A critical analysis of furnitue retailer IKEA

Ikea is an environmental friendly firm that set an example to other organization. Although Ikea has become a multi corporate company that conquer the most significant market share between home furniture company, they turn out to be an environmental friendly organization that alert to the importance of dynamics. Ikea are one of the few big companies who began the environmental plan in to their business operating insurance plan in the early 90s which many didn't pay attention. In the early 1990, Ikea add environmental policy in to their company to ensure that the business and its co-workers take environmental responsibility for everyone activities conducted within its business. Ikea furniture usually are made of from woods and Ikea pay a great deal of attention to protect the forest by make sure that timber originated from dependable logger that likewise have control logging. Ikea assume that there is no waste when using raw material and they try to completely utilise the uncooked material as good as possible which really helps to reduce logging and wastage. Their engineer and custom made constantly came up with ideas which help to get the best come back from every tree.

Ikea promote efficiency by producing massive amount result with the minimum amount insight. Ikea suppliers are trained to be efficient by reducing amount of resources used to create the same amount of output as normal production. They believe in so doing, they could reduce resources throw away and harmful material to the environment. For example, farmers producing cotton for Ikea are safe to utilize, does not require large amount of resources and it cheap to produce. Ikea provide training to farmer to train them to make full use of the resources to plant cotton which is safe to human being and the surroundings which in turn give farmer good come back. Supplier have the ability to gain more income predicated on training gave by Ikea and employees do share the same gain too. Stakeholder of Ikea and Ikea is able to earn more gain enhancing their system efficiency and efficiency which makes a big different when operating multinational co-operation.

Ikea make an effort to decrease pollution to the surroundings through innovative and effort. Ikea store go renewable and economical by using alternative vitality source and use innovative effort to lessen power ingestion which reduce pollution. Ikea lit up their store during operation hour and use energy conservation type of lighting where it's possible. Ikea also encourage the utilization of low electric power bulb that have resilient life and low power intake. When any lamp is burnt out, Ikea ensure that it's responsible recycle. By using move forward technology, Ikea is able to control store temps by on/off air-conditioner when is it necessary which helps reduce ability use. Ikea store is an extremely large building which house different group of goods to be sold, to conserve energy ingestion, Ikea implement motion sensor to on/off light when the is occurrence of people. Ikea stimulates online shopping which reduce consumer driving a vehicle to Ikea backwards and forwards. This way of shopping in Ikea allows Ikea to deliver goods to consumer using a single truck rather than a great deal of consumer drive to Ikea which is not environment friendly. They also provide free shuttle busses for worker and customer who are in a nearby area or area to help reduce the utilization of automotive between their home and the store. Ikea use technological innovation to minimize pollution to the environment which brings dramatic environment changes to the entire world.

Ikea products are made by using non-harmful materials and use accredits labour forces that meet health safety and human being right need. Ikea product used to use formaldehyde in their wood-based materials such as particleboard, bentwood and plywood. Adhesives and lacquers, and in textile materials as an element in concluding treatments. Formaldehyde has been grouped as a known human being carcinogen (cancer-causing product) by the International Firm for Research on Tumor so that a probable individual carcinogen by the U. S. Environmental Safeguard Agency (Country wide Cancers Institute. 2009) To be able to provide consumer and worker with a safer material to utilize, Ikea minimize the use of formaldehyde bottom part on Germany formaldehyde need which is very strict to protect employee and consumer health. Ikea have confidence in insurance policy of "good deal however, not at any price" (Ikea People and Environment Brochure, 2010) which stress out that they did not compromise the security and quality of the product to provide low priced product. In producing children product and toys, Ikea needs extra effort in producing robust products which can stand children playful abuse and test the product to ensure that it is safe for the kids to use. Some children product is even created to preserve more than it might sustain like a typical normal children clear plastic chair which a grown-up could make use of it as a stepladder to attain higher places in the house. Ikea cheap cost product will not come from cheap labour or child labour. Ikea is against dealer who use cheap and child labour whereby employee is being exploited with only little pay which is a lot lower than they must get by supplier. Ikea trained a particular band of Ikea auditor to own inspection on the provider to ensure they comply to Ikea Way (IWAY) which compliance with national legislation, no pressured or child labour, no discrimination, payment of at least the minimum wage and settlement for overtime, a safe and healthy working environment, responsibility for waste products, emissions and the handling of chemicals. (Ikea People and Environment Brochure, 2010). In yr 2000, Ikea joined Unicef job in help protect child right in India, build college for the kids, provide vaccination, teach the adult about negative of child labour and call centre to connect rural villages to medical center which helps reduce maternal and perinatal fatalities. (UNICEF. 2009)

Despite Ikea successful in communal performance in helps growing country to expansion in facilities and quality of living, Ikea do have some negative issues that been disregard by major modern culture. Ikea product maybe cheap and have good reputation for quality product, however when a defect is situated in product it usually take a long time to have them repair or replaces. It has been a hot controversy among consumer and Ikea personal as they complain about after sales services. Ikea have been unable to provide consumer with enough after sales services such as alternative to faulty area of the furniture and have to pay extra money to find the replacing. Ikea product is cheap and based on what they need to offer include delivery cost, labour cost and fees from the federal government, they gain gain having sales in large volume level. Ikea is having difficult experience to keep up with replacement complain from consumer who desired home delivery or at that moment problem dealing with although they have free part policy in store. Ikea could enhance their after sales service by creating another section of employees which deals with spare parts delivery and on the spot solution division to help lessen consumer disappointment.

In my opinion, Ikea have been accomplishing great in their social performance by providing healthy and quality product to the society, unite with Unicef to create better life for individuals in India and established an example for people to learn about how exactly to conserve the environment. They struggle for children right by opposing cheap labour which includes children in manufacturing process. They value the environment by doing everything they can through innovative and creative solution which helps to reduce pollution and indirectly improve revenue through cost saving. However, Ikea still have to boost their after sales services which is kind of disappointing to consumer whereby this large assistance struggles to manage after sales service well. Ikea probably could learn from AirAsia in that they cater low price to consumer while providing ever before improving customer services. Whenever a cheap price is impose on the policy it is always hard to execute after sales services where they only ask for lowest price to customer.

(1521 Words)

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