The concept of organizational culture as in the case of Disney during the tenure of Michael Eisner faced some difficulties as he was more inclined to knowledge focus as opposed to information focus. Most of his decisions created conflicts that ended with most of the company’s talented managers being forced to leave the company. His ego would not let him be perceived as anything else but the winner. To him he was the most intelligent and talented person in the company. His lack of compromise drove many valuable players in the company away. One such a person was Jeffrey Katzenberg. He left the company under unfavorable terms after realizing Michael Eisner was not going to give him the position he coveted.
During his tenure Eisner oversaw many changes in the company. Some of the changes brought huge loses to the company. Acquisition of ABC, which performed dismally, is one of the organizational failures that eventually lead to his departure from the company. The organizational climate during his tenure diluted greatly the company’s brand and employees moral. According to him he believed that leadership was a unique trait in every company or in a group of employees. His four rules of leadership; leading by example, being there to control and nudging of other managers as well as being the only source of new ideas affected the company’s growth and organizational culture.
Recommendations to improve organizational climate at Disney
According to the company’s critics, especially the media, they pointed out that Eisner was not a visionary leader, did not have the prerequisite skills and was not expansive enough for the company leadership. His choice of leadership was wanting and had to change. His mode of employment, where he employed architects as a movie director and a school teacher to the board of the company exposed the company to more problems. What the company needed to appoint experienced and independent movie directors to manage the company growth.
Restoration of the company’s creative history would improve on its share holder equity as well as improve on the company’s earning. The company essentially required Eisner to retire for it to make fundamental changes. Eisner’s presentation of bloated and optimistic projections on financial performance, which continuously failed, had to change and new initiatives in the management put in place.
Strategic implications of Michel Eisner leadership
Although Michael Eisner may have failed to live to his expected goal of improving the company financial performance at the end of his tenure, he nevertheless had a well articulated organizational strategy. The company strategy was initially meant to create a strong brand and brings back the corporate synergy that was a hall mark of Disney. Eisner was a strong believer of the corporate strategy values that he had inherited from Walt Disney. He encouraged innovations and new ideas in the company, although new units failed to deliver defined financial performance.
In his strategy of working together, he managed to introduce corporate marketing department, and other departments that were necessary in coordinating and allocating Disney resources. When he realized the company business was deteriorating he introduced new executives to rebuild Disney business. As a strategy he managed to grow the mature audience market which turned movie department profitable. Through the Theme Parks, Eisner used the strategy of pricing attractions updating to make them more profitable. Expansion of Disney internationally was another strategy move that helped the company to stay afloat. Therefore, on strategic level, he was initially effective but his uncompromising stance of management was not effective in achieving the desired goal of improving the company performance.
Organizations have different cultures and policies that make them unique. Disney is an example of companies that were started by family members and grew within a short time to become leads in various fields. Companies face financial and behavioral challenges that interfere with their performance. This discussion applies various organizational behavior concepts to explain a case study of Michael Eisner and his tenure at Disney.
Michael Eisner had served in various capacities at Disney for several years. The performance of this company was poor, and it took about ten years for its shareholders to start enjoying the fruits of their investments under Eisner’s leadership (Gentile 2004). The case explains that Eisner had inherited leadership and managerial skills from his parents. Therefore, it was not a surprise when he transformed the performance of Disney within a short time. This company was managed by two brothers that had limited experience and knowledge in management and leadership (Kreitner and Kinicki 2009). However, Eisner became an influential figure in the entertainment industry, and that is why he was requested by Roy E. Disney to join his company.
Eisner’s predicament started after he had served as president and CEO of this company for several years. He was a dedicated, responsible and committed manager and leader. His leadership style became the source of his conflict with members of the board including Stanley P. Gold and Roy E. Disney (Kreitner and Kinicki 2009).
These two leaders wanted to influence other members of the board to oppose Eisner’s leadership because they thought that he was very high-handed. It is important to explain that organizations require leaders that can differentiate between personal and company issues (Grover 2002).
Eisner did not allow personal interests to override the objectives of this company, and this exposed him to criticism and opposition from those that were supposed to support him. He identified the objectives of this company and worked hard to ensure they are achieved. Therefore, he was not ready to entertain any person that did not act in accordance with the policies of the company. He was always targeted by board members that thought they knew how to manage the company better than him. It is surprising that some managers feel threatened when they see their colleagues introducing changes that make their organizations successful (Gentile 2004).
In addition, he realized that workers at this company had negative perceptions towards change and productivity. He was not ready to sit and watch the company’s performance deteriorate; instead, he faced his opponents and told them that they were responsible for the challenges facing their organization (Kreitner and Kinicki 2009). Good leaders must be brave and straight, and this means that they should not be afraid of their seniors or any member of their organizations.
Eisner’s colleagues thought that he was moving faster than they could catch-up with him. Therefore, they devised a plan to frustrate his efforts. First, they started accusing him of dictatorship and treating the company as his personal property. He did not hesitate to explain that nothing of his actions was out of the regulations of the company (Kreitner and Kinicki 2009).
