Laura Ashley Case Study

Topics: Organization, Strategic management, Supply chain management Pages: 1 (279 words) Published: February 12, 2013
In this analysis we are throwing light on the imminent alliance between Laura Ashley & Federal Express. This move as mentioned in the case, is very crucial for both organizations, as it appears to open up new avenues of progress for both organizations at the same time equal risks are involved too. *

* As evident from the case, Laura Ashley has had a very persisting problem with its ill-equipped distribution system. So a major step or a strategic change is in the pipeline. * In my opinion, According to the scenario & prevailing circumstances, the move of LA entering into an alliance with a 3PL expert like Federal Express is a wise move. Making the partnership or handing over its operations & the entire supply chain would be beneficial for them as Federal Express is not only single handedly taking the major responsibilities of transportation, warehousing, organization, the Information system etc. but also at the same time making their complex system more organized, upfront & much more effective and efficient as they mention in one of the exhibits (4). Outsourcing these responsibilities would be a smart move as it would lead the company into getting more time to concentrate improvise & improve its central processes that are streamlined. This will lead to LA having an upper- hand over the rival companies in terms of getting leverage to expand more quickly. * To top it all off, this would lead to monetary savings/ advantages due to reduced expenses and furthermore increase the profitability of the organization in due course. * All in all it’s a win-win situation for Laura Ashley with nothing to lose but profit hanging in the balance.

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