In most courses studied at Harvard Business schools, students are provided with a case study. Case Study of Sustainability at IKEA Group This case study focuses on the growth strategy and sustainability of the IKEA group. These factors in turn hinder supply chain learning and innovation, and reduce the slope of supply chains sustainability trajectories. Ingka Group franchises the IKEA Retail system and methods from Inter IKEA Systems B.V. in the Netherlands. :#�h��)F�:�`�|��ryP]� supply chain with implementing sustainability within their firm by financial, technological or human resources. ties for future research and concluding remarks. Increased concerns over the environmental impacts of organisations. This case study offers insight into SSCM practices in action. Ansari, Z.N., & Qureshi, M.N. Keywords: Supply chain management (SCM), Supply chain design (SCM), Sustainable supply chain management (SSCM), green supply chain management. In this, ability performance is an integral measure of a firm, purchasing decisions and an organisational culture that incorporates fairness and considers the welfare of others, in the logistics process stretching from the purchasing of raw materials to the delivery of end-products to end, part of the chain. Inter IKEA Systems B.V. is the owner of the IKEA Concept and the worldwide IKEA franchisor. IKEA was chosen for the case study, amongst many, for three primary reasons. 04. �R This is accomplished with their ongoing support of the Roundtable of Sustainable Palm Oil (RSPO). By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. A review of sustainable suppy chain management practices in Canada. They can provide integrated solutions across interconnected issues area such as economic, social, environmental, and security action. Globalisation challenges increase the need to re-evaluate our approach to basic factors such as land, capital, tive approach to change their practices and explore opportunities through social and environmental programmes, ers, academics, and policy makers acknowledge the importance of proper SCM as a key driver to gain local and, This study provides several relevant findings. It includes the implementation of all measures to prevent child labour, and considers the best interests of the child. across the supply chain, are prerequisites (Brockhaus et al., Key difficulties in implementing SSCM practices are: (a) lack of understanding the intricate interplay between, the three pillars of sustainability and how that affects the economic bottom line, (b) capital investment commit-, ments, (c) risk management and supplier monitoring, (d) measurement, (e) transparency of information and know-. Economic uncertainty forces organisations to take a proactive and innova-, of this study are primarily based on IKEA, s available of information on its sustainability efforts, to, opportunities beyond the role of corporate culture and the integration of SSCM are the social, the social dimension of the three pillars is, . environmental, social, and economic (Chardine-Bauman & Botta-Genoulaz, An important and relevant sustainability research-based model that consistently appears in literature is by, strategy, organisational culture, and transparency. This research, in contrast, assumes that SSCM can contribute positively to the reputation of an organization as a “good citizen” and, thereby, counter the impression that external stakeholder pressure is the only driver of SSCM. The article wraps up with a general discussion, limitations, as well as opportunities for future research, and lastly with concluding remarks. Sustainability covers the activities to enhance the social and environmental impacts of a company while preserving its financial infrastructure as the three basic elements of sustainability (Brockhaus et al. Inter IKEA Group today releases its Financial Summary for financial year 2017. Our … (2008). When companies pursue sustainability, it's usually to demonstrate that they are socially responsible. In the upcoming section, the relevant literature review is presented, to serve as a tool to inform the reader on Sustainability, SCM, SSCM, and Best Practices. The study has also surprising results: while collaboration emerges to be a weak outcome, only the economic dimension of sustainability appears as an outcome of KMI. However, such a broad definition presents many, challenges for contemporary organisations such as difficulties in identifying a company, larger macro-economic perspective as well as the lack of guidance on how to effectively identify present and. By 2014, IKEA Group was really the biggest house providing business, with EUR 28.5 billion of deals, and prepared to get to EUR 50 billion by 2020, generally from surfacing markets. The data suggests that the merits of these initiatives are viewed as being disproportionately awarded to the dominant firm and thus did not receive full buy-in from the other party. A typology of. The vision and business ideas are carried across all aspects of, We work hard to achieve quality at affordable prices for our customers through optimising our entire, ). How IKEA embraces sustainability in their business model - Duration: 1:33. Scholars seem to support Rogers and Carter, any practice or experience which has proved its value or which is used in an effi-, ). This ensures that their suppliers comply with laws and regulations and, provide written information to workers prior to employment about wages and employment terms. This case study demonstrated that it is possible to successfully implement SSCM practi-. In theoretical implications, empirical findings are viewed through the lens of several prominent management theories in order to augment and elaborate current theory. to fill, thus identifying the critical skills shortages in South Africa. 