DAVIS SERVICE GROUP PLC: STRATEGY IN ACTION

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DAVIS SERVICE GROUP PLC: STRATEGY IN ACTION
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Outline
I. Introduction
II. Key Issues
III. Mission, Vision, and Corporate Objectives
IV. Situational Analysis
A. Macroeconomic Analysis
B. Industry Analysis
C. Internal Analysis
D. Summary of the Current Situation
V. Marketing Objectives
VI. Marketing Strategies
VII. Implementation
A. Product
B. Pricing
C. Place
D. Promotion
E. People
F. Processes
G. Physical Evidence
VIII. Budgetary Requirements
IX. Controls, Milestones, and Corrective Measures
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Davis Service Group Plc: Strategy in Action
Introduction
The Davis Service Group Plc has been successfully expanding its operations in
most parts of Europe through acquisition and organic growth. Consequently, it has
turned out to take leadership in the textile services industry throughout the continent.
The company has identified an opportunity in the Australian market for its tool hire
services and it intends to capitalize on this. The company intends to expand its
operations in order to grow organically. However, as much as the business organization
might be having particular strengths, such as a stable financial base and adequate skills
in their business operations area, there are still some challenges to be encountered
(Davis Service Group Plc, 2007). First, such challenges include the language
distinctions that may prevent from effective communication in the course of business
operations. Second, the difference in the currencies may make it difficult to project the
costs and returns more effectively. Last, there are differences in the legal and
administrative matters. Therefore, it is essential to examine these issues to overcome
the obstacles coming with them.
The people to work in this region within this company should be familiar with the
language and culture to achieve the organization’s goal. Since the business currently
uses a pound as its currency, it might not be difficult to link it to the Australian dollar to
clear off the difficulty in making financial projections. The company intends to invest 50
million pounds, and it is expecting to grow at an annual rate of 25% (Davis Service
Group Plc, 2007). Moreover, the management and other employees of the organization
should make themselves familiar with the legal and administrative procedures followed 
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within this country.
Key Issues
The main issues are that the company is financially stable and has adequate
skills in carrying out the business operations in the tool hire field. The weaknesses
include the language distinctions, the difference in currency, and in cultural,
administrative, and legal procedures. However, there is an opportunity in the new
geographical area of operation that cannot be missed by this company since this is not
its first move towards spreading within different countries.
Vision, Mission, and Corporate Objectives
The Davis Service Group Plc is a focused European textile maintenance
company. Its core strategy is to set up market leading positions to acquire growth of
revenue by making acquisitions and growing organically (Davis Service Group Plc,
2007). The operations are managed efficiently to bring sustainable growth of the profit,
stable cash flow, and higher levels of return to the shareholders.
The company’s vision is to become a business leader in textile maintenance, tool
hire, and building systems. The mission of the company is to focus on its core business
to be able to deliver higher levels of growth at better margins than those of its
competitors. It is being performed through managing the company’s operations
efficiently and by availing resources to drive the growth strategies using the core areas
of the organization’s expertise (Davis Service Group Plc, 2007). This business
organization intends to remain focused in order to capture the opportunities for organic
growth. It also aims to keep innovating and improving customer service, shifting the
focus from products supply to delivering service solutions. Moreover, it strives to 
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concentrate on the delivery of pricing that recovers the increases in the cost base, and
make it possible to invest in order to support the growth that the customers expect. One
of its objectives includes aiming to grow the revenues higher than the economic growth
of the markets. Another objective is to target returns on investments at a higher rate
than the cost of capital to the group. Increasing the organization’s earnings in line with
the inflation rate and managing the organization on a sound financial footing are also of
great concern. The group targets stable free generation of cash flow to finance further
investments in the business (Davis Service Group Plc, 2007). The organization seeks to
maintain a progressive dividend policy.
Situational Analysis
In the year 2001,