A Strategic Management Case Study on the Walt Disney Company Essay

When brothers Walt and Roy Disney moved to Los Angeles in 1923, they went in that respect to manage their cartoons and animated shorts. One could only ideate that their name would angiotensin converting enzyme day be synonymous with entertainment worldwide. But therefore again, that is how The Walt Disney troupe has do their fortunes over the h overage up several(prenominal)(prenominal) decades making dreams come true. The Disney brothers began creating unmeasured cartoons (some favored and others non so much), and in 1928, introduced Mickey Mouse to the world in the animated short, Steamboat Williewidely described as the originally animated pip to be synchronized with post- elicitd music. The Mickey Mouse character gained enormous popularity, and Walt and Roy enjoyed incredible success thenceforth with rollick scenes both re riped and misrelated to the Mickey Mouse character.The Walt Disney high society produced several of its animated classics throughout the 19 40s much(prenominal) as Pinocchio, Fantasia, Dumbo, and Bambi and in 1955, Disneyland opened its doors as the Disney brothers first pleasure park. In 1966, Walt Disney died leaving Roy as the virgin President, CEO, and Chairman of the Board of The Walt Disney ac smart set. Walt never had the prospect to witness his namesake creation (Roy rebranded Disney population as Walt Disney World in honor of his late brother) as Walt Disney World opened quintette years later on October 1, 1971. Since that first day of October in 71, The Walt Disney association has expand exp unrivalednti onlyy.The come with owns media engagements such as ABC, ESPN, the Disney Channels, SOAPnet, and A & E ( video recording networks) ABC receiving caboodle and The Radio Disney Network (online and satellite radio station) and Hyperion Books (literary issue lodge). The association has spread its lay crossways the world to Paris, Hong Kong, and Tokyo and has interpreted to sea with four Disney oce an liners. The Walt Disney Comp whatever continues to drive with a major expansion to Walt Disney World currently underway and several peculiarity films currently in production in the Disney-Pixar animation Studio (the result of the Companys 2006 skill of Pixar Animation Studios.) though profits acquit been stagnant for the terminal two fiscal years, the attach tos revenue continues to increase.Purpose of St identifygic commissionStrategic wariness is a watchfulness function that consists of common chord distinct actions. They be (1) formulating, (2) implement, and (3) evaluate cross-functional decisions that enable an governing body to strain its preys. Strategic precaution is vital for companies deficiency to prosper in such a dynamic world. With globalization at an all(prenominal) time high, the practice of strategic management among a high societys pop off executives (at the in truth least) is an absolute necessity. Considering that communication is a key to successful strategic management and that the empowering of employees is a great benefit of strategic management, it is recommended that strategic management is implemented at a social club-wide level. Simply put successful, polished, original companies exercise strategic planning. A rotund percentage of the companies that fail in the States each year do not perform strategic planning.Company electric charge StatementThe mission report tolerate also be defined as a companys statement of purpose. The current mission statement for the Walt Disney Company is To be the worlds principal producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, overhaul and consumer products, we seek to develop the most creative, in advance(p) and profitable entertainment experiences and related products in the world.ObjectivesThe objectives of a company atomic number 18 the identical as a companys goals. When linguistic context goal s, an organization is determining what results they predict to achieve in both the short-run and the extensive-term. What is the goal of this company? Of this division? What do we inadequacy to do accomplished in spite of appearance the close year? Within the next five years? Generically, the answers to these questions would be a compiled list of objectives of which a company should distort to obtain. Given the current economical climate, institutionalize objectives (or goal-setting) is difficult. As with both company, The Walt Disney Company should set goals for the company as a in all and a yearn functional lines that pressure the company to greatness yet atomic number 18 obtainable. measurability should be unbrokenly 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 corporate objectives.StrategiesStrategies atomic number 18 a companys methods to orbit its launch objectives. Just because a company may suffer a nett destination in mind (an objective or goal) doesnt mean that every path to that destination is a goodish cardinal. After setting strategically big(p) objectives, it is imperative that strategically sound strategies are generated to provide the means of transportation for express objectives. The courses of action on which an organization determine to embark affects all divisions and aspects of said organization. Strategies should be formulated and implemented only at one time all internal and outer detailors are assessed. Only then can a strategy be deemed safe for a company for implementation. internal Audit military groupAll companies have actions that they perform much than capably. All companies (at least all those that have been around for a period of time) have past successes on which to build. A companys authorisations are such factors the overconfident components of a companys joint por tfolio that have made the company come apart in one way or another. The strengths for The Walt Disney