Read the case study, Politics at Walt Disney, on page 414 and write a 1000-1500
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Question
Read the case study, Politics at Walt Disney, on page 414 and write a 1000-1500 word easy with two high-level section headers:
Conflict, Politics, and Conflict Resolution (In the section, answer questions: 1. What are the various sources of conflict and politics that have plagued Walt Disney in the past? 2. Discuss how Iger used different conflict resolution and political strategies to solve these conflicts to make better use the company’s resources).
Effects of Power on Organizational Structure (In this section, include discussion that:
identifies sources and effects of power on organizational structures, and
recommends how to evaluate organizational design/strategy in a global operations environment.)
In the early 2000s, Walt Disney CEO Michael Eisner came under increasing criticism for the company’s falling performance and for the way that he had centralized decision making so that all important decisions affecting the company had to have his approval. He began to lose the support of the board of directors, especially of Roy Disney, who as a member of the founding family commanded a great deal of support. However, the majority of Disney’s board of directors had been handpicked by Eisner, and he was able to control the agenda until the company began to incur major losses in the mid 2000s. Poor performance weakened Eisner’s position, but so did his personal relationship with Steve Jobs, who was the CEO and major owner of Pixar, the company that had made most of Disney’s recent blockbuster movies such as Toy Story, Cars, and so on.
After Jobs threatened to find a new distributor for Pixar’s movies when its contract with Disney expired in 2007 because of the personal antagonism between himself and Eisner, Disney’s board decided to act. Eisner was encouraged to become chair of Disney and to allow his handpicked successor, Bob Iger, assume control of the company as its CEO. Iger owed his rapid rise at Disney to his personal relationship with Eisner, who had been his mentor and loyal follower. Iger had always suggested new ways to improve Disney’s performance but had never confronted Eisner—always a dangerous thing to do if a manager wants to become the next CEO!
Once Iger became CEO in 2006, pressure was applied to Eisner, who soon decided to resign as Disney’s chair; then Iger negotiated the purchase of Pixar by Disney that resulted in Steve Jobs becoming its biggest stockholder. Disney was still performing poorly, but now that Iger was in total control and no longer under the influence of Michael Eisner, he adopted a plan to change the way Disney operated.
As COO of Disney under CEO Michael Eisner, Iger recognized that Disney was plagued by slow decision making that had led to many mistakes in putting its new strategies into action. Its Disney stores were losing money; its Internet properties were flops; and even its theme parks seemed to have lost their luster as few new rides or attractions were introduced. Iger believed one of the main reasons for Disney’s declining performance was that it had become too tall and bureaucratic under Iger, and its top managers were following financial rules that did not lead to innovative strategies.
One of Iger’s first moves to turn around Disney’s performance was to dismantle its central “strategic planning office,” which was composed of several levels of top managers who were responsible for sifting through all the new ideas and innovations sent up by Disney’s different business divisions, for example, its theme parks, movies, and gaming divisions. After a lengthy decision-making process, they then decided which proposals should be presented to Eisner.
Iger saw the strategic planning office as a bureaucratic bottleneck that reduced the number of ideas coming from below; he dissolved the office, reassigned the best managers back to their different business units, and retired the rest.50 The result of cutting out these unnecessary layers in Disney’s hierarchy has been that more new ideas are generated by its different business units and the level of innovation has increased. Divisional managers are more willing to speak out and champion their ideas when they know they are dealing directly with CEO Iger and not with an office of bureaucrats concerned only with the bottom line.51 Disney’s performance has improved steadily under Iger; in 2010, it announced much improved revenues and profits and a new venture—Disney acquired Marvel, the company that owned the rights to such characters as Spider-Man, X-Men, and the Hulk—so many new kinds of rides and movies may be expected in the future.52 In 2011, it announced new agreements with Apple and other companies such as Google and Amazon to stream its huge video library to customers online and to make them available for download using cloud computing so that users can access them using any mobile computing device.
Explanation / Answer
Ans: Walt Disney perceives what is client esteem in Disney brand. They esteem a fun experience and custom made amusement taking into account out-dated family values. Disney reacts to these purchaser inclinations by utilizing the brand crosswise over various customer markets. Suppose that an American family goes to see a Disney film together. They have an awesome time. They need to proceed with the experience. So Walt Disney offers Disney's shopper items with various product offerings went for particular age groups.Walt Disney has been a monster in four customer markets in particular, Walt Disney studios and motion pictures, Disney Theme stops and resorts, Disney T.V stations and media networks and Disney buyer promoting items.
With regards to TV stations, Disney has its own station called the Disney station which is the top prime time destination for children's age b/w 6 to 14. Disney has a pre school program called the "play house" which is focused to little children's age b/w 2 to 6. Disney offers a Co-marked visa cards to grown-ups. Card holders acquire one dollar for each $100 charged to the card and the card holders can energize the card to $75000 yearly and after that they can recover the profit for Disney stock or benefits, including Disney's amusement stops and resorts, Disney stores, Disney studios and Disney stage items. Disney has likewise been in Home stop offering a line of authorized children's room paint hues with paint swatches in the mark mouse and ears shape. Disney additionally has authorized sustenance items with its characters on its brands. For instance, Disney gives a Yogurt called. The four ounce yogurts are focused to preschoolers who have a delineated short story under every top of the yogurt that energizes perusing and disclosure. Disney additionally has some engraved treats in vanilla and different flavors have impressions of its renowned characters such as Mickey Mouse, Donald Duck and so forth
As COO of Disney under CEO Michael Eisner that Disney was tormented by moderate choice committing that had prompted numerous errors in putting its new methodologies without hesitation. Its Disney stores were losing cash; its Internet properties were flounders; and even its amusement parks appeared to have lost their brilliance as couple of new rides or attractions were presented. Trusted one of the primary purposes behind Disney's declining execution was that it had turned out to be excessively tall and bureaucratic under and its top administrators were taking after money related tenets that did not prompt imaginative systems.
