Laura Ashley Holdings Plc Essay Example for Free

Laura Ashley Holdings Plc Essay 1) How have changes relating to management and organisational structural affected a global organisation of your choice, over the last 75 years. Relate your findings to growth, distribution, and various external influences and strategies. 2) Undertake a SWOT analysis and explain its relevance in relation to your company and/or its sector Word Count 1250. Harvard Style Referencing. Bibliography Required. Global organisation Laura Ashley Holdings Plc has suffered differing fortunes since Bernard and Laura Ashley founded it in the 1950s. It has been involved in the designing, manufacturing, distribution and selling of garments, accessories, perfume, gift items, fabric, wall coverings, bedding, lighting, and furniture. Famed for its floral prints, the chain was highly successful during the early and mid 1980s but things changed in the early 1990s when various management and structural problems as well as those relating to growth, distribution, and various external influences such as global recession surfaced Laura Ashley herself died in 1985. There is a notable difference in the organisation up to and after this year. Up to 1985, it was a simply structured, steadily expanding organisation operating in a non-complex environment (complexity arises when there are numerous complicated environmental influences [Johnson and Scholes, 1989]). In the months and years after, many changes took place. Laura Ashley went public in flotation, acquired other companies involved in areas such as knitwear and perfume, made heavier investments in manufacturing and information technology (IT), moved towards segmentation with Mother and Child shops, exclusively home furnishing shops and unit shops (franchise operations). The organisation moved gradually away from vertical integration (it had always manufactured and delivered all goods itself) The Guardian reported that Laura Ashley was withdrawing from manufacturing by the end of the year in 1998. In order to facilitate growth, there was a shift from the simple functional organisational structure to a more complex divisional structure (which was  re-organised with every change of leadership). The most notable chief executives of Laura Ashley who were in place whilst and after problems developed were Jim Maxmin (1991-1994) and Ann Iverson (1995-1997). Each of these people were responsible for major overhauls within the organisation. Vora (1998) states, Laura Ashley has undergone various restructuring strategies and umpteen management upheavals, all to no avail, and all of which have decimated shareholder value and abused the brand name. As highlighted above, the major problems of Laura Ashley began to manifest in the late 1980s and early 1990s. The first fall of profits were reported in the year to January 1989. It is important, then, to look at its success before this from its beginnings in the 1950s to 1985. One area to naturally consider is the key success factors of the organisation for this period i.e. what specifically can its success is attributed to. Key success factors are what an organisation must do well in order to be successful, be an effective competitor and satisfy stakeholder requirements (Thompson, 1997). Bearing this in mind, the key success factors of Laura Ashley up to 1985 are identified as high quality production, innovative designs, good brand management (the Laura Ashley name was and is strong), well placing of stores, creation of good atmospheres in stores, general design and creative competencies, staff training, creation of a vertically integrated structure and operation within a simplist ic organisational structure in general. Also, the Groups IT capabilities factored into the success as it was a source of competitive advantage e.g. they were an early adopter of electronic point of sale (Heath, 1996 as cited by Johnson and Scholes, 1999). These factors may also be interpreted as strategic excellence positions (SEPs), which can be described as the capabilities, which allow an organisation to produce better than average results in comparison with competitors (PUmpin, 1987). Thompson (1997) presents a particularly useful model that can be helpful in explaining the success of Laura Ashley up to 1985. The EVR congruence model, by Thompson, considers if an organisation is being managed effectively with regards to strategy. It represents the matching of an organisations resources (for Laura Ashley these would include plants, vehicles, IT systems  and locations) to the key success factors dictated by the environment (external factors such as opportunities and threats, stakeholders, competition etc). A determinant in matching these is the values of the organisation (again, in the case of Laura Ashley, these would include the lifestyle they promote/project, shop designs and atmospheres, product designs, the brand, staff training policy and the family culture). If the congruence (fit) between these three areas is great, then this indicates effective management of resources (Hamel and Prahalad [1993] comment that it is important for organisations to manage reso urces well in order to achieve objectives), strategy formulation and all-round success. It can be argued that the success of Laura Ashley up to 1985 can be attributed to greater EVR congruence. That is such things as the number of shops and plants, distribution systems, stakeholders, threats (including competition), products, level of vertical integration and so on fit together well in relation to the size, structure, culture and speed of growth of the organisation then. The key success factors are also indicative of this congruence. So that they can be developed to help ensure both present and future success, it is important key success factors are recognised and understood. One particular way Laura Ashley could do this is through a SWOT analysis. This reviews an organisations internal strengths and weaknesses and opportunities and threats in the external environment (Cole, 1996). This may be done for a particular moment in time or as an overview encompassing the past and present. As made clear, Laura Ashley has faced much change during its existence. Opportunities and threats come about as a result of constant change and the SWOT analysis can help to identify these and internal strengths and weaknesses relevant when dealing with change (Johnson and Scholes, 1989). This SWOT analysis can be used in relation to analysing the problems faced by Laura Ashley in the late 1980s and throughout the 1990s. They can be greatly attributed to the weaknesses and threats identified. For example, fluctuations in the economy had a knock-on effect on the sale of property and hence on the sale of household furnishings. Also, high borrowing, wastage and forced discounting meant that, despite sales increases, shops were making a loss. The reorganisations in 1988, 1991 and twice in 1995 had their effect too they were costly and highlighted inefficiency. Chandler (1977) states that structures are not adapted until pressure of inefficiency forces the change and that this change process is usually a painful one often carried out by a different chief executive each time. Upon and after his appointment in 1991, Jim Maxmin found that the organisation lacked a core identity, clear strategies, empowered staff, thorough market research, efficient logistics, and many probl ems in the US such as limited growth, poor management and delivery problems. He