Page 96 - Stakis Consolidated Teaching Note

had no idea about cash flow as he spent £14.5 million on
purchasing the leasehold on some of the organisation’s

hotels.

The end was coming and Andros had no plan B, as cash

flow ground to a halt, losses of £47 million in 18 months,

high gearing and the current economic conditions were

against him. The banks were therefore concerned that
Stakis would breach their interest payments.

The Ansoffian Model in figure No.4 best depicts the

strategies selected by Andros, who was seen boxing
himself into a corner, rather than change the strategic

choice and predictions, he had made when first becoming

managing director.