Presented By Amit Mandhanya Sateesh VKD Pallavi Verma Uday Shankar


Barnard & Laura Ashley-1953 tea towels and scarves Ashley Mountney ltd-1954 first companyve Two apron dresses-1966 first clothing item Moved to direct retailing goods produced for own shop.


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Vertically integrated business embracing design, fabric, printing, clothing, manufacture and retailing. Design philosophy rooted traditional English country values. Excellent IT capability Shops – (EPOS) SYSTEM


Series of acquisitionSandringham leather goods ltd Willis and Geiger Penhaligons ltd Manufacturing Investment textile factory, Vinyl wallpaper plant, computer aided design system.

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Group restructure -7 divisions Group reduced its dependency on own manufacturing activities. LA Mother child shops-6 (1987) further expansion in Europe and UK. LA Homes-shops Fifty units shops by 1992-as target In UK and Ireland LA shop outlet increased from 87 to 182 Mail order centre in Newton-1987

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Problem with Britain’s economy First fall in profits-1989 Restructure – management Insular family culture The rise of the Aeon Parting with business not core to the LA brand Confidence building

1991- LAURA ASHLEY Brand Name
Corporate – level Strategy:
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New Corporate Structure Group Marketing Design Amalgamation of UK & Continental Europe Retail Division Group Operations Division

Group Marketing Design
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Marketing of Brand Laura Ashley Designing and sourcing products To satisfy consumer expectancy

Amalgamation of UK & Continental Europe Retail Division
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To reduce expenditure To obtain synergy from shared marketing To retain regional marketing focus

Group Operations Division
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To co–ordinate logistical aspects To move product from supplier to retail To accommodate in-house manufacturing


NA Retail

European Group Group Retail Marketing Operations


Jim Maxmin – New CEO

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Visited Laura Ashley manufacturing units, Stores around the world Problems: Complexity, Bureaucracy, Impotent to act Too many strategic units(22) No integration of Key Functions

Simplify, Focus and Act
Reorganization Programme  Remove 100 management jobs  Upgrade & Unify computer systems  Group to run as International Business  Global Operations Executive (GOE)  Market Research – Very strong customer Loyality

Simplify, Focus and Act

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Week of road shows for senior managers Senior Managers briefed staff Through staff News Paper Empowering Employees to enhance customer service Incentive Schemes

Simplify, Focus and Act
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Andrew Higginson – Finance Director Denise Lincoln – Global HR Director Management Development Programme in place Significant change in Recruitment, Training

Strategic alliance

alliance in 1992 – Laura Ashley and Federal express business logistics Shift from complex, costly, inefficient to simplify, focus, act prog.

Listed benefits 10-12% saving in distribution cost Access to the global system Improvement in customer service Focus on areas of competence

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Recovery from 6.7 m pound loss to a profit of 2.7 m pound Problems in USA No standard shop operating system Managers in UK more capable than those in USA Change over from Mr Jim Maxmim to Mr Hugh Blakeway Company faces losses in the 1st half of the year

Back to basics

New management team now emphasized on tackling costs by cutting jobs and rationalizing offices.  Sales to overheads ratio =14 % , for competitors it was 10%  44 million central overhead costs  The product range needed to be rationalized. was too broad)

June 1995 –Anne Iverson joins as chief executive
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As the M.D. she had revitalized the ailing ‘Mothercare’ September: wants to bring the design ,buying and merchandising functions under one roof, reducing range by 25%. stressed on a unified look for all the ranges or a ‘single point of view’ Groups lacked ‘clear line of accountability’ Supply chain needs to be made efficient, store portfolio to be reviewed.

Return to profit
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The turnaround would still take 2 to 3 years. Expansion Programme in Us and UK. But not in Europe Plans to expand the groups sales in home furnishings and reduce the garment element accordingly Store portfolio to be reshaped Manufacturing plant at Wales to be overhauled
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1100 jobs to be reduced to 700 Cost savings of 2 to 3 m. Costs to be cut in distribution network Mail order business to be re launched Company has fallen into ‘good retail retails’ ?

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