If the club is successful the shareholders will receive bigger dividends for their shares and the share price will increase. Therefore if they decide to sell their shares they would make a profit on what they bought them for.
The more successful the club is, the more merchandise needed resulting in a higher level of profit. They must supply quality merchandise otherwise supporters wont want the goods and the company wont gain as much profit as is possible.
Due to the clubs success during the last decade the demand for tickets, merchandise and shares have all increase. The club has been able to increase the prices of these things so have gained more profit. All its stakeholders have benefited greatly from this.
The stakeholders of Spencer Hair Company are the owner, customers, employees, suppliers and banks.
The owner - Garry Spencer directly affects each aspect of the business i.e. he markets the company to ensure customers no of whereabouts and want to visit. He employs and trains the required amount of staff to so customers are not kept waiting for long periods of time and always receive quality haircuts. He also makes sure that the right amount of products are ordered so there is sufficient stock not only for salon use but also for sale to customers. He sources the finance from banks to expand the company e.g. sets up new salons or refurbishes existing salons. If the business is unsuccessful and customers do not visit the salon again as he is the owner he won’t earn as much money and will be unsatisfied with his lifestyle.
Without customers there would be no business. The salon affects the customers in the way that if Spencer Hair Company closed down the customers would have to go elsewhere to get their hair cut.
The employee’s attitude and skill of cutting hair affects how many customers revisit the salon. If the business is unsuccessful their wages will decrease or they could possibly lose their jobs.
Suppliers have to ensure they supply quality products for use on customers. If they provide products at a reasonable price the salon will sell more products therefore increasing profit for the business and the suppliers themselves.
If the banks do not supply money to the business it may not be able to refurbish shops. The bank makes interest on the loan it gives to the salon therefore it benefits itself.
If the salon is successful they will be able to employ more staff and as the demand for products will increase the employer, employees and suppliers revenue therefore profit will increase.
Both the owners of Manchester United Football Company and Spencer Hair Company treat their stakeholders as partners in their business as neither can function to its full capacity without the support, labour and supply of goods. They ensure that their customers receive the best possible customer service to make sure they continue to stay with them. They both also ensure they gain the best possible cost prices to maximise profits they can make on products that they sell. They listen to the views of their customers and wherever possible act on these views to ensure customer satisfaction and continued support.
On summary stakeholders interests do vary depending on which aspect of the business they have a stake in. The footballers main interests are that they win trophies are well supported by their fans and can command large salaries. The supporter’s main interest is not financial but that their club is the most successful and continues to win. The shareholders interest is that the club is financial and therefore the share values and dividends will increase in price. The ground employees obviously have a desire to work for a successful football team but the more successful club is, the more job security they will have. Factory workers want the club to be successful as this produces a greater demand for the merchandise and again gives them job security and the opportunity to work overtime to help meet demand.
Ultimately the most powerful stakeholders in the numerous Man U activities are the footballers, as without them being successful on the football field the demand for season tickets and merchandise would decrease and the share price would drop in value. The second most powerful stakeholders are the fans, as without them supporting the team i.e. buying tickets the club would not have the money to find its other business activities.
With Man u due to the fact that the players are the most powerful stakeholders and are collectively responsible for the success of the club makes it totally different to Spencer Hair Company as this is entirely dependent on its owner Garry Spencer who directly affects each aspect of the business i.e. marketing, training, customer service, ordering of product and expansion of new salons.