responded with his Simplify, Focus and Act programme. This included reorganisation, institution of a Global Operations Executive (GOE) and Global Collection Development (GCD) which aided globalisation and marketing, encouragement to empower staff, an alliance with Federal Express Business Logistics to improve delivery and distribution systems, sourcing half of the organisations manufacturing to  the Far East (rather than in-house in Britain) and management replacement in the US. Before leaving Laura Ashley in 1994, Jim Maxmin commented that throughout the entire organisation, people has embraced the principles of the Simplify, Focus and Act programme and set about sorting out the operational problems which have plagued Laura Ashley (Maxmin, 1993 as cited by Warnaby, 1994). Ann Iverson was appointed chief executive of Laura Ashley in 1995. She was to spearhead the rush into the US and revamp the product range (Teather, 1999). Her observations found various problems all of which can again be attributed 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 Iversons 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 organisations image (Keynotes, 1997). Each of the changes mentioned came about from the organisations 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 e.g. manufacturer purchasing/owning supplier and forwards e.g. 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 organisations 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). Furthermore, vertical integration was inflexible (cheaper manufacturers could not be sourced) and sensitivity to decreases in sales increased. It was the cost aspect that had the greatest impact particularly in the face of costly expansion (especially in the US). Warnaby (1994) comments that vertical integration was responsible for financial problems in the early 1990s. The costs of vertical integration had an impact on the organisations ability to successfully expand internationally. Perhaps with the exception of a distinctive product look and the adoption of a divisional structure, Laura Ashley did not expand internationally applying Treadgolds keys/strategies each was applied/introduced incrementally as problems arose to highlight the need e.g. it was not until 1995 when Ann Iverson felt the need for a unified product look. This is indicative that the organisation was not particularly capable of embarking on such ambitious international expansion as it did. This is highlighted by the numerous problems faced by the organisation e.g. poor marketing/marketing strategy, inefficient logistics and lack of direction and clear strategy. Additionally, the paternalistic management style was not suited to rapid expansion and this coupled with high finance demands from vertical integration, reorganisation and early acquisitions further indicate poor planning in terms of development Laura Ashley has faced so many problems throughout its existence. Problems owing to management, organisational structure, logistics and rapid international expansion continuously came and went. In 1998 bankruptcy looked imminent but an injection of ?44 million in equity capital by Malaysian businessman Dr Kay Peng Khoo (giving his MUI property company 47.5% share ownership whilst the Ashley family retained just 9% [Gibbs, 1999]). He installed Ng Kwan Cheong as chief executive who made changes including the disposal of the problematic North American franchise (retail operations were sold to a management buyout team for $1 at the end of July, 1999 [Gibbs, 1999]), targeting of younger markets and investment in e-commerce (Abdullah, 2000). However, all of these changes looked to have no major impact in the Groups success with sales steadily decreasing from 1998. Whether or not Laura Ashley manages to achieve the sort of success it enjoyed in the early 1980s under its new management remains to be seen as does its survival. Chief Executive Ng Kwan Cheong refrained from placing false hopes, commenting in March of 2000 We have a lot of things to do. All I can say is we are moving in the right direction and things are changing (Cheong, 2000 as cited by Abdullah, 2000). REFERENCES Texts  · Bowman, C. and Asch, C. (1987). Strategic Management. Macmillan Education.  · Chandler, A.D. (1997). The Visible Hand: The Managerial Revolution in American Business. Harvard University Press.  · Cole, G.A. (1996). Management Theory and Practice (5th Edition). Letts Educational.  · Johnson, G. and Scholes, K. (1989). Exploring Corporate Strategy: Text and Cases. Prentice Hall.  · Johnson, G. and Scholes, K. (1999). Exploring Corporate Strategy: Text and Cases (5th Edition). Prentice Hall.  · PUmpin, C. (1987). The Essence of Corporate Strategy. Gower.  · Thompson, J.L. (1997). Strategic Management: Awareness and Change. International Thomson Business Press. Journals and Publications  · Hamel, G. and Prahalad, C.K. (1993). Strategy as stretch and leverage. Harvard Business Review, 71, March-April, pp75-84.  · Keynotes (1997), Keynote Market Report Clothing Retailing, 1997 Reports, p23.  · Treadgold, A. (1991) Dixons and Laura Ashley: Different Routes to International Growth. International Journal of Retail and Distribution Management. Vol. 19(4), pp13-19.  · Warnaby, G. (1994). Laura Ashley An International Retail Brand. Management Decision, Volume 32 (3). Other  · Abdullah, S.A. Turning around Laura Ashley. http://adtimes.nstp.com.my/archive/mar3.htm (09 December 2000).  · Gibbs, G. (1999) Laura Ashley bids farewell The Guardian Unlimited Archive. http://www.guardianunlimited.co.uk/Archive/Article/0,4273,3904775,00.html (18 December 2000).  · Teather, D. (1999) Banks push Laura Ashley to quit US The Guardian Unlimited Archive. http://www.guardianunlimited.co.uk/Archive/Article/0,4273,3855892,00.html (18 December 2000).  · Vora, K. (1998) Lessons from Laura Ashley. The Motley Fool: The Daily Fool, Evening Fool Tuesday, 03 March 1998, (online) (cited 04 January 2001). http://www.fool.co.uk/DailyFool/1998/DailyFool980303.htm . BIBLIOGRAPHY Texts  · Cole, G.A. (1997). Strategic Management (2nd Edition). Continuum.  · De Wit, B. and Meyer, R. (1994) Strategy Process, Content, Context: An International Perspective. West Publishing.  · Hatch, M.J. (1997). Organization Theory. Oxford.  · Palmer, A. and Hartley, B. (1996). The Business and Marketing Environment (2nd Edition). McGraw-Hill.  · Palmer, A. (2000). Principles of Marketing. Oxford.  · Porter, M.E. (1980) Competitive Strategy Techniques for Analysing Industries and Competition. The Free Press.  · Porter, M.E. (1985) Competitive Advantage Creating and Sustaining Superior Performance. The Free Press.  · Wild, R. (1994) How to Manage (2nd Edition). BCA. Other  · Framed-Art Wholesale. Laura Ashley The History http://www.framedartwholesale.com/aboutLA.htm (20 December 2000).  · Herzog, J. (1997) Laura Ashley closure a strategic decision. Daily Yale News Online Friday, 12 September 1997, (online) (cited 20 December 2000). http://www.yale.edu/ydn/paper/9.12.97/I-1lauraashley.html .  · Hoovers Online. Laura Ashley Holdings Plc Company Capsule Companies and Industries http://www.hoovers.co.uk/uk?capsule/5/0,3042,90245,00.html?referer= (20 December 2000).  · Wetfeet. Laura Ashley Holdings Plc Company Profiles. http://www.wetfeet.com/asp/companyprofiles.asp (18 December 2000).  · Wright Investors Service. Research Report: Laura Ashley Holdings Plc Corporate Information http://profiles.wisi.com/profiles/scripts/corpinfo2.asp?cusip=C826EG930 (18 December 2000).

