The leadership of Alan Sugar

Essay by 210jdaUniversity, Bachelor'sB-, August 2006

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Amstrad, which started as a small enterprise, became international consumer electronics, telecommunications and computer group with wholly owned subsidiaries in France, Germany, Benelux and Denmark, and a worldwide presence through a network of distributors. Amstrad built up to a stock market value of $1.2 billion.

Sir Alan Sugar, Amstrad chairman, reveals the secrets of his success in the early years, when he started with a van and a few dozen TVs and hi-fis.

This report investigated into the growth and success of Amstrad in the consumer electronics and microcomputers markets and assesses what has happened to Alan Sugar since 1991.

Historic growth and success of Amstrad.

Hereby is a brief history of Amstrad after 1991. In my opinion, Alan Sugar' building his empire falls into three steps.

Firstly, Alan Sugar started to enter laptop computer market in 1991. In 1992, his Amstrad purchased 29.9% stake of Betacom PLC from Canon Street Investments PLC.

A rights issue and subscription, increasesed Amstrad's shareholding in Betacom to 71.3%. Betacom, a UK based domestic telephone supplier provides Amstrad with a foothold in the developing telecommunications market. In 1993, Amstrad acquired Dancall Telecom, (for c£8m) a Danish dedicated telecommunications manufacturer specializing in cordless phone technologies: CT0, CT1, GSM, PCN and NMT450. The acquisition enhanced UK CT2 research resources and facilitated access to the Scandinavian market. Also in this year, Amstrad launched the world's first Personal Digital assistant (PDA600). Moreover, Repayment and cancellation of share capital involving a scheme of arrangement, as a result of which Amstrad's shareholding in Betacom reduced to 66.2%. (

Secondly, during the period from 1994 to 1999, Alan Sugar broadened his business and acted as the brain of his Amstrad. In 1994, Alan Sugar acquired Viglen computers, the UK's leading supplier of computers direct to end-users. Amstrad direct launched in...