Week 10 Research Project (Case Study Part 2)

Brian Cooke

03/15/2020

Wilmington University

BBM 402

Week 9 Research Project (Case Study Part 1)

Disney: Building Billion-Dollar Franchises

1. List the names of the board of directors.

Board of Directors includes two generations of Walt Disney’s family and exceptional leaders from our community.

1. Tamara Diane Miller President of the Board

2. Walter Miller Board Member

3. Christopher Miller Board Member

4. Charlotte Goff  Board Member

5. Sebastian Runeare Board Member

6. Michelle Lund Board Member and President of the Sharon D. Lund Foundation

7. Kirsten Komoroske Board Member and Executive Director of The Walt Disney Family Museum

8. Pat Gallagher Board Member and Management Consultant 

9. Former Presidents of the Board of Directors

10. The Walt Disney Family Museum would like to recognize the former Presidents of the Board of Directors, without whom the museum would not be what it is today. 

11. Diane Disney Miller Co-founder of The Walt Disney Family Museum, President of the Board of Directors (2009–13), and Walt Disney's Daughter 

12. Ron Miller  Former President of the Board of Directors (2013–19) and Walt Disney's Son-in-law

2. What are the company’s vision and mission statements?

Corporate Mission Statement: Disney’s mission statement is “to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company.” While the mission statement talks about the entertainment and impact it purposes to give its customers, the primary focus of the company is on leading in developing the entire industry into one of the most dynamic and progressive ones. The company is, therefore, all about stimulating positive changes. The mission statement by Disney has the following characteristics:

1. Improvement of communities

2. Improving lives 

3. Entertain

4. Exceeding expectations

A look at the history of the company shows that the mission statement of this company has been consistent with what the company values most – the people. This agrees with the first characteristic in the mission statement of Disney, which describes the prioritization of the welfare of communities by the company.

Corporate Vision Statement: The Walt Disney Company integrates its vision statement into its mission statement. Upon separating these two statements, the resulting corporate vision is future-oriented and clear in terms of the company’s strategic aspirations. For example, Disney aims for leadership in the global market for entertainment products. These characteristics satisfy some of the conventions in writing corporate vision statements and helps focus managerial endeavors. However, this vision statement does not specify the kind of “information” that the company provides. Thus, to improve this corporate vision statement, it is recommended that The Walt Disney Company include a more specific description of the “information” it aims to provide as one of the leading businesses in the global industry.

1. What is their principal business model?

What is the Walt Disney business model? It’s called the Loyalty Profit Chain. Here’s how it works: Disney provides a customer with an outstanding experience. It’s so good that the customer wants to have that experience a second time, a third time, and so on. Each additional experience encourages word-of-mouth marketing to draw in even more customers. This allows Disney to dominate in its industry.

What are the secrets of the Walt Disney business model? They’re actually so surprisingly simple that anyone can implement them.

1. Open Communication.

Above anything else, Walt Disney incorporates an environment that demands open communication. People need to talk to other people with transparency for the business model to succeed. Standards are set very high and employees are required to meet those standards every day so that customers receive the best experience possible with the brand.

2. There’s Never a Bad Idea.

You won’t find an executive team shooting down ideas at Walt Disney and labeling them as the worst thing they’ve ever heard. There isn’t a bad idea at Disney. There are just ideas that are implemented and ones that aren’t implemented. Employees are encouraged to share any idea they may have that might benefit the organization. If they are implemented, then the employee gets rewarded in some way. This environment gives people the courage to speak up and lead, even if they’ve never been a leader before.

3. They Put Even More Focus on the “Wants.”

To maintain a business, a company must be able to fulfill a customer’s needs better than any other business within their industry. To grow a business, however, a company must be able to also meet the “wants” a customer has better than anyone else. This is where the Walt Disney business model truly differentiates itself. By giving customers what they want and making those wants affordable, they drive up customer demand.

4. Everything Gets Tested as Often as Possible.

Many organizations will test products, services, or even employee talents, but how many times has the brand itself been tested? Disney is constantly testing its brand to see if they can push it to even higher heights. At times they’ll risk their organizational identity just to see if they can obtain a better market share. The Walt Disney business model will always have an influence on kids, but to reach adults something different had to be done. That’s why this company has so many different entertainment options available today.

5. Everyone Plays an Important Role in the Business Model.

On any given day, Walt Disney has more than 150,000 people employed. This large scale means that there needs to be refined hiring practices in place, but each person must also be able to maintain an identity. That’s why in the Walt Disney business model, every employee plays an important role. Whether it is in front of the camera, behind the camera, as an artist, or as a data input specialist, each person contributes something to the dynamic.

6. Company Culture is a Top Priority.

The formula for success at Disney starts even before an employee is hired. Managers and hiring professionals are mandated to discuss the culture requirements that are in place at the company during the application process. If potential employees seem uncomfortable with the idea of being part it, then they are generally not brought into the Disney family. There is one body for the company with many different parts, but they are equal parts. That equality is what drives profitability.

7. Consistency.

Just providing some customers with the best experiences of their lives isn’t good enough. Everyone who encounters the Disney brand is supposed to have a positive experience. If a customer has a negative experience, then the Walt Disney business model demands that this experience be corrected in some way. You can’t please all of the people all of the time, but Disney does its very best to do so every day.

The secrets of success in the Walt Disney business model are straightforward, simple, and easy to implement. Every business should have these core elements in place in some way. When the customer comes first, anything is possible.

2. What are the major goals for the company?

Walt Disney CO's current goals are to reduce their impact on the nature and how much fuel and waste they use and produce. They are currently trying to use less and produce less waste to better the environment. The company is mostly focusing on family, the community, and inspiring children to help around the community. Past goals for the Walt Disney was that he wanted to open an affordable good experience for children and parents to create memories.

Walt Disney's mission statement is “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 to differentiate its content, services and consumer products. The company's primary financial goals are to maximize earnings and cash flow, and to allocate capital toward growth initiatives that will drive long-term shareholder value.”

3. List any recent changes in strategy.

· Disney created a new business unit that focuses on its direct-to-consumer streaming platforms.

· The company also said its consumer products and interactive media segment will become part of its parks and resorts business.

· CEO Bob Iger said the new structure better positions the company for the future.

4. What is the Industry in which your company resides? 

· Mass Media Entertainment

5. What is the company’s position on corporate social responsibility (CSR)?

· Disney groups its corporate social responsibility efforts into two: Environment and Philanthropy. These CSR groups address two main concerns of the media and entertainment company’s stakeholders: environmental impact and community impact. Thus, in general, Disney’s corporate citizenship is two-pronged. However, an examination of the specific programs and initiatives contained in the CSR strategy shows that the company’s approach is multi-faceted and holistic in considering the conglomerate’s operations and stakeholders. The main components of The Walt Disney Company’s corporate social responsibility strategy are:

1. Environmental Stewardship (Environment)

2. Conservation Fund (Environment)

3. Charitable Giving (Philanthropy)

4. Volunteering (Philanthropy)

6. Has your company participated in any mergers or acquisitions in the past?

· The Walt Disney Company is known for its prodigious business acumen and high-profile acquisitions. Last year, Disney’s annual profit came in at $8.4 billion, an incredible climb from $3.4 billion in 2006. Since Robert A. Iger began his role as chief executive in 2005, the company acquired Pixar, Marvel Entertainment, and Lucasfilm. In the last year, Disney released four movies, which generated $1 billion in global ticket sales, and this past June, Disney opened the $5.5 billion Shanghai Disneyland. These projects led to an increased share price of $31 in 2006 to $122 in August 2015.