Organizational Design
The Walt Disney Company has a matrix organizational design. The entire organization is divided into various substructures on business type basis. Matrix corporate design is conventional for diverse institutions (Egeberg et al., 2016). Walt Disney uses explicitly a collaborative matrix organization structure where various related infrastructures have constrained functions. Nonetheless, the different subdivisions strive towards achieving common organizational goals, including that of growth and diversification. For instance, Walt Disney has a competitive advantage, intensive growth, and diversification strategies that must be implemented by the various segments of the company (Wiltz et al., 2013). The organization also has a centralized management system which manages and controls the functions of the company segments. Corporate managers and management functions are housed at the company's headquarters.
Media networks, studio entertainment, resort and parks, interactive multimedia system and entertainment products are the significant segments of Walt Disney organization (Egeberg et al., 2016). The products focus on specific industries and types of business. The corporate segments operations are under the related constrained diversification plan, where the business resources and activities are shared among the company's substructures. Company segments follow similar procurement, production and distribution processes. The sections are, however, not fixed as the central corporate management system may alter or establish new segments in pursuit of international business diversification agenda.
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Walt Disney's organization structure effectively drives the company towards achieving its mission, being the world's leading entertainment company (Wiltz et al., 2013). The corporate subdivisions, working collaboratively, strive t o meet the company's growth and diversification goals. The company's strengths, weaknesses, opportunities and threats analysis determine its strong brand whose competitive advantage is shared across the company's divisions (Wiltz et al., 2013). Through its central corporate management, the company can control and gear the various divisions towards achieving its purpose and mission.
Structural Characteristics
Bolman and Deals Structural Frame is characterized by strategy, division of labor, objectives or goals, and protocols (Král & Králová, 2016). Walt Disney has established various strategies to name universal competitiveness and rapid growth strategies. Through the organization's globalization protocols, Walt Disney undertakes international division of labour by delegating physical work to various countries. The company also has goals and objectives, just like many corporate organizations.
Goals and Objectives
Walt Disney goals and objectives fall under the production and leadership categories. The company is currently aiming at managing their environmental impact by reducing the amount of fuel consumption and waste produced. By using less fuel, the company will emit fewer waste products hence bettering their surrounding environment. The company has established an environmental awareness program intending to promote the wise use of resources and protection of plants throughout their business operations. Zero greenhouse gas emission, water conservation and zero waste production initiatives are the specific components of the environmental awareness program (Sandlin et al., 2016). The company's primary focus is on families, whereby they aim to continually create good moments and experiences where children and parents can create beautiful memories together. In addition to creating memorable family experiences, the company also inspires the youth to help around the community. The chief objective of Walt Disney Corporation is to become the world's best entertainer through the production and provision of differentiated content, services and merchandise. The company wishes to produce the most creative and innovative entertainment content, globally. Maximization of shareholders wealth and management of cash flows are among Disney's financial objectives. Through its allocation of capital and resources to growth and development initiatives, Walt Disney aims at sustaining the shareholders' wealth eternally (Honey-Ray, 2016). The company's managers have an objective to keep up to date with the dynamic technology by continually adopting new technologies. Globalization is yet another objective where the company aims at penetrating to new markets worldwide.
Universal Competitiveness and Rapid Growth Strategies
Both universal competitiveness and rapid growth strategies are tailored to the company's product designs. The exclusive products tendered by Walt Disney give the company a competitive edge ("Reframing Teaching Resources", 2020) . In other words, Disney's competitive strategy is based on offering products different from those produced by its competitors. The company provides its differentiated products to several market sections. Family-friendly program is an example of Disney's unique entertainment products which is liked by the masses all over the world. Walt Disney's promotion of intrapreneurship, creativity and innovation culture enables the firm to compete effectively with other large organizations in the industry (Král & Králová, 2016). Precisely, the quality and the uniqueness of the company's products realized through innovation and creativity differentiates the company's products from those of competitors. The company has employed a research team to its Imagineering department, which creates unique and attractive products to improve the entertainment experience in theme parks and resorts. The universal competitiveness strategy is achieved through the setting of product design strategic objectives (Král & Králová, 2016). The creation of magnified virtual reality products is an example of Disney's production objectives which adds to the company products’ uniqueness and improved customer experiences.
