Ikea's Global Sourcing Challenge
1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program?
A. Although Marianne Barner knows that the broadcast of the German video program is aimed at aggressively confronting IKEA and one of its suppliers, in my opinion she should accept the invitation for IKEA to have a representative appear on the video program. Because the IKEA’s philosophy says that anyone can make mistake but he/she should accept the responsibility of making a mistake. The IKEA made mistake unknowingly by accepting the contract without investigating the production facility of the supplier. By having a representative appearing on the video program, IKEA will show that not only the company has guts to accept mistakes it committed but also company cares to rectify it. The representative should first apologize for the ignorance about this issue on company’s behalf and should ensure that the message about company’s planning to take corrective action is clear and how company is going to rectify and avoid such mistakes in future. In this way the IKEA brand value will increase as the customer would know that the company cares for social values.
2. What actions should she take regarding the IKEA supply contract with Rangan Exports?
A. Marianne 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 seek the assistance of UNICEF, ILO and NGO’s and 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. As Rangan Exports was one of the
A. Although Marianne Barner knows that the broadcast of the German video program is aimed at aggressively confronting IKEA and one of its suppliers, in my opinion she should accept the invitation for IKEA to have a representative appear on the video program. Because the IKEA’s philosophy says that anyone can make mistake but he/she should accept the responsibility of making a mistake. The IKEA made mistake unknowingly by accepting the contract without investigating the production facility of the supplier. By having a representative appearing on the video program, IKEA will show that not only the company has guts to accept mistakes it committed but also company cares to rectify it. The representative should first apologize for the ignorance about this issue on company’s behalf and should ensure that the message about company’s planning to take corrective action is clear and how company is going to rectify and avoid such mistakes in future. In this way the IKEA brand value will increase as the customer would know that the company cares for social values.
2. What actions should she take regarding the IKEA supply contract with Rangan Exports?
A. Marianne 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 seek the assistance of UNICEF, ILO and NGO’s and 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. As Rangan Exports was one of the