What are key planning factors for competitive success in business?

There are three factors of competitive success in business: Customer service Market share Product quality Maintaining a high customer appreciation rating is good customer service. Your most unhappy customer is your greatest source of learning. Bill gates Market share: Market share is one of the important factors that drive many of the other attributes. Your competition is trying to reach the same target audience in competitive market. You must to need upgrade your product features and set competitive prices. Product quality: You need to make sure the quality of your product remains high, develop a product inspection time to time.

Summary
This case study describe the analysis the growth of Davis service group in competitive market of Europe and U.K Davis service group to provide maintenance service in textile, work wear rental dust control mat laundry and washroom services. The company head quarters in London but its operation are spread across the U.K, island and Europe. Davis services are also managed three separate companies I-e sunlight. Sunlight provides services hiring sheets to hotels hospitals and private businesses. International Expansion: Expansion of one company into other countries provide a good opportunity to grow a company For example, if Davis service group expand our business in European Union that provide many opportunities and ways to grow a company to maximize a profit because Europe has 27 member countries. It is a huge market to expand a business over 500 million customer. Different British company locating and offices in the Europe are able to benefit from a skilled labour and makes it easy to trade within this market place. Acquisition:

In 2002 Davis service group acquired a company Berendsen was the market leader in providing textile services and it operates in Denmark, Sweden, Norway, Austria, Netherlands, Poland and Germany. It is better for the Davis service group to take over become Davis service group set up a new rival in European market. Davis group could buy established networks and customer relationship. Davis group reduce the operating cost. For example, closing down some locations where Berendsen had two outlets in the same area. Due to this factor Berendsen was in a stronger position to improve its sale and profitability.
Two major ways Devis Service Company can use to grow are Organic Growth In organic Growth Organic Growth: DevisCompany can grow by maintainingits turnover by increasing its own business activities within the existing place with the help of itsefficient management that enhances its growth rate. It is also Known as Internal Growth.Devis Company can achieve organic growth by increasing output and enhancing sales. Organic growth represents the true growth for the core of the company. It tells how well the Devis Companys management has used its internal resources to expand profits. Inorganic Growth: The second option available with the Devis service company is through inorganic growth Devis service should go for mergers and acquisions or takeovers. It should expand the operations of a business that arises from mergers or takeovers, rather than an increase in the companys own business activity. If Devis service chooses to grow inorganically then it can gain access to new markets and fresh ideas that become available through successful mergers and acquisitions. Inorganic growth is also known as external growth. Mergers: A merger is a combination of two companies to form a new company.Devis service company will merge with Berendsen Company and can form an entirely new company. Again there are two options for Devis service: Horizonatal integration:

If Devis service company wants to increase its revenue or widen their products range,thecompnay should go for a horizontal merger. Vertical integration: If Devis service wants to become more competitive by reducing its costs, and needs to protect access to vital supplies, it should consider a vertical merger. Acquisitions: Acquisition is the purchase of one company by another in which no new company is formed.Devis service can acquire the Berendsencompany.this will be the best option for Devis service because like sunlight Berendsen is also the market leader in providing textile services in its geographical area. Also becauseacquision is less risky and easily integrated. Suggestions: In my opinion inorganic growth would be a better option for Device service group of companies because Inorganic growth is seen often as a faster way for a company to grow when compared with organic growth. And Devis Company has the resources to expand globally.

Swot analysis:

strength SWOT opportunity

weakness

threat

Strength:
Competitive advantage due to cheap cost of labor market leader high target market volume Reduce operating cost reduce fixed cost

weakness
Buying pattern of people may change management issues skill level may difference

opportunity

language Culture differences Currency Strength of management Introduction to new market

Threat
Management conflict Administrative Risk Political changes

Internal strategy factors

Internal strategy factors Strength S1:Competitive advantage due to cheap cost of labor S2:market leader Weight rating Weighted score comments

.14

.28

Here labor cost is less than other countries Berendsen is also doing the same business so we can use its resources with full efficiency Europe is having 27 countries if we start business over

.17

.51

S3:high target market volume

.15

.3

S4:Reduce operating cost

.12

.12

S5:reduce fixed cost

.15

.3

there we can get high volume market Automatically reduce operating cost due to berendsen Reduce fixed cost because infrastructure is already build It may be possible that buying behavior not in favor of us with direct impact on sale Working style may be differ Working environment so we have to invest money to trained them

