a cartel of furniture manufacturers was keeping high prices in the industry, a situation judged unacceptable by IKEA's founder and also a business opportunity for him. He thus concentrated all his efforts on trying to offer the best price of the industry so that more people can afford well designed furniture. IKEA introduced on the market in 1953 the self-assembled furniture which permitted a reduction of costs that was transferred to the customers in getting lower prices. ...read more.

Middle

In the carpet industry, to encourage firms to resolve the problem, the Rugmark Foundation is in charge of the supervision and the development of a label certifying that a carpet has been made without the use of child labor. This foundation expected to begin exporting the socially conscious carpets in 1995 and invited IKEA to sign up with them to help to solve the problem in India. The implications for IKEA in this debate are that, in the decisions taken, the company has to considerate the impact on brand and image. Furthermore, on the financial side of the problem, the company has to take onto account that the competitiveness compared to the competitors has to be maintained because up to now, IKEA's strategy is based on offering a well-designed product at an affordable price for the majority of people. Alternatives Ikea faces a few alternatives in order to solve this problem. They could first try to deal with the child labor problem trough its relationships with his suppliers or let Rugmark in charge of monitoring child labor on its behalf. Since the problem is really deeply embedded in the culture of those countries, they could also withdraw form the rug market to ...read more.

Conclusion

The option to do nothing is possible in all situations. The positive aspects of letting the situation exactly as it is right now are that it would not engage any costs and would not require any efforts. 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. Moreover, Ikea would be involved in that kind of scandals repeatedly and would lose more and more customers and profits because people do not want to buy from company that encourages child labor. Recommendation The best option for Ikea would be to let Rugmark monitoring the use of child labor on its behalf. 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. Rugmark responds to the need of Ikea to certify its customers that the rugs they are selling are entirely made without using child labor. It also allows Ikea to get involve in social issues and cooperate with human rights organizations in order to improve its company image after those scandals. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Child Development section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Child Development essays

  1. Marked by a teacher

    Child Development - Child Study

    4 star(s)

    because he thinks the new baby will get the attention that he wants off his mum. What Happened? When I visited Jack I was looking at his emotional development. Jack wasn't communicating with his new baby sister as I thought he would.

  2. Child development - Study of a child

    She then wanted to go for a kick about in the park with her friend so she started to kick the ball about the park with her friend and it was as though she forgot I was there, she was happy playing with her friend though.

  1. The main aim of this paper is to compare and contrast parental rights and ...

    there had not been a valid marriage between the parties because the correct formalities had not been complied with. The National Traditional Appeal Court affirmed the judgment of the lower court and held that at customary law in lobola paying societies, the man cannot be compelled to maintain the of an irregular union."

  2. Examining the advantages of creative activities to the client.

    can go through the school if they haven't got a certain reason by doing so. The tables and chairs were at the appropriate height for the children and the tables didn't have any sharp edges that the children could hurt themselves on.

  1. Why family structures are changing.

    Just recently Jake has had problems with his muscles in his leg they have been overworked from the gym, he went to his GP and was advised to go to physiotherapy he has since been told not to do any leg weights or running and has also been given stretches to do while his leg recovers.

  2. Explain the context, concept, lessons and recommendations from the Norsk Hydro's Utkal Venture case ...

    Globalization for mining companies have contributed towards improved social development, through providing jobs, paying taxes, building an industrial base, enhancing efficiency, earning foreign exchange and transferring technology, but they have also been linked publicly to interference in sovereign affairs, deepening disparities in wealth, poor labour conditions, corruption, transfer pricing, pollution

  1. All of these poems deal with parents' relationships with and reflections on their children.Plath, ...

    The similarities between these poems also emphasize the fact the wonderful moment of birth and lifetime of moulding a child will always be one of the most beautiful and rewarding moments a person can experience. The third and final poem we analysed, was entitled 'Upon my son Samuel his going for England, Novem.

  2. Child development study - I will compare my visits and look at Aroushs development ...

    As well as all the above I would like to see her sensitivity to plastercine: weather she likes touching and playing with it. Before letting Aroush play with plastercine, I will need to think about health and safety: 1. Aroush will need to wear an apron 2.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work