A Strategic Management Case Study on the Walt Disney Company Essay

When br opposites Walt and Roy Disney locomote to Los Angeles in 1923, they went there to sell their cartoons and joyous shorts. One could only fantasy that their name would adept day be synonymous with entertainment creationwide. however then again, that is how The Walt Disney beau monde has do their fortunes over the last several(prenominal) decades make dreams come authentic. The Disney brothers began creating countless cartoons (some in(predicate) and others non so much), and in 1928, introduced paddy field purloin to the world in the animated short, Steamboat Williewidely described as the number one animated film to be synchronized with post-produced music. The Mic place Mouse character gained enormous popularity, and Walt and Roy enjoyed incredible success there by and by with feature films both(prenominal) related and unrelated to the Mickey Mouse character.The Walt Disney follow produced several of its animated classics throughout the 1940s such as Pinocchi o, Fantasia, Dumbo, and Bambi and in 1955, Disney play opened its doors as the Disney brothers inaugural amusement park. In 1966, Walt Disney died leaving Roy as the freshly President, CEO, and Chairman of the Board of The Walt Disney guild. Walt never had the opportunity to witness his namesake worldly c erstwhilern (Roy rebranded Disney World as Walt Disney World in honor of his late brother) as Walt Disney World opened quintuple years later on October 1, 1971. Since that commencement ceremony day of October in 71, The Walt Disney bon ton has expanded exponenti solelyy.The Company owns media mesh topologys such as ABC, ESPN, the Disney Channels, SOAPnet, and A & E (television networks) ABC Radio and The Radio Disney Network (online and artificial satellite radio station) and Hyperion Books (literary publishing phoner). The Company has spread its position across the world to Paris, Hong Kong, and Tokyo and has taken to sea with four Disney ocean liners. The Walt Disney C ompany continues to lift with a major expansion to Walt Disney World currently underway and several feature films currently in production in the Disney-Pixar Animation studio apartment (the result of the Companys 2006 science of Pixar Animation Studios.) Though net profit aim been stagnant for the last two fiscal years, the companys revenue continues to increase.Purpose of St ramblegic ManagementStrategic management is a management function that consists of three distinct actions. They ar (1) formulating, (2) implement, and (3) evaluate cross- useful decisions that alter an organization to achieve its objectives. Strategic management is vital for companies wishing to turn in such a dynamic world. With globalization at an all judgment of conviction high, the practice of strategical management among a companys top executives (at the very(prenominal) least) is an absolute necessity. Considering that communication is a key to successful strategic management and that the empow ering of employees is a great benefit of strategic management, it is recommended that strategic management is implemented at a company-wide level. Simply put successful, polished, pro companies perform strategic planning. A large percentage of the companies that fail in America each year do not perform strategic planning.Company Mission StatementThe mission avouchment great deal excessively be defined as a companys statement of purpose. The current mission statement for the Walt Disney Company is To be the worlds leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, usefulnesss and consumer products, we seek to breach the most fictive, innovative and profitable entertainment experiences and related products in the world.ObjectivesThe objectives of a company argon the same as a companys goals. When setting goals, an organization is determining what results they expect to achieve in both the short-term and the farsighted-term. What is the goal of this company? Of this portion? What do we fate to open accomplished deep down the next year? Within the next five years? Generically, the answers to these questions would be a compiled list of objectives of which a company should get through to obtain. Given the current economic climate, setting objectives (or goal-setting) is difficult. As with any company, The Walt Disney Company should set goals for the company as a whole and a pertinacious functional lines that pressure the company to greatness yet atomic number 18 obtainable. Measurability should be constantly remembered in setting these objectives, and precise and unambiguous language should be used to eliminate all hints of confusion. The Walt Disney Company does not publish its collective objectives.StrategiesStrategies argon a companys methods to reaching its established objectives. just because a company may get a final termination in mind (an objective or goal) doesnt m ean that every path to that destination is a good one. After setting strategically sound objectives, it is imperative that strategically sound strategies are generated to provide the mean of transportation for said objectives. The courses of action on which an organization decide to send affects all divisions and aspects of said organization. Strategies should be formulated and implemented only once all internal and external factors are assessed. Only then can a strategy be deemed safe for a company for implementation.inner AuditStrength either companies cause actions that they perform more than capably. All companies (at least all those that have been around for a period of time) have past successes on which to cook. A companys strengths are such factors the positive components of a companys collective portfolio that have made the company better in one way or another. The strengths for The Walt Disney Company are detailed below.A Vast and Diverse PortfolioThe Disney brothers be gan drawing cartoons long before moving to Hollywood. The Missouri natives spent the majority of their lives imagining characters to which to introduce to the world. along with the Disneys impressive collection of new adaptations of old classics such as Robin Hood, Sleeping Beauty, Peter Pan, and Alice In Wonderland the Company has created countless characters to lead-in in their feature films. Disneys original characters include Mickey Mouse, Minnie Mouse, Donald Duck, Pluto, part &Dale, Simba, Buzz Lightyear, Belle, and Aladdin (to name only a very limited few.) The Walt Disney Companys huge portfolio is the single surmount strength of the entire organization.variegationDisney has moved well beyond its cartoon-oriented roots. Though the company is still winding the production of original feature films and other related media (and though the media network division of the Company is still the organizations leading origin of revenue) the company has long since stopped being your typical animation studio or film production company. In 