1). What stage of the organizational life cycle is Walt Disney Company in? Has D
ID: 363041 • Letter: 1
Question
1). What stage of the organizational life cycle is Walt Disney Company in? Has Disney atrophied? Are they vulnerable? Are they in decline in any respect? Has it had to downsize recently (last 5-8 years)?
2). Do some research on your Disney's bureaucratic control mechanisms – can you find any rules or policies that employees must abide by? Social media policies?
3). Do some research on employee and customer complaints at Disney – are there any themes to these complaints (e.g., excessive rules or arbitrary policies, problems with managers/customer service reps, poor quality)? Use social media to research but also search the internet for other sources
Explanation / Answer
Answer:-
Note: Please note the student in question has requested to explore internet and online sources to come up the answer. To arrive at the answer, online content has been used, some pointers are from Disney website and few from other sources.
Answer-1
Walt Disney Company is going through ‘Maturity’ phase of organizational life cycle.
Under ‘Maturity’ phase it is in ‘business optimization’ for it’s various line of business (diversified business) and reaping benefits from it brand value in various line of business.
No, the Walt Disney Company has not atrophied – which as per understanding is gradual decline in business effectiveness or due to neglect, that is not the case of the company.
No, the company is not in vulnerable state. Every business cycle has up’s and down so has the company but the strength and opportunities of company are overcoming to their weakness & threats. This can be known from the history and its diversified business as given below:-
Company founded in year 1923 in Burbank, California and is in diversified worldwide entertainment company as an entertainment, travel and consumer Product Company with operations in segments of Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive.
Financially the company has strong balance sheet and generates very great cash flows, with $5 Billion in cash in hand as of year 2016 and only 30% of debt remaining for the capital leveraged and the company has a financial rating of AA+ and Safety Park rank of 1. The company is listed as best global brand has presence throughout the world particular presence in Asia, looked upon for its good values and ethics, it consistently grow inorganically by acquisition having brand image as family-friend business ventures and are good dividend payers to their shareholders.
Company has done downsizing employees as per business cycle, every company has to do so to downsize during downtrend and upscale during uptrend. Disney Company has also had to do as it has a work force size of 180,000+ employees. In September 2016, company has cut 250 Jobs in consumer product and Digital Units. In Feb 2017, its Maker Studio went in downsizing from Thousands of creators to just 300 as Disney made the acquisition of the studio at $675 Million but was not able to make it profitable. In Aug 2017, its television operation it had laid off 350 employees as these employee supported Marvel Avengers and Alliance mobile and social network games and these games were shut down after a sequel failed to catch on which is relatively routine occurrence in the fast changing gaming industry.
Answer-2:-
Any company defines bureaucratic control guides through performance rules, regulations and a standardized handbook set by upper management. This control systems measures advancement according to task, plans, and goal results.
Bureaucratic control mechanisms are used for evaluating an employee’s performance from Disney Character at one of the Disneyland parks, to employees at the retail stores. Disneyland uses control mechanism with all the employees. Every Disneyland employees has to complete an online Business and Ethics course training course as to ensure that all the employees have the knowledge and training to act ethically and legally, in compliance with the company. These controls are inflexible and are geared towards behavior that will lead to consistent customer service and setting specific performance standards, eliminating any deviations.
Social Media policy at Disneyland are very strict – no employee is allow to post an disclosure regarding their job, stern action such firing if it is done so.
Answer-3:
Few past employee posted in certain job feedback website are regarding managers to stop micromanaging, to communicate better with employees, to take care of low rank employee, leniency in dealing with employee’s illness, struggle at work. Few have fear of failure or experimentation.
Few highlighted Top management want to steer the ship in new territory but middle management is bound to present quarter urgency resulting in disconnect with the innovation in company.
Bloated organizational bureaucracy, countless meeting with very slow to decide and act with bounded to legacy and culture.
Management focus is on shareholder processes and not customer centric processes.
These individuals also highlighted good salary, great benefits, low stress, diversity too.
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