Page 113 - Stakis Consolidated Teaching Note

each of the head offices, there was HR and buying, with
only the financial issues being dealt with at group HQ.

This structure was very expensive, with many functions,

duplicated in each of the divisions and to make matters
worse there was no share of resources between the

divisions, there was a complete lack of synergy. There is

also a loss of control from the group head office, as

inefficiencies may be concealed within the divisional head
office. Weakness.

When Andros succeeded Reo, he did not know anything

different and continued with a divisional structure, which
brought the same lack of synergy, problems and costs as

before. This was a result of appointing an internal

successor, who has the same train of thought as his
mentor. Weakness.

Robertson and Michels, changed the organisational

structure immediately. The divisional head offices were
closed, along with the expensive and exclusive “Atlantic

Quay” head office in Glasgow city centre and only the

required functional employees move to one office in the

more affordable East Kilbride. This brought savings of £2
million, but equally important, it brought back immediate

control to the group HQ.

Strength.
Financial management (Cash flow, cost control)

Reo as previously stated, built the organisation from

nothing and new about cash flow and cost control. If he
had not the organisation would have been lost many