Page 94 - Stakis Consolidated Teaching Note
P. 94
The newly formed Leisure Division, which included
restaurants, casinos, public houses, discos and the newly
acquired Trend Holidays, were also told to expand. The
division duly expanded in almost all directions with
casinos throughout the country, a public house chain in
England and the notable Barracuda Club in London for
£11.5 million.
The Hotel Division also developed the earlier acquisitions
in the Aviemore area of Scotland, the total investment
amounted to £20 million. There was Stakis’s first
international acquisition, namely a hotel in Spain.
The Property Division, which made a £4 million profit in
1989, also expanded with the purchase of the freehold
and long lease interest in hotels that Stakis already
operated. This was going to save £1 million in the first
year and £1.45 million in the second year, but at a cost of
£14.5 million.
Figure 16: Ansoff Matrix for the Andros Stakis
Existing Products New Products
Existing Market Product
Markets Penetration Development
New Market Diversification
Markets Development