Secondly, some board members thought that he was unfit to lead the company; therefore, they planned how to get him fired. They had thought that they would succeed him and continue to maintain an impeccable performance. However, they realized that he was a unique leader, and nobody would match his skills. Therefore, they decided to reduce his authority in the company by ensuring that he maintains his CEO title and leaves the chairmanship for another person (Grover 2002). Eisner faced a lot of opposition from people that were supposed to help him in managing the company. However, he was strong and did not allow trivial issues to hinder him from achieving his dreams. He was a manager and leader that Disney employees and shareholders will remember.
References
Gentile, G. (2004). Disney, Miramax in Public Spat. Web.
Grover, R. (2002). Eisner Stays in the Picture. Web.
Kreitner, R. and Kinicki, A. (2009). Organizational Behavior. New York: McGraw-Hill.
Walt Disney Co. is an international media conglomerate that has been exponentially growing its business. In the fiscal 2017 year, it received over $55 billion in revenue from its wide variety of business ventures and investments (Trefis Team, 2017). The annual report that the corporation releases is a critical assessment of the company’s solvency and financial performance. Also, it offers an insight into the company’s operations and future business decisions. Despite evident profitability, it is essential to continuously evaluate the financial conditions created in Disney’s structure and investments in order to ensure that the company is heading in the right direction.
The first part of the annual report discussing segments of the company’s operation is especially relevant for Disney, which has increasingly focused on diversifying its business model. Disney’s focus on spreading into various segments of entertainment and media while maintaining a unifying platform is a sensible economic decision. While the majority of revenue comes from its media and network branches, the corporation invests in new areas and franchises, which will support the corporation’s solvency for decades (Koslosky, 2015).
However, a large number of investments has caused the company’s revenue to decline year over year, which has caused some concern amongst shareholders who often seek short-term profitability, which an annual report outlines.
The annual report provides some vital financial ratios that are used by a variety of parties, including shareholders, executives, and creditors, which establish the company’s fiscal stability. The operating margin for Disney continues to drop due to declining cable subscriptions but will stabilize as it invests in streaming platforms. The company’s net margin has always been financially sound as it takes on debt very carefully and maintains a consistently low debt-to-equity ratio.
Return on equity is a measure important for investors since it represents the company’s earnings in equity investments. Furthermore, return on invested capital is the company’s profitability over its diversified investments using its considerable capital (Blokhin, 2016).
References
Blokhin, A. (2016). Disney’s four key financial ratios (DIS). Web.
The Walt Disney Company remains a primary source of ideas, concepts, and insights for many Americans and other people across the globe. The founder of the company, Walt Disney, applied his ingenuity to produce diverse products and offerings that have transformed the United States for the better.
The films, cartoons, theme parks, and animations associated with this corporation have had significant impacts on this country’s culture by encouraging more people to pursue the most appropriate values, behaviors, and practices that promote equality while at the same time presenting new concepts for engaging in rewarding entrepreneurial activities. The purpose of this paper is to give a detailed analysis of the Walt Disney Company’s contributions to the United States’ cultural and economic transformations.
Cultural Influence
For many years, the Walt Disney Company has presented superior products that meet the demands of many young people in America. This kind of process encourages more people to focus on specific activities and cultural values that can take them from point A to B. During the 1930s, the ideas associated with most of the cartoons and animations produced at the time presented castles and ambitious efforts to the viewer (Bohas 42). Such images and products encouraged Americans to pursue the infamous American dream. Over the years, many citizens consider such attributes in an attempt to relate positively with each other, address their common goals, and minimize conflicts. The insights and efforts of Walt Disney became a model for many people who wanted to live in better societies.
The description of the American culture would be incomplete without focusing on the concepts of production and consumerism. The owner of this company delivered products that would eventually promote the use and adoption of media technology, thereby transforming the music and film industries in the country. These issues have become critical symbol of this country’s culture.
The cartoons and animations present desirable values that are worth emulating in any given community, such as love, togetherness, and commitment (Chasma). Some famous characters created and designed by this company have become unique icons for this country, such as Mickey Mouse ad Disneyland (Bohas 56). These objects encourage people to live harmoniously, promote happiness, and focus on the most appropriate strategies to conserve the natural environment.
Without bias or favoritism, Walt Disney was keen to create and establish a company that could deliver products to every household. While the problems of discrimination and oppression were common in different regions across the United States, such ideas and films took the dialogue to the next level. These achievements or developments would eventually discourage more people from promoting some of the malpractices experienced in the United States (Chasma).
By the 1960s, new ideas had become prevalent in the country, thereby encouraging American citizens to focus on honesty, compassion, and love for each other (Bohas 72). Today, many people believe that these themes associated with Walt Disney’s famous cartoons and animations played a positive role towards promoting this kind of a culture.
The current trends in music and film consumption emerged or were informed by the dreams and objectives of this organization. The actions and goals of Walt Disney have become synonymous with personal empowerment, consumption and use of technology, and the promotion of equality (Medina). Additionally, the historical empires and dynasties depicted in various documentaries and cartoons try to offer a historical past of this country and how people’s concepts or ideas have evolved over the years.
