The community, business partners, customers/guests, and employees all have low power, high importance. The community expects a high level of quality products and services that provide significance to their area. This includes having both involvement and support towards the community growth. The protection of the environment and a conservation of natural resources is a concern of the communities. Communities also expect that any companies and contractors who work for Disney, as well as Disney themselves, to comply with all applicable laws to the region.
Business partners with Disney expect fair dealings, free exchange of information, and synergy; which will allow them an advantage with respect to cost, market power, technology, employee skills, and the ability to negotiate. The customers and guests are concerned with the quality of the products and services provided. They value the price of the services provided and expect to pay competitive market prices. The customers and guests expect to have a safe and secure environment while attending Disney functions. Employees expect empowerment to create an environment where they can grow by finding value and meaning in their jobs.
This should be combined with the encouragement towards the development of the employees’ in their professional careers. Employees desire an environment free from discrimination and/or harassment, along with a safe working environment. Organization Effectiveness: The Walt Disney Company is one of the largest media conglomerates in the world. The internal efficiency of the company has seen its sales increase by 21. 8% to $1. 92 billion. However, the company has been suffering from advertising and financial woes. Employee motivation has been on the weak side.
Internal disputes within the organization and the lack of employee empowerment has created an environment with low employee morale. The lack of empowerment has also stifled the employees’ ability to be innovative and use their creative genius that made the company famous from the start. The company resource acquisition has had mixed results. The company saw a rise in stock shares from $15 to $22, they where able to shed any underperforming assets, and had an increase in revenue growth from $698 million to $7. 8 billion.
However, there has been a reduction in the share prices by 15% over the last five years, along with a lacking performance towards new market development. Customers have thus begun to lose appreciation for the Disney brand. Strength, Weakness, Opportunity, and Threats: The strength of the company lies in the diversity of its businesses, size of operations, and the loyalty of its brand. Disney has been able to diversify its business to incorporate all different elements of family entertainment; including theme parks, television programs, movies, and consumer products.
The mere size of the operations has given strength to the organization. The longevity of the organization has created a brand loyalty that keeps generations returning to Disney. Weaknesses in the company are failing reliance of the business partner relationships and with the declining sales and revenues in theme parks. Much of this decline has been centered on the lack of advertisement. The seasonal fluctuations in park attendance and resort occupancy have caused natural operating difficulties.
Disney has experienced an increased weakness of being a diseased culture that has been encouraged by fear. There are several opportunities for the company in the international market through the potential of theme parks and brand awareness. This creates future opportunities to capitalize on the extremely high awareness and marketability of the Disney brand, and the creation of a digital product market. There are many threats to the company from foreign business risks and its vulnerability to outside factors. Disney has a strong competition in many industries due to its diverse businesses.
Broadcasting services compete with other television networks, cable television, and satellite television; while the home video market competes with VHS and DVD sales. A soft economy has the potential to weaken Disney profits, since the majority of their business is focused on customer enjoyment verses needs. Recent bad publicity has many stockholders holding their breath to see what happens next, leading to a threat in investor confidence that will need to be addressed. The Issues Statement Issues: Iger faces several issues to help bring the Walt Disney Company back to its shining era.
The first element deals with creating attractive content, along with executing the vision of expanding Disney internationally and leading the company into a digital future. The company needs to envision what Disney and its component businesses will look like in 2015. Empowerment needs to be given to businesses so that they can have a say in their own strategy. Disney needs to focus on adapting its company content toward the digital future. The second element is to reduce the corporate turmoil by fending off dissident shareholders.
This should be addressed by mending fences with Miramax, working on a new contract with Pixar, and ending the feud with Roy Disney and Stanley Gold. The third issue, which is probably the most important, is to understand the leadership roles that Iger must face in changing the company culture. Disney needs a leadership style that requires someone who is modest, patient, has good judgment, grace under fire, and diligence. Issue Statement: How can Iger improve the company culture while allowing for freedom of creativity to aid in the expansion of brands into international markets and create a break through in new product develop?