Child Trafficking Essay -- Legal Issues, Sexual Exploitation, Forced L

Child Trafficking â€Å"The global market of child trafficking is at over $12 billion a year with over 2 million child victims† (â€Å"Stop Child Trafficking Now† 1). This statement from the article â€Å"Stop Child Trafficking Now† describes how serious this crisis is nationwide. Child labor, illegal adoptions and child prostitution are the three forms child trafficking typically exists as (â€Å"Riverkids Project† 1). There has been a rising number of Cambodian children being trafficked for sexual exploitation and forced labor because of poverty, unemployment and lack of education; however organizations such as the Coordinated Mekong Ministerial Initiative Against Trafficking (COMMIT) are trying to raise awareness of this crisis. There is a rising number of Cambodian children being trafficked for sexual exploitation and forced labor. Human trafficking is a major crisis that is rapidly growing, affecting many young women of Cambodia. In just one year the number of young women involved in prostitution grew from 6,000 to 20,000 trafficking victims (â€Å"No Trafficking† 3). In 2006 it was estimated 30,000 Cambodian children had been exploited in the sex trade (â€Å"Global Crime Case: The Modern Slave Trade† 1). Studies have shown although not all sex workers are human trafficking victims 1 in 5 women and girls working in brothels have been trafficked (â€Å"SSF Cambodia† 1). It is estimated 50 percent of Cambodia’s population comprises children younger than 15 years of age (â€Å"No Trafficking† 4). End Child Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes (ECPAT) reports as many as one third of the trafficking victims in prostitution are children (â€Å"Human Trafficking† 2). There are around 158 million children aged 5-14 engaged i... ...n Trafficking Data Sheet† 2). There are many organizations within the nation that are gaining awareness for child trafficking. Child trafficking is a rapidly growing crisis forcing young women of Cambodia into sexual exploitation and child labor. This issue is cause by many factors including the lack of education and high levels of poverty; however, there are many organizations such as the Somaly Mam foundation trying to gain awareness of this crisis. Citizens of the United States can help bring awareness to child trafficking by teaching young women of this issue. As stated by the article â€Å"Child Labor-Killing the Age of Innocence,† â€Å"Thus, one should be careful when saying that the future of the country lies in the hands of children, for the very hands holding the key to growth are clamped down in the innocence phase† (â€Å"Child Labor-Killing the Age of Innocence† 2)

