Page 3 - Stakis Consolidated Teaching Note

STAKIS plc: Learning from a close escape

This case is a learning case designed primarily to improve
general understanding of business strategy but it also

provides insight in a number of supporting areas such as

finance and marketing. Learning will be achieved

through a comprehensive and detailed study of the
fortunes of Stakis Plc during the 1980’s and 1990’s with

particular reference to what happened between 1989 and

1992.

The case offers you the opinions and interpretations of

the key personnel directing the company at the crucial

time and supports this with a theoretical assessment of
the events and the decisions taken.

Abstract

This case describes the fortunes of a hotel and leisure

group developed and grown by its entrepreneurial

founder Sir Reo Stakis. Having grown the company into a
dominant player in the U.K. market he relinquished

executive power to his son Andros. The fortunes of the

company thereafter plummeted. Sir Lewis Robertson a
noted company doctor, was persuaded by the banks, who

were the major creditors to Stakis, to take over from Sir

Reo as Chairman. Within a few months he had removed

Andros from executive power. His immediate tasks were
to secure the survival of Stakis and to appoint a new Chief