Davison Canners: Analysis and Planning for Business Development

This report analyzes the growth opportunities for Davison Canners Ltd., a UK-based food production company. It begins with an introduction to planning and the company's background, then dives into a detailed evaluation of development opportunities using Porter's Generic Analysis, VRIO analysis, and PESTEL analysis. The report then applies the Ansoff matrix and BCG matrix to identify growth strategies. It explores potential funding sources, outlining their pros and cons, and concludes with a comprehensive plan for business growth, including exit and succession strategies. The report provides a thorough examination of Davison Canners' competitive advantages, market position, and strategic options for future success in the food and confectionery production industry.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
Evaluation of development opportunities for Davison canners.............................................3
Ansoff matrix for growth opportunities...............................................................................11
Potential funding sources and their pros and cons...............................................................14
Plan for growth of business of Davison canner....................................................................16
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
Planning refers to looking ahead and future courses of action which is to be followed. It
is a starting step. Its as activity in a systematic way for determining when,how and who will
perform job. It is a program in detail for future actions. Planning takes in consideration
available and human and resources of the company for effective co ordination,contributions and
adjustment. It is a function of management including development of ones or more plans for
achieving optimum balance of needs and demands with available resources. There are various
steps in function of planning which are establishment of goals,developing planning
premises,choosing alternative action ,development of plans,cooperation and following up plans.
For this project the company selected is Davison Canners Ltd. On research will be done in
order to find different development opportunities. It was founded 40 years ago by Davison
family in United Kingdom. They cater various products with a wide range in bakery,dessert and
dairy. It is a foods production company which is based on 107,Summerisland
Rd,Portadown,COUNTRY ARMAGH,UK. The project will research different growth
opportunities of the company by Pestle analysis,BCG matrix, Ansoffs matrix of growth and
Porters generic analysis. Potential sources of funds and their pros and cons will also be included
along with a plan for business for developing business. It mentions plan for exit and succession
for the organization.
Evaluation of development opportunities for Davison canners
Porters generic analysis- It is the primary determinant of company's profitability in
sector which company operates and secondary determinant is the position in the industry. It
describes how a organization for competitive benefit in the market(Bacevice, 2022). It is as
group of 4 strategies which a company can choose. Here is the analysis in context of Davison
canners-

 Cost leadership- Davison canners can be in great benefit by providing its consumers the
products at low price in comparison to its competitors and get competitive advantage. It
will give them more business as more customers will be attracted towards the use of the
company products. Company can make huge profits as their products will be in more
demand as compare to other companies. Here Davison canners can use economies of

scale by producing goods as large scale for making profits. Consumers will buy more if
they are getting the products at low price from other company products(Aurand,
Sunthornvarabhas and Sriroth, 2022). Davison Canner can use this strategy for becoming
the leader in industry and aids the business organization for surviving in the sector.
 Differentiation- Davison canner can utilize this by offering new and unique products in
the market place and create differentiation in comparison to other company products.
Offering of unique goods will provide company to stand different in the segment of food
and confectionery production industry(Tennent, 2020). Company can provide different
goods in the market place like preserved fruit and vegetable pulp,jams etc. which is very
new segment in the market and no other company is offering the products to the
consumers. It will help the company to create a image in between consumers of specified
products. Davison Canner will be able to achieve more success with this strategy as it
will aid the business firm to stand out from the competitive brands(Ali and Anwar, 2021).
 Differentiation focus- If Davison canner has to survive in the market then it must focus
on creating and building brand image in between customers. They can provide excellent
goods and services to the consumers,it will attract more and more customers towards the
company and help to generate more sales resulting in more profits. They can even launch
many innovative products in comparison to competitors like dried vegetable pulp,news
flavours of jams and many more in the market and attract consumers. Company should
research about the requirements of the consumers before launching any products to avoid
any losses(Sharma, Kaur and Arya, 2022) . Davison Canner can be benefited with this
strategy they will be able to get consumers by providing specialized products as per the
need.
 Cost focus- Davison canner can give its consumers superior goods at less cost in
comparison to its competitors ,which will result in increased market share in the sector.
They can provide its consumers the sustainable produced farm products into
confectioneries and food products. These innovation will give company growth in their
sales resulting in more profits. Company can also launch products related to health

