DAVIS SERVICE GROUP PLC

Davis Service Group Plc

Davis Service Group Plc

EXECUTIVE SUMMARY:

Presently, Davis Service Group is predominately focus on textile maintenance and related services. The company is engaged in the providing solutions of services from foundation, hygiene and maintenance of the textiles so that the textile of clienteles company's operations can be run smoothly. The Group provides its services across Europe and has more than 17,000 employees. It is estimated that the annual gross turnover of the company is £820 million. The Davis Group has expanded its business through acquisitions and through organic way. In this strategic plan, we discuss the business opportunities for the Group in the Australian Market. Davis Group want to grow organically with the tool hire (HSS) through SBU as there seems huge potential for the company for tool hire in that huge market. In this strategic plan we will give swot analysis, market analysis and market technique and strategies plus budgeted forecast for this plan to execute successfully.

2.0. KEY ISSUES:

The Davis Group has gained competitive advantage in the European market. By delivering higher performance with improved margin than their competitors, they gain the competitive edge in the market. The company marketing strategy is to manage operational service resourcefully, and utilize the available resources with the help of their core expertise. Such strategy helps them to maintain their leading position in the market, and provides them opportunity to capture new markets with attractive margins.

2.1. SWOT ANALYSIS:

In the SWOT analysis we follows, Davis Service Group retains a healthy position. The Davis Group has substantial strengths as well as some weaknesses. Market opportunities in the new market of Australia and some competitive threats as key competitors in Australian market ramp up for new opportunities.

2.2.1. STRENGTHS:

Davis Service Group has various strengths in the following areas:

The Group has experienced and highly qualified management.

The Group earns a leading market position and has a good repute in the global textile service industry.

The financial position of the company is sound and produces good cash flows.

Expertise in linen hire, work wear rental, dust control mat, laundry and washroom services.

A difficult service market but managed to retain 76% of the market share in Europe.

Positive pricing outcome being achieved.

Leading Group for cross selling its products and services across all the captured markets.

2.2.2: WEAKNESSES:

Davis Service Group pls has the following weaknesses:

Morale issues of Employees.

Failure to deliver service to the Health sector in accordance with Clinical Business Solutions.

Unforeseen capacity loss.

Inability of the company to recruit and retain expertise and qualified senior management staff.

2.2.3. OPPROTUNITIES:

Davis Service Group pls has the following opportunities in the Australian market:

Market opportunities for the company and growth in revenue by 30%.

Significant new contracts with Australian Clinical & Health Care Solutions.

Another region for organic growth.

New Operations established in Australia.

Increase in operating margin in the core textile markets in Melbourne, Sydney, Perth, and Brisbane & New Zealand.

2.2.4. THREATS:

Prolonged recession in world economy.

Non compliance with policies of Corporate Group ...