Sample Logistics Paper on IKEA Policies
The German documentary producers invited IKEA to assign an agent. The agent was to join in the live discussion to air the program. If the company accepts the invitation that would be a good opportunity for educating the public. In addition, IKEA will have time to provide knowledge to the producers regarding their apparent strategies to enable them to handle the issue of child labor (Hultman et al. 10). It is worth mentioning that the producers do not want the company to preview the film.
In the case of conclusive evidence, Rangan is guilty of child labor. As a result, he violates IKEA’s policies that are against this shameful phenomenon. Marianne has many choices in dealing with the situation. Firstly, she can stop the suppliers’ contract since they breached the policy that requires that no child should be employed.
Another option that Barner can take is giving the vendors a warning to stop employing children for labor (Hultman et al. 12). This is a better option because the company will be in a position to maintain its relationship with the suppliers. However, there is a need to terminate the contract of vendors who violated the rules because if they fail to do so, the other vendors would complain.
IKEA has various long-term strategies that it can use in addressing the Indian issue. They can consider withdrawing from India. Withdrawal would help solve the problem because IKEA will be removed from the situation. Losses will be minimal since rags represent a small business fraction of IKEA. However, the company will be disadvantaged to some extent. For instance, it will lose potential business to their competitors. Thus it would be important for the firm to consider continuing with its India operations. Accordingly, the company should work with the suppliers towards ending child labor. Handling of the ethical, administrative, or legal decision made by the management would also influence the operations of IKEA.
Hultman, Jens, Johnsen, Thomas E., Jhonsen, Rhona, E., and Hertz, Susanne. “An Interaction Approach to Global Sourcing: A Case Study of IKEA.” Journal of Purchasing and Supply Management, vol. 18, no. 1, 2012, pp. 9-21.