Writing 150 Words on Risk Analysis of IKEA Circular Furniture Program

Overview

IKEA Circular Furniture Program

Customers can return old furniture in exchange for store credit. IKEA would then refurbish, resell, recycle, or repurpose the returned items, reducing waste and promoting a circular economy.

Benefits:

Reduces furniture waste sent to landfills.

Encourages sustainable consumption.

Creates additional revenue through refurbished products.

Strengthens IKEA’s sustainability reputation and customer loyalty.

Provides environmental, social, and economic value for stakeholders.


Selected Risks:

Risk 1: Furniture Waste
• Environmental impacts
• Landfill concerns
• Waste management challenges

Risk 2: Resource Scarcity
• Dependence on wood and raw materials
• Rising costs and supply chain pressures
For each risk:
• Explain the risk
• Explain why it matters to IKEA
• Discuss business consequences
• Discuss stakeholder impacts

Conclusion:
Explain why addressing these risks is important for IKEA.