Pleas helpp! Farah's business objective has changed since she started FS several years ago. It is now a private limited
company which means that FS must keep the owners satisfied with a return on their investment.
FS now owns several salons in the capital city. Farah plans to completely redevelop one of these sites.
She wants to remove the existing building and construct a large apartment block in its place. The lower
level will contain a newly equipped beauty salon and a gymnasium. The gymnasium will allow FS to
enter the fitness market for the first time and will appeal to men and women. There will be many new job
opportunities. The redevelopment will take six months. Local residents are not happy about the plans.
Some FS customers think that prices will be higher to make sure a profit is made. Farah told some senior
managers:'All stakeholders will benefit from the expansion of FS. Farah's plans for business growth will
be expensive and some shareholders are worried about the cost. They would prefer Farah to concentrate
on making the existing salons more profitable.
Recent increases in the costs of electricity and water are worrying Farah. The public corporations that
supply these utilities claim that the price rises are necessary to meet their objectives.
Question(1)Do you think Farah is right when she says that’all stakeholders will benefit from the expansion of FS’? Justify your answer.