Essay about Discussion Case: a Brawl in Mickey's Backyard

769 Words Nov 19th, 2013 4 Pages
Case Assignment: The Corporation and Its Stakeholders

Issue
The discussion case “A Brawl in Mickey’s Backyard” centers on a conflict between real estate developer SunCal and The Walt Disney Company. In 2005, SunCal arranged to purchase 26-acres of land within the Anaheim Resort District. Upon acquiring the site, SunCal intended to develop 1,500 condominiums, 225 of which would be priced below the market rate. Since the Anaheim Resort District is specified for commercial recreation use only, SunCal required permission from Anaheim City Council to proceed with residential development.

Market and Nonmarket Stakeholders
Business corporations have complex relationships with many individuals and organizations in society. The term
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The Walt Disney Company however, opposed the development because of future plans to expand the Disneyland Resort. Anaheim City Council was split on the issue, ultimately reversing an initial decision to allow residential development in a 3-2 vote. As for the community, at the hearing, nine of the 11 people who spoke backed the repeal. Two affordable housing supporters opposed the change.

Sources of Power of Relevant Stakeholders
Relevant organizations often use resources to force a desired outcome using stakeholder power. Disney employees in this case practiced political power by organizing a protest at Anaheim City Hall in support of residential development. The Walt Disney Company used legal power by filing suit in court, claiming SunCal’s development was in violation of the Anaheim Resort Identity Program. Anaheim City Council exercised its political power by enforcing city ordinances that designated the Anaheim Resort District as a commercial recreation area only. The eleven concerned community members practiced their political power by speaking their opinion before Anaheim city council members.

Stakeholder Map
It is advisable for business organizations such as SunCal develop a stakeholder map to determine stakeholder salience. A graphical representation of stakeholder salience is insightful when determining whether to continue forward with a planned project. The following figure illustrates a stakeholder map from the
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