project

Walt Disney

Organizational Profile

Prepared For: Carlene Rose

Prepared By:

Principles of Management

Method of Research:

In management, there are many topics that cover the organizational profile. Of these, I prefer to learn about how different companies react with their employees and their customers, and the policies in regard to each group. I am also very interested in marketing – what makes a company so successful. I stared by researching the top ten best places to work in America, Fortune 500 companies, America’s most successful companies, etc. I kept seeing “Disney” appear on these lists. Because it wasn’t a company I expected to hear, such as Google, Zappos, Apple, etc., I thought this might be an excellent opportunity to learn about a company I really hadn’t heard much about. I initially started this project simply researching the famous Disney World in Orlando, FL. Upon a lot of simple discoveries, I had been made aware that “Disney” did not mean just Disney World, but it meant the Walt Disney Company. I chose to go with the entire company in part because information was more accessible, but also because I hadn’t realized there was so much to the Disney brand. The 5 businesses within the company, the networks such as ESPN and ABC, the Dow Jones Average, and how many parks around the world there were are just to name a few.

Once I determined that I wanted to research the entire company, I began with researching the organizational structure and the marketing. Upon reading many resources on both aspects, I had discovered that the aspect everything I had already read discussed was how the employees and the customers were viewed and treated through the eyes of the company. This immediately caught my interest, and so I chose as my third aspect of the managerial profile to discuss the organizational culture.

"To all who come to this happy place - welcome. Disneyland is your land. Here age relives fond memories of the past and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, dreams and the hard facts that have created America… with the hope that it will be a source of joy and inspiration to all the world."

-Walter E. Disney, 7/17/1955

A little history behind the ‘magic’ of The Walt Disney Company:

On October 16, 1923 Walt Disney and his brother, Roy Disney, opened up Disney Brothers Studios with the launch of the animated Alice’s Wonderland cartoon series. Later in 1928, they released the very first cartoon of the iconic Mickey Mouse. Amongst many other events, in 1937 Disney Brothers Studios released its first movie, Snow White and the Seven Dwarfs, which was in color; in 1940 they opened up their first stock; and in 1949 they opened the Walt Disney Music Company. Throughout the course of these great milestones for the Disney Brothers Studios, Walt (the man behind the vision) had a dream; he wanted to create a Mickey Mouse theme park that incorporated his love and passion for trains. After surviving WWII, Walt and Roy set out in search of a piece of land which they acquired in Anaheim, California. However, the brothers were far from being able to fund this personally and banks wouldn’t finance a dream, so Roy, although skeptical of Walt’s dream, made a deal with ABC in 1954. ABC was to broadcast “Walt Disney’s Disneyland” which showcased the plans of this theme park and provided massive financial support. Other business such as Monsanto Hall of Chemistry, the Dutch Boy Paint Gallery and Kaiser’s Hall of Aluminum Fame had exhibits in Tomorrowland (an attraction in the park) in turn for sponsoring. Main Street U.S.A. also had exhibits from sponsors such as Upjohn Pharmacy, Bank of America, Carnation Ice Cream Parlor, and Gibson Greeting Cards. (White Oak Travel Services) The very first Disney theme park, Disneyland, opened on July 17, 1955.

Though the opening day was a fiasco and the press declared it would fail with in a year, Disneyland reached its one millionth customer within two months of opening; they went past breaking even, and started making a profit in just that first year. This was the beginning of impressive business ventures for the Disney Brothers Studios, soon to be called the Walt Disney Company…

Walt, the original “imagineer,” dreamt big. In the early 1960’s he had envisioned an “entire ‘world’ that would provide a complete destination-vacation resort” (Lantek Solutions LTD). Walt passed away in 1966, but his dream pressed forward and Disney World was opened in 1971. In 1983 the first Disney park in another country opened in Tokyo, Japan with the first Disney Channel broadcast in America taking place 3 days later. The first retail establishment, The Disney Store, opened in 1987; in 1991 the Walt Disney Company joined Dow Jones Industrial Average (stock market), the first European Disney park opened in 1992; in 1994 they produced their first Broadway and Disney Interactive was formed. In 1995, the Walt Disney Company purchased a portion of the California Angels and Capital Cities/ABC television network, and created Disney Online. Radio Disney and the maiden voyage of their first cruise ship finished up their biggest milestones of the 1990’s. In 2001 they purchased the Fox Family Channel, renaming it ABC Family, and Baby Einstein… amongst many other purchases in the 2000’s.