conscious consumers by offering them goods are good for their health and are also priced
reasonably, it will also help company to increase its sales and create niche markets in
health category. Davison Canner will be able to achieve more profits with this strategy as
it will provide the firm with loyal consumer base(Greckhamer and Gur, 2021)
It is recommended to the Davison Canner to use the differentiation strategy as it is very
suitable in the current scenario. It will help the firm to create some differentiation from its rival
companies.
Competitive advantage- It is crucial to build competitive advantage of the organization
as it aids the concerned firm.
Business resources
Physical resources- It includes the infrastructure of the business organizations with the
utensil and equipments used for beverages and food dishes. The benefit of this resource for
Davison Canner is that it aids the enterprise for delivering high quality goods meanwhile the
disadvantage is investment for maintenance.
Human resources- It includes the employees who will be given training for offering
better consumer service. In context of Davison Canner the advantage of trained employees is
enhanced satisfaction of consumers while the disadvantage is the capital and time investment in
activities of training.
Technological resources- It includes the digital technology which is used by the
organisation for communicating with customers and employees. The advantage provided by
technological resources is that it aids in improvement in communication among staff and digital
marketing meanwhile the disadvantage is that it introduces the cyber security threat.

VRIO analysis- Every organization is building some type of competitive advantage for
its target market. Vrio model is a internal analysis helping business for identifying the pros and
cons which give them competitive benefit(Mariani, Bartoloni and Morelli,2019). It is a
framework for different measurements of success which relate to the business.
Resources
and Capacity
Valuable Rare Imitable Organized Competition
implications
Fiscal
resources
Yes No No Yes Temporary
competitive
advantage
Awareness of
brand
Yes Yes No Yes Sustainable
competitive
advantage
Leadership Yes Yes No Yes Strong
competitive
advantage
Financial resources- Davison canners is a family owned business but has backing of
many investors who have trust and faith ins the business and owners so they are ready to invest
capital in the company for its future growth. They have already put significant amount of money
in the firm but seeing the growth and development opportunities in future they are ready to put
more moneys in the organization. But as new companies are entering the market and they also
have support of many venture capitalists who also want to invest in food production industry. It
will be very hard for the Davison to cope with it as they are facing tough competition from other
competitors. So financial resources is temporary competitive advantage for the
company(Finch,2019).
Awareness of brand- Davison canners is a well known brand in UK among adults and
children as they produce jams and others products. They spend money on promotions and

advertising in local and regional news channels,papers and radio. They also enjoy major market
share in the sector but new companies entering in the markets who have venture capitalist
funding they are spending huge amount of money in promoting the products. They are also
offering many offers for their products. Davison canners can not spend huge money on only
advertising as it has limited funding then competitors ,it is enjoying the brand awareness between
the consumers. But if competitors will market aggressively then it will be hard for the company
to meet the competition. So it brand awareness is sustainable competitive advantage for the
organization(Putri, 2020).
Leadership- Davison canners a food production company is majorly owned by its family
members who have all the top positions in the company. The owners or managers who see the
operation of business are highly qualified and experienced. All of them have studied from well
known universities and are working in the company from long time. Competitors can not copy
the skills and talent they have as it is rare and very difficult to imitate. The owners are effectively
managing the company and creating value for consumers,employees and company so it is a
strong competitive advantage for the company(Xu, 2020).
PESTEL analysis- The pestle analysis of the Davison canners analysis and identifies the
brand and its business tactics. Some of the external factors of the company has been discussed
below: -
Political factors – Davison canner being one of the biggest food company which supplies jam,
cuds, sauces, syrups and more more product range. And some of the policies issued by the
government of UK can affect the brand. Recently the government of UK has taken a step for
public health and imposed a new legislation which contributes towards the biogenic food
environment and promotes the HFSS products. This legislation makes sure that all the
retailers weather medium or large are following the same legislation.
Economic factors - some of the economic factors like rivalry prices, foreign exchange rate, tax
policies can impact the company and the working of it, as they also export their goods to
many other countries. Th major economic factor that will effect the company is the Brexit.
The main issue for the company will be the foreign exchange rates as there will be so much
fluctuation in the rates. The increasing prices will result into higher expectations of

customers of the products. To overcome this the company have to make sure that they adapt
the 4.0 practices for the industry.
Social factors - the social environment defines the consumers mindsets and the behaviour
toward the industry of food. The modification in the lifestyles, trends, education, Is affecting
the Davison canners. Due to the rise in the education sector, People first preference is the
quality food instead of the fresh food. After the pandemic the lifestyle of the people has also
been transformed. Thy only prefer buying the jams which have no added chemicals in it and
assure the positive health impact. To figure out the preferences of the consumers, the
company need to build up a strong relation with the customers.
Technological factors– as the company Davison canners is increasing their product lines which
is new and risky for them. There are also some issued raised by the customers, and to sort
the issue of the customers company has developed tracking systems as well as the calls to
avoid the interruption and communicate with the clients easily. Also Davison canners is a
very big company and have a large amount of data, to manage that data in systematic
manner they can use big data as well.
Legal factors – the government of UK makes sure that that the company is using sustainable
practices and try to direct the company to adapt the practice which will give improved
outcomes. One of the plan that the government has introduced is less sugar plan which will
lessen the consumption of the sugar and reduce the risks regarding this. So the chosen
company has to follow this legal rule(Randall, 2018).
Environment factors – Davison canners have avoided the use of chemicals in their products.
Which can be harmful fr both the environments well the customers. And also the reduced
the use of plastic and the carbon footprint for the manufacturing which is resulting into
healthy environment.
BCG MATRIX- It is the model for planning which represents the goods and services
for helping management for deciding what business unit it must keep and what to sell and in
which invest more for maximum returns. It was developed by Boston Consulting Group.
STARS

