CASE 1: 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?
2. What actions should she take regarding the IKEA supply contract with Rangan Exports?
3. What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should it exit? Describe the impact of such a decision and how would you manage it.
4. For those recommending that IKEA continue to source carpets in India, would you suggest that Marianne Barner:
a) continue IKEA’s own monitoring control processes or sign-up to Rugmark?
b) continue to focus only on eliminating the use of child labor in IKEA’s supply chain or engage in broader action to address the root causes of child labor as Save the Children is urging?

CASE 2: To Trade or Not to Trade: NAFTA and the Prospects for Free Trade

1. Why did the US, Canada and Mexico sign the NAFTA? Which sectors would you expect to gain most from this agreement?
2. In what ways has NAFTA been beneficial or harmful for the countries that signed it?
3. Should the US encourage the formation of FTAA?

CASE 3: Silvio Napoli at Schindler India (A)

1. At the time of the case, Luc Bonnard, Schindler’s vice chairman, is visiting India. As Mr. Bonnard, how would you evaluate Silvio’s first eight months on the job? How appropriate are the strategy and business model that Silvio has created? How effective has he been in building organizational capabilities? What about the operating performance to date?
2. What should Silvio do about the order for the glass-walled elevators?
3. How should he deal with the challenges he is facing over transfer prices and sourcing problems with the European plants?

CASE 4: PS2 – The China Question

1. Should PS2 enter the China Market? Is it ready to enter the China market now? If not, what limitations need to be overcome?
2. Is export a viable mode of foreign entry vis-à-vis foreign direct investment for the soil remediation and oil sludge recovery markets in China?
3. Which of the following two options should the company pursue? Is it feasible to pursue both options? Why or why not?
a. The NIES option in soil remediation using mobile units.
b. The Nahai option in the treatment of oil sludge using a fixed facility.
4. What ownership level should PS2 assume for each option?

CASE 5: LEGO Group: An Outsourcing Journey

1. What were LEGO’s main expectations and learnings from the relationship with Flextronics?
2. What are the key challenges in maintaining a relationship like the one between LEGO and Flextronics?
3. How can LEGO handle the supply chain complexity to improve knowledge sharing, flexibility and coordination?
4. Discuss the key considerations when outsourcing or offshoring production.
5. Describe the competitive environment of the industry and how it relates to LEGO’s strategic choices.