Introduction The following sections focus on key questions and business strategic analysis concerning The Disney Company, an American diversified Multinational mass media and entertainment conglomerate headquarter at the Walt Disney Studios in Burbank, California (Wikipedia, 2017). This analysis is based on a 2009 case study of Disney as to the strategic challenges the company is facing at the time. Key Strategic Issues and Opportunities When examining the Disney case using internal and external analysis, a key area of opportunity exists within the Disney organization itself, specifically in its leadership and organizational model. This is highlighted in three key areas: the social complexity of the business leadership, the business …show more content…
As the company expanded, Katzenburg added to this factor to some degree with his focus in the movie division. Again, this quality, based on a complement of unique skills and perspectives at the executive level created a competitive advantage that made it difficult for the competition to duplicate and was a chief factor in Disney’s early success during the Eisner years. What highlights this affect is not so much the success of Disney during these periods, but its failures. In both eras, when one part of the management dynamic was lost, Disney’s profit and direction faltered. After Walt and Roy Disney’s death, the company entered a downward spiral and almost sold out. In Eisner’s case, after the death of Wells, which was a temperate force for the duo, the management team that lead to previous successes was lost. Katzenberg, though successful in the movie channel, was at odds with Eisner and eventual left the company. Though Eisner has been given credit for Disney’s past successes, it was the complex nature of relationships and functions of the executive management team that significantly contributed to a sustainable competitive advantage for the Disney Company. THE DISNEY CULTURE Between the early year of the Disney Company up to Eisner’s lead, the creative work environment of the company was considered of primary importance as a strategic advantage. However, the underlying cultural aspects of this quality is an internal factor the company should align to
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are
An organizational design of the Walt Disney Company has a horizontal structure. It is seen in the departmentalization or subdividing into smaller units. The company is currently organized with certain key companies – all brand names – dominating each division. “The business departments of Disney Company are then grouped according to the product and this is a good example of a divisional approach” (Mannheim, 2017). Although each division assigns their executive officers different
When Eisner connected Disney in 1984, he dedicated himself to maximizing shareholder wealth through annual revenue growth of 20%. For rejuvenate the firm and achieve great revenue margins Eisner took several steps to rejuvenate Disney. His plan was to build the Disney brand while preserving the corporate values of quality, creativity, entrepreneurship, and teamwork. And that’s why Eisner and his team focused on revitalizing Disney’s TV and Movie Business.
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
The organization has a broad range of business sectors that would be very difficult to imitate. This sets this sets them above and beyond competition.
The Disney Corporation is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. (Disney Corporate, 2009). This company did not become one of the leading corporations in the world without hard work, an extreme dedication to the mission and core values of the organization, and the successful application of the four functions of management: planning, organizing, leading, and controlling. Many internal and external factors may have a direct impact on the four functions of management like: globalization, ethics, and innovation.
In order for Disney to remain a dominate player within all of its markets, the company must focus on key aspects of its internal environment. Disney must concentrate on aspects such as core competencies, corporate governance, and synergies to assist in forming a sustainable competitive advantage.
Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and
The third strategy that Walt Disney Company utilized was a renewal strategy. After Walt Disney died the company lost its direction. They hadn't made a successful movie in years, the theme parks were suffering from little growth, and the attendance had not increased in several years. In 1984 Disney was underperforming and was fighting off takeover bids. Roy Disney, Walt's brother, recruited Michael Eisner to save the company. The end result was that Eisner took the company from a 1.3 billion dollar company to a 30 billion dollar company (ABCnews.com, 2011). He accomplished this by renewing the company's focus on entertainment. Under his
In this paper, we will explore the magical experience of Walt Disney Company through the structure and symbolic frames based on the Bolman and Deal?s individual lens. The structural frame focuses on the architecture of an organization and other features like: rules, regulations, goals, policies, roles, tasks, job designs, job descriptions, technology, chain of command, vertical and horizontal coordinating mechanisms, assessment and reward systems, and many more (Bolman, L., & Deal, T. 2013). The symbolic frame focuses on the culture, meaning, metaphor, ritual, ceremony, stories, heroes and inspiration of the organization (Bolman, L., & Deal, T. 2013). On this analysis I will also explain the organization?s strengths, weaknesses, opportunities and threats that impact the leadership, partners, employees and community internally and externally.
Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company (Ovidijus Jurevicius).
Disney has become a marketing goliath and the #1 entertainment company in the US. They have been able to develop a creativity-driven philosophy that over time was tempered by financial responsibility and that benefitted from powerful synergies between its divisions. From the very beginning, Disney has been synonymous with innovation within the children’s entertainment industry, from their introduction of animations with synchronized audio, full-length animated feature films and then later into theme parks and on-ice and Broadway shows. One important element of Disney’s success was the extent to which they integrated and expanded into different
In the last decades, the number of major corporations that manage to control media has decreased significantly, resulting in a high concentration of ownership. In 2011, only six media companies were responsible for 90% of the things we saw and heard on a daily basis compared to fifty companies in 1983 (Lutz, 2012). The Walt Disney Company is one of them. In this report, we will take a look at how the Company has succeeded in growing into the media corporation it is today.
For my final paper I chose to discuss The Walt Disney Company. Since the Company is so large and made up of four primary business segments, I decided to focus on one particular segment: Parks and Resorts. This segment is composed of the theme parks, cruise-line, and vacation club resorts.
Starting as a young boy from Missouri, farmer Walter Elias Disney set out to make a mark on society. After first joining the Red Cross in World War I, he came back determined to be an artist. After moving to Hollywood in 1923 with his older brother Roy, they founded Disney Brothers Studio. After diversifying as much as possible, Disney had a firm grasp on the global market share until the 1980’s where the company’s revenues began to slump in the film industry. Luckily Sid Bass invested $365 million in order to rescue the company and bring an end to all hostile takeover attempts. Disney’s billion dollar powerhouse status in the entertainment industry can be broken down and analyzed using the