Laura Ashley: Risk Analysis

1800 Words7 Pages
Introduction Laura Ashley is a furniture and home décor retailer based in the United Kingdom, owned by a Malaysian parent company and with a number of international franchise outlets in markets such as Hong Kong, Russia, China, India and South America. The company faces a number risks in this business. The objective of this report is to identify three major risks that Laura Ashley faces and elaborate on them. Analysis techniques such as the PEST analysis and Porter's five forces will be used to assist with this analysis. Political Factors Access to foreign markets Intellectual property rights protections Tax policy Economic factors Recession suppresses demand Inflation issues in China (especially) reducing buying power Inflation driving up suppliers' costs Foreign exchange rate risk Social Factors Changing tastes can threaten the business Prints were successful this past year, resonated well with consumers New perfumes were launched successfully Committed to ethical supply chains Strong anti-bribery policy Technological Factors Strong e-commerce growth Digital marketing platform opportunities In 2011, enhanced website considerably Strong online competition Porter's Five Forces Bargaining Power of Suppliers High 40% of suppliers are in UK Laura Ashley generally absorbs higher materials costs and other supplier cost increases High differentiation of inputs High importance of volume to supplier should mitigate Bargaining Power of
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