Page 51 - Stakis Consolidated Teaching Note

borrowed heavily in pursuit of expansion. When these
businesses needed cash they discovered their property

assets would not realise the sums required. Stakis was

one of many to suffer in this way.

The following illustrates the complex links between

company decisions, external environmental change and

internal consequences.

Loss of Production

Low Profit Indicators of
Falling Output
Falling Market Share
Customer Complaints
Low Participation
Lack of Initiative &
Innovation in Problem Pressure To Change
Solving
Increase in Grievance

Rules Indicators of Failing
Evidence of Conflict &
Hostilities Organisational
High Turnover Rate Processes
Absenteism

Transfer Requested

At this point an assessment can be made of Stakis’s
competitive position using SWOT analysis. The first SWOT

covers the period under Andros Stakis and is compiled

from an assessment of the factors that might influence the
company’s ability to operate profitably and, in the long

term to survive.