Role of Stakeholder Engagement
Business can be organized in a sole proprietorship, limited liability, corporation, and partnership. Each of these businesses has a form of ownership with different structures which are decided based on income, risks and tax liabilities. These businesses either have an individual owner, a group of owners or have many shareholders. We also have businesses that are owned by the state. The ownership structure has a great impact on return’s shareholder for both the long-term and short-term means. What is more, any difference in ownership structure can be used to decide most of the legal liabilities, profits and losses of the business as well as any other activity required for a business to be complete. The differences in ownership structure have a significant effect on the incentives of a business which are determined by shareholder return; thus, they should align with corporate governance.
A case of Disney is an example of a company that has retained ownership structure. Walt Disney and the brother created Disney Brothers Cartoon Studio that majored on a provision of animations that were based on their hometown. Different comedies were created due to a collaboration between various stakeholders. During the creation of Disney, Walt and his brother Roy used the tactics of Charles Mintz that stressed the importance of owning the business and not just creating it. Ownership is crucial for the most important resources and structures a company uses, and this is the strategy that was used by Disney to make large profits. Disney Company employs institutional ownership, insider ownership, private ownership, and public ownership. The higher percentage of ownership lies on the structure and institution as it accounts for 64.41% of the total ownership followed by general public ownership. The ownership structure of Disney Company has contributed to their success which has made it maintain a competitive advantage in the market.