Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor Essay

IKEA is a Swedish company producing home furnishing products at low prices. The company was founded in 1943 by Ingvar Kamprad and kept growing tremendously from 2 stores in 1964 to 114 stores in 1994. It’s very useful to mention the ikea’s vision that says â€Å"Creating a better life for the many people† for understanding the deep credo of saving cost among all the departments of IKEA, everything that IKEA does has the aim of reducing price to the customer. Besides its success stories, the company has faced environmental and social issues. The environmental issue of Formaldehyde was solved but sales dropped by 20% in Denmark. In 1992, the company got the same issue, which cost IKEA around $7 million. IKEA learned a lesson; publicity can bring a big loss in sales, not considering the damage to the brand image. In the spring of 1995, another film is threaten to be shown on German television about children working at looms at Rangan Exports, an Indian company used by IKEA, and the producer then invited IKEA to send someone to take part in a live discussion during the program. These events urged the company to consider environmental and social issues more seriously. It is very important to focus to the long term contract that IKEA establishes with its suppliers, in fact they promote â€Å"to develop long-term business partners†, and they also say â€Å"†¦ We are in this for the long run† always with the aim of reducing cost and creating a faithful relationship. On the process of globalization, IKEA needs to get the cheapest suppliers and therefore goes to countries that offer cheap labor. When IKEA set its suppliers in these countries, it could not avoid these problems. The fact that IKEA does not have its own manufacturing facilities; instead it uses subcontracted manufacturers all over the world for supplies makes it more complex and difficult to keep track of the company’s suppliers and subsuppliers (almost 2300 suppliers in 70 countries and a range of 11200 products). It is even more difficult to keep track of children working in homes where whole families worked on looms from the subsuppliers’ level. The best strategy is to avoid social and environmental issues right from the beginning as when these issues emerge, they immediately affect the products’ sales tremendously. To avoid this threat of loss in profit, IKEA may consider withdrawing from India. However, if IKEA withdraws from India market, it will lose a big opportunity of cheap labor and put the company at disadvantage position as other competitors accessing the same opportunities to compete for lower product prices. IKEA therefore should not look for a new business opportunity by leaving India but keep up with the trend and get ahead of the issue and its rivals. Some people may argue that if the company is actively involved with the issue, it may have a drop in profit compared to its competitors. The threat may be true in the short term also because of the clause of cancellation of the contract. However, IKEA can turn the threat into a big opportunity in the long term by actively involving and publicizing its achievement whit the website and display advertising in the stores to let customers appreciate the effort ,as done before with the forest issue. The strict partnership with all suppliers doesn’t permit IKEA to abandon one of his supplier when problems occur, the supply network will be scared from the behavior of the company when an help is needed; in fact IKEA says that â€Å"We do not buy from our suppliers. We buy unused production capacity† in this way we can observe that the suppliers depends from IKEA. To go or not to go to the show? If the show ensure IKEA the possibility of speaking freely and to defend itself, so to be able to speak and give further explanation of the problem, they should go; if the show doesn’t ensure any freedom of speaking and the show will be only a â€Å"public pillory†, IKEA should not go and do a press conference the day after, where it will explain deeply the press release and all the intention of IKEA for the future. For this complex situation, it is recommended that IKEA should join the program. The company had gained already some positive achievements to the child labor issue since the problem was first raised by Swedish television. IKEA could discuss the information it had collected so far from UNICEF, Swedish Save the Children and the ILO and show it had the same attitude as the director of the documentary film as well as reaching the same goals of deleting child labor. It could show its appreciation to the director for helping spot the child labor at the company’s manufacturer and emphasizing that the company is going to analyze the case more deeply. IKEA possibly mentions its spirit of not avoiding mistakes to search for creative solutions. Moreover with a carefully considered plan, participating in the television program would help save the brand and image. After the television program, IKEA needs to come up with a solution for the case and the long-term strategy to deal with child labor issue, and admitting that the clause of the contract was too strict, and it would be better to establish a plan (3-5 years) for the future with those countries. Barner should make a trip to Rangan Exports and investigate the case entirely and get in touch with the reality of the facts. All the children working there should be collected and offered education opportunities (Corporate Social Responsibility, Citizenship of the company). The company needs to create its own children budget to help children found working. By this way, IKEA could continue its relationship with its suppliers (most of them are in developing countries), calling for the cooperation from suppliers to allow IKEA’s professional random inspection. Working with Rugmark is another good option if IKEA can make sure the child labor problem is under control. Because IKEA does not have its own manufacturers and gets its supplies from other suppliers, it is challenging for IKEA’s ability to manage and control the whole production process. Unless IKEA can be sure that there’s no child labor in the company, it is encouraged to allow Rugmark to monitor the use of child labor on IKEA’s behalf. If IKEA follows the steps explained above, it will improve its level of social responsibility and sustainability. The company could advance itself to the even higher level, an interactive level, by executing more assertive and precise plans. The interactive level promises a long-term advantage in brand image and profit as done before with the â€Å"going green† program. As child labor is considered â€Å"Indian culture†, it requires a lot of time, energy and finance to make progress. The company needs to work tightly with UNICEF, NGOs, and Save the Children Alliance to learn from each other. In India, because of economic initiatives, families send children to work. Therefore, to help improve the situation, IKEA need to fund a budget in the need of education for those families. Besides, the company should lobby to coerce the government to get involved more actively in the process. In the long run, family income boosting plans need to be implemented to obtain a better standard living for Indian families as poverty is the root of the problem.

