Page 15 - Stakis C Case Study

STAKIS POST SIR LEWIS

By mid 1996, Stakis, with 45 hotels had a portfolio of

which there was a 60-40 balance of hotels to casinos. Its
share price which had languished around 20p in the early

1990s had risen to 108p by May 1996.

Strategic direction had been brought back to the
company and implementation of it was clear, controlled

and decisive. Black holes of any nature were not tolerated

within the company and communication and openness

had become the raison d’être of corporate life.

Stakis was a recovered company! But how had this been

achieved? What triggered the transformation from a
company whose capitalisation had fallen to less than

£70m. in 1991 to one which today is capitalised in excess

of £500m.?

Initially, Michels’ style at Stakis was autocratic with

leadership being clearly boss-centred. This is evidenced by

his first week in office and the steps taken to bring cost
control to the fore. However, as pressure came off his style

became more democratic with subordinates no longer

simply being told what to do but rather being developed to
participate in the running of the company. Culture was a

key consideration for Michels.