Economic Influence
The economic influence of Walt Disney is something that cannot be taken lightly. Within the past six decades, new ideas for starting business organizations and improving performance have emerged in different parts of the country. The slow start and subsequent expansion of the Walt Disney Company has remained a powerful model that small and emerging companies consider. Entrepreneurs focus on the attributes and approaches that Walt Disney employed to establish one of the biggest empires in the world today (Bohas 29). The revenues and financial gains obtained from different corporations in this country can be attributable to the Walt Disney Company. These developments have continued to improve the economic performance of the United States due to the increased revenues available to the government.
Being one of the biggest organizations and employers in the county, this company continues to transforms the lifestyles, experiences, and living conditions of the greatest number of citizens. This means that they are able to earn adequate money and meet their needs.
The company also provides contracts and concepts to business partners and entrepreneurs (Towse 58). These arrangements have continued to reshape or improve the economic success or performance of this company. Similarly, the onset and eventual success of this country’s film and music industries were influenced by the actions and dedication of Walt Disney. Such achievements have transformed the economy of this country by providing revenues to the government while at the same time providing job opportunities to a significant portion of this country’s population.
The animations and films associated with this corporation have specific features that many citizens continue to admire, such as Disney resorts and theme parks. In the recent past, real ones have become common in different parts of the country and across the world. The creation of such resorts and parks has become a primary source of income for the greatest number of people. These facilities have continued to present new opportunities and experiences to technicians, experts, and architects (Bohas 94). Additionally, the design and creation of roller coasters has become a common practice in this country. These activities have improved the economic performance of this country.
Those who own theme parks and similar facilities have been generating income from people who visit them every year. The government has also been able to increase its revenues, thereby being able to deliver high-quality and timely services to its citizens. Towse believe that many people will continue to consider this company’s model in attempt to pursue their economic goals and eventually succeed in life (92). This is a clear indication that many entrepreneurs who want to succeed in their respective fields examine the initiatives and procedures that Walt Disney undertook in order to start a successful corporation that has redefined the culture and economy of this country.
Conclusion
The above discussion has revealed that the films, cartoons, theme parks, and animations associated with the Walt Disney Corporation continue to have significant impacts on the United States’ culture and economy. This is true since they encourage more people to pursue the most appropriate values, behaviors, and practices that have the potential to promote equality and liberty. The ideas associated with Walt Disney have remained powerful concepts for empowering those planning to engage in economic activities and generate additional revenues.
Works Cited
Bohas, Alexandre. The Political Economy of Disney: The Cultural Capitalism of Hollywood. Palgrave Macmillan, 2016.
Employment at the company is in strict accordance with the International Labor Standards (ILS) and the company has set up a group of senior executives to implement this program. The group oversees the direction and the assessment of educational and monitoring efforts by the company team. The company is well aware that “effective education and training” of the employees is important and accordingly lays emphasis on “communication and cooperation” through meetings and training sessions. The company has hosted “thousands of training sessions around the world” in groups, large and small and even one a one-to-one basis to ensure that the training and development of employees occurs efficiently and effectively.
There is no mention of an explicit mentoring program by the company to its employees, with regard to training and development. An explicit mentoring program enables employees to gain new skills and knowledge and acquire valuable insight regarding the different planning and procedures of the company. It also enables employees to learn through role models so that they can enhance their performances and thereby be additionally productive for the company.
Through explicit mentoring programs, employees are also able to increase the status and reputation of their company and are motivated to succeed in their respective fields. These programs enable companies to learn corporate values and gain cultural knowledge, which have become important aspects of global businesses today. Explicit mentoring programs also enhance the communication skills of the employees of an organization which is an important criterion for success.
The company does have a management succession policy and the Board of Directors are responsible for the “planning for succession with respect to the position of Chief Executive Officer and monitoring management’s succession planning for other key executives”. The function of management succession is directed by the Chief Executive Officer who is responsible for the “timely and efficient transfer” of potential managers’ succession arrangements.
A career at Disney does seem exciting to me since they have a wide ranging variety of professionals required for the efficient running of their global business. The company has a good market reputation and is open to recruiting talented individuals who have a drive for creativity and innovation. The company was initiated in the year 1923 and has become a diversified entertainment and media business. The company has an impressive revenue of more than 27 million USD and is supported by approximately 117000 employees.
When one thinks of Walt Disney, the mindsets visions of characters, animated films, and amusement parks. There was more to Disney than those few obvious things that one notices. There was a man of magic, dreams, and optimism. Behind the imagination lived a role model who, from the heart, made the world a better place for both animals and humankind. Disney went through many struggles that influenced him to set goals and expand his opportunities for his future.1 With Walt Disney’s efforts, he changed and inclined the world through his entertainment, accomplishments, and even his struggles.
The Walt Disney Company was founded by brothers Walt and Roy Disney on October 16, 1923, as a small animation studio and grew into an empire. After Walt’s death in 1966, the company became increasingly detached from its original vision. The Walt Disney Company is a diversified worldwide entertainment company with operations in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products.
