Disney Australia Case Study Management Theories Aim

Disney Australia Case Study

Management theories aim to improve the operational and financial performance of business organizations and help them in achieving their strategic goals. The internationally accepted Management theories provide a framework to organizations in every aspect of their business. The policies and procedures formulated in the light of these theories can give them a competitive advantage and a sustainable future in the industry (Tripathi & Reddy, 2006).

Organizations follow the internationally accepted Management theories to improve their productivity, organizational strategy and structure, leadership and motivational practices, control systems, workplace cultures, risk and quality management, information management, and human resource management practices.

The purpose of this report is to discuss the aforementioned thesis statement for one of the most renowned organizations in the World's Entertainment industry -- the Walt Disney Company, Australia. The report starts with an ample introduction to the company and its specific operations into the Australian region, and proceeds by giving a brief analysis of its internal and external environment. The main section of the report discusses the business practices of this entertainment giant in the light of international management theories, concepts, and models. The focus of the report is to highlight the major management issues in the corporate sector and what strategies does Disney Australia institute to encounter these issues in an effective manner.

The Walt Disney Company, Australia

The Walt Disney Company is a well-recognized multinational corporation engaged in providing family entertainment and media services. Its business operations are divided into five major segments; Walt Disney Media Networks, Walt Disney Studios, Disney Consumer Products (DCP), Walt Disney Parks and Resorts (WDP&R), and Disney Interactive Media Group. The history of Walt Disney Company dates back to 1923 when it started as cartoon studio. At present, it has been serving the worldwide customers of all age and income groups with a broad range of entertainment choices. According to the Fortune Magazine, Walt Disney is the world's most admired company in the entertainment industry. The Company entered the Australian region in 1956 with its traditional offerings, including Disney music, movies, television shows, books, merchandise, etc. With the passage of time, it has largely captured the entertainment industry with all its innovative, astonishing, and high-tech services which spectacularly attract the Australians to come and enjoy the modern outlook of the entertainment world (The Walt Disney Company, 2012).

1. Environmental Analysis

The business environment of Disney Australia constitutes the internal and external environmental forces; both of them impact its business operations and financial performance in one way or another. The internal environment consists of the strategic decisions and policies, strengths, weaknesses, and organizational culture which Disney Australia possesses in its business setup, while the external environment is composed of the threats, opportunities, and different political, social, economic, and technological forces which affect the local and international businesses operating in Australia (Brassington & Pettitt, 2006).

1. The Internal Environment:

Walt Disney is a renowned name in the world's entertainment industry. This brand recognition is the biggest strength for Disney Australia. It has won the crown of market leadership by keeping the business operations and customer services to their highest standards, and continuously adopting a growth strategy for its business in all the corners of the world. An extremely wide range of entertainment services for all age groups is another big strength of Disney Australia which gives it a competitive edge over its competitors. A strong emphasis on Total Quality Management, Risk Management, Sound Corporate Governance, strong organizational culture, and Business Ethics also contributes towards its competitiveness in the industry (Seymen, 2006). On the other hand, Disney Australia has some weaknesses in its business setup. First, it is not giving much importance to high grossing animated films. The major competitors in this category, like Pixar, Sky Blue, and DreamWorks Animation are producing these films more frequently and snatching the market share from Disney Australia. Second, its sales performance in the Studio Entertainment services has been declining for the last few years.

2. The External Environment:

Disney Australia has largely dominated the entertainment and media industry in Australia and New Zealand. However, there are various other competitors that are offering these services to the same target market; thus giving a stiff competition to Disney Australia with respect to pricing, customer reach, expenses on promotional campaigns, and customer services. These competitors are a threat to the Company's profitability and customer base. Secondly, the economic environment also impacts its business operations by making the costs of doing business greater and greater with each passing day (Mullins, Walker, & Boyd, 2008). On the other hand, the social, demographical, and political forces have always been favorable for Disney Australia due to the modern lifestyle of Australians and the rapidly growing economy of the Country. Disney Australia has great opportunities to expand its operations in the country by offering more innovative entertainment services in the potential local markets. It can take great advantage from technological advancements by making its service offerings more innovative and astonishing for the customers. The two core competencies, a strong customer base and a well-established brand image can be used to develop the business and make attractive returns. Therefore, making new investments in related services and industries can help it grow as a leading brand in the region (Groucutt, Leadley, & Forsyth, 2004).

