Operations Management

Operations Management Case study (20 Marks) Cotton was one of the most important and extensively cultivated crops in the world. It was one of the world’s most important natural fibers and supported the livelihood of 250 million people. Nearly 35 million hectares of cotton were actively cultivated, representing about 2.5% of the world’s cultivated land. However, cotton cultivation and manufacturing were responsible for several environmental and social problems. Conventional cotton production involved the intensive use of water and chemical pesticides and fertilizers. Cotton production accounted for up to 10% of the global use of pesticides and nearly 25% of insecticides used worldwide.

As conventional cotton production and manufacturing involved intensive use of water and chemical pesticides and fertilizers, IKEA actively promoted sustainable cotton growing method The case is about Sweden-based furniture retail giant IKEA’s Better Cotton Initiative to bring sustainability into the cotton supply chain. The case discusses the factors that led to IKEA's active participation in social and environmental conservation and children’s welfare. It also examines in detail IKEA's journey into becoming an environmentally responsible company. The company took the various initiatives to ensure improvements in cotton cultivation so as to produce more economically, environmentally, and socially sustainable cotton. It ends with a discussion on whether IKEA will be able to mainstream Better Cotton as a new market commodity.

Answer the following question. Q1. Explain the issues and challenges related to the cotton supply chain and how companies like IKEA are trying to overcome these challenges Q2. Explain how IKEA went about implementing its Better Cotton Initiative across its supply chain.