For much of its history, the company was known as Walt Disney Productions, Ltd.; it took its current name in 1986. Disney’s long-term prosperity fundamentally rests on their ability to create exceptional content that audiences around the world embrace, to deliver that content, to the greatest extent possible, to consumers when, how, and where they want it, and to do so in a way that delivers economic value to their shareholders over the long term. In 2005, Disney had revenues of $31.9 billion.
1 Walt Disney himself talks about the most meaningful and emotional moments of his life that explore the extraordinary hardships he overcame to achieve what he did in his lifetime. He had one foot in the past and one in the future. He wanted to inspire the young creative minds of today to help invent the future.”
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Background
“Walt Disney Company, the entertainment and Media Corporation based in Burbank, California. A leading name in family entertainment for much of the 20thcentury.” In the early 1920s, Walter E. Disney began a cartoon company, in Kansas City,
Missouri, with fellow artist Ub Iwerks. Pitfalls in distribution rights nearly sank Walt and his company. Disney joined his brother Roy in Hollywood, California, in 1923 and together they established The Disney Brothers Studio. The studio produced a series of animated short subjects allied with Alice in Cartoonland (1924-1927). In 1928 Walt Disney came up with the idea for Mickey Mouse, a good-natured, lovable mouse who often finds himself in difficult situations, the creation of Mickey Mouse saved their dwindling business. Iwerks helped design the character and Walt Disney Productions produced Plane Crazy (1928), black-and-white silent featuring the mouse.
By 1932, the Disney Company won its first Academy Award for Best Cartoon, for the Silly Symphony. 1934 marked the production of Disney’s first full-length feature film, Snow White and the Seven Dwarfs, which was released in 1937 and became the highest-grossing film of its time. But afterward, the expenses of production caused difficulties with the next few animated films; then the advent of World War II halted the production of films as the Walt Disney Company contributed its skills to the war effort.2 After the war, it was difficult for the company to pick up where it had left off, but 1950 proved a turning point with the production of its first live-action film, Treasure Island, and another animated film, Cinderella. In that time period, Disney also began several television series …2 the advent of World War II halted the production of films as the Walt Disney Company contributed its skills to the war effort.
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His brother Roy took over supervision at that time, and then was succeeded by an executive team, “Team Disney” in 1971. Several more projects, from merchandising to the continuing production of animated and live-action films to the construction of more theme parks filled the years. In 1983, Disney went international with the opening of Tokyo Disneyland. It produced dozens of animated motion picture hits, including Bambi (1942), The Jungle Book (1967), and The Lion King (1994). Disney has also produced a large number of live-action films, ranging from the family musical Mary Poppins (1964) to the violent thriller Pulp Fiction (1994). Since the mid-1980s Disney has diversified its holdings by branching into broadcasting, sports, the Internet, publishing, and the retail business.
Organizational Context
Disney Company believed in ten guiding leadership and motivational principles to have an effective organization:
Make Everyone’s Dream Come True,
You Better Believe it,
Never a Customer, Always a Guest,
All for One, One for All,
Share the Spotlight,
Dare to Dare,
Practice, Practice, Practice,
Make your elephant Fly,
Capture the Magic with Storyboards,
Give Details Top Billing.
The role of the leader is to create an environment in which all members of an organization have the opportunity to realize their own potential. The leader is not to enhance his or her own power but to create the conditions under which followers can achieve their potential.3.
3 Disney, each is responsible for upholding excellence and integrity. This means acting responsibly in all professional relationships, in a manner consistent with the high standards set for company’s business conduct.”
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Growth
Walt Disney maintained tight control over the company in both creative and business aspects. He oversaw the company’s expansion into live-action films, television programming, theme parks, and mass merchandising.4 Disney’s death in 1966 had transformed the family entertainment industry and influenced more than one generation.
Walt Disney Co. expanded its production units to include Touchstone Pictures and Miramax, makers of films for more mature audiences, and revitalized its animation division, producing films such as The Little Mermaid (1989) and Toy Story (1995), the first full-length computer-animated film. The company took an active role in reviving and commercializing New York City’s Times Square, including the recreation of some of its animated films, such as The Lion King (1994), like Broadway musicals. In 1994 it opened Celebration, a planned community in central Florida.
Under Eisner’s reign, Disney acquired Capital Cities/ABC in 1996, a $19 billion deal that increased the company’s stature enormously. The acquisition of Capital Cities/ABC gave Disney the power of broadcasting and the ability to meld entertainment content with programming. Later in the 1990s, the company was aggressively building a presence on the Internet and adopting a concerted approach to international expansion. In 1998, Disney acquired Starwave, which maintained ESPN.com and Mr. Showbiz and other websites including 43% of Infoseek, Eisner also acquired two professional sports clubs, the Mighty Ducks of Anaheim, a professional hockey team, and Major League Baseball’s Anaheim Angels.