2. Organization's Strategy

Disney Australia aims to provide the highest quality of entertainment services to its customers. To achieve this aim, it has instituted the best management practices in all the aspects of its business. The Corporate wide Organizational Strategy is to flourish the business by leaps and bounds through continuous expansion strategies and improvements in the current business processes (The Walt Disney Company, 2012). Through sound Corporate Governance principles, the Company aims to safeguard the interest of its shareholders, manage the risks and uncertainties present in the business environment, and ensure a sustainable future in the industry (Koontz & Weihrich, 2010). By keeping in view the best Human Resource Management theories, Disney Australia wishes to provide a challenging work environment and attractive growth opportunities to its employees. At the same time, it wishes to build long-term relationships with its supply chain members and business associates who play an important role in the provision of its highest quality entertainment services to its customers (Davidson, Simon, Woods, & Griffin, 2009). Finally, the company strategizes to prove itself as a socially responsible corporate entity by getting engaged in various social welfare initiatives (Epstein, 2008).

3. Organization's Structure

The organizational structure of Disney Australia is composed of different operational units; all of which are divided into departments. The different departments in the organization have core business areas to perform their duties. The main departments in the Australian business setup of the Walt Disney Company include: Production, Sales, Marketing, Human Resources, Quality Assurance, Risk Management and Internal Control, and Information Technology. All the five major business units fall under Project Operations; each unit is supervised by an independent Project Director. The Board of Directors is responsible for designing the company's long-term strategies and policies while the Top Management is dedicated with the responsibility of choosing the most cost-efficient procedures of implementing those strategies and policies (The Walt Disney Company, 2012).

4. Leadership and Motivation at Disney Australia

Leadership and motivation is one of the core functions of Management. It greatly contributes in the effective and efficient accomplishment of organization's objectives. At Disney Australia, employees are directed and keep motivated by their immediate supervisors. The most effective leadership strategy is to keep the employees equipped with the most advanced knowledge related to their job duties. It helps them in performing their current job responsibilities more productively and learning new things for personal and professional development. At Disney Australia, the employees get a number of training and development options that are customized as per their job types, nature of duties, or departments. The team leaders and supervisors choose the best training method for each employee (The Walt Disney Company, 2012).

Disney Australia has a performance appraisal system by which high-performers get fast career growth options and financial rewards by their managers. It also brings a sense of motivation in the low performers as well as the new entrants (Davidson, Simon, Woods, & Griffin, 2009). Moreover, Disney offers competitive salary perquisite packages to its managers and employees which also keep them committed to work for this organization for a long period of time. The managers at Disney Australia choose transformational leadership style by which each employee is given individual attention by his immediate supervisor. The supervisor leads his subordinates in a friendly manner; keeps an eye on their individual performance, identifies their strengths and weaknesses, and assigns job tasks and target which truly match their interests, skills, and competencies.

5. Organization's Culture

Keeping in view the Management theories and debates on the importance of Cultural Diversity, Disney Australia gives a strong emphasis on building a unique and esteemed organizational culture at its workplace (Leveson, Joiner, & Bakalis, 2009). It is composed of a highly respectful working environment for a culturally diverse workforce. At Disney, the employees share common beliefs and thoughts, respect the minorities, and strictly avoid gender or cultural harassment with coworkers (Trevino & Nelson, 2010). All the employees and cast members are directed towards common goals of their organization; to do business profitably, grow competitively, and contribute towards the social welfare of the society in which it operates (Davidson, Simon, Woods, & Griffin, 2009). The workforce is directed to show deep concern and respect to the customers, guests, and audiences of the Company. Together as the Disney Team, the employees and Cast members are committed to be a genuine reason for smiles and laughter of the society members.

