Ikea's Global Sourcing Challenge

2533 WordsSep 22, 201111 Pages
IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A) Case Synopsis IKEA is a “privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories” (www.worldisyouroyster.com). The company was established in 1943 by Ingvar Kamprad in Sweden when he was just 17 years old. Kamprad himself, who still owns the private company, is rumored to be the world’s richest man. IKEA is currently the world 's largest furniture retailer and arguably the most successful global retailer. Being one of the biggest global retailers, IKEA benefited a lot by the globalization of its business; IKEA’s target market is the global middle class who is…show more content…
He refused to let the IKEA preview the video; however he invited them to send someone to take part in a live discussion during the airing of the program. According to Barner, “it was immediately clear that this German-produced program planned to take a confrontational and aggressive approach aimed directly at IKEA and one of its suppliers” (Bartlett et al 8). The refusal to show the movie to IKEA implicit shows that their intention is not to hear about IKEA’s engagement but having someone to blame. The discussion might have an aggressive and confrontational attitude towards IKEA for using a supplier, which employs children and suggesting IKEA a reckless company just caring about profit. Barner should first of all understand the situation thoroughly before taking any steps against Rangan Exports. The Global sourcing always brings with it the social, cultural and regulatory differences which should be dealt with effectively to ensure success in global supply chain. She should help Rangan Exports to avoid using child labor in production of rugs by bringing awareness about such social issues and how it impacts the life of child in physical, mental, spiritual, moral, and social terms. She should even pressurize the supplier for avoiding child labor in production. A live discussion would give IKEA the possibility to explain themselves and their intention concerning their engagement in India. Barner could make her intentions clear as she is feeling that
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