This website uses cookies to ensure you have the best experience. Learn more

Strategic Management At The Walt Disney Company

4341 words - 18 pages

Identify an episode of strategic change for an organisation of your own choice. How appropriate was the approach to strategic change given the issues faced by the organisation? Critically evaluate the effectiveness of the strategic leadership during the change process. Identify the impact of the change episode upon the key resources and core competencies of your organisation.

This paper will analyse a recent period of strategic change at The Walt Disney Company which began in 2005 with the appointment of current CEO Robert Iger. The company began to experience halted growth during the late 1990s. The former CEO Michael Eisner had been successful himself in the late 1980s in changing the ...view middle of the document...

Financially, Iger managed to steadily increase share prices from a 2005 average of $25 to an average of around $34 in 2007 (Barnes, 2010). Despite a global recession which halted consumption of products and visits to its theme parks, the company has seemingly recovered its low of $15 in 2009 with its share prices reaching almost $38 as of May 2010. As I will explain however, the strategic change at Disney has not only provided short-term profits, it has put the company in a position in which it can sustain its competitive advantage in the long-term due to the changes in the structure and underlying culture of the organisation.
Beginning with the pre-2005 context of Disney’s business environment I will show why Eisner’s autocratic style of management was impeding the necessary changes the company needed to survive in light of the issues facing the company. Following on from this analysis I can assess the process of change which the company undertook relating to relevant theories in the strategic change literature. This will allow me to evaluate the effectiveness of the leadership during this process and show how CEO Iger was central to the changes which took place, again in accordance with strategic leadership theories. Finally I will attempt to identify how Disney has harnessed its key resources and core competencies throughout the process of strategic change to give itself a healthy, competitive advantage in the long-term.
The issues faced by Disney starting in the late 1990s were a mix of external and internal triggers for change; market changes, competitors, technology, political and cultural. Market changes included a general profit decline in all of Disney’s business apart from its theme parks. Home-video sales were dropping as consumers’ shelves were already saturated with Disney content, as classic titles were constantly re-released to try and milk profits out of them without. The economic downturn in Asia at the time helped to decline revenues in merchandising and licensing and sales in Disney stores worldwide also dropped due to stale product lines, (Gunther, 1999). Disney had competitors challenging each of its main businesses; Universal had a popular theme park in Florida, DreamWorks, Fox and Warner were also producing animated features which contested Disney’s stranglehold on the animated film industry and the company’s television cartoon channel was ranked third behind Nickelodeon and Cartoon Network. Gunther (1999) sheds light on the interesting problem of “age compression” which Disney faces, the fact that kids are growing up faster; 9-10 year olds are now emulating older teenagers. These new wave of kids feel that Disney is “too good” for them as they attempt to rebel against their parents. Nickelodeon and Cartoon Network were able to exploit this weakness by creating contemporary characters, not mythical, traditional characters from storybooks – but ones which were relevant to kids. As theme park attendance was doing well,...

Other Papers Like Strategic Management at the Walt Disney Company

The Walt Disney Company: Expansion Strategies

1806 words - 8 pages international markets. Conclusion The success that the Walt Disney Company has enjoyed to date to the level of becoming one of the most important players in the entertainment industry has been as a result of a skilled management team. The company has expanded tremendously through diversification and geographically where the theme parks have been key elements of the company’s globalization strategy. Additionally, getting involved in strategic alliances

The Walt Disney Company & Comparison With The Time Warner Company

1259 words - 6 pages The Walt Disney Company & Comparison with the Time Warner Company Cafer C. Sengonul California Intercontinental University 2015 Abstract Walt Disney (The Walt Disney Company) and Warner Bros (Time Warner Company) are the two major entertainment company in the world. These two similar rival groups are competing in the same business areas. Both companies keep producing new products to stay in the business while they keep their

Walt Disney Company History & Overview

1315 words - 6 pages The Walt Disney Company Strategic Management – 3:30pm September 20, 2011 Overview, Mission & Objectives Founded on October 16, 1923, The Walt Disney Company, or “the Company”, is one of the world’s leading media conglomerates. Headquartered in Burbank, California, the Company continues striving to produce unparalleled entertainment experiences based on the legacy of quality creative content and exceptional storytelling. Started by one

Business Analysis - Walt Disney Company

1769 words - 8 pages , merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a successful music division. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. In order to determine if the Walt Disney Company is a suitable object of investment, a SWOT analysis should be carried out. SWOT Analysis SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses

