Those projects are focused in India and Pakistan which are considered as two

Those projects are focused in india and pakistan

This preview shows page 20 - 22 out of 65 pages.

obligated IKEA to increase the projects that support cotton sustainability. Those projects arefocused in India and Pakistan, which are considered as two main sourcing countries of cottonaiming to make farming and production of cotton more sustainable, doing so of course helpIKEA in ensuring increased cotton availability as raw material. As a result, IKEA collaborateswith World Wildlife Fund (WWF) to support cotton farmers. Its internal policies guaranteebuying partial quantities of cotton needed in order to maintain a good a level of cotton plantingin the ongoing industry. IKEA also require cotton supplier to follow specific social andenvironmental criteria in order to encourage them protecting this plant.Nevertheless, IKEA in cooperation with several NGO’S and governmental bodies continuouslyconduct research and training session for farmers to provide them with valuable experience in themore sustainable methods and practices of farming. Such activities are important to ensureavailability of good sustainable levels of cottons and improve efficiency of the farming activities,which in turns reduce the cost of this raw material.Regardless of all of these activities and programs, unexpected weather conditions can reallyaffect this raw material for example, In July 2010, a heavy monsoon rain has hit Pakistan, wheremillions of people became injured or lost their homes, cotton crops were devastated because offloods. The rain reached parts of India and China. As a result, prices of cotton became high in theentire world and farmers incurred significant losses.[ CITATION IKE11 \l 1033 ]3.WaterWater is an important source for humans and life existence. Water demand exceeds supply inmost of the world this have caused imbalance. IKEA code of conduct include clear list of waterusage policies requirements that must be fulfilled by suppliers to reduce environmentaldownsides. Moreover, IKEA have developed many techniques to reduce water consumptionwhether in the store or in the customers' homes to ensure long run sustainability. [ CITATIONIKE11 \l 1033 ]4.ClimateClimate changes affect everyone. When climate change the weather will change and normaltemperatures will change. When it increases the water of oceans expand, ice melts in countriesthat have ice and thus sea level increases, this affects many crops around the world includingcotton and trees. This means that IKEA is directly affected b climate change and so its products.Increasing effects of global warming and climate change will introduce high raw material pricesand thus affect the concept of low cost high quality products presented by IKEA.[ CITATIONIKE11 \l 1033 ]20 | P a g e`
Societal EnvironmentSocietal environment analysis STEEP scans socio-cultural, technological, economic, ecological,and political-legal environment forces that affect entities operations. It is very important tounderstand the environment in which an entity is operating in as countries do have differentsocietal forces and respond differently to each of the related forces. [ CITATION Whe151 \l 1033]Political-Legal Factors

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture