Tuesday, February 11, 2020

The final exam is a case study that you need to read and submit a Essay

The final exam is a case study that you need to read and submit a written analysis not exceeding 3 single spaced pages. The cas - Essay Example The goals and vision of the company shows the reason behind the measures which it took and how it apologized to its customers for its ignorance of the issue of child labor (Bartlett, Dessain, and Sjoman, 1-12). COMPREHENSIVE ANALYSIS Child labor has always been the focus of attention for different NGO’s. The retailers and other businesses associate themselves with producers working in the developing countries so that the cost of production can be reduced. The producers operating in such areas do not follow the laws or protect the rights of the children. The development of IKEA exhibits the sheer hard work of its founder. From a small mail order organization the company developed into a global retailer over the years. The company set some basic sourcing principles and outsourced its production processes for meeting the demand. This also allowed IKEA in reducing the cost of the products and expanding their sales prominently. IKEA also took continuous measure for expanding the bu siness. With the evolving business the culture and the values of the business expanded. This developed strong ground for the business allowing it to expand in different industries. The management emphasized on simplicity and focused on paying attention to the minor details (Bartlett, Dessain, and Sjoman, 1-12). ... The shockwave of this problem created hurdles for the business. Facing this problem and understanding that India, Pakistan and Nepal were not the signatories of this clause the business added a new clause in the supply contract. This stopped the suppliers from using labor for the production of goods. This type of monitoring was difficult so services of a Scandinavian company were hired for the purpose of quality assurance. The early lesson associated to the organization was that deeply imbedded to the problem the management had to take actions for the process. Different NGO’s, UN organizations and the carpet export organizations took measures for highlighting such issues so that the problems could be dealt with. While the organization was on the verge of dealing with this problem the business realized that a new issue took place. The German television made an investigative documentary which showed that Rangan exports one of the major suppliers of IKEA as using child labor for the production process. This created new problems for the company as it was the only company amongst the large retailers facing such problem. From the suggestions the company acted in cutting off the deal with the supplier. The measures which were analyzed showed that IKEA apologized to the industry and its customers for its ignorance and failing to acknowledge that they were unaware of the fact. This showed the social responsiveness of the business and prescribed that the organization gives heed to the social issues even at the opportunity cost of business profits (Bartlett, Dessain, and Sjoman, 1-12). The summary of the testaments which the business has made for defining the core values of the

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