Organizational Structure of the Walt Disney Company:

In order for the Walt Disney Company to have thrived throughout the past 80 years as it did, there is no doubt that the company has had a very strong organizational structure. The former CEO had once mentioned that because the technology simply didn’t exist, it was nearly impossible to keep practices consistent. “Within the large corporation, the company needs to maintain a strong management team in order to keep control over the employees and their respective companies.” (Danielski)

At the top of the structure is the Board of Directors, who holds the majority stake in the company. The CEO and President of the Walt Disney Company, currently and since 2005 Roger A. Iger, answers to the Board of Directors. Mr. Iger oversees the day to day operations of the main branch. Under the CEO, there are two branches: the Corporate Branch and the Business Unit Branch. The corporate branch is made of Senior Executive Vice Presidents and Executive Vice Presidents who manage the following areas: Disney International; General Council; Global Security; Corporate Real Estate, Sourcing, and Alliances; Corporate Strategy and Business Development; Communications; Human Resources; Planning and Control; and lastly the Chief Financial Officer. Each Senior Executive and Executive Vice President manages their own teams. The Business Unit Branch is made up of Presidents who run each of the businesses within the Walt Disney Company. These businesses are as follows: Media Networks, Parks and Resorts, The Walt Disney Studios, Disney Consumer Products, Disney Interactive. Each President of their respective business has their own team, with management teams at each establishment. Also, the Business Unit Branch of the Walt Disney Company has Presidents and respective management teams at each additional company they have purchased, such as ESPN.

Organizational Culture

“The only thing that Disney does better than organizational structure is the behavioral concepts they use to train their employees.” (Danielski) Along with the organizational structure, all the decisions made by Walt Disney all the way through his successors of today came from the culture of the organization. As inscribed on the tunnels leading into the first Disney Land, Walt Disney stated “Here you leave today and enter the world of Yesterday, Tomorrow, and Fantasy.” His ambition was to make guests feel as though they could escape from reality into a world of relaxation and magic. In order for guests to be able to do this, Walt knew it would take more than fun exhibits, rides and other attractions… the employees and cast members had to present a sense of happiness and enthusiasm to make the magic happen!

The Walt Disney Company strives ‘to create an optimal employee experience while meeting our business needs.’ (Disney Co.) The Disney Company has set a list of values that illustrates the way they live in their everyday lives; these values are as follows: (List: Disney Co.)

· Innovation – committed to a tradition of innovation and technology

· Quality – strive to set a high standard of excellence & maintain high-quality standards across all product categories.

· Community – create positive and inclusive ideas about families & provide entertainment experiences that all generations can share.

· Storytelling – timeless and engaging stories delight and inspire.

· Optimism – entertainment is about hope, aspirations and positive outcomes.

· Decency – honor and respect the trust people place in us & fun is about laughing at ourselves and our experiences.

To accommodate these values, all employees are sent to the Disney Institute (officially established in 1986, but around for many years prior) to receive the proper training. The Disney Institute is a structured learning environment that teaches employees how to perform at a top notch level for customer happiness… they do not want their customers to be merely satisfied, but happy. Of course, before an employee makes it to the Disney Institute, they have to meet certain requirements, which cause roughly 10% of perspective employees to leave. (Danielski) They are given a simplified version of what is expected of a Disney employee, and they are critiqued on their appearance: no tattoos, no excessive jewelry, makeup in moderation, hygiene and cleanliness on a daily basis, attire, etc.

Mission Statement:

"The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."  (Retail Industry)

Marketing the Walt Disney Company:

When it comes to marketing, the Walt Disney Company’s main focus is on targeting children 12 and under, their parents, and caregivers. Because of this and in a well-done effort to incorporate the previously mentioned values about the company’s culture, the Walt Disney Company provides distinguished guidelines for media outlets that require both internal and external advertisers to focus on promoting only positive aspects of their product or service in a respectful manner. As a member of the Children’s Adverting Review Unit, the company has gone as far as to hire Standards professionals who review everything before going on air, both with television and radio.

