Page 45 - Stakis Consolidated Teaching Note
P. 45
B : APPROPRIATE STRUCTURES
Given the size and diversity of Stakis (peaking at 8,000
employees in 1991) it would not be unreasonable to
expect a divisional structure. Structures are, to a great
extent, dictated by chief executives. In the period up to
1990 there was strong evidence that Andros Stakis
maintained the elements of such a structure but did not
provide the necessary central controls to capitalise on the
structure’s potential.
In this industry the competitive position of a company is a
product of its level of personal service, the effectiveness of
its communication links with the local community, the
tightness of its operational controls and its ability to react
to local price competition. A centralised organisation
structure would slow down response time and demotivate
those working in units. The new Stakis tight-loose
structure aimed at achieving both central control and local
flexibility.
