Outsourcing does damage the local labor markets. To facilitate the equality of all workers, IKEA should monitor and control processes by paying for third party monitoring of all factories that produce merchandise.
This foundation expected to begin exporting the socially conscious carpets in and invited IKEA to sign up with them to help to solve the problem in India.
The Rugmark Foundation, a company that develops label certification without the use of child labor, is also a resource she could use to combat the problem. However, even if there is laws regulating the issue of child labor, the problem persist because there is no severe punishment related to offence.
First, the situation of IKEA about this subject is difficult since when a Swedish television declared that one of their suppliers in Pakistan was using children in their factories. IKEA introduced on the market in the self-assembled furniture which permitted a reduction of costs that was transferred to the customers in getting lower prices.
Recommendation IKEA is founded on beliefs that benefit the consumers and has worked in the past though adversity. Unfortunately a statement like this can easily become misconstrued and perceived as ignorance and carelessness.
Also IKEA could set up much stricter and more effective polices to monitor and restrict suppliers.
IKEA already realized the damaging and negative effects that child labor brought. However, dealing only with Rugmark can bring less flexibility to Ikea in for the supply of Indian rug and oblige Ikea to take what is provided and authorised by Rugmark.
Only for those recommending that IKEA continue to source carpets in India, would you suggest that she: Marianne Barner has the option of dropping Rangan Exports as a supplier.
Since the problem is really deeply embedded in the culture of those countries, they could also withdraw form the rug market to avoid being associate to child labor or, as it is always an option, Ikea could choose the option to do nothing concerning this issue.
Buyer should see to it that quality service is delivered to its clients. So, IKEA should consider the issue in a long term perspective. The products are marketed as a high tech product due to the high quality control placed into it.
By doing that, Ikea could regain its popularity and erase the damages that all those controversies concerning child labor have done to the brand image.
It affects the jobs of individuals within the locality as companies begin to outsource causing job disruption and employment insecurity, 2. Now, to have a better idea of the situation of child labor in South Asia, we will make an overview of the major facts that IKEA as to take into account.IKEA Global Sourcing Case Study Essay Sample.
IKEA is being forced to make a difficult decision after a German documentary maker announced the prevalence of children working at looms at Rangan Exports, a major supplier of the furniture company.
IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor Ikea is a multinational global leader in the home furnishing industry. Founded as a family. IKEA s Global Sourcing Indian Rugs and Child Labor 1 How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the.
Ikea Global Sourcing Challenge Essay Words | 9 Pages. Ikea Global Sourcing Challenge: Indian Rugs and Child Labor IKEA and Marianne Barner are facing a very challenging issue. Because they were blind sided by the child labor issues with their supplier, they had to scramble to respond to the issues in a quick and appropriate manner.
IKEA. Ikea Global Sourcing Challenge: Indian Rugs and Child Labor IKEA and Marianne Barner are facing a very challenging issue.
Because they were blind sided by. IKEA’s global Sourcing Challenge: Indian Rugs and Child Labor - Assignment Example. We will write a custom essay sample on Any topic specifically for you For Only $/page.
order now. indicating a general challenge of global sourcing for the company. Analysis In order to solve the problem, let’s take a look at every fact in IKEA.Download