$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Case Study Analysis: Laburnum Group

tag 17 Downloads8 Pages / 1,823 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT


Write about the Case Study Analysis for Laburnum Group.




Laburnum Group is headquartered in Australia. The different business units of Laburnum Group are involved in clothing, energy, chemicals, office material, industrial products and home improvement. The origin of this group can be traced back to 1920. The business operations of Laburnum Group aim to maximize value for shareholders and return to shareholders. Special attention is given to the clothing and energy business portfolio because their combined contribution to the overall business is very high. At present, both the business portfolios are facing several challenges. Thus, the top management is evaluating the business strategies related to clothing and energy portfolio. A report regarding performance evaluation of these business has indicated that poor supply chain management is responsible for the challenges encountered in both portfolios. A cross-function team has been appointed to analyze the issues pertaining to supply chain management. Improvement areas are being identified by these cross-functional teams for improving the business efficiency. AusCotton is the business unit that deals with clothing portfolio and Sapphire Energy is the business unit that deals with energy portfolio.

Sapphire Energy provides electricity to the customer houses from the distribution pole. This business unit provides its services in Wodonga, Ballarat, Wangaratta, Melton, Mildura, Geelong, Sunbury, Bendigo, Traralgon, Wangaratta, and Shepparton. 1/0 AWG aluminum triplex cable is the most extensively used material by Sapphire Energy for providing services to its consumers. The installation of these cables takes place in the working days.

AusCotton is a producer of sports apparel. The summer collection includes footwear, shirts, shorts, backpacks and windbreakers. The winter collection for the company includes windbreakers, footwear, and fleece and ski jackets. The company distributes its products across Australia and different parts of the world. The products are distributed to retailers in North America, New Zealand, Australia and Europe. The customers can also order the products through the internet (mercuri, 2007). Online and offline presence makes AusCotton a major player in the Australian apparel industry. Most of the products are manufactured through contract manufacturers present in India, Vietnam, Taiwan and China. There are several factors that determine the lead time for manufacturing activities. Lead time varies on the basis of raw materials required, the complexity of products and product item to be manufactured (mercuri, 2007). The approximate lead time varies from 4 months to 1 year. Air transportation and water transportation is used by AusCotton for shipping the products to other countries. The choice of mode of transportation depends upon the urgency of product delivery. The company has 8 distribution centers in different parts of the world. This helps to manage the distribution of products in different countries in an efficient manner. The production of summer and winter product lines helps the company to utilize the manufacturing capacity of contract manufacturers and facilities of distribution centers in a proper manner.


Sapphire Energy

Eastern Power is responsible for procuring the 1/0 AWG aluminum triplex cable. Sapphire Energy has a contract with Eastern Power. Due to expanding service needs, the requirement for the cable will increase to 155,000 meters. Per meter inventory carrying the cost of this cable is 1.35 dollars. Eastern Power has entered into a contract with its supplier for dividing the annual requirement into twelve parts. Thus, the company will take one twelfth of it the total yearly requirement on a per month basis. The agreement between Eastern Power and its supplier aim to reduce the lead time. The lead time may increase to 12 weeks in the absence of this agreement (Doorasamy, 2015). Sapphire Energy is a customer of Eastern Power. The price for procuring the cable is fixed. No discounts are offered on the basis of quantity. The minimum quantity for placing an order with the supplier is 4500 meters. A major challenge is the presence of inflexible supplier. The supplier includes certain surcharges and does not provide any discounts (Doorasamy, 2015). For example, 10 percent of the purchase price is considered as the inventory carrying the cost. This inventory carrying cost becomes huge when the annual purchase requirement is around 90,000 meters. An additional 50 dollars is charged as ordering cost that is added to each shipment. This impacts the financial budget and makes the ordering system less efficient.

Inventory management is an important aspect of business efficiency. The existing ordering system can be improved by making certain changes in the contract. The inventory controller/ manager can negotiate with the supplier for proving discounts for bulk orders (mercuri, 2007). The Eastern Power storeroom should increase its storage space. It can store about 90,000 meters of wire whereas in the coming year the demand will increase to 155,000 meters of cable. There should be no terms and conditions regarding the minimum quantity of cable that can be ordered. Since Eastern Power is expected to pay 10 percent of the purchase price, the company should not have any restrictions regarding the order quantity. The present condition of ordering at least 4500 meters of cable should be discontinued.



Strategic sourcing aims to reduce operating costs. Companies are targeting countries like India and China that have relatively cheap resources and abundance of potential employees. For example, the cost of raw materials, transportation services, and labor is lower in developing countries (Jensen, 2017). Legal, socio-cultural, economic, political issues are relevant to strategic sourcing. Developing nations may be subject to political instability that can hamper the business operations. Cultural differences and language barriers may affect the buyer-supplier relationship (Jensen, 2017). Shifting the supply chain activities to a new geographical location requires a more diverse workforce. Supervising the manufacturing activities and ensuring quality control becomes difficult. Acquiring information on a real-time basis becomes a problem. Fluctuations in currency exchange rate may impact financial transactions. 

