Ikea case analysis
I. Issues of the case
A. Ikea faces the allegation of child labor.
1. All IKEA suppliers have signed contract addendums that explicitly prohibit the use of child labor upon pain of termination.
B. The documentary soon to be aired will take a confrontational and aggressive approach aimed directly at IKEA and Rangan Exports.
1. IKEA has been invited to participate in a live discussion with the filmmaker during the airing of the documentary.
C. Ikea have to face the environmental problem.
II. Sources of the problems in the case
A. Ikea’s weakness is convenience of store location. Most would have to drive long distances to visit the store.
B. The issue with Formaldehyde had become an ongoing problem and one of its biggest weaknesses due to their suppliers not holding their part to the standards for emissions on the chemical.
C. Some supplier of IKEA uses the child labor.
III. How to solve the problems
A. Start the delivery service.
B. Improve the standard of manufacturing process to decrease the pollution.
C. Strictly control the supplier in developing countries.
IV. Specific plan and potential problems
A. Specific plan
1. Do the best to establish new store nearer in downtown or start the delivery service, even the paid service.
2. Monitor the manufacture process, to avoid the pollution in produce or in use.
3. Try to establish some organization to help the forest revive.
4. Sanction the supplier that employs children.
B. Potential problems.
1. Ikea’s low price is an advantage; however these ways could increase the cost of the furniture.
2. Ikea will lose some loyalty supplier.
V. Moral or ethical problems
A. In the monitor process it could be have bribe behavior.
B. Some suppliers could still hire children.
VI. Business/ Leadership questions
1. How to solve the conflict between cost and price?
2. How to...