Customers all over the world have responded

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Unformatted text preview: le and the environment. Customers all over the world have responded positively to IKEA’s approach. This is evident in its increasing sales. In 2006 IKEA had a group turnover of nearly 18 billion euros. IKEA 28962_Ikea 81 28962_Ikea 9/6/08 10:41 Page 2 Sectors of industry and sustainable supply chains www.thetimes100.co.uk GLOSSARY Consumers: purchasers and users of the products. When consumers go to a retailer like IKEA, they will be looking at the different ranges of products and how they are presented. They may also look for quality customer service. However, consumers may not be aware that before products reach them, they must move from being raw materials through a variety of stages to become finished products suitable for sale. This is known as the supply chain. The supply chain involves a flow of production and processes through each of the three industrial sectors: Retailer: organisation involved in providing activities related to selling goods or providing services for the final consumer. Customer service: range of activities provided by a retailer designed to meet the needs of customers. Supply chain: the flow of goods, materials and services from raw materials through to a final product. Recycled: the recovery of materials from an old product which are used to make a new product. Renewable: materials that can be replaced or replenished. IKEA takes its responsibilities seriously and organises its operations in order to have a positive effect upon the environment. • It aims that all the products and materials it takes from the primary sector do not harm the environment. • Its products are manufactured in a responsible way. The following sections look in detail how IKEA has achieved its aim to be a responsible business in each of the three sectors of the supply chain. The primary sector The primary sector involves the development of the raw materials. IKEA is not a primary sector organisation but it needs raw materials to develop its products. It therefore works closely with primary sector suppliers to ensure a sustainable impact on the people and the environment in...
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This note was uploaded on 09/29/2011 for the course MGT 3501 taught by Professor Chang during the Fall '10 term at Georgia Institute of Technology.

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