4 The additions to the Disney group turned an already expansive empire into an all-around entertainment company of amazing proportions, but no matter the size of a company, success depended on implementation and execution.
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Recent Developments
Although films continue to be a major component of the Disney Company, they constitute but one of many successful ventures of recent years. New Disney theme parks were opened in Paris and Tokyo, and Disney Quests debuted in Orlando, Florida, and Chicago. The Disney Magic, the first ship in the Disney Cruise Line, was launched on July 30, 1998, and offered vacation packages to the Caribbean islands. In addition to the long-running Disney Channel cable network, broadcasting interests were expanded to include the ABC network, the ESPN sports cable network, and Radio Disney.
The Media Networks segment is centered on the American Broadcasting Corp. (ABC) television network, which it acquired through a merger with Capital Cities/ABC in 1996 The company’s most visible and noteworthy enterprise of the 1990s was its venture into Broadway musicals. Stage adaptations of the animated features Beauty and the Beast and The Lion King, both visually stunning and long-running successes, premiered in 1994 and 1997, respectively. The company purchased Broadway’s New Amsterdam Theatre in 1997 and has been credited with many civic improvements in the Broadway area. Disney’s most ambitious stage production is a modern version of Aida in 2000.
In March 2007, it was reported that Disney is launching a new Web Site, Disney Family which is a one-stop site for parents, especially mothers.
To get community right, you need to have the right mix between homegrown content plus the ability to loop in people and content from outside Disney is launching this new website aimed at moms who are increasingly turning to the Internet for answers to everything from problems with teething babies to financing college
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Consumer Products works with licensees, manufacturers, publishers, and retailers throughout the world to design, promote and sell a wide variety of products based on Disney characters and other subjects.
Disney operates its own publishing company, the Hyperion which recently published books by comedian-author Steve Martin and bestselling author Mitch Albom.
Parks and Resorts include Disneyland Resort, Walt Disney World Resort, Disneyland Resort Paris, Hong Kong Disneyland, Walt Disney Imagineering, Tokyo Disney Resort, and Disney Cruise Line. This segment generates revenues from the sale of admissions to theme parks, hotel reservations, and rentals at the resort properties.
At the end of the 20th century the Walt Disney Company was one of the world’s largest entertainment conglomerates, and it consistently ranked among America’s top 50 corporations.
Revenues & Profits
Disney started off 2008 with another outstanding quarter, marked by strong creative and operational performances.6 Media network revenues for the quarter increased 10% to $4.2 billion. Cable networks increased $125 million to $586 million for the quarter driven by the increases at ABC Family Channel and domestic Disney Channels. Broadcasting increased $75 million to $322 million primarily due to the higher advertising rates and sold inventory. Parks and Resorts increased 11% to $2.8 billion. Walt Disney Studio Entertainment decreased 15% to $14 million.
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Strategies
Disney’s corporate-level strategy is based on a horizontal and decentralized and informal management approach. Ideas are born from within the departments and are worked up throughout the relatively low hierarchy, where the final decisions are made. The management focuses on group creativity and in-teamwork. For instance, the most creative employees usually met every Sunday for the purpose of coming up with new ideas and new business concepts/strategies. The Sunday meetings are referred to as “Gong Shows”, where all participants have to come up with a unique idea. A large emphasis is placed on employee participation, especially on the most talented employees.
Furthermore, the company is frequently refreshing its top management with new executives. “Top-flight” managers from the entertainment and financial business bring with them new ideas and concepts which can be applied in the Disney Company. There is however a significant increase in expense attached to lure the very best to join the company. This increase in expense is directly related to special perk packages, higher bonuses, and escalated salaries that are offered to the top executives.
Equipped with the latest technologies and staffed with talented professionals and artists, the Company offers film and television producers, directors, and studios, as well as television advertisers effective solutions to their creative needs. The Company’s technology outsourcing solutions offer clients low operating costs, improved response time and reliability, access to new technology, and high standards of quality recognized by the international technical community.
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Changes
The frequent changes of corporate officers should be stopped. It is true that a new leader not required from within the organization will bring with him/her new ideas and concepts. But, such a person also brings a foreign corporate culture to Disney’s organization. That fact may lead to communication efficiency and moral problems within by promoting from within, employees will know the new corporate officers, and understand the new rules of the game.
Liquidity ratio appears to be a bit low for the corporation. It was suggested that the company should increase current asset requirements and keep current liabilities under strict control.
Outlook
The simmering feud for control of Disney Co. has described the company’s outlook as murky. However, the improved performance in the entertainment company’s film and TV operations and improved financial performance of the ABC television network posed positive outlook in the next two years. One of the two new markets Disney has already incorporated their business model into is the PC market. Integrating the ears of Mickey Mouse on their new personal computers will create a new source of revenue because as the standard of living and digital medium continue to increase more consumers will purchase personal computers. “The success of Walt Disney Company depends upon their ability to recognize new technology trends and develop plans to minimize the risks associated with technology.” (Khayat, 2004).
Walt Disney Co.’s objective is to be one of the world’s leading producers and providers of entertainment, and information using its portfolio of brand to differentiate its contents, services and consumer products. (Khayat, 2004).
