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Strategic Management (DAVIS Case study) - Essay Example

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It is UK based organization which is having two strategic business units, Sunlight and Berendsen. Sunlight is mainly operating in UK and Ireland whereas Berendsen is operating in…
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Download file to see previous pages On the other hand Berendsen is involved in laundry, textile rental and maintenance etc in almost twelve countries in the continent (Davis-a, n.d.). This paper conducts a comprehensive SWOT analysis of the group. The paper also includes porter’s five forces analysis and BCG matrix in the context of Davis group.
SWOT analysis is one of the major tools which is used to identify and analyze an organization’s internal strengths, weaknesses and external opportunities and threats which are likely to come up in near future or already has came up. It is useful strategic planning tool for the purpose of strategic decision making at different level in an organization. SWOT analysis tool was actually founded in 1960 by Robert Stewart, Albert Humphrey and their coworkers at the Stanford Research Institute.
Strength: Strengths of Davis group is actually the strengths of two of its strategic business units namely Sunlight and Berendsen. Both Berendsen and Sunlight are the market leaders in their respective operating region and this is the major strength of the Davis group.
Both Sunlight and Berendsen cover almost entire Europe. As a result market coverage of Davis group is huge. Further more both the units have strong network as there are large number of processing sites. Employee strength is also a major strength of Davis group. In Sunlight there are almost 9000 employees and in Berendsen there are 7000 employees (Sunlight, n.d.).The group needs to utilize this employee strength to achieve higher economies of scale.
Weaknesses: Since both Sunlight and Berendsen are two companies working under the Davis group, it would be difficult to make Berendsen operate in UK and Ireland. Similarly the group would face problem to expand Sunlight in regions outside UK and Ireland. Since both the companies are involved in various textile maintenance service they might come to compete among themselves. This is a major weakness for ...Download file to see next pagesRead More
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