DAVIS

-POOJAN KARIA
-RONAN GOMEZ
-Gautam Chudasama
Introduction
Davis Service Group is a large public limited company employing
around 17,000 people. Its shares are quoted on the London
Stock Exchange . The business is based on service contracts to
source, clean and maintain industrial textiles, such as protective
clothing and linens. This is across four key sectors: workwear,
healthcare, hotels and restaurants, and general facilities, such
as washroom linen.
What aspects of European Union markets have
particularly encouraged ?

The mainly two aspects which encouraged were

• Horizontal growth of the Davis Service Group
• organic as opposed to inorganic growth
• Horizontal growth is when a company accquires
competitors in the same industry doing the same stage
of production
It refers to a situation where two firms at the same stage
of production join and we know that Davis Service Group
is joined with Sunlight and Berendsen. Horizontal
integration made sense Because Sunlight and Berendsen
are specialist companies at the same stage of production.
It was possible to pool the knowledge and expertise of
the two companies so that both benefited.
• Organic growth is when a company increases the
turnover of the existing business. Much of the growth
of sunlight and Berendsen involves organic growth.
These businesses are market leaders that have been
able to learn a lot from each other and share good ideas
and best practice. It is built on existing resources, is
sometimes the only way to grow. Like in many Eastern
Europeans countries that were part of the former Soviet
Union, there are few companies suitable to take over.
Most businesses in these countries had previously been
government owned. They had poor equipments and
had no need to rent out textiles.
If company were to expand into new areas , where would you
recommend and why?

• I would recommend India , India has a wider scope and market

and as its under devolped nation , indirectly it would lead
boost so companies investing in india and setting their
business ,India there will be a huge demand of consumers
• India’s young population and economic power will boost the
business and indirectly benificial for both.
Conclusion
Davis operates across 15 countries and has sales turnover
of over £1 billion. To meet its needs, the company has
developed a robust and detailed budgeting and planning
process involving its managers. Budgeting provides an
essential forecasting, control and feedback system on
which effective management depends. This process
translates competitive strategy into reality.