The inaccurate demand forecast results in frequent stock-outs at retail outlets. This has the adverse impact on brand image. This creates a mismatch between demand and supply of outdoor sportswear. Poor forecasting increases the inventory costs. The transportation services used for shipment of goods to other countries is not efficient. There is constant fluctuation in the transportation costs that affects the pricing of goods. Delayed delivery of goods and empty shelves causes dissatisfaction among customers. Collaborating with the staff members especially the sales force can help to improve demand forecast (Frankel, 2006). Demand forecasting should be done while taking into account the marketing activities like advertisements and special offers. The company should always keep a safety stock of inventory for responding to sudden demand shifts. The company should consider outsourcing of transportation services for improving efficiency.

Strategic sourcing can help AusCotton in improving the supplier performance, acquisition process, and saving costs. Choosing the right suppliers of raw material is the most important concern. It is important to negotiate the terms and conditions of the contract. The performance of suppliers should be evaluated on a regular basis so that the company can get rid of non-performing suppliers (Abdullaev, 2015). For example, if the quality offered by the supplier does not comply with the performance metrics, it should be replaced with a new supplier. Due to the negative impact of mismanaged transportation services, the company should consider outsourcing of transportation processes (Frankel, 2006). AusCotton should combine outsourced services with competitive strengths for becoming a market leader. The company should develop a risk management plan (Abdullaev, 2015). It is important to identify the risks involved in business and reduce their impact by taking timely measures.

A legal inquiry is required for establishing the claims regarding the counterfeit clothes being manufactured by contract manufacturers. If the claims are proved, then the company should end its association with the offender contract manufacturers. Global outsources increases the chances of manufacturing illegal merchandise (Voronina, 2011). The presence of counterfeit products in the market causes excessive damage to the company. This is the serious violation of intellectual property rights. Sometimes it even becomes difficult for the consumers to spot the difference between an original product and fake product.  The poor quality of fake products tarnishes the brand image. Poor durability, quality, and finish may lead to negative word-of-mouth through social media (Voronina, 2011). The competition between the original products and counterfeit products leads to loss of market share and reduction in revenue generation.


Challenges Identified In Both Business Cases

For Sapphire Energy, the procurement system pertaining to 1/0 AWG aluminum triplex cable is flawed. The inventory carrying the cost for the cable is considerably high. The contract between Eastern Power and the supplier of the cable is very rigid. The supplier does not provide discounts on bulk orders (Brown, 2014). The company has to pay several surcharges for procuring the cable. The storage space available The Eastern Power storeroom is less according to the increasing demand for cable.

For AusCotton, stiff competition from other industry players is a major challenge. Several other brands provide similar sportswear for summer and winter. The threat of new entrants is high in the apparel industry. High-profit margins attract new companies. The number of players operating in the apparel industry has increased considerably in the past few years. The demand forecasting done by managers in AusCotton is not accurate. The inaccurate demand forecast results in frequent stock-outs at retail outlets. This has the adverse impact on brand image (Brown, 2014). This creates a mismatch between demand and supply of outdoor sportswear. The transportation services used for shipment of goods to other countries is not efficient. There is constant fluctuation in the transportation costs that affects the pricing of goods. It has been established that the contract manufacturers are involved in selling counterfeit products in the market. This affects the reputation of the company and revenue generation (Brown, 2014).



Choice of suppliers should be made carefully. The performance metrics should be clearly communicated to the suppliers- price of material, quality standards and on-time delivery. Before entering into a contract with the supplier, it is important to negotiate on several parameters. These parameters include after-sale services, price, payment terms, delivery terms, overhead expenses, shipment charges etc. Demand forecasting can be improved by taking feedback from the right people- marketing managers, sales managers, and consumers. Accurate demand forecasting will help to improve ROI (Return on Investment) (Doorasamy, 2015). Forecasting should be done on the basis of a product lifecycle, market analysis, competitor analysis and past trends.



Abdullaev, A. (2015). Monitoring Of Enterprise Environment As An Aspect Of Strategic Management. Business Strategies, (4), p.1.

Brown, A. (2014). Challenges to Business Excellence: Some Empirical Evidence. Nang Yan Business Journal, 1(1).

Doorasamy, M. (2015). Product Portfolio Management: An Important Business Strategy. Foundations of Management, 7(1).

Frankel, R. (2006). The role and relevance of refocused inventory: Supply chain management solutions. Business Horizons, 49(4), pp.275-286.

Jensen, P. (2017). Strategic sourcing and procurement of facilities management services. Journal of Global Operations and Strategic Sourcing, 10(2).

mercuri, r. (2007). Book Review: Cross-Cultural Communication: Concepts, Cases and Challenges. Business Communication Quarterly, 70(1), pp.118-124.

