Doylestown Tennis Club is a small, locally owned indoor tennis facility located in the suburbs of Philadelphia. The basic business model includes a majority of revenue generated through various club sponsored programs, such as private lessons or tennis camps. The business also creates profit through the pro shop and the renting of tennis courts. The pros, who are considered tennis professionals, are vital to the staff as they run the programs, teach the lessons and use their knowledge of the sport to sell tennis equipment through the pro shop.
A financial performance concern that I witnessed first hand as a front desk employee of Doylestown Tennis Club is a major loss of revenue due to scheduling issues with the tennis pros. The club is located in a wealthy area where it attracts many customers who call in looking to schedule tennis lessons or join a tennis program. Although, because the club only has 3 pros whose schedules are all diverse and very busy, many customers are turned away as there is only a limited amount of time remaining that these pros have to work with. Another financial performance issue is competition through online shopping services. The pro shop loses profit due to the convenience of these websites, such as Amazon. Finally, the club’s reliance on the weather poses a financial performance issue and results in more loss of profit. As previously mentioned, a significant part of this business’s profits is through the customers’ rental of the indoor tennis courts. For the most part, these customers are only renting indoor courts when the weather is too poor to play outside, otherwise they choose to play on the free and accessible public tennis courts.
The customers are an important stakeholder in this business. The company relies upon the customer’s satisfaction with their experience at the club, in order for them to come back as a returning source of profit and for them to spread a positive review to the local community. Another important stakeholder would be the employees. Specifically, the pros because their income is tied directly to the success of the club. If the club does poorly and begins to lose customers and profits, these pros will lose on their main source of income. Alternatively, if the club does well and brings in more customers and profits, the pros will receive an increase in their income and salary.
Another example of an organization who is struggling with this competing pressure between financial performance attention and shared value for stockholders is Bud Light. Recently, Bud Light promoted its beverage through a collaboration with a famous transgender tiktoker named Dylan Mulvaney. Though they were trying to increase their shared value by appealing to customers part of the LGBTQ+ community, they experienced a large amount of backlash from those who do not support and in turn boycotted the beer.