Disney shopper item divisions. The stock incorporates:
•Disney Hard lines-stationery, lunchboxes, sustenance items, room stylistic theme.
•Disney Soft lines-sportswear, sleepwear, day wear, frill.
•Disney toys-activity figures, wigglers, beanbags, extravagant, design dolls, conceivable.
•Disney Publishing-Diaries, junior books, comic books.
The achievement of Kim Possible is driven by activity stuffed story lines which make an interpretation of well into stock items in numerous classes. Today, the pervasiveness of Disney item offerings is amazing and with everything taken into account, there are more than 3 billion amusement based impressions of Mickey Mouse got by youngsters consistently. office as a bureaucratic bottleneck that decreased the quantity of thoughts originating from underneath; he broke up the workplace, reassigned the best supervisors back to their diverse specialty units, and resigned the rest.50 The aftereffect of removing these pointless layers in Disney's chain of importance has been that all the more new thoughts are created by its distinctive specialty units and the level of development has expanded. Divisional supervisors are additionally ready to stand up and champion their thoughts when they know they are managing specifically with CEO an office of administrators concerned just with the base line.51 Disney's execution has enhanced relentlessly under in 2010, it declared greatly enhanced incomes and benefits and another endeavor.
As specified over that one of the Strategic Marketing Goals is to extend the product offering of Disney's Kim conceivable character. In this segment I might want to specify few criteria and changes that have happened throughout the years and hence how Kim Possible division ought to be finished as for customer conduct.
Utilization OF DEMOGRAPHICS and LIFE STYLE CHARACTERISTICS:
It has been watched that Walt Disney has done division for its characters on the premise of Age that implies that for each of its characters it focuses on specific age bunch which is a demographics method for division. In the course of the last 6 to 8 years there has been a social move and change in the psyche sets of American Families. As Disney means to give amusement to every one of the individuals from an American family subsequently I would prescribe Disney to cook the social change in patterns and ways of life of American Families. American individuals have more planned towards gutsy diversion and home based amusement. It is apparent from the adjustment in their reasoning and ways of life. Along these lines, I would suggest utilizing Life Style as premise for division of Kim Possible. Kim Possible is High school going young lady who in her extra time spares the world from Evil. So here they have made the right character as per the requirements of American individuals who now adore enterprise instead of old children's stories. Subsequently, the division of Kim Possible items ought to additionally be done as needs be. Kim Possible targets adolescents and kids age between 6 to 14 years. In any case, the character is such that it ought to likewise provide food individuals which have a place with other age bunches too. So keeping in mind the end goal to fill this need, new items must be presented and its methodology ought to be made in like manner as for the changing ways of life of American individuals .Here I would suggest that new amusement park rides with Kim Possible pictures and its topic ought to be presented in the Walt Disney amusement parks. Aside from this Kim Possible Stage appears and mimicry shows ought to additionally be displayed. A full length energized motion picture of Kim Possible ought to likewise be made and showed in the silver screens of America and different nations any place conceivable. In home based excitement, Kim Possible Board diversions and Kim Possible computer games ought to be intended for Play.
Investigation OF CASE: In this segment there are different choices accessible available to Disney. Disney can have its own circulation station and can give logistics to its clients too. Then again Disney can do franchising of its forte stores. Alternately It can open up restrictive Stores committed only for Kim Possible product offerings. Consequently there are distinctive choices accessible. As I have specified among st the administrations that Disney ought to give to its purchaser is that Disney ought to open Specialty stores for Kim Possible items just, in this way I would prescribe Disney to at first setup its own Specialty stores elite for just Kim Possible product offering where every one of the Products that are said above will be accessible at one shop .Walt Disney ought to setup these stores at first beginning from the Major urban communities of America where their focused on buyers are more prominent in number and step by step subsequent to examining the advancement of Kim Possible new Expansion in product offering, then go ahead to open these stores all over America and afterward in different urban areas of the World. Along these lines Walt Disney ought to decide on the later alternative. The explanation behind having its own particular Specialty stores is fundamentally decreasing its danger. In the event that Walt Disney chooses to License or establishment its stores from the earliest starting point and for occasion, the development arrangement does not work then it will make an awful name among st the franchisee and its gathering of people and shoppers too. Another explanation behind selecting this alternative is that Disney has the quality to make its items at lower cost so on the off chance that they setup their own particular stores, they can procure income specifically from the end client and in this manner getting higher overall revenues. In this way, I would prescribe Disney to have its own particular conveyance station by opening its own particular strength stores of Kim Possible items and giving logistics to its end clients for conveying of the merchandise.
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