Page 89 - Stakis Consolidated Teaching Note

company is not performing adequately, recover the
situation and turn the company around.

In 1991 Stakis plc appointed a new chairman and CEO

with cascading changes in senior management. The
company’s performance had gone drastically downhill

and the role of the newly appointed management team

and CEO in particular was to turn the company’s

performance around. In order to evaluate the position of
the company it is necessary to perform at least two

analyses the first prior to changes implemented by the

CEO and the second after change. The aim of a SWOT

analysis is to provide information about the position of a
company relative to the business environment, armed

with this information management should aim to

maximise its strengths, either eliminate or convert
weaknesses into strengths; Opportunities should be

exploited as far as practicable and threats should be

minimised. The two periods to be analysed in this script

will be 1990/91 (pre change) and 1993/94 (post change).

Although some of the strategic moves could be described

as “accidental”, under Sir Reo, this would be classed in the

Ansoff’s Matrix as Market Development.

Figure 14: Ansoff Matrix, Reo Stakis

Existing Products New Products

Existing Market Product

Markets Penetration Development

New Market Diversification
Markets Development