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Disney management practices

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Includes global environment analysis and SWOT.
2009.

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Disney management practices

  1. 1. The Walt Disney Company Managing creativity Estela Almeida Estela Almeida
  2. 2. Company Overview • Founded in 1923 by Walter Disney • Leading entertainment and media enterprise • Went through a radical management change in 2006 • Four business segments: • Media networks: cable, radio, broadcasting, Internet, and publishing.ABC, ESPN • Parks and resorts: Disney Cruise Line, 11 theme parks in 3 continents. • Studio entertainment: Touchstone, Miramax, Pixar Animation. • Consumer products: toys, apparel, food, etc.
  3. 3. Competitive Analysis Film, TV, cable TV, publishing, Internet More than a third of revenues comes from cable TV Struggling with AOL business More diversified Travel and tourism industry very hurt Film, TV, publishing Hard hit by the declining newspaper industry and declining ads revenues on TV Downsizing in 2009 Change in executive leadership in 2009 Focused on TV Multiple channels, mass audience, ads across channels Ads account for more than 65% of sales Focusing on international markets for growth
  4. 4. Mission “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.”
  5. 5. Competitive advantages Customer-oriented Responsiveness to Excellence in customer service customers Market segmentation Park attractions Innovation Animation and movie productions (Pixar) TV channels Competitive advantage
  6. 6. Management practices When Michael Eisner Robert Iger assumed was in charge…. as the new CEO… FAYOL BEHAVIORAL PRINCIPLES: MANAGEMENT: • Centralization • Collaborative • Authority and Responsibility approach • Order • Empowerment • Initiative • Less centralized • Control • Authority goes • Discipline with knowledge
  7. 7. The result… • Creativity is back in • Relationship with Pixar place! got better • Teamwork and • Launch of new collaboration products and shows • Synergy among • Development of business divisions franchises Increase in revenues!
  8. 8. Task environment CUSTOMERS COMPETITORS Different business segments, Media business compete for different customer needs advertising shares Market segmentation: women, Disney is diversifying business children, teens, girls, boys and expanding platforms Changes in consumer behavior Delivering content in different platforms
  9. 9. General environment SOCIOCULTURAL TECHNOLOGICAL Operations abroad: different Increase of interactive media use cultures, values, tastes by customers Local shows and productions, Collaboration among departments but content that can travel to leverage creativity and synergy among businesses Increase of interest for animated films Purchase of Pixar Animation
  10. 10. SWOT ANALYSIS OPPORTUNITIES THREATS •Franchising •New platforms •Piracy •International Markets •Advertising revenues •Media integration decreasing •Hotel+park deals •Weak economy STRENGHTS WEAKNESS •Synergy among business •Retail Operations divisions •Brand awareness •Management style •Strong corporate culture

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