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Business Models And Craigslist

Question

Business Models and Craigslist.

Read the following articles and then answer the assigned questions.  

Failure of Shareholder Capitalism Craigslist - Interview with Craig Newmark Craigslist - Not Maximizing Profits Shareholder vs. Stakeholder Capitalism 

  1. According to the author, what is 'shareholder capitalism'? 
  2. Compare and contrast 'shareholder capitalism' with 'stakeholder capitalism'. 
  3. Is it possible to determine the interests of business's shareholders? Explain your answer. 
  4. Ultimately, how have managers implemented 'shareholder capitalism' in the United States? What has been the result of this approach? 
  5. Is it correct to say that shareholder capitalism is a cultural phenomenon? Explain your answer.  

Craigslist (both articles) 

  1. According to the article, and based on your knowledge of Craigslist, what is their business model? 
  2. Could you argue that Craigslist is not-for-profit company? Explain your answer. 
  3. Based on the previous section, which model of capitalism do you think Craigslist is following: 'shareholder capitalism' or 'stakeholder capitalism'? Explain your answer. 
  4. Speculate on why Craigslist is able to operate their business as they do. Is there something specific to the technology or the funding of their business that allows them to use a somewhat distinct business model? 
  5. Could Craigslist's approach to their business work in businesses in other areas of the economy? Why or why not? Explain your answer.
Solution

Title: Business Models And Craigslist
Length: 3 pages (875 Words)
Style: APA

Preview

Business Models and Craigslist

  • According to the author, what is 'shareholder capitalism'?

The ‘shareholder capitalism’ is the principle that companies exist for the sole purpose of making money for their shareholders (Lind, 2011). In this case, profitability of the company is prioritized over and above all other aspects of corporate operations and management. Shareholder capitalism tends to oppress the customers and the employees but the profits end up being shared by the executive team.

  • Compare and contrast 'shareholder capitalism' with 'stakeholder capitalism'.

While ‘shareholder’ capitalism focuses on the sustenance of the company’s CEO and oppression of the employees and the customers, the stakeholder capitalism focuses on the sustenance of the workers, customers, and the community (DealBook, n.d.). The stakeholder capitalists seek to motivate their employees, customers, and the community, leaving insignificant funds for the share of the owners of the company. However, in both the shareholder and the stakeholder capitalism, some profits are realized that go to benefit a specific group of the people related to the organization.

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