STEN 4900 Study Guide - Final Guide: Goodweave International, Ikea, Corporate Social Responsibility

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Case nine: ikea"s glo(cid:271)al sour(cid:272)ing challenge: indian rugs and child la(cid:271)our (cid:894)a(cid:895) Issue: the (cid:373)ai(cid:374) issue i(cid:374) the (cid:272)ase surrou(cid:374)ds o(cid:374)e of ikea"s (cid:373)ajor suppliers of i(cid:374)dia(cid:374) rugs. This (cid:373)ajor supplier has (cid:271)ee(cid:374) exposed for employing child labour in their production processes. This is a huge dilemma for ikea; as one of the (cid:449)orld"s largest retailers, the business is always in the limelight and therefore any negative publicity can be detrimental to sales and revenues. Marianne burner, the business area manager for carpets, is faced with the difficult decision on how to most effectively resolve this issue. Analysis: i will be conducting a vrio analysis for key components of ikea to better analyze the situation at hand. Imitable organized to exploit sustainable advantage: ikea"s ni(cid:374)e cor(cid:374)ersto(cid:374)es, brand name/image, management/leadership, supplier relationships, ikea"s (cid:374)i(cid:374)e (cid:272)or(cid:374)ersto(cid:374)es are a stro(cid:374)g ad(cid:448)a(cid:374)tage for the (cid:272)o(cid:373)pa(cid:374)y. These (cid:374)i(cid:374)e (cid:272)or(cid:374)ersto(cid:374)es ha(cid:448)e for(cid:373)ed ikea"s culture and direct its vision.

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