Weakness W1:Buying pattern of people may change

.05

0.01

W2:management issues W3:skill level may difference

.15 .13

1 2

.01 .26

Total

2.06

EXTERNAL FACTOR ANALYSIS:

External strategy factors Opportunities O1:language

Weight

rating

Weighted score

comments

.09

.27

O2:Culture differences

.07

.14

Berendsen company is using English as a common language which is very important factor to communicate within the organization Berendsen ifs following the

O3:currency

.13

.52

O4:Strength of management

.08

.24

O4:Introduction to new market

.14

.56

same culture and pattern as davis service group which can make comfortable environment for employees For any organization currency is the main factor because it involve in all dealings of campany. When two big companies work together there area lot of things to learn from eachother through sharing information. As a big company introduction in new market is big opportunity for organization to attract customers When big two companies work together they have always some face management issues. Like misunderstanding employees or to think superior Organization rules different from eachother When u working with big and new company risk factor involve sometimes. company must be

Threats T:1Management conflict

.15

.6

T2:administrative

.16

.64

T3:risk

.10

.2

T4:Political changes Total

.14

.42

aware to possible risk Political change is an issue for any company.

3.59

Horizontal Integration: - It is the process of acquiring or merging with competitors, leading to industry consolidation and it is a strategy where a company acquires, mergers or takes over another company in the same industry value chain. According to the Davis it encouraged the horizontal growth because the European Union combined the currencies, making English the primary business-language, so that it was easy for everyone to go there and they could all work. Strength:Following are the strength in the horizontal growth Lower costs.

Increased differentiation. Increased market power. Reduced competition. Access to new markets.

Organic as opposed to inorganic growth:According to the davisthe European Union market encourages the growth of Davis Service Group with the berendsen in Europe very much. The factors that might have been barriers to international growth were easy to overcome inthis acquisition: Strength:Following are the strength in the European Union market I. Peace and stability Before becoming a real place of peace for the first half of the 20th century one cant think Europe as a united state, only one person have thought about it. Its production is dealt under the high authorities of the union. II. Safety and security To make the region work suitable to work, business and the living standards, lots of efforts are under observations specially the effort of combine work of the police from different countries are the effort to meet any terrorist activities. III. Economic and social solidarity Basically it is made to bring change in political stability and solidarity but now EU has become the icon of economic and social solidarity as a rapid and fast growth is going on. IV. Values The Davis decided to grow its industry in the EU (European Union) Market. It sold other parts of the business to put more effort to make textile business well especially in the market like EU. This allows company to re-invest their profits and expanding the business. V. Expertise in same business VIMarket leadership position in existing market VIIEstablished networks in existing market VIIIStrong Customer base IXLanguage: Berendsens business operates across several European countries and usesEnglish as a common language. XCultural differences: buying patterns and the culture in the areas where Berendsenoperates are similar to the UK.

PESTAL ANAYSIS: If the company wants to expand into new areas of the globe then there is best opportunity for the Davis Service Group to expand their business in Europe (Flanders) by acquisition of Berenson. Following are the ten main reasons after PESTAL analysis to choose this city. 1. The central location at the heart of Europe 2. Outstanding transport infrastructure 3. Globally recognizes human capital 4. Divers offering of tax benefits and fiscal incentives 5. Sustainable growth for major industries 6. State of the art research centers 7. High density of knowledge cluster 8. Excellent results in international surveys 9. High quality of life for expat employee 10. Professional support in setting up your operations Heart of Europe: Brussels is home to the NATO headquarters and to that of the European Union. No wonder that a large number of international governmental and nongovernmental organizations as well as corporate representative offices and treasury operations are based there. They like to keep abreast of European policymaking and the effect this has on their activities. Outstanding transport infrastructure: Flanders is centrally located in the area from which a large chunk of Europe can be supplied at satisfactory transport costs and within possible delivery times (24h/48h). European Distribution Centers (EDCs) are preferably located in this area. They have highly efficient airports. They are also called heart of international cargo. Globally recognizes human capital: One of the main factors in investing decision while running a business to expend we focus is: human resource and Worldwide, Flanders enjoys the reputation of a region with a highly productive, flexible, and multi-talented workforce. Several international surveys have confirmed this. Divers offering of tax benefits and fiscal incentives: It is crucial for companies to operate in a cost-effective manner. Flanders offers them an ideal climate in this regard. The region can offer a wide range of tax benefits and financial grants, from tax exemption and rulings to beneficial tax regimes for R&D and pension funds and the much valued notional interest deduction. Such as National interest deduction (The notional interest rate for tax year 2012 is3 % (even 3.5 %for SMEs). Patent deduction (6.8% on gross patent income) Domestic dividend without holding tax (single entity) VAT grouping (21%) (easy to move ) Ecological support( immediate help in financing)

