Case Study : Supply Chain Business Operations

1549 WordsAug 16, 20157 Pages
OMGT129 Supply Chain Business Operations GC&E Term Report Section: _____________Group #:_________ (leave it blank) GC&E Project: Supply Chain Business Operations - IKEA Members: 1.Williams, Lisa 300-810-065 Date submitted: August 16th 2015 IKEAS Corporate Social Responsibility Strategy IKEA’s social responsibility and sustainability is continuing to grow and progress according to Chief Sustainability Officer, Steve Howard. IKEA wants their business to have a positive impact on the world so they have implemented a strategy called the People & Planet Positive strategy which focuses on 3 areas (IKEA Group, 2014). The first area of focus is to get customers on board with living a more sustainable life at home…show more content…
The guidelines and steps that IKEA is taking to become more environmentally friendly is by having 50% of their wood will come from more sustainable areas and 100% of their wood from priority areas (IKEA Group, 2014). Also, by August 2015, all cotton used by IKEA will be sourced from more sustainable sources like Better Cotton and leather products will be produced according and with respect of human rights and animal welfare. In order for IKEA to achieve design and sustainability objectives, they follow and balance four dimensions of design. The four different dimensions followed are form, function, quality, sustainability, and low price (Rafiq Elmansy, 2014). IKEA has already made changes by using cotton and water from sources that can be renewed. IKEA did this while posting strong sales figures. In 2014, its sales increased 5.9 percent from 2013 to $32.1 billion (Pantsios, 2015). Eco-friendly Production and Retail Processes at IKEA IKEA pursues sustainability in a big way which is why competitors could learn from their company. IKEA has a wide variety of products under its label. Today, 71% of all IKEA products are recyclable, made from recycled materials, and or both (A.Jefferies, 2009). In addition to this, Ikea recycles 84% of waste generated in its stores. IKEAs sustainability focuses on four components: products and materials, suppliers, climate change, and community involvement. IKEA bases
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