The dried vegetable and fruit pulp is the star in matrix of BCG OF Davison canner by
transformation of brand by repositioning. Company operates in the market which has scope in
future. Davison canner earn major amount of revenue from this unit. They can acquire other
small companies in supply chain management as it will help to earn more profits. They must
focus on ready made packages of dried pulp which will bring more sales as it demand is high.
CASH COWS
The instant coffee pouches are the cash cow in the BCG matrix of Cafe pod. Now a days
consumers are demanding ready made pouches and it is generating great revenue for the firm and
company has almost 32% share in this category. Although many companies are launching their
products and it can affect the business of Cafe pod,but it should invest more in research and
development to innovate in the product category(Acuña-Carvajal and et, al., 2019).
QUESTIONS MARKS
The bottled liquid pulp is the question mark in the matrix of the company. Consumers
are demanding more dried pulp and due to this it is in loss for the past several months. Company
has put many efforts in research and development and is still facing failure. It is recommended
to the company to divest the capital and prevent the loss and use it in other goods development
which may give profits.
DOGS
The artificial flavours jams products business unit is the dog in the matrix of BCG of the
organization as it is in the loss for almost 5 years. The company is operating in the market which
is decreasing day by day due to the health concerns. The strategy recommended is that they must
remove the product from market and invest in some other one(Kiron and et, al., 2020).

Ansoff matrix for growth opportunities
Ansoffs growth matrix- It is a product expansion grid ,in it the use of 2 by 2 model
framework is used by the team of management and for analysing the plan and evaluate the
initiatives of growth. This tool helps in conceptualizing the risk level associated with various
growth strategies. It is very simple and intuitive way of visualizing the team of management
considering growth opportunities. It is used for evaluating the relative attractiveness of strategies
of growth(Mulders, 2019).
Here is the analysis of Davison canner-
 Market Penetration- It is the most less risky strategy of the matrix. In this strategy the
current sales of the company goods in the market place,which results in increased market
share of the organization. Davison canner must adopt this strategy and decrease the cost
of its goods. They can also promote and market the goods in the market place to increase

the sales of the goods. Direct selling will also be used by the organization to increase the
share in the market. They can also offer discounts on its current goods line and attract
consumers. The main advantage of this strategy is this that it is very simple and easy in
implementation to the existent market place. There is less research required for it and it
will help organization for evaluating the all alternatives so the decision is effective for
the betterment of the company. Disadvantage of this that organization ignore competitors
and implement the strategy in the market place. Prediction of this strategies impact in
real market as it is very different(Lourenço, 2022). It can be achieved by the help of
better sales and marketing towards the existing customers.
 Product Development- In this strategy it refers to the product line expansion by
launching new goods or innovating various variety of same goods which has high
demand in the market place. It will result in increased sales of the organization as
customers have various requirement. Organization is launching the desired goods. The
main advantage of this strategy is that organization can do replacement of old goods with
new goods as the demand of customers who are ultimate users of goods. The
disadvantage is that organization will have to do through research of market before the
launch of new products as it causes large cost and if good fails the investment is also
wasted. Davison Canner can use the strategy by the help of franchising for reaching out
to new markets(Tennent, 2020).
 Market Development- It is known as the expansion of organization in new market
places. Davison canner may target new market place as it will help in increasing the
consumer base and goods sale. It can also export the goods of dried vegetable goods
where the demand of pulp and confectioneries is high which will result in increased
business and more profits. Main advantage of this strategy is that the size of the market
place increases geographically and demographically. This will give them global
recognition and help in building its brand image. The disadvantage is that the regulations
in the new market places of different nations have other rules which the organization will
have to follow and the competitors of other nations are also not considered as they will
have to operate in new environment. Davison Canner needs to invest more in
development of different variety of fruit pulp so it is able to offer customers the better
range of goods(Barnjak, 2021).