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Master's Essay

799 words - 4 pages

The Walt Disney Company: Business Environments
Daniel A. Parra Lozano
Lynn University

The Walt Disney Company: Business Environments
The success of organizations within their specific market niches and competitive environments is based on a myriad of factors, both internal and external. The detailed overview and analysis of these factors exists within the general business environments of the organization. In order to maintain a leading competitive advantage, managers on every level must actively assess these environments and markets, while making the most appropriate decisions that will allow the organization to sustain leverage when faced with high environmental dynamism and/or ...view middle of the document...

This is where companies must identify and assess any threats or opportunities in the market and respond appropriately and in the timeliest manner possible, as to not lose any advantage held within its market. Disney’s changing external environment forced a shift in the company’s primary focus from media content and quality, to merchandising and marketing within emerging distribution channels. These new distribution channels of information are also responsible for increased competition within the entertainment industry, due to accessible and profitable new market trends (The Walt Disney Company SWOT Analysis, 2013).
Macroenvironment
The macroenvironment of an organization, also known as a company’s general environment, includes various factors which affect the entity. These factors include economic, political, legal, technological, demographic, social, and environmental influences. An organization the size of The Walt Disney Company is very easily and strongly affected by the macroenvironment that surrounds it. The macroenvironment is responsible for The Walt Disney Company’s social and economic struggle when expanding new ventures in Europe and Asia. Poor planning and forecasting led Disney to open a new theme park in Paris, France at the verge of a major continental recession. Also, the company failed to fully prepare for the vast cultural differences at the new locations, causing loss of profits. On the other hand, The Walt Disney Company is one of the leaders in corporate social responsibility, giving it leeway within its macroenvironment.
Competitive Environment
Within the competitive environment, as the name implies, stands the organization’s competition or industry rivals, both existing as well as new entities. The organization’s suppliers and buyers also form a part of this...

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