Ashley Home Furnishing Ltd - Business Model

Element
Land and buildings

Analysis
Freehold of three stores.
Leasehold of warehouse with another three acres of land.
Freehold building plot in Birmingham with planning permission approved.
Leasehold plot in Manchester awaiting planning permission.

Evaluation
Freehold is preferred because it gives security and future realizable value.
Car parking facilities are limited at the Southampton store.
The Walton-on-Thames store is now quite old and requires a lot of maintenance.
The Brighton store needs relocating.

Strategy
All future stores and additional warehouses to be bought freehold.
All stores to be designed around a corporate theme.
Future buildings to have integrated car parking facilities.
Stores are to be sited in town centres.


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