Question 1: In a chart, diagram, or paragraph form, identify the primary and secondary (or market and nonmarket) stakeholder groups influencing or influenced by SunCal's plans to develop a 26-acre site in the resort district. (5 marks)
Primary Stakeholders (also known as market stakeholders) are defined as those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services.
Secondary Stakeholders (also known as nonmarket) stakeholders are defined as people and groups who – although they do not engage in direct economic exchange with the firm – are nonetheless affected by or can affect its actions.
As previously mentioned, primary (market) stakeholders are groups that are directly involved in the economic transactions of a business. In the case of A Brawl in Mickey’s Backyard there are a number of primary stakeholders beginning with the SunCal development group and Disneyland theme parks. These primary stakeholders are also the primary organizations involved with the development dispute in Orange County. Both of these groups are primary stakeholders because the outcome on whether or not directly affects their businesses. If the development is allowed to go through, then the vision of Disneyland where they “don’t want the public to see the world they live in while they’re in Disneyland” is compromised, and if the development is halted then the SunCal business is affected because of a lost opportunity. Additional primary stakeholders in this case are the workers at Disneyland/Their Union who would potentially benefit the most because of the affordable housing that will be constructed in the area.
Secondary stakeholders are groups that are not directly involved with the business operations of a group. In the SunCal development dispute, the non-market stakeholders are Anaheim city council, construction companies and workers in the , the people of Anaheim and advocacy groups such as the “Coalition to Defend and Protect Anaheim” (pro-development), “Save Our Anaheim Resort District”, and another movement that wants to protect the Anaheim Resort District from non-tourist endeavors.
Question 2: Explain why each stakeholder group identified in question 1 is in favour of, or opposed to, SunCal's plans to build condominiums in the resort district. (15 marks)
Primary Stakeholder Groups: * SunCal Development Company: The SunCal Development Company is in favor of the development because it will create more business for them and their shareholders.
* SunCal Development Company Employees: The employees of the SunCal development company will benefit from the development going through because of the additional work and revenue they will see from an increase in business
* Disneyland Corporation: They are opposed to the development of condominiums in the resort district because it will detract from Walt Disney’s original vision of not wanting the public “to see the world that they live in while they’re in Disneyland”. They feel that having a housing development too close to their property will stop future expansion and potentially lessen the experiences of their customers when they visit the amusement park.
* Disneyland Employees/Unions: The Disneyland employees are generally in favour of the development of the condominiums because of the high housing prices throughout the city of Anaheim and Orange County. The housing costs forces a lot of Disneyland employees to seek housing in areas far away from their work.
* Construction Workers/Construction Companies: Construction companies throughout the city will be in favour of the development because of the additional work it will bring to the area.
Secondary Stakeholder Groups: * Anaheim City Council & Chamber of Commerce: These groups are both for and against the development of the area. Some members of city council agree with Disney and their motion of protecting the resort area, while other members of council agree with the housing issues prevalent in the area and support the development in an effort to provide affordable housing.
* Construction Workers/Companies: These stakeholders support the development of the zone with condominiums because of the increase in work and revenue associated with new developments.
* Pro-Development Advocacy Groups: Pro-development groups such as the “Coalititon to Defend and Protect Anaheim” support the development because they believe that having more housing closer to the parks will enable many families to live closer to their places of employment which will reduce congestion on their freeways
* Pro-resort Advocacy Groups: Anti-development groups such as the “Save our Anaheim Resort District” and “protect our Anaheim resort district” are against the development because they view the resort area as an integral part of Anaheims identity, and that this area should be reserved for tourism related development only because of the tax revenues and tourist revenue the area brings in.
Question 3: Identify possible solutions to this dispute that might emerge if SunCal was to work collaboratively with its stakeholders to address their concerns. (10 marks)
It is in SunCal’s best interest to work collaboratively with all stakeholders involved in this situation to address their concerns and find a suitable solution. Collaboration will potentially allow SunCal to develop parts of the resort area while bolstering a mutual beneficial relationship with all of the resort parks. One possible solution that can be reached is Disney could subsidize workers housing if they were to live nearby. Other options would be for city council to subsidize another area of Anaheim for affordable housing or for SunCal to lessen the scope of their housing development so it is not so intimidating to Disney’s vision and business plan. All of these solutions could most likely be reached by both parties negotiating fairly and ethically.