IKEA Case Study

1430 Words Oct 3rd, 2014 6 Pages
IKEA Case Study 1

IKEA - Case Study
Panagiotis Charalampous
Northcentral University

IKEA Case Study 2
Synopsis of the situation
IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international home products company that designs and sells ready-to-assemble furniture, appliances and home accessories. The company is now the world 's largest furniture retailer. IKEA was founded in 1943 by 17-year-old Ingvar
Kamprad in Sweden, named as an acronym comprising the initials of the founder 's name (Ingvar
Kamprad), the farm where he grew up (Elmtaryd), and his home parish.
Kamprad started the company at his home as a mail order company. He sold goods which he purchased from low priced sources and then advertized in a
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Since then, IKEA has improved its procedures to evaluate the environmental impact of its products. Currently, IKEA uses a tool called the ‘e-Wheel’ to evaluate the environmental impact of its products. The e-Wheel helps IKEA to analyze the four stages within the life of a product.
This also helps suppliers improve their understanding of the environmental impact of the products they are supplying (The Times 100).

IKEA Case Study 4
Next, the issue with child labor arose in 1994 when a Swedish television documentary showed children in Pakistan working at weaving looms. IKEA was one of the several Swedish companies that were mentioned as importers of carpets from Pakistan. IKEA was unaware of the problem and tried to respond by sending a legal team to Geneva

for input and advice from the International Labor

Association(ILO). IKEA discovered that child labor was not illegal in these countries so the only way to handle the problem was by adding a clause for child labor in their contracts and outsource the monitoring of this clause to a third party company. But it seems that this measure was not effective enough, as in 2007, Anders Dahlvig, the multi-national 's Chief Executive Officer, admitted that some of the company 's products were still produced using child labor (Wadsworth, 2007).
Key Issues and Players
The key players in this case are the IKEA company and its suppliers. In

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