Bcg Matrix – Davis Service Group
4.3.2
The BCG Matrix is based on current situation within Davis Service Group business segments. After analysing Davis Service Group Plc Report and Accounts 2008 it was possible to analyse the market growth against the market share of Davis business segments.
Work wear and Facilities are growing faster those other services as there is demand for these in developing Baltic countries, where Davis expanded recently. These segments are leaders in their markets and keep expanding rapidly. The Healthcare segment is the ‘cash cow’ as it has a large market share, accounting for 30% of the Davis market share. It remained stable even during the recession, as NHS is supported by government and therefore the demand for healthcare services is steady. This mature core business has low market growth but it staidly generates cash for other businesses. To retain the existing Healthcare customers Sunlight has expanded its services and developed related activities such as clinical solutions to maintain market dominance.
Due to the pressure on pricing, the value of hotel contract has decreased in European and UK markets, affecting the sales of Davis. This resulted in closure of hotel linen services in Finland. Due to these facts, this business segment became a ‘dog’ within the Davis markets. It would be ideal to seek appropriate solutions to either liquidate this segment or put effort into increasing the margins.
(See appendix 5)
4.3.3 Telescopic observations
(See appendix 6)
Internal Analysis
4.4.1 7 s Framework
The seven factors in McKinsey Framework determine the way in which Davis operates. Providing highest standards of products and services and appropriate employment standards is what Davis stands for. Davis Service Group believes that respecting all people and cultures is a priority for a successful company. Through its operation it aims to reduce environmental impact by following the guidelines set out by the European Textile Services Association. Davis uses different types of strategies to reach identified goals. Davis organisational units relate to each other through decentralised and multidivisional structures.
(see appendix 7)
Summary of