Page 115 - Stakis Consolidated Teaching Note

crisis. It was not however just enough to improve cash
flow and reduce debt, it was also important that the

“good news” was relayed to the banks, the city and the

shareholders. Strength.

Market positioning and portfolio

Reo had built up a portfolio of assets to target the more,
well off market segment of the population. He offered

good service and high quality product, which many

people would not mind paying a little extra for and would

in turn generate extra margin. The portfolio grew from
over the years, but mainly stayed within the leisure

industry, although there was some related diversification.

Strength.

Andros carried on from where his father left off, but

decided to add a couple of ideas he had seen in the USA.

These were namely residential care homes and hotels
based next to motorways, for the business traveller

during the week and families at weekends. Two

reasonably good business ideas, but Andros were trying

to do too much at the one time and took his eye of the
external environment. Figure 10 (Boston Group matrix)

shows the Stakis portfolio, measured against market

share and market growth. Weakness.
Recommendations

The recommendations to ensure the company continues

to develop its profile and profitability are as follows: