Page 60 - Stakis Consolidated Teaching Note

It has been suggested that the best method of expansion,
initially, is by acquisition until such time as critical mass is

achieved. In an environment which allows it, cherry

picking can be a very successful strategy: hotels can be
added in a piecemeal manner to maintain growth. This is

exactly what Stakis has been doing and it is what its

competitors are trying to do.

Looking to the future, the single most important factor

which will determine the level of Stakis’ sales over the next

few years is the rate at which it opens new hotels and/or

casinos. Currently the company’s policy is to concentrate
on the United Kingdom market, although in the case of

casinos it may be tempted to venture into Europe.

Essentially, the case traces how Stakis got into trouble and

then, how it got out of it. It examines the steps taken by

management to support and achieve their stated
strategies.

The Ansoffian model (See figure 1) is an iterative process

which provides the basis against which the various

strategies developed in the case are examined. It allows
examination and evaluation of the elements that underpin

strategic choice and its implementation.