IKEA had once been accused of the suppliers of the company utilizing child labor for the carpets which were sourced from India. The case discusses IKEA’s strategy based on developing a supplier base in developing countries. The strategy included developing close relationships with them. IKEA’s values include the creation of a better life every day for many people. These values are reflected in IKEA’s environmental values and WWF involvement in forest management. However, these values were initially developed because of public and regulatory pressures. The 1994 child labor issue was raised by a Swedish television in the form of a documentary. The documentary was not entirely based on IKEA, it did involve IKEA’s suppliers that was followed by a strict action of the termination of any orders that came from such suppliers. The case protagonist was then faced with a situation in which a German TV person advises her that she would be airing a show on one of IKEA’s major suppliers that were involved in child labor. The case ends with a question about Barner’s reaction to the crisis and the strategies to deal with the child labor issue in the supply chain of the company.
Please, focus on pros and cons of the three possible strategic alternatives written at the end of the case, choose which is the best one and explain why?