For this module, you are required to submit Case Study 1, \"Discussion Case: A B

Question

For this module, you are required to submit Case Study 1, "Discussion Case: A Brawl in Mickey’s Backyard," at the end of Chapter 1, page 22

A local developer in Anaheim, California proposed building a residential project in a high-revenue producing area near Disneyland that is designated for resort and tourist purposes only. The developer planned on setting aside 15 percent of the units for below-market-rate rental apartments. The Disney Corporation opposed this project, even though many of its employees cannot afford to live in Anaheim; more than 80 percent of Disney employees commute to communities where housing costs are less expensive.

Respond to Discussion Questions 2 and 6:

What is the focal organization in this case, and what is the main issue it faces?

Who are the relevant market and nonmarket stakeholders in this situation?

Keep in mind to integrate the Saint Leo core values of Community and Respect that apply to this issue. Responses for each case discussion question should be in paragraph form and be approximately 250-300 words in length.

Explanation / Answer

1. Focal organisation is the term used to identify the primary stakeholder of the case. In this case, the residential project developer is the focal organisation of the case. This can be justifies by the fact that every action taken in this case would lead to financial loss/gain of the developer immediately. Nevertheless, we can also say that Disney Corporation will also be impacted by the decision taken in this case but we should understand that there is no clear correlation with its profitability and construction of rental apartments.

The main issue discussed in the case is that, a residential apartment developer intends to build residential apartments in a high revenue producing area (designated for Resort & Tourist purposes) and set aside 15% of these units for below-market-rate rental apartments. Organisation like Disney Corp are opposing this plan as these shall hinder their growth and land acquisitions in future plus low cost residential apartment will also decrease the land value to a great extent and thus, reducing the brand value of Disneyland.

2. Stakeholders are those actors who are impacted with the topic of attention. These can be further classified as: Market Stakeholders (who are financially engaged with concerned organisation) & Non-Market Stakeholders (who are not financially engaged with concerned organisation but gets indirectly impacted with its actions and decisions)

The Market Stakeholders are Disneyland Employee, Tourists, Other players of tourism domain (shops, restaurants, etc)

The Non-Market Stakeholders are Disney Corp, Employee Union, Authorizing/Governing Authorities, etc

3. Saint Leo core value of Community asks us to be a well-informed morally responsible leader. Considering this value, Disney Corp has not been acting in accordance to this value. They were neither informed about the plight of their employees and nor considerate about the beneficiary of the low cost apartments. Moreover, they were too self centric in their approach. On the other hand, the residential apartment developers acted true to this value. Their decision to build the low cost apartment in the proximity of high value area would benefit the low wage workers of the Disney Corp. Thus, we can say they acted like a well-informed morally responsible leader.

Saint Leo core value of Respect asks us to respects others dignity and thus facilitate free exchange of ideas. In consideration to this case, we can say neither the Disney Corp nor the apartment developer acted in accordance to this value. There was great opportunity for both the parties to discuss and amicably decide upon the matter. Both of them could have been more considerate about other's concern and thus could have made attempts to find a middle path acceptable by all. Through this, the Disney Employees could have got low cost apartments, the apartment developer could have got profit from sale of the apartments and Disney could have had control over the land rates and selection of plot for apartment construction.

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