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?