Your SlideShare is downloading. ×
0
IKEA’s Global Sourcing Challenge:Indian Rugs and Child Labor           Ines Haitzinger, Karen Hintelmann, Leonie Steegers,...
AGENDACOMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   LONG-TERM STRATEGY   RECOMMENDATIONS
COMPANY & SITUATION •     IKEA = Swedish furniture retailer •     Strategy: Sell affordable, good-quality furniture to mas...
COMPANY & SITUATION                                             1994:                                             Child la...
SHORT-TERM ACTIONS                                                           • Investigate first the                      ...
Media RepresentationCOMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   LONG-TERM STRATEGY   RECOMMENDATIONS
LONG-TERM STRATEGY Alternative suppliersCOMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   LONG-TERM STRATEGY...
LONG-TERM STRATEGYCOMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   LONG-TERM STRATEGY   RECOMMENDATIONS
LONG-TERM STRATEGY Own monitoring and control processes or sign up to Rugmark?COMPANY & SITUATION   SHORT-TERM ACTIONS RES...
LONG-TERM STRATEGYCOMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   LONG-TERM STRATEGY   RECOMMENDATIONS
LONG-TERM STRATEGY Addressing root causes of child labor?COMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   L...
LONG-TERM STRATEGY • Problem before: Formaldehyde and forestry issues  reactive • Ikea as global company: higher awarenes...
RECOMMENDATIONCOMPANY & SITUATION   SHORT-TERM ACTIONS RESPONSE PROPOSITION   LONG-TERM STRATEGY   RECOMMENDATIONS
Thank you for your attention!
Upcoming SlideShare
Loading in...5
×

Ikea Case Study

14,052

Published on

Published in: Business, News & Politics
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
14,052
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
348
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "Ikea Case Study"

  1. 1. IKEA’s Global Sourcing Challenge:Indian Rugs and Child Labor Ines Haitzinger, Karen Hintelmann, Leonie Steegers, Anny Yen
  2. 2. AGENDACOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  3. 3. COMPANY & SITUATION • IKEA = Swedish furniture retailer • Strategy: Sell affordable, good-quality furniture to mass- market consumers • Procurement policy: Establish long-term relationship with suppliers • 2,300 suppliers in 70 countries • Marianne Barner: Business area manager for carpets • Rangan Exports: Indian carpet supplier; Recently signed contract forbidding the use of child laborCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  4. 4. COMPANY & SITUATION 1994: Child labor scandal in Pakistan 1980: Ikea had no awareness of child labour problem Formaldehyde scandal in Denmark  Apology  Collaboration with chemical  Advice from organizations companies to reduce formaldehyde  Change of supplier contracts concentration  Random tests & situation analysis 1992: 1995: Formaldehyde scandal in Germany Child labor scandal reported by German  CSR: TV channel at Rangan Exports 1. Forestry  Invitation for live discussion 2. Adaptation of product range  What to do? 3. Working with suppliers 4. Transport and distribution 5. Environmentally concious storesCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  5. 5. SHORT-TERM ACTIONS • Investigate first the situation and generate potential learnings • Find a long-term solution • Stop business activities  No direct cancellation only if violation provenCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  6. 6. Media RepresentationCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  7. 7. LONG-TERM STRATEGY Alternative suppliersCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  8. 8. LONG-TERM STRATEGYCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  9. 9. LONG-TERM STRATEGY Own monitoring and control processes or sign up to Rugmark?COMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  10. 10. LONG-TERM STRATEGYCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  11. 11. LONG-TERM STRATEGY Addressing root causes of child labor?COMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  12. 12. LONG-TERM STRATEGY • Problem before: Formaldehyde and forestry issues  reactive • Ikea as global company: higher awareness of social responsibility & anticipate potential upcoming risks  introduce a full CSR concept Increase awareness of Indian population hotline, experts, investigation Provide kids education they have missed  future work prospectives Higher family income  elimination of child labor, boycotts together with other firmsCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  13. 13. RECOMMENDATIONCOMPANY & SITUATION SHORT-TERM ACTIONS RESPONSE PROPOSITION LONG-TERM STRATEGY RECOMMENDATIONS
  14. 14. Thank you for your attention!
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×