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
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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
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Outsourcing and offshoring Then I’d like to talk about offshoring. Offshoring is a type of outsourcing. Offshoring simply means having the outsourced business functions done in another country. Frequently‚ work is offshored in order to reduce labor expenses. Other times‚ the reasons for offshoring are strategic -- to enter new markets‚ to tap talent currently unavailable domestically or to overcome regulations that prevent specific activities domestically. The term is in use in several distinct
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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 sent a legal team to Geneva to seek input and advice from the International Labor Organization on how to deal with the problem and to find out more about the child labor issues. They also hired a third party agent
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IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor Executive Summary Ingvar Kamprad founded IKEA in the early 1950s and served as CEO until 1986. By the mid-1990s the company was the world’s largest specialized furniture retailer. Kamprad broke the mold of the traditional furniture maker and went outside of the Swedish furniture cartel. He built relationships with outside suppliers and forged a unique business model featuring exhibition retail displays highlighting a broad range of functional
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1) IKEA is a successful global furniture company‚ which was founded as a mail order business earlier. The vision of IKEA was to create a better life for the many people‚ besides offering qualitative products with affordable prices‚ IKEA was trying to be environmental friendly and social responsible. Nevertheless‚ the flourish of IKEA also brought some problems‚ and IKEA was currently seeking a better way to deal with the child labor issues of its suppliers. 2) IKEA was facing a harsh issue due
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LGO GLOBAL SOURCING‚ LLC [pic] The World Wide Leader in International Sourcing and Service ISO 9001:2008 Certified Global Sourcing of Cast and Forged Products Fabrications and Hardware/Fasteners Quality Products Timely Product Shipments Technological Expertise Light Manufacturing Consulting Services Warehousing Table of Contents LGO Global Sourcing - Addressing the Emerging Marketplace……………………...………….3 Value Proposition…………………………………………………………………………………4
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Studieretningsprojekt Sourcing & Shoring Marketing | A-level | Michael Pedersen International Economics | A-level | Ingvar Hansson 7. February 14 Christopher Nørgaard Haslund Abstract This paper examines different terms and factors influencing decisions on sourcing and shoring different business functions. Outsourcing caused the term of insourcing‚ and offshoring resulted in onshoring. However‚ onshoring is sometimes called inshoring‚ and insourcing is sometimes
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I) Introduction Globalisation is bringing the world economies toward a system where goods‚ services‚ capital and ideas are free to move without boundaries. Many salutes this trend as beneficial for the global economies while others perceive it like a threat to their own welfare. Especially the theme of off-shoring‚ which cause the replacement of many works to less development countries‚ is developing a debate on whether free trade should be limited in order to preserve domestic labour. This report
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ABSTRACT The purpose of this paper is to use supply management as a tool in analysing the global sourcing processes and activities within two successful leading textile companies: Zara and Hennes and Mauritz (H&M). To describe their logistics and supply chain processes in order to understand how these two companies can add a good value to its customers‚ to its stakeholders and to its suppliers. Pressure for companies to create and deliver value to customers manifests itself in every stage of
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