How Davis Service Group

managed Recession
 Recession

•Serving in emerging economies

•Providing essential and valuable goods and services

•30% of Davis business is in service sector that is backed by government

•Products and services with less demand are currently cut off

•Well-structured organization and management

•Managers were allowed to take certain decisions as per the market conditions
 Growth and Production

•In order to cut cost, companies usually outsource certain support activities

(Growth opportunity)

•The group mainly supplies on three-year contracts to mainly hotels and hospitals

•They are continually re-allocating their production to fully utilize their resources

•They have moth-balls their plants for future use

 Financial constraints

•Fall in value of pound against euro increased their value of business

•Favorable relations with bankers assisted them in getting loans timely

•Have developed good relations with shareholders by paying them their share

of dividends on time even during hard times