Ikea launches ‘buy back’ initiative
as part of sustainability drive
What
are the next steps of the world leader in furniture trade? The lower IKEA
prices, the conveniences for the consumers through new services and the
important initiatives for a new business model based on sustainable development
and the circular economy. The history of IKEA began with the first store founded
by the creator of Ingvar Kamprad in a suburb of Sweden in 1943. To date, 75
years later, much has changed. Now the company has turned into a giant with a
presence in 50 markets. The 419 stores around the world directly employ 200,000
people. In fact, the staff reaches 1 million people along with suppliers and
partners.
But
what has not changed in the last 75 years is the central philosophy of the
company. IKEA’s vision for “a better daily life at home for many in the
world” remains the central goal for its next steps. At the same time,
strategic alliances are unfolding that will pave the way for the next day
towards a new business model based on sustainable development and the circular
economy. At IKEA, they constantly monitor the impact of their activities on the
environment and implement a series of initiatives to reduce environmental
impact and save natural resources, with the aim of protecting the environment
and the sustainability of the planet.
Typical
examples are the universal introduction of sustainable cultivation practices in
cotton (implemented since 2005 in collaboration with WWF), but also the
complete replacement of any other type of lamp with LED. Sustainability, after
all, is one of the basic principles that compose the basic philosophy of IKEA
in the design of its products, which is called “Democratic Design”.
Sustainability along with quality, affordable price, design and functionality
are the main axes supported by IKEA, for the design and production of products
that ensure a better daily life at home.
The
first second-hand IKEA store is now open in Eskilstuna, Sweden, where only used
and renovated furniture are sold. The new idea of this store is intended to
help the Swedish company in achieving the sustainability goals it has set. The
concept store is a pilot project, which will be evaluated and adapted
regularly. The plan is to collect damaged furniture and decorative items from
nearby stores for repair and resale. “If we are to achieve our
sustainability goals, we must challenge ourselves and put our ideas into
practice,” said Jonas Carlehed, Ikea’s director of sustainability in
Sweden.
Questions
1.
Discuss the possible advantages and disadvantages of outsourcing in IKEA
2. Discuss four criteria used by IKEA for
awarding the contract to suppliers
3. Describe the sustainable practices
implemented by the company. What challenges can arise in implementing these
sustainable practices?
Formatting instructions:
The quality of the report and academic
referencing is very important. Please, use the Harvard Referencing System. The
assignment will be submitted in an electronic form (font size 11 or 12 – Arial
or Times New Roman). Use Justified text. Use double or 1.5 spacing between
lines and leave at least one line space between paragraphs. All pages should be
numbered.
The following structure is suggested to
help ensure that your response is set out in a logical and integrated way:
STUDENT NAME AND ASSIGNMENT COVER PAGE
Abstract and keywords
Table of contents, (list of figures and
tables if applicable)
1.
Introduction (250 words)
2. Main body (2000 words)
3. Conclusion (250 words)
References

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