Bartleby I Would Prefer Not Too

Herman Melville's â€Å"Bartleby, the Scrivener† scrutinizes the impersonal, harsh, and isolating labor conditions in America soon after the industrial revolution. Bartleby is presented as a foil to his repressed and ignorant coworkers: Turkey, Nippers, and Gingernut who participate, however dysfunctionally , in the brutal system. In contrast, Bartleby distinguishes himself to the narrator and the reader as â€Å"the strangest [scrivener] I ever saw or heard of†( ) by rejecting the mundane work of copying legal documents and proof reading them.He embodies passive resistance through the repetition of the response â€Å"l would prefer not to† when faced with a command from his employer. Through the use of key words such as â€Å"would† and â€Å"prefer†, Melville gives Bartleby the appearance of submitting to his employer's, the lawyer's, judgment and authority. This display of subordinance, however, is only an illusion. Bartleby rejects the capitalis t hierarchy on which Wall Street is built and thus also rejects the lawyer's authority. What exactly does Bartleby â€Å"prefer not to do†?He prefers not to comply with the dehumanizing reality of the American capitalist economy. As scriveners, Bartleby and his coworkers live an automaton-like existence, robotically reproducing documents written by others. Unlike Bartleby, however, his coworkers have been indoctrinated into conforming through the never-fully- satisfying reward of wages. As stated by Karl Marx, a German economic revolutionary, â€Å"Capital is dead labor, which, vampire-like, lives only by sucking living labor, and lives he more, the more labor it sucks. (Marx) By â€Å"preferring not to† , Bartleby protests against alienating, mundane labor. The life- sucking effect of capitalism is also demonstrated by Bartlebys previous occupation as â€Å"a subordinate clerk in the Dead Letter Office† ( ). This Job consisted ofa â€Å"pallid hopelessnessâ⠂¬ ( ) of â€Å"continually handling these dead letters and assorting them for the flames†( ). Both of Bartleby's jobs provide no outlet for communication, individuality, creativity or growth.The apitalistic economy has stripped him of his humanity, and he would â€Å"prefer not† to continue taking part in it. By using the phrase, â€Å"l would prefer not to†, Bartlebys also causes the lawyer â€Å"to stagger in his own plainest faith† (1 1 and to doubt the rules upon which his own society is built.

Leadership Profile Essay

In the entertainment industry, football is America’s choice of sport. Not only does it drive fans crazy just watching it, but a game that brings really serious injuries to players but yet, generates billions of dollars during the season. Football consists of a team of talented, skilled individuals that display strength, power and speed to play the game. Without these traits, a player will certainly be a failure to the game and the team. It is a very rough form of entertainment that we all love to watch with our families and friends. It is rather ironic that although we do not promote players to hurt each other; in the game of football, we seem to send the opposite message that it’s alright to get hurt, nonetheless, a sport where players understand that in order to stand out amongst other players, the harder they exert effort into the game also increases their risk of sustaining unpredictable injuries. Hiring prospective players is not an easy task. It involves copious amount of time tracking, observing and careful scouting of candidates for consideration. National Football League (NFL) teams make decisions on drafting players from various colleges and consider questions like whether a candidate is willing to spend a number of years physically beat up and willingly put up with the severity of the game. Can they endure enough punishment for the love of the game? Recent hiring history has shown that hiring management has been an 82% failure due to poor interviewing tactics (Gallup’s Why Great Managers Are So Rare). Gallup considers great managers who motivate each employee who has a mission and a vision, an assertive character that drive outcomes and an ability to overcome resistance and adversity. They are very accountable and build relationships that have full transparency, open dialogue and trust. Lastly, their decisions are based not on politics but productivity. For a NFL team to be successful in the entertainment world, the team must have Core Values and Purpose. A prospective candidate for the team must be interviewed and asked if they agree with the company’s Core Purpose or Mission. This strategy will certainly tell if the candidate is a good fit for the team’s  culture. If they don’t (Core Purpose/Mission or Core Values), then they don’t possess a good long term fit for the team. According to the 3 Dimensions of Purpose by Brian Sooy, a Purpose declares intent. It provides perspectives and is strategic. The chart below, popularized by John Welsh from GE has created a method of evaluation for their employees seeking to have â€Å"A† players at GE. ( See chart below) This matrix, also referred to as a talent review can and may be a good tool for NFL managers to use in determining the best candidates for the team. Another form of selecting the best candidates is through the use of a system referred to as â€Å"Topgrading†, a system that reduces time reviewing candidates. This system not only increases professionalism, but sets up a website where applicants can answer questions and get the information about the candidate. References Harter, R. B. (2014, March 25). Why Great Managers Are So Rare. Retrieved July 5, 2014, from http://businessjournal. gallup.com/content/167975/why-great-managers-rare.aspx. Sooy, B. (2014, May 2). 3 Dimensions of Purpose. Retrieved July 5, 2014, from http;//smartblogs.com/leadership/2014/05/02/3-dimensions-of-purpose. (Wick, 2014) Wick, D. (2014, May 8). NFL Draft-Hiring the Right People-One Question. Retrieved July 5, 2014, from http://strategicdiscipline.positioningsystems.com/blog-0/bid/103386?NFL-Draft-Hiring-the-Right-People.