Tamegawa, K. (2014). Demand uncertainty, inventory and business cycles. Journal of Business Economics and Management, 15(4), pp.664-683.

Voronina, N. (2011). Service Industry Management: Organizational Aspect. European Journal of Business and Economics, 3.

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Case Study Analysis: Laburnum Group . Retrieved from

"Case Study Analysis: Laburnum Group ." My Assignment Help, 2018,

My Assignment Help (2018) Case Study Analysis: Laburnum Group [Online]. Available from:
[Accessed 10 July 2020].

My Assignment Help. 'Case Study Analysis: Laburnum Group ' (My Assignment Help, 2018) <> accessed 10 July 2020.

My Assignment Help. Case Study Analysis: Laburnum Group [Internet]. My Assignment Help. 2018 [cited 10 July 2020]. Available from: is the perfect solution to render quality solution for all sort of academic issues. We have hired professionals from different fields of study to provide assistance with different subjects. We successfully have provided different types of assignment solutions on 100+ subjects. We have hired industry experts to deliver nursing assignment, hr assignment and finance assignment help. To offer quality content with IT assignments, we have hired IT professionals to render programming language assignment help and IT assignment help for other types of IT assignments as well.

Latest Supply Chain Samples

SOC100 Introduction To Sociology Structure

Download : 1 | Pages : 4
  • Course Code: SOC100
  • University: ECPI University
  • Country: United States

Answer: The chosen status of the status set is team leader The role of a team leader is to provide with proper instructions, guide and monitor the team he or she is leading. The team leader has to communicate and advise each of the team. The leader needs to make major decisions as required to achieve the goal. The leader becomes a role model for the team. I learned the role while I was in a group of 10 students, where we were given a group p...

Read More arrow

HUSO2073 Government And Democracy

Download : 1 | Pages : 7
  • Course Code: HUSO2073
  • University: University Of Melbourne
  • Country: Australia

Answer: Introduction: Liberal democracy is a type of government that caters to the interests of the majority. This type of government attempts to cater to these interests by having a state that is guided by the principles of all men having equal rights, opportunity, power, and so on. All of the traits above collectively contribute to a society that is considered democratic (Rodrik, 2016). Through these traits, democratic societies allow the p...

Read More arrow

SOWK915: Social Work Practice With Individuals And Families

Download : 1 | Pages : 4
  • Course Code: SOWK915
  • University: University Of Wollongong
  • Country: Australia

Answer: Introduction: After reviewing the protocols of AASW Code of Ethics, I have learnt that social work is intended towards ensuring the wellbeing of the individuals. This is with due consideration of the values, roles and responsibilities, which are crucial for completing the projects ( 2019). I have gained knowledge regarding the promotion of social change, which accounts for the main purpose of social work. Along with this, I...

Read More arrow

TMA01 Tutor Marked Assignment

Download : 1 | Pages : 3
  • Course Code: TMA01
  • University: Victoria University
  • Country: Australia

Answer: Introduction: In recent time, most of the Singapore parents are doing job. From the recent survey, it is founded that around 58 per cent of the married couples is dual income. Due to this, life of family is changing in quite different manner. These parents do not have much time to share time with their children. In order to get better work-life balance, most of the Singaporean parents are working hard and spending less time with their...

Read More arrow

BUS223 Two Faces Of Albert Ashwood Case Analysis

Download : 1 | Pages : 9

Answer: Section 1: Problem Statement This case centers on Albert Ashwood who is being accused of sexual assault towards about 25 women in the organization and wrongful use of power to obtain sexual favours from female employees (Johnson, 2015). He holds an executive position as a regional Vice President and has been a part of Silver Moon Resorts & Spas for thirty years. He however holds the confidence of the owners, is widely re...

Read More arrow

Save Time & improve Grade

Just share Requriment and get customize Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2632 Order Completed

100% Response Time

Albert Ambrosio

MSc in Nursing

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

154 Order Completed

97% Response Time

Harold Alderete

PhD in Economics

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1896 Order Completed

95% Response Time

Herman Berens

MSc in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

93 Order Completed

100% Response Time

Jackson Mitchell

MiM (Masters in Management) in Supply Chain Management

New Jersey, United States

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

perfect work from consultants and they have better knowledge to make assignments.


User Id: 458046 - 09 Jul 2020


student rating student rating student rating student rating student rating

This is a well constructed essay, shows the expert actually did watch my video attachment and did a great job!!!


User Id: 417511 - 09 Jul 2020


student rating student rating student rating student rating student rating

Thank you for being helpful. i appreciate your commitment. my professor is yet to grade the assignment


User Id: 450271 - 09 Jul 2020


student rating student rating student rating student rating student rating



User Id: 292731 - 09 Jul 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?