Laura Ashley

... to identified weaknesses. It was found that the product range was too broad, there was no 'unified' look to match globalisation, the supply chain was inefficient and problems continued in the US. Ann Iverson's response included strengthening the alliance with Federal Express Business Logistics, opening larger stores in the US and reviewing marketing and sales. These changes were considered to be good as Laura Ashley restored dividend payments in 1996 for the first time since 1989. Ann Iverson was dismissed in 1997, however, mainly due to continuing problems in the US and the organisation's image (Keynotes, 1997).

Each of the changes mentioned came about from the organisation's particular strengths (as identified) at the time. For example, whilst such things as restructuring and shop closures were happening, the strong name of Laura Ashley and strong customer loyalty were greatly relied upon. Bowman and Asch (1987) comment that the strengths of an organisation are a if not the determinant in how it handles weaknesses, opportunities and threats.

Opportunities open to the organisation in dealing with its various problems can be identified as the opportunities in the SWOT analysis. Opportunities change and differ over time. For example, the alliance with Federal Express Business Logistics resulted from available opportunities at the time. A possible opportunity in the early 1990s would have been a speedier move away from vertical integration for example.

Laura Ashley became totally vertically integrated in the 1970s and continued to be so though gradually moved away from this in the 1990s - completely in 1998. Vertical integration can be backwards eg manufacturer purchasing/owning supplier and forwards eg manufacturer purchasing/owning retailer - Laura Ashley was both backwardly and forwardly vertically integrated - everything from the supplying of materials and manufacturing to distribution and retail. The main benefits of this throughout the organisation's development included greater control, greater ability to differentiate, the opportunity to achieve economies of scale (higher margins), assurance of supply and greater synergy. Despite this, there were numerous disadvantages particularly that it was costly and greatly increased operational leverage as well as the need to keep up with technological change. This tied up capital having long-term affects. It meant that there was not full concentration of key strengths (design and retail) on which key success factors are dependent (Thompson, 1997). Furt ...