6. Additionally, there is scarce literature on how the adoption of corporate sustainabil-. Sustainability at IKEA Group Case Study Solution & Analysis. This indicates that sustainability practices must be adapted to fit the logic of a firm's existing management system. We aim to provide managers and industry practitioners with a nuanced understanding of issues and trade-offs involved in making decisions related to sustainable supply chain management. These results will inform managers and policy makers in the food sector, especially from the emerging economies such as Pakistan to formulate strategies that could aid in advancing social sustainability and transitioning towards a truly sustainable supply chain. Since 2015, IKEA has been supporting more sus-, ). Suppliers do not prevent workers from associating freely or exercising collective, 14. International Journal of Physical Distribution & Logistics Management, Chardine-Bauman, E., & Botta-Genoulaz, V. (2014). SCM is a means of understanding and refining the efficiency and effectiveness of activities. s IWAY Standards is the fact that it reaches past first-tier suppliers. Supply chain sustainability includes environmental, economic, and social dimensions. Though organisation specific, this case study contributes to academic literature on SSCM. The strategy for sustainability at IKEA Group, ‘people and planet positive,’ aims at meeting the needs and interests of many people and the society while protecting the environment. 7. Although both firms have substantial experience working with sustainability and are role models, they chose very different strategies to integrate sustainability into product development. ity practices translates successfully inside organisations (Linnenlueck & Griffiths, This study is exploratory in nature and is aimed at identifying SSCM practices. ����}���ۂn�ˢ��L����B����o����f�����fҎ�z���7��es��E�0��?5��]Y��5�jӌ�>�L�mq �GІs��;�������M��W|1��Jޟ�j�/��(�ހjU�5�|i~�7yS�eNv��h7���� by supply chain organisations as well as those skills areas that are the most challenging Drawing on supplier development research, the study aims to examine the moderating impact of organisational size and culture on the relationship between supplier development and design and conformance quality dimensions. Despite said prerequisites, implementing SSCM, ). Additionally, there are complications in identifying the technol-, s stakeholder responsibilities within the supply. For example, Vasileiou and Morris (, supply chain, it is vital that firms understand influence. These efforts are generally initiated by the dominant companies and then forced onto the weaker upstream members. be the one of most widely read publications in the world (Håkansson & Waluszewski, became the focus of public debate in the 1990, new environmental policy that included their. IKEA can successfully, implement sustainability policies across their entire supply chain to include all stakeholders and their various inter-, ests while maintaining a strong economic position. People & planet positive: IKEA Group Sustainability Strategy for 2020. endstream endobj 1685 0 obj <>/Metadata 224 0 R/PageLayout/OneColumn/Pages 1678 0 R/StructTreeRoot 408 0 R/Type/Catalog>> endobj 1686 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 1687 0 obj <>stream tions and production decisions regarding the design and manufacturing of the products (IKEA Supply AG, tions when purchasing products, materials and services. As mentioned, forced, prisoned, bonded, or involuntary labour are not permitted. ciples of Human Rights defined by the United Nations Universal Declaration of Human Rights. Full financial Performance FY20 (PDF) A message from Juvencio Maeztu, Deputy CEO and CFO Ingka Group. They used the concept of ''Supplier Code of Conduct'' to set the sets the standards for their activities [42] A study, implemented in UAE based on 117 company from the manufacturing industry, found that green purchasing plays a vital role in improving economic performance [13] FedEx has used more fuel-efficient aircraft to cut down on emissions and fuel consumption per pound transported [43] IKEA adopted the IWAY standards which are based on statements of legal compliances, confidentiality, and business ethics. By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. chain represent the primary challenges of sustainability for contemporary corporations (Carter & Rogers, Sustainability also refers to all activities aimed at improving the social and environmental impacts of a com-, pany while maintaining the financial bottom line. 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