Laura Ashley Analysis Essay Example

but David Hoare believed that the company should focus more on retailing which to him was Laura Ashley's core competency. This can also be seen when David Hoare went to undo most of Ann Iverson’s strategies. ) The company also failed to foresee the heavy costs of acquiring other brands. Each CEO was also given little time and most of their strategies were not completed before they were replaced.

This might result in the organization not taking each CEO seriously and this also creates an ambiguity that unsettles staff. The company also had a poor and inadequate allocation and distribution system. This can be shown when the delivery of its 1989 autumn range was 3 months late and the overproduction of catalogs in 1989. LA also failed to rein back when it began to find itself in financial trouble, it spent even more; borrowing from banks reached unmanageable proportions, and profits first dropped then disappeared. This is shown when the company continued to invest in the US even though they had been losing money.

SWOT analysis for Laura Ashley

Figure 1: SWOT analysis for Laura Ashley Strengths

• Branding – Enjoys high brand equity.
• UK market – Core market
• Online presence - Weaknesses
• International operations (Especially US Market)
• Supply chain weaknesses
• Distribution Costs – Above industrial standards.
• Range of offerings - The Company’s management has divested quite a substantial part of the business and concentrated on limited offerings.

Opportunities

• Re-structuring – Mr. Cheong Outsourcing Threats
• Divestment – Overly diverse.

1. Lauraashley.com, (2008), About us: Origins, [Online], Available at: http://www.lauraashley.com/page/origins [Accessed 17 August 2008]
2. Laura Ashley annual report, (2008), Annual report and accounts 2008, [Online], Available at: http://www.lauraashley.com/page/companyresult [Accessed 17 August 2008]