Explain the meaning of international trade. Describe the two major forms through which international trade takes place. Explain the relationship between international trade and national prosperity and provide examples to illustrate this relationship. Explain why SMEs now comprise the majority of firms active in international business.
Write a synopsis that describes the background information about the case, an overview of the case. The IKEA distribution chain demonstrates a system that employs exclusive outsourcing for product manufacture. Due to this type of sourcing, i. The fact that IKEA itself owns no manufacture or production facilities but instead relies exclusively on contractors they have only limited control of how such facilities generate product, with the exclusion of the contracted quantities ordered.
Given this scenario IKEA has recently come under fire through public awareness campaigns because exploitative child labor is being used in the production of rugs supplied to the company in India, Pakistan and Nepal.
Short-term and long-term decision making must take place that demonstrates good faith in IKEA's relatively new anti-child labor contract amendments and reduces the fall out of the immediate situation while simultaneously demonstrating a long-term proactive response to the issue of child labor in the production of its rugs.
In other words IKEA must choose to either eliminate one of its major suppliers of rugs or work with them and others to help respond to the issue of child labor Global sourcing essays in a way that mitigates market loss as much as possible.
You should include only those issues that impact the identified problem. The carpet line at IKEA is relatively profitable by current standards and though it does not constitute a huge portion of total profit from sale of goods the whole of the product line would be seriously hindered if the exposed manufacturer which has been exposed as a child labor offender were eliminated completely as a supplier Bartlett, Dessain, Sjoman, The two main stakeholders in the situation are IKEA in general and the major supplier of Indian rugs Rangan Exports but the relatively new member of the marketing management team Marianne Barner, in this position at IKEA less than 2 years prior to the scandal breaking holds the majority of responsibility for decision making in the situation Bartlett, Dessain, Sjoman, IKEA therefore has a central responsibility to act in a way that supports the goals of the company to source ethically in a public manner Hue, Rangan Exports as well as other unexposed but likely just as ethically questionable sources has a fiscal responsibility to uphold its commitment to the signing of the IKEA child labor clause in its contract.
The IKEA contract is likely a huge portion of its sales, given the fact that IKEA is a major buyer of Indian rugs and though the company may not be violating local laws to the extent of a localized identified response the company must be reviewed in some way to ensure that changes are made and that children being exploited are relieved of burdens and given opportunities, that are in their best interest Hue, Internal controls as well as external review is essential for the company to make changes that will ensure compliance with all local laws as well as IKEAs standards, which are based on international child labor law standards Barner, Marianne Barner has a fiscal and marketing responsibility to IKEA and to IKEAs consumers and other suppliers to establish both short-term and long-term responses to the problem at hand.
The marketing responsibility requires swift action, some of which has been taken by Barner already in the form of fact finding and global and local research on the issue, including the legal aspects of the case i. If the company is acting outside its local legal rights and scope and scale issues of child labor.
Yet, ultimately Barner is responsible for making the final ethical decision of either terminating the contract with Rangan Exports and any other companies found to be out of compliance with IKEA child labor standards or to create a working relationship with the contractors that ultimately responds to the best interest of the children involved by assisting those found to be at risk through supportive programs and social network changes Hue, Identify one key problem.
While there may be several problems and a multitude of symptoms, attempt to identify one problem, the resolution of which would alleviate most of the symptoms found in the case. The problem can frequently be defined around one of the key factors of the case scenario.
The key problem in the situation is the hands off manufacture approach used by IKEA to source products, to be proactive and still utilize low cost labor to keep prices for consumers low IKEA must be socially responsible by being more active in manufacture site review.
Though this could ultimately reduce profit margins the need for both short-term and long-term review in the age of social awareness in marketing IKEA must respond to this demand. Develop two or more alternative solutions to the defined problem.MO Strategic Supply Chain Management Global Sourcing-Benefits and challenges for H&M Northumbria University, UK Abstract Global sourcing is a technique of strategic sourcing in the global strategy, which is an effective approach as a part of organization’s procurement section.
What are the strategic benefits and risks of global sourcing? Sourcing in business is a procurement practice aimed at searching and evaluating suppliers of goods and services. Global sourcing is a practice that involves sourcing goods and services from the global market.
Free supply chain management papers, essays, and research papers. My Account. Your search returned over essays for " (), managing the ethical issues in complex global sourcing network has become a significant challenge for most of the fashion retailers.
[tags: Supply chain, Supply chain management, Logistics].
In early , Walmart announced it was in the midst of sweeping plan to consolidate its global procurement functions and reduce the use of intermediaries in its global sourcing processes, leading to % per item and generating savings of billions of dollars per year. regardbouddhiste.com the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis.
regardbouddhiste.comt a SWOT Analysis: Write down any principles, frameworks or. This is a preview content. A premier membership is required to view the full essay. IKEAs Global Sourcing Challenge: Indian Rugs and Child Labor. Executive Summary: The discovery of IKEAs major supplier for Indian rugs employing child labor in their.
factoriescould be detrimental to the companys brand image and overall reputationif a.