Sustainable growth for major industries: Flanders is a tiny region in terms of surface area, but a big player in a number of major industries. It houses numerous world-leading multinationals and SMEs. If you decide to locate your business activities in Flanders, youll benefit from the sustainable growth achieved in these industries and the worldwide reputation they have acquired. Food and life style Automotive Chemical and plastics Life science Environmental technology logistics

State of the art research centers: Flanders has an impressive track record when it comes to discovery research and innovation across a wide range of disciplines and a variety of sectors. The region housesfour Strategic Research Centers that collaborate with the academic and business worlds andeach have their own specific focus. When siting your company in Flanders you can benefit greatlyby collaborating with these centers. They are the birthplaces of cutting-edge technologies and of the processes that shape tomorrows society High density of knowledge cluster: The winning combination of Flanders dense population of companies SMEs, large enterprises, local companies or foreign concerns and their traditional willingness to cooperate in order to extend themselves, has provided a hotbed for the development of various knowledge clusters. These clusters form a tight network with the academic world and their member companies, for whom they afford a crucial head-start in the different industries. Excellent results in international surveys: Flanders is the ultimate location in Europe for your business activities. International surveys show that Flanders is a region with a rich variety in opportunities for overseas companies looking for sustainable growth. Whether your activities concern a European HQ, coordination or service center, logistics, marketing & sales, production, R&D or treasury operations, companies from all industries in Flanders find themselves in the right spot. High quality of life for expat employee: For decades on end, expatriate employees have enjoyed a high standard of living in Flanders. The regions social fiber is strong and its people areopen minded. Its cultural past is both long and colorful and its inhabitants have alwaysenjoyed and still enjoy - the reputation of living life to the fullest. On top of that,Flanders excellent medical health care and education system ensurea worry-free stay for your expatriate employees and their families. Professional support in setting up your operations: Providing expert advice and guidance to foreign companies wanting to start or expand operations in Flanders is one of the core responsibilities of Flanders Investment & Trade. Thanks to our experienced, multilingual staff we are able to assist you with your integration into one of

Europes most prosperous economies, both efficiently and effectively. We have more than 90 regional offices worldwide to assist.

Grand matrix:
RAPID MARKET GROWTH Quadrant 2 Market development Market penetration Product development Horizontal integration Divestiture liquidation

Weak competi tive position

Quadrant 1 Market development Market penetration Product development Forward integration Backward integration Horizontal integration Related diversification

Quadrant 3 Retrenchment Related diversification Unrelated diversification Divestiture liquidation

Quadrant 4 Related diversification Unrelated diversification Joint ventures

Strong competi tive position

Slow market growth

We are at quadrant 1 because we are in position of strong competitive position we have change of rapid market growth after acquisition with berendsen

QSPM:

Diversification
Key factors weight AS TAS

Capture small units with in country

AS TAS

Strength: Competitive advantage due to cheap cost of labor market leader high target market volume Reduce operating cost reduce fixed cost
Weaknesses: .14

.17 .15

4 4

.68 .6

3 2

.51 .3

.12 .15

3 4

.36 .6

2 3

.24 .45

Buying pattern of people may change management issues skill level may difference
Total Opportunities:

.05

.15

.1

.15 .13 1

.6

.3

Language Strength of management Language

.09 .07 3 .21 2 .14

.13

Culture differences Currency Threats: Management conflict Administrative Risk Political changes Total

.08 .14

2 4

.16 .56

2 2

.16 .28

.15 .16 .10 .14 1 4 .56 3.52 3 .42 2.68