The Costs of Support Activities: The Neglected Costs
Laura Ashley, the UK-based retailer of clothing and furnishings, operates over 500 shops in around 30 countries and also sells through mail order. In the late 1980s the firm found itself operating at a loss. Steps were taken to reduce operations costs by closing several factories and attention was given to improving the cost-effectiveness of the other areas of the firm that supported operations activities.
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