Bibliography
Birnbaum, S. (1987). The Best of Disneyland, Boston: Houghton Mifflin. 2008.
Friedland, J. (2008).Walt Disney Company Reports First Quarter Earnings. MSN Money: Businesswire. Web.
Khayat, S. (2004).The Walt Disney Case Study. Researching Nanotechnology. Web.
Sanders, A.L. (2008).The Walt Disney Company. About.com:Animation. The New York Times Company. Web.
The Walt Disney Company – Competitive Benchmarking Report. (2008). Research and Markets. Web.
Walt Disney in Relationships (2003). Top Synergy. Web.
The Walt Disney Company is an entertainment service provider which operates and invests in ventures which further entrainment for teenagers and children. The company is a diversified entertainment company that has four basic segments for its operations, specifically media networks, studio entertainment, parks, and resorts, as well as consumer products. The operations of the company are primarily based in the United States. The company states that it is committed to its corporate governance policies.
The main points of the corporate governance policies of the company pertain to promote the practices and standards which ensure that shareholder interests are represented in their original while being independent. However, the board of directors is held accountable for the activities and the operation of the business.
The company is also committed to conducting business activities according to a trio of the highest standards of business ethics while complying with the laws and rules of the regional and national state of government. The company also has established a specific code of conduct which indicates to its director, managers, and employees as to what is a different method of interaction and communication in the company which abides by the regional laws and regulation. These are specifically addressing the issues of conflicts of interest, business relationships for the directors, as well as information pertaining to the use of corporate information and assets. The code of conduct and operation of the business also enforces that the directors of the company have to abide by the laws, rules, and regulations that are inherent in the state and in the industry. Moreover, it also encourages fair dealing when interacting with the company’s employees, customers, suppliers, and even competitors.
The Federal Express Corporation is a courier and postal service provider. The company has been able to create a leadership position for itself pertaining to urgent and overnight deliveries. The business was initiated with the mission to produce superior and financial returns for its shareholders. Aside from this, the company has been focusing on providing high-quality, value-added logistics and transportation services to its customers. The company has also included in its mission to conduct its corporate activities according to the highest standards of professionalism and ethics.
The main key points of the corporate governance strategy of the FedEx Corporation include transparency in its business and financial transaction, as well as the clearly outlined definition of the responsibilities of the board members, employees, and managers in the company. Corporate governance is also used to provide for how the staff at the Fed Ex corporations shares responsibilities and rights. A code of conduct has been developed which is focused on providing the best value of products and services to customers while operating in an ethical manner.
The image of the company is established by its brand and its efficiency. The company has a very strong brand image which provided the corporation with an advantage over its competitors. However, the main competitors of the FedEx Corporation are United Postal Service (UPS) in America and Royal Mail in Europe. UPS does not have a higher reputation than FedEx; however, it does earn a higher margin o its sales. The Royal Mail enjoyed a monopoly in Europe till the year 2006, however, now new entrants have also entered the market, and their reputation in terms of competition still needs to be established.
Since its establishment, Disney has been one of the world’s best-known entertainment companies. Its supplier responsibility policy emphasizes labor-related practices, with the focus on “respecting human rights, monitoring the safety and integrity of products, and reducing the environmental footprint” (“Responsible supply chain,” n.d., para. 1). Apart from having strict standards for labor practices and workplace safety requirements, Disney focuses on implementing diverse suppliers into its supply chain, for example, businesses owned by minorities, LGBTQ, veterans, or other communities. Moreover, to support its suppliers and Disney’s standards, the company provides training to its partners on leadership and other aspects of management.
Disney cooperates with a large number of suppliers in over one hundred countries, and to ensure that each adheres to its ethical standards, Disney developed several programs. Disney’s SCC promotes ethical business practices by focusing on basic human rights and safety because the company ensures that its suppliers create work environments that are both safe and designed adhering to human rights regulations. In terms of society’s social responsibility, Disney aims to create responsible sourcing programs that allow choosing partners that help Disney achieve its environmental goals. The company developed Supplier Sustainability standards, which are used to evaluate product lifecycles and ensure that the manufacturing process does not harm the environment.
Elements of SCC
Disney uses the International Labor Standards (ILS) program to evaluate the work conditions of its suppliers, which manufacture Disney-branded items. The program was developed because Disney acts as a licensor, meaning that the majority of products under its brand our manufactured by outside suppliers. ILS aims to help Disney control the licensees and audit their approaches to managing workplaces.
Disney uses its ILC program to establish the standards for managing employee health and safety, and ILC audits to ensure that manufacturers use fair practices. Mainly, Disney requires all facilities to provide access to water and sanitary facilities and requires all suppliers to adhere to the local health and safety regulations. Accountability is enabled through the ILC audits. Additionally, the companies must adhere to all environment-related standards set in their state. Most notably, the Code enables Disney or its authorized partners to monitor the suppliers and evaluate their compliance with these standards.
