IKEA’S global sourcing challenge: Indian rugs and child labor
11/02/2013 IKEA’S global sourcing challenge: Indian rugs and child labor
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? Marianne Barner is the business area manager for carpets in IKEA faced with the decision of cutting off one of the company’s major suppliers of Indian Rugs. According to Barner, “German-produced program planned to take a confrontational and aggressive approach aimed directly at IKEA and one of its suppliers.” So they may ask IKEA representative some questions about the child labor issue. If a representative goes, there would be some questions created by the German produced program that made this video in attempt to affect IKEA’s brand on camera. The film maker just provides IKEA some shots taken from the movie, the rest of them are not allowed to be watched by IKEA, which leaves many unpredictable factor. The film may contains some images that would not give any chance for IKEA to explain. They refuse IKEA watching the movie implies that their intention is not to hear about IKEA’s explanation but having someone to blame. In my opinion, Marianne Barner could thank the German Video production company for the invitation. However, she could response politely that she might not able to attend the event and say that IKEA is currently dealing with the child labor issue of its suppliers to ensure their performance is accord with IKEA’s policies. She could also send them a short agenda of IKEA’s engagement in India, which includes website address with further information concerning their plans and engagement in India.
2. What actions should she take regarding the IKEA supply contract with Rangan Exports? In a short-term perspective, it is a good way to discontinue the supply contract with Rangan Exports. Because it is immediately removes IKEA from complain of child labor. Public will realize IKEA makes
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? Marianne Barner is the business area manager for carpets in IKEA faced with the decision of cutting off one of the company’s major suppliers of Indian Rugs. According to Barner, “German-produced program planned to take a confrontational and aggressive approach aimed directly at IKEA and one of its suppliers.” So they may ask IKEA representative some questions about the child labor issue. If a representative goes, there would be some questions created by the German produced program that made this video in attempt to affect IKEA’s brand on camera. The film maker just provides IKEA some shots taken from the movie, the rest of them are not allowed to be watched by IKEA, which leaves many unpredictable factor. The film may contains some images that would not give any chance for IKEA to explain. They refuse IKEA watching the movie implies that their intention is not to hear about IKEA’s explanation but having someone to blame. In my opinion, Marianne Barner could thank the German Video production company for the invitation. However, she could response politely that she might not able to attend the event and say that IKEA is currently dealing with the child labor issue of its suppliers to ensure their performance is accord with IKEA’s policies. She could also send them a short agenda of IKEA’s engagement in India, which includes website address with further information concerning their plans and engagement in India.
2. What actions should she take regarding the IKEA supply contract with Rangan Exports? In a short-term perspective, it is a good way to discontinue the supply contract with Rangan Exports. Because it is immediately removes IKEA from complain of child labor. Public will realize IKEA makes