Disney it Is Important to Understand How

Disney

It is important to understand how the business strategy of an organization manifests itself within the internal and external operations of the company. Disney Corporation provides an excellent opportunity to examine these relationships. The purpose of this essay is to compare and contrast the organizational chart and organizational methods of the Disney Corporation and examine how it aligns or misaligns with the strategy of the particular corporation. I'll examine Disney under hypothetical situations such as it operating as a functional organization and identifying different ways in which matrix structures are applied to the leadership branches of the Disney Corporation.

DISNEY'S PRODUCTS AND SERVICES

Prior to analyzing the alignment of Disney's corporate strategy with its organizational methods, it is important to understand what Disney Corporation does and how it performs its mission. Understanding the background information is essential in order to grasping how these relationships dealing with leadership can be used to their fullest potential. According to the Walt Disney Company's website, "the Walt Disney Company's objective is to be one of the world's leading producers and providers of entertainment and information using its portfolio of brands of differentiated content, services and consumer products. The company's primary financial goals are to maximize earnings and cash flow and allocate capital for growth initiatives that will drive in long-term shareholder value."

The wide range of services and products Disney provides creates problems for management. It is a difficult task to understand the differing markets and the differing special knowledge that needs to be applied to each one of these specific markets. It essential for the leadership to understand that incorporating ideas from all aspects of other businesses will help to strengthen and continue the growth pattern that this company has realized for many years. Diversity is a key component in sustaining and weathering through tough times. Due to Disney Corporation's diverse approach to business, it may be expected to survive through struggling economic times because of its wide spread approach.

DISNEY'S ORGANIZATIONAL CHART

Disney is a public company that is traded on the stock market making its Board of Directors key players within the organization of the company. John Pepper Jr., is the current chairman of the board of directors. The 15 directors, including Steve Jobs, are responsible for representing stockholder interests of the company.

The management team at Disney is divided into two sections, the Corporate and Business sides of the organization. Within the corporate division, there're several vice presidents all serving under Andy Bird, chairman of Walt Disney international. Disney assigns vice presidents for global security, business development, corporate communications, human resources, the chief financial officer, and planning control or operations. The business unit is a smaller part of the management team. George Bodenheimer, who is currently president of ESPN and ABC sports serves also as the cochairman of Disney media networks and heads this part of the company. There are four chairmen who serve the consumer products, the Walt Disney Studios, Walt Disney Parks and resorts and ABC television group. The two presidents work with the interactive media group and the Disney interactive media group.

The CEO of the entire company Robert Iger, is in charge of 103 executives within the Walt Disney Company. He is responsible for the sales teams and parks content of television shows real estate, money management, planning control, communications, interactive media, studio production, distribution, legal and secretary, security, human resources, development and technology, government relations, and the various other tasks associated with running such a large company. It's obvious that all the varying tasks that are presented to this organization presents an opportunity to examine how they manage such a diverse and widespread company.

DISNEY AS A FUNCTIONAL ORGANIZATION

Before analyzing Disney as a functional organization, it is important to understand what exactly functional organization do and how they operate. This organizational structure uses relative ideas that appropriate certain resources to specific functions. It is essentially decentralizing power and giving management throughout the company the go-ahead to implement and execute ideas at a local and remote level. Certain advantages of functional organizations include instilling a sense of ownership throughout the company by demonstrating the need for each individual leader to have a significant contribution to the company without having to ask for permission.

Boyd (2009) noted a change was needed," Disney theme parks have been grappling with slowing attendance at the global economy worsens. Disney reported a 32% drop in profit in its first quarter with its parks and resorts reported revenue of $2.67 billion down 4%. " This came after "Walt Disney Parks and resorts announced to overhaul its theme park management structure with the goal of consolidating much of its decision-making process." For Disney it seems at least within the theme park realm of their business, functional organization is not necessarily mean success.

Functional organization seems to only work when appropriate resources are applied to certain problems. Nothing can be more viable than the experience of a good leader with high expertise. " Seet (2009) agreed, "legitimate power comes from the ability to influence due to one's hierarchy, where people at higher levels have power over those below. One's subordinates are key in this equation because this influence exists only when they accept a power is legitimate and complies with the leader."Functional organization does not seem to work at this level for Disney but it seems it incorporates it elsewhere. There is no doubt an appropriate place for functional organization for Disney, most likely at the lower levels of management.

APPROPRIATNESS OF THE MATRIX STRUCTURE FOR DISNEY

A matrix structure provides easier means of tracing and tracking responsibilities for the organizational levels of the Disney Corporation. Leadership is hard to apply if it is not understood where it is most needed. Complex organizations such as Disney, require explicit notation in order to describe and communicate responsibility and relationships. The matrix structure itself aligned certain tasks or departments to certain individuals at the leadership level. It is an visual notation that clearly defines roles and subordinates certain activities to individuals responsible for their success or failure.