Marketing is approached with the belief that parents know what is best for their children, and perform sensitively. The company takes a “consumer first” approach combined with observed parental cues and continuously seeks parental input when managing the marketing team. Not only is this smart to target the parents by understanding them, but it is a marketing technique on its own to let the parents know that their input manages Disney. Disney also modifies is marketing strategies depending on factors such as culture and the seasons. Their highly qualified team of market research professionals watch and adapt to trends depending on the season, investing in the slow times and changing the ‘magic’ accordingly. Also, they approach things differently depending on people’s cultural background in order to make the customers more comfortable.

Disney’s marketing strategy like any other marketing strategy consists of the four factors. “In product strategy, Disney products involve far more the tangible good or the service; it offers the well-known high quality and the worldwide known brand that the company has for years. Disney also customizes all their products with specific characteristics of the company, which demarcates and differentiates their products from others. In the pricing strategy, Disney’s prices are not low. Although, when compared to other goods and services, taking into consideration the quality of products that Disney provides, the price is fair. In the place strategy, Disney has its products distributed all over the world, seeking expansion of the market. The key found by Disney is to position their main attractions (parks and resorts) in places with a high flux of people, so more people can be familiar with the brand. It is possible to observe this by looking to the places of the Disney’s amusement parks today: California and Florida (America), Paris (Europe), and Hong Kong and Tokyo (Asia). In the promotion strategy, Disney succeeds in this area, especially in low peaks of the year. Promotion, such as low priced rooms, free or reduced tickets and items are highly utilized strategies of Disney.” (Caseiro)

Disney follows this approach in every business of their company. Other than the Media Networks (television, radio, publishing, etc.), Parks and Resorts, Interactive Media (internet and gaming), Consumer Products (retail), and Studios and Entertainment (movies, stage performance, and music), they carry this into their other business endeavors such as ESPN, ABC Family, ABC News, Pixar Animation, their cruise lines, spas… everything. “…The Walt Disney Company has conquered almost every marketing area there is and succeeded in each one.” (Danielski)

Conclusion:

Examining just these few aspects of the management style, it is very apparent that there is a truth in the claim that Disney is the leading company in America. For over 80 years, which is a long life for a company to continuously profit, the Walt Disney Company has reached their ideal goal in making an impression on business strategies all around the world. This company takes pride and value in their employee’s satisfaction, and understands the impact it has on the customers. Because this company cares so much on the interaction between employee or cast member and customer, it would seem that this is the biggest reason why Disney is the global empire it has grown to be since that first Alice’s Wonderland cartoon. The Walt Disney Company employs over 166,000 people around the world, making them one of the largest single employers on the map. Disney World alone employs 62,000 people, making it the largest single-site employer in the United States – they must be doing something right! The best thing a company can do is care about the customers and the employees experience, and amongst numerous aspects of the management profile not discussed, this is one that Disney incorporates consistently. Disney really is where the magic begins…

Works Cited Caseiro, Bianca Menegazzi. Marketing Plan. 10 March 2012. 27 April 2013. <https://sites.google.com/a/email.vccs.edu/bus100bmenegazzi/marketing-plan>. Danielski, Adam. Behavioral Characteristics of an Organization: The Disney Company. 14 Apil 2009. 1 May 2013. <http://voices.yahoo.com/behavioral-characteristics-organization-the-2466318.html?cat=3>. Disney Co. Culture and Diversity. 2013. 1 May 2013. <http://disneycareers.com/en/working-here/culture-diversity/>. —. Disney History. 2013. 1 May 2013. <http://thewaltdisneycompany.com/about-disney/disney-history>. —. Leadership. n.d. 1 May 2013. <http://thewaltdisneycompany.com/about-disney/leadership/management>. Lantek Solutions Ltd. Walt Disney World History. n.d. 27 April 2013. <http://www.wdwmagic.com/walt-disney-world-history.htm>. Retail Industry. 2013. 27 April 2013. <http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Walt-Disney-Mission-Statement.htm>. The Walt Disney Corporate Responsibility Report. 2009. 1 May 2013. <http://disney.go.com/crreport/childrenandfamily/partneringwithparents/marketingpractices.html>. Walt Disney World Fun Facts. 2011. 1 May 2013. <http://corporate.disney.go.com/media/news/Fact_WDW_Fun_Facts_08_06.pdf>. White Oak Travel Services, Inc. History of Disney Land. 2004-2013. 27 April 2013. <http://www.disneymouselinks.com/DisneyLandHistory.aspx>.