Case # 1 – A Brawl in Mickey's Backyard
1) What is the issue in this case?
There is a dispute between workers at Disney, SunCal the developer, social & environmental activists from one side “First Group” and Disney Incorporation, Business Groups & Chamber of Commerce on the other side “Second Group”. The first group is in favor of SunCal's development project of affordable housing in the expensive Anaheim area, which is close to Disney Park where the workers work. The second party argues that this area should be preserved and dedicated to touristic projects that support Disney Park and refuse the idea of affordable housing projects for workers near Disney Park.
2) Who are the relevant market and nonmarket stakeholders in this situation?
- Disney Incorporations
- Workers at Disney Park
- SunCal's – Housing Developer
Non Market Stakeholders:
- Chamber of Commerce
- City Council
- Environmental & Social Activists
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- Disney Workers, Social & Environmental Activists & SunCal: Are in favor of the affordable housing for workers especially that the area is expensive and workers would have to relocate otherwise. Furthermore, having the workers live close to their work place would reduce long commutes which cause air pollution in addition to the fact that living close by would also reduce commuter congestion on freeways.
4) What Sources of Power do the Relevant Stakeholders Have?
- Disney Incorporation has the power to influence the votes and decisions of City Council due to the fact that it contributes to more than half of Anaheim’s tax revenue from the park.
- Disney Workers have the Urgency but do not have the legitimacy or the power; strikes and coalitions with labor unions, environmental & social activists are their strength.
- Activist groups also have the urgency but no material power nor legitimacy; they can negatively influence the profitability of the park through negative media and boycotts.
- SunCal has the urgency but no actual power except through political voting in the City Council & coalitions with the other groups in favor of the project.
- Chamber of Commerce & Business Groups in Anaheim have the power of influencing the voting power in the City Council.
- City Council has the legitimate power to take action and to approve or disapprove the project. They also have the urgency since it’s a matter of tax revenue.
6) What possible solutions to this dispute might emerge from dialogue between SunCal and its stakeholders?
The best option Disney Incorporation has in this case is to cooperate with SunCal instead of standing against it in front of the City Council to find affordable housing for their workers to enhance its Social Responsibility image & avoid negative media. Possible ways of coalitions would be agreeing with SunCal on allocating some nearby areas for affordable housing for the workers while using the closer ones for touristic purposes. Disney can also provide its workers with housing allowances to help with the expensive rents in the district, or provide group transportation for employees who are forced to live far to avoid high rents.