The Strategies and Appropriate Solution Essay Example | Topics and Well Written Essays - 4750 words

The Strategies and Appropriate Solution - Essay Example He also decided to include a major restructuring in the firm’s administration and its operational activities. Under these conditions, the appointment of David Michels, in 1991, as a chief executive should be considered as justified. The experience of David Michels in the particular industry (ex-Executive Vice President of Hilton International, Deputy Chief Executive of Hilton U.K.) made him the most appropriate candidate for the particular position. One of the priorities of David Michel has been to examine and evaluate the performance of the company for the last three years (1990-1992). The results of this research were disappointed showing a loss (after tax) of 47.4m pounds for the year 1992 and a relevant loss per share of 47.3m pounds for the same year. For this reason, David Mitchel stated that â€Å"It was worse than I thought. I didn’t know the company had quite as many difficulties as it had. I don’t think the company knew all its difficulties†. The above statement of David Mitchel could lead to the following thoughts: a) David Michel was not appropriately informed in advance of the firm’s financial difficulties. In this case, Sir Robertson could be considered as having the responsibility for the inadequacy and inaccuracy of the information provided; b) David Mitchel would not be able to respond to the firm’s needs. More specifically, his statements could be considered as showing his inability to resolve the problems that the firm had the specific period of time. Again the choice of Sir Robertson could be strongly doubted. On the other hand, the possible responsibility of David Mitchel could exist to the extension that he did not provide accurate information regarding his skills and his competencies in the particular field. As for the strategies followed by Reo Stakis and his son, these should be evaluated throughout the firm’s operation since its establishment in 1947 in Glasgow. The strategic leadership followed by Sir Lewis and David Michels led gradually to the recovery of the firm. It should be noticed that in January 1993 shares in Stakes reached the price of 45 pence (a 4 pence increase comparing the price of the share in 1992). Although Sir Lewis was replaced in late 1992, his style of leadership proved to be extremely positive for the firm’s performance in the long term (in 1994 the pre-tax profits were increased to 10.4 million). It is due to his decisions that the firm managed to recover and becoming in January 1994 â€Å"a normal company, boring even† according to a statement of David Michels.