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)....
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