1951, with the opening of Disneys first theme park (Disneyland, in Anaheim, California) the Company made a striking shift from a media-oriented company to the broader category of an entertainment-oriented company.In the midst of the rollercoasters and hot dog stands in sunny California, the Company found to a fault a unique market place for consumer products and a chance to lace up and implement the make-ups already impressive portfolio of film characters into the parks attracters. The Walt Disney Company in like manner began launching and purchasing media outlets for which their productions and promotions to air. Disney owns now several media bare networks television as well as several radio move for terrestrial, satellite, and online hosts.Incredible Customer ServiceThe Walt Disney Company prides itself in many things and sincerely so. If you ask the average person what Disney is known for Mickey Mouse or the castle might quickly be their reply. Ask any demarcation professional, however, and one thing is certain to be heard time and time againCustomer service. Disney demands nothing less than stellar node service from their employees. If you have never experienced the Disney Difference, I urge you to travel to one of their many theme parks or retail stores worldwide. Their level of customer service takes those who know to look for it back. Former customer service experts and teachers for Disney have written very successful books on the topic and their experiences from the holy grail of customer satisfaction.Acquisition of Pixar Animation StudiosIn 2006, The Walt Disney Company made an acquisition of Pixar Animation Studios. Until 2006, Pixar had collaborated with Disney on multiple occasions to produce such demo winning films such as Toy Story, Finding Nemo, and Monsters, Inc. Because of the partnership gnarled in these movies, however, Disney had limitations on the rights to use and reuse the characters contained within the films. The Company byword this as a ostracize. Too, seeing as Disney produces the majority of its films without collaboration or partnership, the Disney-Pixar relationship was an enigma around which to carefully navigate. In addition, as Disneys traditionally produced animated films (with pen and color artists) being left in the shadows in comparison to the progressively produced animated films (with CGI and digital artwork, it seemed like the best approach that could be taken in order to catch up with the times.WeaknessesWith the fact that all companies have actions that they perform more than capably, the fact also arises that there are some internal factors that are of a negative consequence. Even companies as successful as The Walt Disney Company have attributes and characteristics that are not at all positive. A companys weaknesses are those such factors the negative components of a companys collective portfolio that have made the company w orse in one way or another. The weaknesses for The Walt Disney Company are detailed below.The Constant Need of Successful originative MaterialAny analyst should be quick in stating that Disney is grand at generating successful creative materialwhich they are. The weakness associated with this factor, however, is of great importance. The key words in this factor are constant need. Though The Walt Disney Company is possibly the worlds greatest generator of successful creative material, the constant need to churn out successful film after successful film and wonderful attraction after wonderful attraction is daunting at the very least. The fact that there could be a flop at the box office, or a ride that is negatively reviewed is terrifying for the Company that prides itself in its perfection.High (and Increasing) Cost of Operationregrettably for the Disney Company, their industry is one with astronomical costs and expenses. Needless to say, it is quite valuable to produce or succes sful feature film or build a theme park. With recently diminishing profits and the economic recession, the companys realization to the change magnitude costs of doing business has been mundane. This weakness is not to be confused with high barriers for entry, which might be viewed as an opportunity. That would be considered an external factor. From an internal point of view, however, the high (and increasing) costs to operate are doubtlessly a weakness for The Walt Disney Company.Lack of Developmental PropertyThe Walt Disney Company lay and Resorts Division has expanded drastically over the last three decades. With the first international park being established in Tokyo in 1983, the Paris, Hong Kong, and Shanghai parks began to fall in place shortly after. At the Disney World Resort in Orlando, Florida, the Company owns several square miles of land that will surely be apportioned for park editions in the long term. Outside of the extra property in Florida, however, The Walt Disney Company has little land area elsewhere. Future developments in Californias Disneyland Resort are very unlikely due to the rapid pace at which property was bought in the forties when the new theme park project hit the news, modification Disneys land around the resort. Lack of developmental property within a company that survives due to its innovation is a serious come forward and a strong internal weakness of this organization.Lagging Consumer Products RevenueThe consumer products division of The Walt Disney Company is handedly the smallest division within the organization. While revenues continue to trend up(a) for the division, they do so at a slower rate to the other Disney divisions, proportionally. Consumer products should be a division of the Company that performs, proportionately, as well as the other three divisions of the company. If a consumer watches and really thoroughly enjoys Disneys new studio release, Cars 2, than it is safe to say that the viewer might also want a Cars 2 t-shirt or action figure. The same is true for the media networks or parks and resorts divisions a consumer who has experienced the products of any division of the Organization should be prone to purchase consumer products related to such products. The fact that the increasing revenue of the consumer products division is doing so at a slower rate of the other divisions shows a lack of marketing and promotion put on the division.Internal Factor valuation (IFE) MatrixThe Internal Factor Evaluation (IFE) Matrix is an Input State (State 1) strategic management tool that that helps with the summarisation and evaluation of the major strengths and weaknesses in the functional areas of an organization. Internal factors (namely strengths and weaknesses) are compiled, devoted weights as it relates their relative importance, and assigned a rating. The weighted scores weight (x) rating are totaled to comprise a total weighted score for the IFE Matrix. The figures generated in the IFE Matrix are used in a multitude of other strategic management tools and matrices.