The principal activities of the Laura Ashley Holding Group are the design, manufacturing, sourcing, distribution and sale of clothing, accessories and home furnishings. The Group acts through tow divisions: Retail, which reflects sales through Laura Ashley managed stores, Mail Order and Internet, and Non-retail, which includes licensing, and franchising, although the retail sector represents the bigger one. The company operates in the UK, Ireland and Continental Europe and to some extent in the US market.
Although the former CEOs of Laura Ashley Holdings plc have conducted several cost cutting and restructuring strategies, Ng Kwan Cheong, who took over as chief executive of Laura Ashley …show more content…
However, to finance the entry in the US market for the long run, the company has not only to reduce costs but has to secure an increase in sales to create an positive operating income and in this way to show a high liquidity to attract shareholders (like the MUI) to inject more equity. This increase in sales should be secured by tying loyal consumers and attracting new consumers through a clear mission of traditional design and job security (see below), which improved the reputation of the company.
The bad reputation of the company as a reason of job insecurity because of shop closures has to be reduced by convincing the workers/consumers/society that the workers who lose their jobs because of an closure will find a job in the new