The role of stakeholders

by Business Case Studies on Tuesday 2nd June, 2009

Any public or private organisation has many different internal and external stakeholders. Amway is a global enterprise made up of privately owned businesses which operate under the Amway brand distributing a wide range of personal and home care products. The Amway Business Owners who run these private businesses are both internal stakeholders as employees and external stakeholders as customers.

This situation can be true of many other organisations including the football club Newcastle United. The current owner Mike Ashley, founder of Sports Direct, started out as a fan (or an external stakeholder – customer) and then bought the club in 2007 becoming a shareholder (internal stakeholder). (The Times 1st June 2009)

Ashley has wanted to sell the club for some time but no buy-out materialised. Since the appointment of Alan Shearer as Team Manager, the prospect of finding a new buyer for the club is more attractive to potential investors. Shearer shows commitment by effectively working for nothing, and may compromise his salary in order to put plans in place to secure the future of the club. These plans are now in the hands of the club bankers.

The relegation of the club and potential change of ownership means the club needs to assess and plan its future so that stakeholders work in harmony. The role of one stakeholder is clear according to fans and the team, 'Internally, there is no debate about Shearer's suitability to the task. There is only one man to get us back up and that is Alan Shearer.'

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