Page 104 - Stakis Consolidated Teaching Note
P. 104
where it had previously found competitive advantages.
Figure 21 demonstrates this move back to the market
penetration strategy of the organisation’s earlier years.
Figure 21: Ansoff Matrix for the Robertson and Michels
Existing Products New Products
Existing Market Product
Markets Penetration Development
New Market Diversification
Markets Development
Sir Lewis had set out his strategies and had started to
settle some of the financial issues, but the businesses
that they were going to keep, namely the hotels and the
casinos, had to start making acceptable profits. This was
Michels’ job. Michels immediately targeted cost control
and increased margins, by returning to the culture of
quality service and accountability of the individual hotel
or casino managers. Michaels demanded that margins
should be increased and that any unnecessary costs
should be removed.
