Deni

Mini case 1 – Saatchi & Saatchi
In December 1994, as a result of sustained pressure from the principal shareholders, Maurice Saatchi was dismissed from his post as chairman of the company. Saatchi, a controversial figure, had founded and managed the firm. His dismissal was intended to prevent a further sharp fall in the company’s share prices, and it was greeted with initial enthusiasm.
However, the consequences were fatal. Maurice Saatchi quickly formed a new company, continued to trade under the name of Saatchi, and recruited many of the most creative employees from the old company. Owing to this enormous loss of intellectual capital, CORDIANT, the company which succeeded SAATCHI & SAATCHI, lost customer accounts worth over £50m. in a matter of weeks. The share price collapsed by a further third in the following six months.

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