Cultural communication in France

French people have expectations for people they interact with in their country whether foreign or local. They look to people trying to express themselves in French, because they are proud of their culture and their history with all the roles it has played on the world affairs. They have a brief hand shake done when as greetings for when people and also as bye bye when people are leaving. During discussions people face each other and are close to each other. It is considered rude to chew a gun in public, and to have hands inside the pockets while speaking to people or in public.Political discussions are usually common subjects in discussion which gets interesting since they are heated debates, this is a form of entertainment but people prefer not to talk about how they voted, or are planning to vote. At introductions people prefer to use the first name alone. At work, in schools there lacks the spirit of team work as students are taught on a system which encourages individual goal rea lization. Their dressing is more formal as compared to Americans, but they are not so conservative and they prefer to express their individuality by their way of dressing at work.Dark colored fabrics with patterns are in preference to light colored ones. In their meetings they spend so much time analyzing and little time on aims and steps to take. Meetings done over meals will only commence towards the end of a meal e. g. at dessert. French people are not so consciously punctual. They are a clear line between official matters and those that are private. Privacy is respected; knock and wait for an answer before you enter into a room. Organizations are based on hierarchy and centralization.

Chinese Language Characters as Pictographs

A common misconception about Chinese characters is that they are pictures. I have met many people who dont study Chinese who think that the writing system works much like rebuses where pictures represent concepts and meaning is communicated by listing many such pictures next to each other. This is partly correct, there are a number of Chinese characters that are actually drawn from just looking at the world; these are called pictographs. The reason I say that its a misconception is that these characters make up a very small portion of the total number of characters (perhaps as little as 5%). Since they are so basic and easy to understand, some teachers give their students the false impression that this is the way characters are normally formed, which is not true. This makes Chinese feel much easier, but any learning or teaching method built on this will be limited. For other, more common ways of forming Chinese characters, please read this article. Still, it is important to know how pictographs work because they are the most basic kind of Chinese character and they appear frequently in compounds. Learning pictographs is relatively easy if you know what they represent. Drawing a Picture of Reality Pictographs were originally pictures of phenomena in the natural world. Over the centuries, some of these pictures have morphed beyond recognition, but some are still clear. Here are some examples: Ã¥ ­  child (zÇ ) mouth (kÇ’u)æÅ"ˆ moon (yuà ¨) mountain (shÄ n)æÅ" ¨ tree (mà ¹)ç” ° field (tià ¡n) While it might be hard to guess what these characters mean the first time you see them, its relatively easy to recognize the drawn objects once you know which they are. This makes them easier to remember as well. If you want to see how some common pictographs have evolved, please check the pictures here. The Importance of Knowing Pictographs Even though its true that only a small proportion of Chinese characters are pictographs, that doesnt mean that they arent important. First, they represent some very basic concepts that students need to learn early on. They arent necessarily the most common characters (those are usually grammatical in nature), but they are still common. Second, and more importantly, pictographs are very common as components of other characters. If you want to learn to read and write Chinese, you have to break characters down and understand both the structure and the components themselves. Just to give you a few examples, the character Ã¥  £ (kÇ’u) mouth appears in hundreds of characters related to speaking or sounds of different kinds! Not knowing what this character means would make learning all those characters much harder. Likewise, the character æÅ" ¨ (mà ¹) tree above is used in characters that represent plants and trees, so if you see this character in a compound next to (usually to the left) of a character you have never seen before, you can be reasonably sure that its a plant of some sort. To get a more complete picture of how Chinese characters work, though, pictographs arent enough, you need to understand how they are combined in different ways: Character type 1: PictographsCharacter type 2: Simple ideogramsCharacter type 3: Combined ideographsCharacter type 4: Semantic-phonetic compounds