6. Human Resource Management

The Walt Disney Company Australia believes that its employees play an essential role in the achievement of its strategic goals. Therefore, it provides them exceptional career development and personal growth opportunities at its workplace. It brings a sense of commitment and dedication in employees for their organization (Davidson, Simon, Woods, & Griffin, 2009). For internal and external hiring, the company has a fair and transparent recruitment and selection process. It provides equal employment opportunities to all types of outside candidates and existing employees irrespective of their gender, race, religious beliefs, cultures, or nationalities. Disney Australia offers competitive financial and non-financial compensation packages to its employees. These include salary, medical benefits, wellness resources, free training and development, and numerous other perquisites and benefits (The Walt Disney Company, 2012). Gender and cultural harassment can hamper a peaceful working environment; to eliminate it, Disney has developed core values to be followed by its employees at all the organizational levels (Dowling & Welch, 2008).

Another serious Management issue of the present times is the employees' concern for Business and Moral ethics while working at the workplace or representing their organization to the outside world (Davidson, Simon, Woods, & Griffin, 2009). To train and develop its employees in the area of Business Standards and Ethics, Disney Australia has instituted a separate Learning Management System, called as Disney Development Connection. Moreover, it provides a safe working environment to its employees and Cast members so that they do not suffer from any minor or serious injury, illness, or other health issues during the performance of their duties (Landy & Conte, 2007). It also arranges a training session where they learn the fundamentals of health, safety, and environmental protection measures.

7. Organization's Risk Management and Control Systems

Disney Australia has a sound Internal Control system which primarily aims to safeguard the interests of the shareholders and manage the organization's assets in a prudent manner. The Risk Management Committee is responsible to analyze the uncertainties and risks present in the external environment of the organization and recommend strategies to proceed on the safest path (The Walt Disney Company, 2012). The Conflict of Interest at the Board level is completely avoided at Disney Australia which enhances the shareholders' confidence on the transparency and fairness of the financial results. To control or mitigate the risks and uncertainties in the business environment, the Internal Control first assesses the intensity and potential consequences of these risks and uncertainties, and then chooses the best alternative to be suggested to the Board of Directors (Hill & Jones, 2007). It also ensures that the company strictly follows the legal requirements and guidelines on the prudent business policies and procedures (Hitt, Ireland, & Hoskisson, 2007).

8. Organization's Quality Management

Disney Australia has instituted a number of Management techniques to manage the quality of its operations, business processes and procedures, customer services, and marketing strategies. The implementation of development and architectural tools, quality matrices, Content Management Systems, inter-department and intra-department employee collaborations, and Total Quality Management principles have greatly contributed in improving the overall quality of operations at the Disney business setup in Australia. To improve the quality of its customer services, Disney always keeps follow-up with its customers; provides them an exceptional entertainment experience and gets feedback on how it can make them happier.

9. Organization's Information Management

The Information Systems at Disney Australia are designed and powered by the World's most reliable vendors. The whole software development lifecycle is carried out under the supervision of the Head Office while the Database is supported by a strong security system which ensures the security of Company's data from unauthorized usage or theft. The automation teams work day and night to keep the information systems updated and in their best working conditions. The systems are designed in both two and three tier web architectures depending upon the requirements of every department in the organization. Moreover, the company has a comprehensive website which provides useful information to all types of stakeholders. The website is regularly updated so that the stakeholders keep themselves aware of the current affairs of the company in its diverse entertainment fields (Ferrell & Hartline, 2011).

10. Techniques to ensure better Productivity

Disney Australia has always given emphasis on bringing continuous improvement in the level of productivity. To keep better productivity, it manages its business processes under the strict guidelines of the Quality department at the Head Office. The company has installed and implemented the most advanced animation software, Information Technology applications, and hardware systems in its operational units. The e-marketing strategies for the promotion of the business are also formulated in the light of international marketing management theories. In addition to giving emphasis on the operational productivity, the company also focuses on keeping a high level of workforce productivity. This productivity is improved by providing them a safe and learning work environment (The Walt Disney Company, 2012).