Globalization Through the Lens of the Walt Disney Company

4531 words - 19 pages Globalization through the lens of The Walt Disney Company 2. Using a single case study (for example select one of these: transnational corporations – Microsoft, McDonald’s, cultural products – film, I-pods, international financial institutions and policies – World Bank, Structural Adjustment Policies) indicate what reasons might there be for supporting and rejecting the idea of globalization as ‘Westernization’, Americanization’, and/or

Walt Disney Company History - Question and Answer

1062 words - 5 pages This case provides a brief history of management conflict and change at Walt Disney Company. Former CEO Michael Eisner was considered to be controversial because of his abrasive style and tendencies toward micromanagement. It was this style that strained several important relationships to the Disney Company. Though his reign as CEO during the 80’s and 90’s helped advance Disney Company, it was his conflicting management style that led to his

The Walt Disney

1317 words - 6 pages , is and important reason why Disney has been able to reduced/eliminate the competition and sustain a profitable Company over the years. Disney has created characters, like Mickey Mouse, Goofy, and a brand that is unable to be duplicated. As I wrote at the beginning Walt learnt the importance of legal protection, from his fist character “Oswald”. Improvements and innovation. Disney always tried to upgrade their business lines, whether it was

The Walt Disney

1970 words - 8 pages by The Oriental Land Company and is licensed by the Walt Disney Company. The resort was built by Walt Disney Imagineering, and Disney has a major say in what goes on at the parks - Nick Franklin leads the Walt Disney Attractions Japan team at the Walt Disney Company, which communicates with the Oriental Land Company over all aspects of the Resort, and assigns Imagineers to the Resort (

Hershey Company Strategic Management

6152 words - 25 pages management process. The current mission is sufficient to remind the company on their attitude and outlook. However, it is important to include the nine characteristic, as mission statement would be more effective. From our analysis, the current mission lacks of another three characteristics, which are products, market, and technology. These four characteristics are important for the company in the long-term development. Thus, we think that the

Company Profile for marketing management - disney

933 words - 4 pages , Retrieved from Hughes, I. (2012, January 16). Profiles in greatness: walt disney [Online forum comment]. Retrieved from Kotler, P., & Keller, K. (2006). Marketing management. (12th ed.). Upper saddle river, NJ: Prentice Hall. Turner, R. (1992, Dec 28). Disney's strategy a beauty MARKETING"'thinking like a soap company' gives disney huge sales in the video market. The Globe and Mail. Retrieved from

Management at a Company

2117 words - 9 pages Management at a Company Rasheta Haynes MGT500 Modern Management Robert Miller 5/25/2015 Abstract In this paper we will examine the management style of Google Inc. We will also evaluate two key changes in the selected company's management style from the company's inception to the current day. Indicate whether or not you believe the company is properly managed. As well as explain senior management's role in preparing the

Related Essays

The Walt Disney Company Essay

2489 words - 10 pages The Walt Disney Company is an American diversified multinational mass media corporation headquartered at the Walt Disney Studios in Burbank, California. Disney was founded on October 16, 1923, by Walt Disney and Roy O. 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 theme parks. The company also operated

The Walt Disney Company Essay

546 words - 3 pages ages. 3. I believe that Walt Disney Company most of the expansions has benefited the company overall. If we looked at Exhibit 1 in the Walt Disney Case, without the expansion into the theme park and resorts, consumer product, and media network industry, Walt Disney Company’s studio entertainment (film) would only make around $5.994 billion out of the $25.402 billion. The trend has shown a drop in revenue in the studio entertainment (film) segment while increases in the other three segments mentioned above. The only expansion I believe that has been a bad decision was the internet and direct marketing segment. This is the only segment posting a lost.

The Walt Disney Company Essay

668 words - 3 pages Disney’s outstanding history of success has been accomplished through a series of strategic business choices involving synergies, brand management, and creativity. Known as the king of entertainment and media, Disney has also been able to remain profitable for so long due to the company’s various strategies used to create value through diversification, expansion, and integration. Throughout Disney’s history, the company was always operated by

Walt Disney Company Essay

736 words - 3 pages Running Head: WALT DISNEY COMPANY Walt Disney Company Student University Case: Walt Disney Company Walt Disney Company follows a business strategic which focuses on each line of the business within its organization. It seems Disney has developed a unique strategy for each of its four SBUs and has continued to make the right strategic decisions under competitive markets. The Walt Disney Company is organized in a SBU format