Global Sourcing Challenge Case Questions Essay
Global Sourcing Challenge Case Questions
1. Marianna Barner should decline the invitation for IKEA to have a representative appear on the upcoming forecast of the German video program. The producers of the documentary invited them to take part in a live discussion during the airing, and while this offer does sound beneficial for IKEA to educate the public and the producers of the current efforts taken to fight child labor, it would not be in their best interest. This is attributed to the fact that the producers refuse to let IKEA preview the video beforehand and that they are aware that the producers “planned to take a confrontational and aggressive approach” directly aimed at them. As a result, there is a very high possibility that the representative would then be blindsided with questions and then IKEA’s message of their efforts would not be portrayed accurately. Instead, IKEA should respond to the allegations by releasing their own statement allowing them to explain their efforts once they have had the opportunity to review all evidence and verify the credibility.
2. In regards to the supply contract that IKEA has with Rangan Exports, it would be best if Barner terminates the contract, should sufficient evidence prove that they do indeed use child labor. They stress the importance of taking responsibility for their suppliers, and in the IWAY (IKEA Code of Conduct), it clearly states that they do not accept Child Labourm, otherwise their contract will be terminated. The well-regarded company (Rangan) had signed an addendum that explicitly forbids the use of child labor, so it is important that IKEA upholds their standards and codes in order to maintain a fair position with their other suppliers. It would also be wise for her to then issue a statement or press release about the severed ties with the company, stating the reasons for the decision and maintaining integrity by upholding their own policies regarding child labor, so that the public and other suppliers see that they won’t tolerate unethical behavior or violations to their contract.
3. It is suggested that IKEA stays in India and continue operations. The long-term strategy that Barner should take regarding continued operations includes maintaining their code of conduct to uphold their image of being responsible for their suppliers and the environment, while also contributing to an improved quality of life for those in India.