Key Changes in the Code of Conduct
Since last year, Disney’s Code of Conduct did not change. Currently, Disney uses the Supplier Code of Conduct implemented in 2019. Hence no changes for 2020 were made (The Walt Disney Company, 2019). The figure in the slide illustrates some of the key features of Disney’s Code of Conduct form 2019, which include standards for labor. Notably, although Disney did not update its conduct code for 2020, the company carried out audits of the suppliers using the ILS Program to ensure compliance.
Socially Responsible Organization
Disney can operate as a socially responsible organization because it demonstrates a commitment to ensuring that its suppliers adhere to all legal regulations regarding work safety, labor standards, and environmental safety. In addition, the company conducts audits to evaluate whether the practices used by the suppliers correspond with Disney’s standards to further support its social responsibility commitment. As a result, Disney operates as a socially responsible organization because its Code of conduct enables the satisfaction of stakeholder’s needs – employers, customers, and society.
The lens displays that strategy growth is a practice that encompasses logical insinuations. The cautious assessment is done in regards to the firm’s environment, industry and resources available. The strategy used is optimal and has a plain track that can be specified. The strategic procedure therefore emphasis on analysis-selection-implementation procedure.
Primary to the analysis is accountability which supports strategy growth to ensure it remains within the top management and also recommends that they are able to choose the optimal strategy with regards to the business.
Disney managed close control with regards to the design and construction of Phase 1A of Euro Disney. Lehrer McGovern Bovis Inc., a construction management firm that possesses some considerable independence, and has international experience in the management of constructions projects which are on a large scale, was their chief constructor. LMB gave reports to Euro Disney Imagineering SARL (EDLI), which was a French constituent of Disney, and was charged with the overall responsibility of designing and constructing the two phases, 1 and 2, of the theme park. Other separate Disney companies also reported to EDLI remained majorly charged with the responsibility of conceptual, design and engineering and developing and equipping of attractions.
Participants played a vital role in marketing and financial dimensions by entering into long-term and short-term marketing agreements. Each participant paid personally decided annual fees, often contributing to funding a specific facility or attraction. The participants which were evident at Disney initially were Banque Nationale de Paris, Renault, European and Kodak. The challenges experienced due to bad weather conditions were major in the category of technical and amenable to cautious analysis. In fact, the issues with regards to culture proved far much less tractable1.
Disney had cartoon characters that were strongly familiar to the Japanese people and hence visitors wanted real things attracting minor changes like the addition of Cinderella’s Castle and the Mickey Mouse Theater.
Strategy as Ideas
The analysis stipulates strategy as a procedure that emanates from inside an organization and asserts that it is predisposed by the surrounding. It is often seen as a ‘bottom up’ approach and that which needs organizational customs allowing the employees in entirety to experience an ability to articulate their thoughts. Some organizations like Euro Disney aggressively encouraged human resources to engender ideas with, particularly assigned time.
In the context of the case study, Disney gained its success from the careful control of its environment providing a unique experience for the visitor. Disney used operations management and human resources which were highly systematized. It crafted systematic procedures with regards to employee training which guaranteed them excellence in services, safety and maintenance in the industry.
Disney could evidently reconcile increased occupancy bearing great services which were ranked first-class and encompassed customer satisfaction usually achieved by the use of complicated methods of projecting visitor levels every day. Besides, there was a careful design of parks that helped reduce the frustrations of crowds and waiting.
The organization also emphasizes the constant renewal as regards its theme parks’ appeal by investing in new attractions and ventures, mainly through intensive promotional mechanisms.
Strategy as Discourse
The view encompasses making a variety of choices from amongst diverse possibilities whilst creating an inspiration of confidence with regards to the taken choice. The view usually accommodates a high sense of legitimacy and conversely a stumpy innovation and rationality2. Strategy as discourse stipulates strategy development in the pretext of language being a resource used by managers to communicate, explain and sustain a strategy, and that which managers use to gain power, influence and institute their authority in the context of strategists.
Disney crafted a meticulous approach to recruitment, affirmed its commitment to employee training and the maintenance of serious standards of behavior by employees. The top management communicated this through the employee handbook which clearly stipulated that employees should have been pleasantly dressed all the time, poses conservative grooming standards, have modest makeups with rare jewelry, above average height and good weight and that employees could put on particular colors and types of inner wears.
Training is exposed to encompass general principles bearing particular knowledge and behaviors with regards to employees.
Robert Fitzpatrick laid a major emphasis as regards the company’s determination to ensure the provision of the highest-ranked services and products at Disney, which later became evident in the furnishings, cuisine and service demands of the hotels.
Strategy as Experience
The majority of sources and advocates of this Strategy as Experience, including Henry Mintzberg, often stipulated that the design lens reflected a lot of inaccuracy due to the fact that top-level managers proved more of a distance with regards to the daily growth of the organization. Mintzberg indicates that strategic development is supposed to be adaptive and divisive into proposed, achieved and surfacing strategies.
