IKEA Global Sourcing Challenge: Case Study
IKEA Global Sourcing Challenge
Background of the study
IKEA Company has been in the furniture business in Sweden since 1986 under the ownership of Ingvar Kamprad. For 70 years, the company has been growing steadily with deep-rooted business cultural values and beliefs at its course of operation. In 1951, the company was fully specialized in interior equipment whereby the management established a display store in Flmhult. The store allowed several customers to access the company’s products for sale. During this period, IKEA company faced several challenges regarding supplier management due to stiff competition from trade cartels opposing the IKEA trading. These cartels threatened the IKEA Company from participating in trade fairs forcing the Ingvar Kamprad to look up for new suppliers outside the parent country. At this point, IKEA Company taught its new suppliers on its processes and provided machinery for furniture making. Among the states Ikea invests in new supplier comprises of Poland, Norway, Switzerland, Pakistan, and India (Bartlett, Dessain, Sjöman & Harvard Business School, 2006).
In the 1990s, IKEA was among the top largest corporation in the world specialized in furniture. During this period, the corporation identified paramount issues concerning the social and environmental problems at the course of their operation. One of the outstanding…
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