MGM102H5 Lecture Notes - Lecture 5: Ikea, Goodweave International, Swot Analysis
Document Summary
Furniture cartel boycoted ikea, which resulted in ikea moving to poland. Ikea formed long term relaionship with its suppliers in poland. Outsourcing of rugs from india - > ikea starts to work closing with india -> both to meet ethical things. Ikea does not accept child labors ( as stated on their websites) Their compeitor strategy is good cost for decent quality products. If child labor is found, contract will be terminated. Working hard with unicef, save the children, etc. What immediate acion should ikea take to deal with the issues : verify the problem, in case it"s a smear campaign, public announcement to cut ies with the supplier(s) -> strong corporate responsibility in. If ikea goes on tv, they will be there and present to defend their point of views right away; introduce any new plans to prevent any future problems with child labors, etc.
