Ashley Home Furnishing Ltd - Business Model

Element
Scale

Analysis
Three stores.
One warehouse of 20,000 sq metres.

Total sales floor area of 15,000 sq metres.

Total staff of 350 people.
Turnover of £20m. per annum.
200,000 products sold per year.
720 different product lines are available for sale.

Evaluation
The number of stores is too low for efficient operation.
The ratio of staff to turnover is too high.
The number of product lines is too large.

Strategy
Double the size of the operation within three years.
Reduce the number of product lines.


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