IKEA is the world’s largest furniture retailer. It has many non-equity alliances
ID: 368361 • Letter: I
Question
IKEA is the world’s largest furniture retailer. It has many non-equity alliances with suppliers and manufacturers around the world. IKEA also makes strategic use of non-equity alliances and stakeholder partnerships to participate in finding solutions to social and environmental challenges. For example, IKEA has had longstanding relationships with Save the Children, UNICEF (United Nations Children’s Fund), and the WWF (World Wildlife Fund, the global conservation organization). Refer to Exhibit 9.4 and consider which of these governance considerations would be most important to this particular type of non-equity alliance.
Explanation / Answer
Ansss
Here we have on one side IKEA which manufactures furnitures and is a world leader and on other side we have variuos social organisations like Unicef and WWF. When these type of realtionship are entered then they are specifically for betterment of society.
If we look at what both the parties bring to the alliance, they are as follows:
1. Social Organisations like Save the children, Unicef and WWF:
a. They offer communication and PR support
b. Global communicatin network
c. References in VIP events, newsletters.
d. Help in CSR Activities
1. IKEA:
a. Direct involvement of employees in variuos programs as volunteers
b. Direct Funding to various initiatives
c. Running variuos campaigns for different reasons (Refugees, people affected by natural calamities).
d. Techincal capabilities