Question: Option 1: Owning More forest While there were many advantages to owning or leasing more timber forests, there were some downsides too. To manage more
Option 1: Owning More forest While there were many advantages to owning or leasing more timber forests, there were some downsides too. To manage more forest land, IKEA Group would need to deploy more capital to cover the high fixed costs of lease holds. It would also divert management attention to leasing and managing timberland, which would require developing forestry planning.
Option 2: Driving High Procurement Targets and Standards
Option 3: Using More Particleboard Also known was engineering wood, it is made up of wood particles or fibers bound with glue. It is often used for furnitures less visible structural framing elements. IKEA wanted to replace the need for solid wood with particle boards but there was limited demand.
Option 4: Using More Recycled Wood IKEA Group would need to adapt its board manufacturing plants to accept recycled wood, but would need heavy investments. There was also a problem in regions where there was no incentive to collect wood for recycling.
Suppose the Chief Marketing Officer came into Steve Howards office and wanted to avoid options that competitors could easily copy. How should Howard respond?
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