Ikea’s Global Sourcing Challenge

Case 8-2 IKEA’s Global Sourcing Challenge.

1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program?

Marianne Barner should participate with the upcoming broadcast of the German video program because of three main reasons; largest market in Germany, good chance to advertise, and save reputation of IKEA.

First, Germany was the largest market of IKEA. According to the articles, a sale in a fiscal year of 1993/1994 showed that Germany’s sale is SEK Billion 10.4 which was the highest percentage margin (29.70%) compared to other countries. If Marianne Barner did not show up, it would be a huge reputation risk to Germany market. Following up with decreasing in total revenue in Germany and could make a severe damage to the company.

Second, IKEA could turn this crisis to opportunities. In positive site, this was like a free advertising in Germany. All Marianne Barner had to do was prepare everything perfectly for answer to the upcoming broadcast of the German video program. If she could find a solution to solve all problems and it was on air, company would bring their reputation back.

Third, company definitely should counter some statement to global. It was better to reply something to customer, or even employees. This was a big opportunities. The most significant question was not she should accept the invitation or not but it was how should she responded to the global.

In conclusion, the reasons I stated above, Germany is a biggest customer, gigantic chance to advertising, and should replied something to global supported that