The Incorporation of Western Faming and Technology in India Essay

The Incorporation of Western Faming and Technology in India - Essay Example This paper illustrates that even though, other Israelite Agricultural technological companies have made entry into India to provide support in the farming of horticultural crops; they have only limited their services to Haryana and Maharashtra. Examining the current situation in India, most locations and farmers remain unaware of the current procedures and technology in agriculture practice. As such, Vickens Inc. targets to sell its product and services to the geographic, demographic, psychographic and behavioral segments of the market. The entire market segments shall benefit from the newly improved agricultural technological solutions provided by the company. The main reason besides the establishment of this new business is to fill the market niche that exists in the Indian Agricultural sector. Gallagher notes that while the country is agriculturally driven the use of new and current technology has been limited. Most farmers in the country still adopt the traditional methods of far ming that yields very little output to the farmers. The mission of Vickens Inc. is to provide the farmers with most current agricultural procedures and technology to increase productions of crops and generate increased revenues in return. This will be achieved through enhancing an eco-friendly environment that does not affect the lives of individuals. With the e-Choupal initiative in India, a lot of information is available to the country’s farmers about the use of new technology in farming. Ideally, this forms a wider customer base for the Vickens Company products and service. The Company targets to sell its products to all the four market segments as proposed by Kerin. In the geographic division, the organization aims to reach all the farmers within the Indian agricultural potential zones.

Company critical analysis - AT&T Research Paper

Company critical analysis - AT&T - Research Paper Example Launched from New Haven, Connecticut in 1878, AT&T, working under the aegis of the American Bell Company gradually spread its business into all major towns of the country and acquired the assets in their totality from the Bell Company on December 30, 1899. Background of the company (AT&T) and its problem with competitors AT&T partnered with the Western Electric Company during its initial years in business and made innovative discoveries in the field of telecommunications which allowed it to spread the business to all parts of the American Continent. Its innovations and discoveries allowed it to make transcontinental telecommunication feasible. When the Bell Company’s patent expired in 1894, thousands of other operators’ jumped into the fray triggering intense competition and causing a spurt in the number of telephone connections in the US. AT&T has never looked back since then and after decades of monopolistic rule in the American telecommunications industry, it till re mains the market leader by foraying and diversifying into technologies which changed with signs of the times. AT&T spread out throughout the world and established offices and manufacturing facilities in major cities of the developed countries. The company has many inventions’ in telecommunication technology credited to its scientists, seven amongst them even winning the Nobel Prize in Physics (Web, AT&T). The invention of the transistor, the telephone dial, push-button telephony, the coaxial cable, mobile telephony, cellular telephone and demonstration of the first television are credited to the company, technologies that revolutionized the electronics industry. The company played pioneering role in the launch of the first telecommunications satellite in the world and the implementation of 911 as a direct emergency helpline within the United States. The first major issue which AT&T faced during its century long dominance in the United States was the settlement of its first fe deral anti-trust lawsuit in 1913, when it established itself as government sanctioned monopoly by signing a document called the Kingsbury Commitment, divesting itself of the control of the Western Union telegraph company, and paving the way for non-competing independent telephone companies to establish interconnectivity with AT&T services. The company was being directed during this period by its President, Theodore Vail, whose innovative strategies set the trend for the company’s operations for the next seventy years (Web, AT&T). Another anti-trust suit was filed against the company in 1974 when it had to divest itself from local telephone operations in favor of lifting of restrictions on the company as envisaged in the 1956 Consent decree (Web, AT&T). The parent Bell System ceased to exist in 1984 and the company acquired a new logo and renamed itself as AT&T. It forayed into computer business by acquiring NCR computers, which subsequently established itself as an independen t company after a decade long liaison. Competition in the telecommunications sector intensified in 1996 after President Bill Clinton signed the telecommunications Act into law which endeavored to eliminate legal and regulatory barriers prevalent in the industry. The company directors reduced subscription rates in populist endeavors to sustain itself,

