All companies love to reduce costs,Â but this is not always feasible. Environmental factors can cause major setbacks for a given industry. Select a company in an industry that was recently affected by negative environmental factors for which you would like to implement strategies to reduce costs.
- Describe the company and the negative environmental factors that caused major setbacks.
- What strategic financial decisions would you implement to help either increase revenue or reduce costs?
IKEA, a European furniture retail company,Â is taking a big step towards sustainability. However, it is still working to find more sustainable solutions to its aggressive consumption of natural resources.
IKEA needs many raw materials to produce furniture and it needs to cut off many trees. It cause climate change due to the lack of trees to maintain the environment. IKEA stressed the bottom line which is people ,planet and environment. Many of IKEAâ€™scustomers empahases on the awareness of environmentaliissues of IKEA.
IKEA sources raw materials from China, and one material that is almost exclusively sourced from China is bamboo. In fact, more than 90% of the bamboo used by IKEA is sourced in China.
IKEA consumes more wood than any other company â€“ 1% of the worldâ€™s wood. While the business is working to source sustainably, this can be a difficult transition in the short-term. Even though IKEA is a leader in the â€œfast furnitureâ€ industry, the progression of reducing impact requires modifications that can take years to establish.
IKEA and other major furniture retailers get much of their wood from forests crucial for biodiversity, stripping land of trees faster than is healthy. IKEA is one of the largest furniture retailers in the world and a leader in a booming global furniture market.
IKEA used 13.56 million cubic meters of solid wood and wood-based board materials, not including paper and packaging.that makes up 1% of all wood used around the world.
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