Ikea case study presentation

1. IKEA’s Global Sourcing Challenge By: Parina Agarwal , MinHee Huh, Molly McGowan, and King Tan

2. Issue with Child Labor with IKEA’s Suppliers Social issue with Child labor German TV station and Swedish television documentary Remain or Exit ?

3. IKEA should exit India for the following reasons… Past Issues Time Cost Evaluations Reputation at Stake Company’s Mission

4. Issues with IKEA in the past… Formaldehyde Incident 2 nd Formaldehyde Incident Pakistan Child Labor Incident

5. Wasting Time is a mortal sin at IKEA Pakistan Child Labor Situation Learn from old mistakes and approach using simplicity

6. Incur few cost now, and reduce costs in the future Loss of suppliers will not stop IKEA Opportunity Cost Protecting IKEA Brand and Image Previous Losses

7. Promoting good management and building reputation Past issues hurt reputation Strong relationships with suppliers Good management. “We have always worried more about finding the right management for our suppliers than finding high tech facilities. We will always help good management to develop their capacity.”

8. Adhere to the Mission Statement “ To create a better life for everyday people.” Stop bonded labor Encourage suppliers Start a CHANGE

9. We recommend to re-enter in the future!

10. Conclusion We recommend to exit India because of Their past Time Costs Reputation at Stake Company’s Mission We plan to return to India but only if they make a change for the better.

11. Works Cited Bartlett, Christopher. "IKEA’s Global Sourcing Challenge : Indian Rugs and Child Labor (A) .” Harvard Business Review, 2006 . http:// www.ikea.com / http://www.rugmarkindia.org / http:// www.ngosindia.com /