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Running head: DISNEY CORPORATE SOCIETAL RELATIONSHIPS 2

DISNEY CORPORATE SOCIETAL RELATIONSHIPS 2

DISNEY CORPORATE SOCIETAL RELATIONSHIPS

Corporate Societal Relationships

The Walt Disney Corporation is a diversify multinational entertainment business with operations in five key segments, which comprises of Interactive, Consumer Products, Studio Entertainment, Parks and Resorts, and Media Networks. Media Networks is the company’s biggest segment which constitutes Disney’s cable and broadcast television channels such as ABC Family, the Disney Channels, and ESPN. The segment makes revenue from associate and provider charges. The interactive segment makes mobile, console, and virtual games vended internationally and permits content to publishers for mobile gadgets. The consumer products segments invents and creates an extensive collection of goods founded on its comprehensive intellectual property which generates income via publishing, licensing, and the corporation outlets.

On another point, the studio entertainment segment manufactures animated and live-action films, musical recordings, direct-to-video content and live theater performances. The company circulates this media under the Walt Disney Pictures, Lucas film, Marvel, Pixar, and Touchstone banners with incomes originating from the circulation of the content. The parks and resort segments comprise of the international and domestic theme parks and resorts the corporation possess or has valuable ownership in. The resorts make the most of the income from the admission sales and the food and retail sales made within the parks.

The three ways stakeholders can influence the Disney’s financial performance is through their customers, top management and employees. Disney’s company customers can influence the environmental strategy through price, recycling, and by demanding a certain product quality. If the customers are willing to buy the company’s various products at a price which is lower than the current price, it will force the company to lower their prices, which entails a direct influence on the financial performance (Guo, 2017). On another point, demand for a certain product quality forces the company to improve the existing product, a process which requires financial support.

On a different point, the top management can positively influence the financial performance through application of appropriate management skills, formulation of effective business strategies, which support the overall performance of the business. The top management can also motivate the company affiliated members of staff to work hard and this can lead to high output and generation of high revenues. Lastly, the employees through establishment of good relationship with customers and commitment in their daily duties can enable the corporation to make high revenues. However, the same employees can negatively influence the financial performance of Disney in various ways. For instance, employee disputes can give rise to organizational low performance and lack of motivation, which is directly linked to low income generation.

External environmental factors can influence the aptitude of an investment or business to attain its strategic objectives and goals. The two critical external environmental factors that can affect Disney’s success comprises of political factor and economic factor. These factors entail a great effect on strategic business operations and are not regulated by the corporation (Porter & Kramer, 2018). The political factors comprises of the government policies and rules in which corporations like Walt Disney have been operating in. Though Disney has operations across Latin America, Asia-pacific, Europe, and North America, it also gets most of its income from a single area. For instance, in financial year 2017, the company made around seventy six percent of its income from Canada and the United States. Over reliance on North American markets makes it vulnerable to variations allied to political and economic situation of the area. In terms of business instability, Disney’s prosperity relies on consumer tastes and preferences, which are highly volatile. It is very challenging for a corporation like Disney to constantly generate films, theme park attractions, cable programming and consumer products that will consistently realize the varying preferences of the broad consumer market. Meeting of consumer preferences becomes difficult due to existing different government policies of the countries, where Disney operates.

The economic factors comprises of the gross domestic product of the country, which is the key element contributing the business of luxury brands like Walt Disney Company. The developed states with high human development index and a stable economy will be more susceptible to the business-like Walt Disney. The members of such nations will greatly attracted to be part of comfort parks like the one offered by Walt Disney. In this case, there will be more opportunities to generate income, which will positively influence the business as a whole. On another point, exchange rates and stability of the host country determines the level of income for a global company (Carroll, 2019). Low exchange rates can lead to low profits made by a global company like Disney. The existence of low exchange rates in one country where Disney operates can negatively affect its success due to low profit generated from that country. On another point, the education level in the economy affects businesses, which operated in that country. Disney operation in such countries will force it to outsource labor from other countries, which is expensive and negatively affects the financial status of the company.

Walt Disney biggest success concerns its establishment of its corporate culture. Disney business corporate culture is allied to American culture. Disney is prosperous since it has a corporate that gives supremacy to the affiliated members of staff to advance their performance and increase profit of the economy. The business culture offer support in managing the development strategy and prospects to the company. This culture focuses on the innovations which inspires the corporation to create its product which matches with fresh technologies and drifts in the entertainment sector, mass media sector and in the enjoyment parks and resorts sector. This corporate culture has enabled Disney to maintain its strong relationship with its customers despite the influence of its some of the business activities contributed by the recent global pandemic.

Conclusion

In summation, Disney Company has five key business segments such as Interactive, Consumer Products, Studio Entertainment, Parks and Resorts, and Media Networks. The consumer products segments invent and creates an extensive collection of goods founded on its comprehensive intellectual property which generates income via publishing, licensing, and the corporation outlets. The studio entertainment segment manufactures animated and live-action films, musical recordings, and direct-to-video content and live theater performances. The company circulates this media under the Walt Disney Pictures, Lucas film, Marvel, Pixar, and Touchstone banners with incomes originating from the circulation of the content. The economic factors comprises of the gross domestic product of the country, which is the key element contributing the business of luxury brands like Walt Disney Company. The developed states with high human development index and a stable economy will be more susceptible to the business-like Walt Disney. The members of such nations will greatly attracted to be part of comfort parks like the one offered by Walt Disney. In this case, there will be more opportunities to generate income, which will positively influence the business as a whole.

References

Carroll, A. B. (2019). Corporate social responsibility: Evolution of a definitional construct. Business & Society, 38(3), 268-295.

Guo, W. (2017). What Affects Theme Park Performance: A Comparative Case Study of Disney Theme Parks in East Asia (Doctoral dissertation, Columbia University).

Porter, M. E., & Kramer, M. R. (2018). The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92