Page 98 - Stakis Consolidated Teaching Note

Sir Lewis Robertson and David Michaels

The Stakis empire was on its knees, with large debts and

no cash flow. Something had to be done and it had to be

done, quickly. The introduction of Sir Lewis Robertson as
chairman replacing Reo, was recommended by the board

and was approved by the banks, as they had a lot of

money tied up within Stakis. The announcement pleased

the stock market as it raised the share price by £0.03 to
£0.39.

Sir Lewis already had a reputation of a company doctor,

although at the time he stated that Stakis, did not need
saving, as it was not in deep trouble. This may well have

been said for the stock market and bank’s benefit to

breed a bit of confidence. Right away Sir Lewis knew the
organisation’s culture had to change, the guile and feeling

of success had to return, to boost moral within the failing

ranks.

The strategy of Sir Lewis could be seen a turnaround

strategy, but first it would have to be a survival strategy.

When Sir Lewis took stock of the situation, he knew he

had to steady the ship and stop the outward flow of
money. His first task was to arrange the bank standstill,

initially for one year and laterally for a second year.

In contrast Andros did not posses the practical business

experience that Michels has, his experience is based

around Stakis and his father, entrepreneurial, he has
leadership skills but not the experience to develop a