Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor

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IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor Jordan de Jong Case Study _ The case I will analyze and discuss in this case study is “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor”. I will begin with the vision, values, and strategy of IKEA and an internal analysis of the issues that they have faced as of the time of the case. Next, I will detail the issues IKEA faced in the years prior to the Indian rugs and child labor challenge. Then I will describe the Indian rug and child labor problem that IKEA faced …show more content…

Another example came in 1985 when IKEA introduced the “MOMENT” sofa. The “MOMENT” sofa had a metal frame that was manufactured by a supermarket cart factory. As the company grew through the 1960’s and 1970’s the culture of the company was starting to solidify. Kamprad had a very strong idea of how he wanted the company to operate and be managed. He was eager to share his ideas on management with his staff and thus authored the document, “A Furniture Dealer’s Testament” in 1976. The document described the nine cornerstones of IKEA culture and his vision statement, “To create a better everyday life for the many people.” The testament nine cornerstones were as follows: 1. The product range – our identify 2. The IKEA spirit – A strong and living reality 3. Profit gives us resources 4. Reaching good results with small means 5. Simplicity is virtue 6. Doing it in a different way 7. Concentration – Important to our success 8. Taking responsibility – A privilege 9. Most things still remain to be done. A glorious future While the company, CEO, and staff were all dedicated to the nine cornerstones of the business there were still some issues that IKEA would have to deal with, suppliers and sub-suppliers. IKEA ran into trouble in 1981 in Denmark when government regulation was changed with regards to formaldehyde emissions for building products. When

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