Page 4 - Stakis Consolidated Teaching Note

Executive. He achieved the latter task with the
appointment of David Michels. Together they then

addressed the former task. The case juxtaposes the

decline and its causal factors with the turnaround and the
company's revitalisation. It contrasts family business and

management with that of professional management.

CASE OBJECTIVES AND USE

The case was developed for use on Business Policy and

Hotel and Catering, undergraduate and postgraduate
courses. It provides a forum for analysing the strategic

implications of growth, decline and turnaround and the

roles and characteristics of key management in these
various stages of organisational development.

CASE SYNOPSIS

Stakis plc is registered in Scotland and operates in two

main areas -hotels and casinos. Its origins date from 1947

when its founder Reo Stakis identified a gap in the market
for eating out in the depressed post war industrial cities of

the U.K. He rapidly diversified his portfolio into hotels,

which like his restaurants were geared to his customers’
needs with equal attention given to site location. By 1977

the company had 26 hotels, 32 restaurants, several public

houses and eight casinos and betting shops. Turnover was

£38 million and 4,000 people were employed. The 1980's