Three stakeholders of significance at Under Armour are those of the 15,000+ Empl

Question

Three stakeholders of significance at Under Armour are those of the 15,000+ Employees, the Shareholders, and the Company Directors as these are the people who are affected by the businesses poor performance when there are faults in any of the subsystems (Statista, 2017). If the company continues to lose profits, it will need to cut back on its operating expenses, which will result in employees being let go. The recent decrease in share value has come as a great loss to shareholders of Under Armour stock (UA), greatly impacting the financial positions of those highly invested. CEO, Kevin Plank relies heavily on his self-developed organization to satisfy his financial needs and will surely suffer if the companies subsystems are to continue operating inefficiently.  

The major subsystem in need of change is that of the E-commerce sector as it is there that Under Armour’s major competitors are increasing their sales, with Nike’s online sales increasing 30% over the past year due to the increase in sales generated by the mobile apps it offers (Zaroban, 2015). Expanding in the online retail area of the business will enable the company to globalize at a faster rate, increase the accessibility of its products, and lower the operational costs as it is far cheaper to sell online than to sell through external retailers. In Nike’s case, selling online generates nearly twice the revenue and significantly higher margins on each transaction (Zaroban, 2015).

Identify and explain how you would ensure that the proposed change will satisfy any three stakeholders of Under Armour?

Explanation / Answer

After doing the SWOT analysis of Under Armour, it iensured that the proposed changes will satisfy the three stakeholders mentioned here - the employees, shareholders and company directors. Under Armour is having a good revenue run which will benefit all the related stakeholders as is evident in the following analysis.

Introduction:

The company was founded in 1996 by CEO Kevin Plank and public since late 2005. It is the manufacturer of compression t-shirts and then slowly moved into a global designer and major supplier of long and good performing items such as follows:

Strengths

Weaknesses

Opportunities

Threats

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.