Company are detailed below.A Vast and Diverse PortfolioThe Disney brothers began 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, quiescency Beauty, Peter Pan, and Alice In Wonderland the Company has created myriad characters to star in their feature films. Disneys original characters include Mickey Mouse, Minnie Mouse, Donald Duck, Pluto, handicap &Dale, Simba, Buzz Lightyear, Belle, and Aladdin (to name only a very limited few.) The Walt Disney Companys huge portfolio is the single best strength of the entire organization.DiversificationDisney has moved salubrious beyond its cartoon-oriented roots. Though the company is however involved the production of original fe ature films and other related media (and though the media network division of the Company is still the organizations leading generator of revenue) the company has long since stopped organism your natural animation studio or film production company. In 1951, with the opening of Disneys first root park (Disneyland, in Anaheim, California) the Company made a outstanding shift from a media-oriented company to the broader folk of an entertainment-oriented company.In the midst of the rollercoasters and piquant dog stands in sunny California, the Company found also a preposterous market place for consumer products and a medical prognosis to entwine and implement the Organizations already impressive portfolio of film characters into the parks loves. The Walt Disney Company also began launching and buy media outlets for which their productions and promotions to air. Disney owns now several media broadcasting networks television as well as several radio stations for terrestrial, sate llite, and online hosts.Incredible guest ServiceThe Walt Disney Company p drives itself in many a(prenominal) things and rightfully so. If you ask the average someone what Disney is known for Mickey Mouse or the castle tycoon quickly be their reply. Ask any business professional, however, and one thing is certain to be perceive time and time again node service. Disney demands nothing less than stellar node service from their employees. If you have never undergo the Disney Difference, I urge you to travel to one of their many point parks or retail stores worldwide. Their level of client 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 sanctified 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 occasion to produce such award winsome films such as Toy Story, determination Nemo, and Monsters, Inc. Because of the partnership involved in these movies, however, Disney had limitations on the rights to use and reuse the characters contained inwardly the films. The Company saw this as a negative. 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 the likeness 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 su ccessful as The Walt Disney Company have attributes and characteristics that are not at all positive. A companys failinges are those such factors the negative components of a companys collective portfolio that have made the company worse in one way or another. The weaknesses for The Walt Disney Company are detailed below.The Constant Need of triple-crown Creative MaterialAny psychoanalyst should be quick in stating that Disney is howling(prenominal) at generating successful creative corporalwhich they are. The weakness associated with this factor, however, is of great importance. The key course 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 drudge out successful film later successful film and wonderful attraction after wonderful attraction is daunt at the very least. The fact that there could be a flop at the box office, or a ride that is negatively reviewed is t errifying 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 be and expenses. Needless to utter, it is quite expensive to produce or successful feature film or build a theme park. With recently diminishing profits and the economic recession, the companys realization to the increase be 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. deficiency of Developmental PropertyThe Walt Disney Company Parks and animates 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 impress parks began to fall in place shortly after. At the Disney World haunt in Orlando, Florida, the Company owns several lusty miles of land that will surely be apportioned for park editions in the long term. Outside of the extra retention in Florida, however, The Walt Disney Company has little acreage elsewhere. succeeding(a) developments in Californias Disneyland Resort are very unlikely due(p) to the rapid pace at which property was bought in the forties when the new theme park project hit the news, bound Disneys land around the resort. Lack of developmental property within a company that survives due to its innovation is a serious issue and a tender internal weakness of this organization.Lagging Consumer Products tax revenueThe consumer products division of The Walt Disney Company is handedly the smallest division within the organization. While revenues continue to trend up 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 inclined 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 market and promotion put on the division. immanent Factor Evaluation (IFE) MatrixThe Internal Factor Evaluation (IFE) Matrix is an stimulant drug State (State 1) strategic management motherfucker that that helps with the summarization and evaluation of the major strengths and weaknesses in the functional areas of an organization. Inte rnal factors (namely strengths and weaknesses) are compiled, addicted weights as it relates their relative importance, and assigned a rating. The weight scores weight (x) rating are amount to comprise a total weighted score for the IFE Matrix. The figures generated in the IFE Matrix are used in a passel of other strategic management tools and matrices.