What is a Mockingbird What makes Tom Robinson, Mrs. Dubose, and Boo Essay

What is a Mockingbird What makes Tom Robinson, Mrs. Dubose, and Boo Radley Mockingbirds - Essay Example e’s story, Atticus proves the black man is innocent of all charges while implicating that any damage done was actually caused by the girl’s abusive father, but the defendant, Tom Robinson, is found guilty anyway by the all-white jury. In the meantime, the children have made friends with their eccentric neighbor, Boo Radley. Boo has spent the majority of his life imprisoned by his parents in the house next door. Scout’s brother, Jem, has also spent several afternoons reading to a mean old lady of the neighborhood, Mrs. Dubose, on his father’s orders. In the context of the book, the mockingbird is used to symbolize something innocent and without a true voice of its own. In the real world, the mockingbird is quietly helpful as it feeds on the grubs and other harmful insects that often damage needed crops but has no true song of its own. Instead, the mockingbird sings a compilation of songs that it hears in its environment. â€Å"The literature contains countless stories of notable imitations. One New York City bird reproduced perfectly the beep-beep-beep of a backhoe in reverse, while another threw a high school football game into confusion by mimicking the referee’s whistle. Yet another ‘joined the National Symphony Orchestra during an outdoor concert in Washington D.C.’† (Tveten 292). This reveals it to be a bird capable of appreciating its environment as well as a bird without a true voice of its own. It is known only by its appearance and the way in which it is defined by others. Its borrowed voice, appreciation and participation in its environment and its changeable nature make this a bird that deserves recognition and respect. This concept is found in the book when Atticus tells Scout and Jem, â€Å"I’d rather you shoot at tin cans in the backyard, but I know you’ll go after birds. Shoot all the blue jays you want, if you can hit ‘em, but remember it’s a sin to kill a mockingbird† (Lee 69). As the following discussion will

Social Justice and Corporate Social Responsibility Essay

Social Justice and Corporate Social Responsibility - Essay Example The European Commission defines CSR as "a concept whereby companies integrate social and environmental concerns in their business operations and their interaction with their stakeholders on a voluntary basis." (A Business Contribution to Sustainable Development. n.d.) In an article by John Richardson (2008) pointed out that a company is said to be socially responsible if "it conducts itself reasonably with respect to: the workers it employs around the world; its investors as manifested in its corporate governance practices; local communities in which it operates; how it conducts itself ethically ion its domicile country and in other countries around the world; the environment" (section 2). The CSR is also advocated by authorities mainly because of the fact that CSR principles are in conformity with social justice. The essence CSR lies in the fulfillment of social justice to the various stakeholders. The companies, therefore, are socially obliged to deal with the societal, ecological and economical issues so that all the stakeholders including shareholders are satisfied and eventually results in economic sustainability. A firm which has obligations only towards its shareholders is socially irresponsible and will no longer survive in the modern corporate environment. This approach is not advisable as indicated by 'stakeholder theory' propounded by R. Edward Freeman. In one of his papers, he writes that "corporations shall be managed in the interests of its stakeholders, defined as employers, financiers, customers, employees, and communities." (Carson L. Thomas. 2003, page. No.1). The recent years have experienced many such cases which shocked the entire corporate world, which, later on, became the lessons for the rest in future. Enron Collapse The failure of Enron, the world Energy Giant, is an unforgettable incident in the history of corporate world. The company which became the seventh largest one in the United States of America in just 15 years has become the by-word for corporate irresponsibility. The issues raised were misrepresentation of accounting information, which resulted in unfair accounting, lobbying with politicians and misappropriation of employee savings. The profit figure shown by the company was not true and fair and company's massive debts were concealed from the financial statement. The company had political lobbying with many legislators and the highly paid executives pocketed the life savings of thousands of its employees. What made Enron to socially irresponsible even though it had taken some steps to adhere to CSR The self-interest. The company had not tried to strictly adhere to the guidelines of CSR. Rather, it tried to window dress its financial statements so as to achieve huge market support and high prestige and thereby protecting the interest of shareholders and a few executives. The Enron collapse taught the corporate community a lesson about which Sims responds (2003) "How a Failure of Leadership, Culture, and Unethical Behavior Brought a Giant to Its Knees" (p. 147) Apart from Enron collapse, corporates like Arthur Andersen, Philip Morris and Union Carbide also fell in the category of socially irresponsible companies. Arthur Andersen case is closely associated with Enron for which the former was the auditor. In the accounting scam