Page 67 - Stakis Consolidated Teaching Note
P. 67
Period (a)
It would probably be true to say that up until the
appointment of Andros, Stakis had increasingly become a
conservatively managed company. Andros' aim was to
stimulate rapid growth on the back of the development of
a new hotels' product and a new nursing homes division.
His objective was to create a new market niche for Stakis
based on increased style and image. To achieve this he
had assembled a team of people, notable amongst whom
was Neil Chisman, who looked capable of bringing about
this transformation. By 1989 he had produced Stakis’ first
corporate strategy. This strategy was based on an
investment of £500 million in new projects (See Figure 4).
Neil Chisman, who had a major hand in developing this
strategy, maintained that it was an attractive strategy with
a lot to commend it. Events, though, were to move against
the company and its strategy. But more importantly,
control of the strategy failed to materialise and this can
only be laid at Andros’ door.
Figure 4
COSTS FUNDED BY
30 Country Court Hotels = £300m Sale of non strategic fit = £100m
hotels
£10 Million each
30 Nursing Homes Profits from business = £150m
+
Expansion of Pubs Property = £200m
and Others Borrowing from Banks = £250m
Total Cost = £500m Total Funds = £500m