Here, strategic development is seen as the constant adaptation regarding precedent strategies through experience. The view stipulates that strategy is extensively determined by assumptions and cultures often taken for granted and includes hefty extents of compromise and bargaining. Strategy as Experience brings with some degree of risk often called strategic drift due to the failure to take action on ecological changes by being excessive ‘path dependent’ on historic activity.
Euro Disney had a unique financial and management culture where instead of a pure franchise operation similar to Tokyo Disneyland. Therefore European investors own the majority and the respective banks to provide the greatest percentage of debts financing.
Disney had an enthusiastic experience with the Japanese while France presented a totally different experience. The France people showed a lot of resistance to American popular culture. The clients of Disney made assumptions from the perceptions they built of Euro Disney from the majority praises that it was a fantastic place and this enhanced its thrive. Euro Disney’s opening attracted protests but by use of entertainers and television, and also a claim by Michael Eisner that Euro Disney was among the greatest man-made attractions in the world; and also for the fact that the prime minister’s description of the park as an incredible achievement transcending national boundaries, made it manage an upswing in the number of visitors3. The rising concern over European aversion with regards to queuing led to the provision of movies, video screens and other sources of entertainment mainly preserved for guests who had queued in line for services.
Disney also adapted to a culture of no alcohol and they did the adjustment by allowing beer and wine to get served at Festival Disney which was one of the entertainment complexes located immediately outside the theme park. The park adapted to a culture of laying increased emphasis on sit-down dining and far much less on fast food.
References
Grant, R. 2005. ‘Euro Disney-From Dream to Nightmare 1987-94’. Case Study. pp. 279-307.
Johnson, G., Scholes, K & Whittington, R. 2008. Exploring Corporate Strategy. Upper-Saddle-River, Prentice Hall.
Maanen, V & Westney, E. 1999. Organizational Behavior and Process. Cincinnati, Southwestern College Publishing.
Footnotes
Johnson, G., Scholes, K & Whittington, R. 2008. Exploring Corporate Strategy. Upper-Saddle-River, Prentice Hall.
Grant, R. 2005. ‘Euro Disney-From Dream to Nightmare 1987-94’. Case Study. pp. 279-307.
Maanen, V & Westney, E. 1999. Organizational Behavior and Process. Cincinnati, Southwestern College Publishing.
Corporate governance regards the rules, principles, or laws through which a business or organization is controlled or regulated. Its existence is shown by the internal and external factors set by the various parties involved. Such members are the shareholders, government, the firm through its constitution, officers, customers, and other clients to the organization. From the reference company, a board of directors is used to give out the directives that the firm is to follow, in its operation to achieve results.
As at incorporation of Disney Company, the law allowed the board to consist of not less than eleven and not more than twenty-one directors. Directors are expected to be independent of the organization to devote their ability and integrity in guiding the control of the firm. The nature of customer governing arises from the agency relationship with the directors (Walt Disney Company, 2011). Management acts to supervise the working of subordinate staff like the chief executive officers and their continued renewal. The board is also entitled to the approval of all the major decisions involving finances as well as the management of the business. They are expected to provide detailed data concerning the operation of the firm to the various interested parties.
Decision-making entails proper analysis of the data from past or current transactions in focus on what is to be in the future. The financial statement from the summary of the firm transactions needs is accurate and well established. The management team consisting of directors has an obligation to ensure that the data analyzed is reviewed for accuracy. It is also necessary to prepare the statements on due dates prior to decision time. As the company has legal regulations, it calls for the preparation of statements complying with the set accounting and legal standards (Walt Disney Company, 2011). The documents prepared to give the detailed data must be covering the whole or general operations of the firm showing the completeness of the information.
Disney Company has to ensure an efficient flow of information to aid in quick and informed decisions made. Technology act to be the quickest mode to use. In this regard, the company has a media network structure to ease data flow. Blog sites are in a place where distant customers can communicate and place orders and reservations. In addition, the firm holds regular exchange programs through meetings and conventions that create interaction moments between the clients and the management. In return, the clients give suggestions, complaints, and approval to the services and products of the firm. The board then has the duty to ensure the failures are rectified and where suggestions are within reach, implement them.
Every business has an obligation on dealing with the various risks involved in the operation. The Disney firm security pack is outlined to serve in both the sites and parks. To inform the clients of the firm, it sets up safety training programs to reach the members in attendance also visiting the sites. From the interaction, the firm acquires data regarding any posing risk as given by the members. The firm also has contacts with other competing firms from where more information is shared across. This aids the constant consideration of clients in case of sudden changes in the operating climate since the firm has prior knowledge of the changing world.
For an effective business, feedback is required from the interested parties to the organization. This is made possible by the reports and returns given to the stockholders during the regular meetings. The directors are required to publish the final audited and approved final accounts through the press and in booklets to shareholders, in the meetings. The external parties can evaluate the business through the information on the press or sites that show the profit gains, as well as changes in comparison to prior years. Decisions like changes in management and other important decisions are also communicated through the networks. Well-defined governance creates a structure that works to the benefit of all parties.
References
The Walt Disney Company and Affiliated Companies. 2011. Corporate Governance guidelines. Web.
