IKEA's Case Study – Case Study Example

IKEA Case Study By of of of Department] Introduction: IKEA was a reputed home furnishing organization that was originally founded in Sweden. (Lewis, 2005, p. 55). In only a few decades the company went from the woods of Southern Sweden to 31 countries around the world." (Ledderhos, 2003, p.1 ) Soon it became a renowned handmade carpet supplier. This caser revolves around the backdrop of the carpet manufacturing saga for IKEA. The company contracted Suppliers from the Asian subcontinent for supplying beautifully crafted handmade carpets. (Gupta et al., n.d., p.12) Amidst this scenario the company came to know of an alarming news that their carpet suppliers were incorporating child labor. According to UNICEF Indias most working children worked in the carpet industry (Monash et al., 2008, p. 132)
1. Stakeholders:
The Working Childrens Families earning while their children were being employed as Child Labor.
Rangan Exports and other companies Employing Children as Child Labor and making them work at cheap rates.
The Indian Carpet making Industry as a whole.
The IKEA Carpet supplying department due to immediate shortage of handmade carpet supplies.
Reputation of IKEA. It has come to stake owing to the accusation of using off limits formaldehyde and also incorporating child labor.
The United Nations Organization.
The poor working children who were being deprived of their rights.
2. Motivations of the stakeholders:
IKEA
1. Fighting for the cause of eliminating the social issue of child labor.
2. Struggling for the well-being and safer future of the poor working chidren.
3. Eliminating the negative impacts its company profile was getting to face owing to a suppliers breach of contract.
4. Bringing back the amount of sales the company had to let go owing to the public awareness of IKEAs involvement in the child labor issue.
Children and Their Families
1. Their only existing motivation was the money the children earned by working in carpet manufacturing units.
2. Their proposed motivation was the prosperity of the future of their entire families if their children were educated.
The Indian Carpet Making Industry
1. They would lose their main workforce if the law restricting child labor got implemented.
The UNO
1. The organization was motivated to work for the well-being of the south Asian child labor force.
3. Prioritizing the Stakeholders:
The stakeholders can be prioritized with respect to the following order. The first numbered stakeholder is the most highly prioritized and the last is the least prioritized.
1. Children and their families.
2. IKEA
3. Indian Carpet Making Industry
4. The UNO.
4. Do the priorities of the stakeholders change over the time frame specified in the case?
The priority of IKEA changes as initially the company was continuing to get carpets produced via their suppliers and were independently working with UNO to eliminate child labor. Towards the end of the stated time period IKEA had to stop its carpet supply chain and focus mainly only on eliminating child labor.
REFERENCES:
Lewis, E. 2005. Great Ikea!: a brand for all the people. London, Cyan.
Ledderhos, M. 2003. IKEA-Success and Problems of a Swedish Concept. GRIN Verlag.
Monash University, United Nations, & Prince of Wales International Business Leaders Forum. 200). Human rights translated: a business reference guide. Melbourne, Australia, Castan Centre for Human Rights Law.
Gupta, D., Houshidari, A. D., & Mangla, A. Preventing Child Labour in the Uttar Pradesh Carpet Belt The UNICEF-IKEA Bal Adhikar Initiative.