The rapid growth strategy, on the other hand, involves production of magnetic products that match universal marketplace trends. Product development, market penetration, market development and diversification are the specific elements of the rapid growth strategy (Král & Králová, 2016). While product development comprises of new products distribution to new and current markets, market penetration includes increasing the company's current products sales volume in the prevailing market. Market development entails the distribution of existing products to new market sections. Diversification involves the establishment and the acquisition of new businesses (Allen, 2013). The company's entry into the hospitality and tourism sector through the introduction of Disney Cruise Line is an example of the company's diversification objective.
Division of Labor and Specialization Protocols
Disney has various functional groups under central corporate management. The centralized corporate management enables the firm to prioritize strategies that benefit multiple corporate segments. For instance, the company uses movie stars clips and images in amusement parks (Parks and Resorts segment) and merchandise (Interactive multimedia and Consumer Products segment). Disney's specialization consists of the subdivision of the company into four business types. The workers in the multimedia network section have specialized in mass media communication. Similarly, the workers in the other segments have specific skills that allow them to work best in that particular field and not any separate section. Studio entertainment segment requires individuals trained in studio production.
The company's division of labour based on geographical location responds to the disparities in local, domestic and regional marketplaces (Allen, 2013). The marketplace disparities affect the entertainment, parks and resort and multimedia sectors. For example, different cultural beliefs among different regions result in the differences in consumers' choice of entertainment. The geographical division of labor is a structural frame characteristic that enables Walt Disney management to design appropriate business objectives in line with different market conditions. Walt Disney takes advantage of cheap physical labor in other countries through its international subcontracting practices. Most of the company's strategizing, planning and conceptualization is done at the headquarters before subcontracting the real job to other countries where labor is cheap.
Effectiveness of the Structural Characteristics
Walt Disney's structural characteristics are effective as they drive the company towards achieving its mission and vision. The universal competitiveness strategy ensures that the company outshines its competitors. The company therefore becomes the world's best entertainer . Honey-Ray, 2016). The rapid growth strategy makes the company become a market leader whereby they will always enjoy the benefits of market leadership. The market penetration strategy enables the company products to become dominant in the market place against competitors' products. Market development initiative makes the customers of competitor products aware of the company's products and attract them into preferring the company's offering to those of the competitors. Division of labor minimizes production and distribution costs, thereby increasing the profit margin of the company products (Scarselletta et al., 1994) . Furthermore, the division of labor promotes the company's economic prosperity, preventing the company from appearing in industry's bad books.
Through specialization, the company staff becomes more effective in their work, increasing the general performance of the company. The goals and objectives are tools that have helped the company monitor its progress and determin the realization of its purpose and missions (Honey-Ray, 2016). Aims and objectives have effectively prevented the company from being biased throughout all its dealings and operations. Walt Disney has realized global recognition and prestige through its continuous diversification and expansion efforts. The centralization of the company's management effectively drives cooperation and collaboration among the different functions of the company. With the union of the company's substructures through central administration, the company facilitates the sharing of resources and prevents clashing roles.
Recommendations
Walt Disney should rethink the centralization of corporate management since it impacts negatively on diversification. The extent of diversification of the business is limited by central corporate governance (Moen, 2017 and Weick, 1995). The organization should adjust the centralization constraints to increase diversification capability. That way, the organization will penetrate deeper into developing markets and increase the scope of its products. The company should also expand its line of production by venturing in other sectors of the industry. Targeted production and analysis of customer trends and characteristics is the first step the company could take towards expanding its product line.
Competition is a perpetual threat all companies face, and Walt Disney should continually focus on strategies to improve competitiveness (Moen, 2017). The company can secure its competitive advantage through continuous innovation, product designing and image branding. The world currently is shifting its focus from televisions to the internet (Scarselletta et al., 1994 and Palmeri & Faries, 2014). Walt Disney should take advantage of the shift by expanding its market through providing more of its content online and less on TVs. Through enhancing the consumer feedback systems, Walt Disney would be able to align movie content and characters with consumer’s tastes and preferences. Disney's product requires new and better distribution channels. The company should hence employ creativity and innovation in its product distribution channels.
References
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Honey-Ray, L. (2016). Finding the right fit: A governance model and structural framework.
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Moen, D. (2017). The leader-investigator: Using leadership studies as a model for conscientization through adaptive leadership, the four frames approach, giving voice to values, and the competing values framework. Journal of Thought , 51 (3-4), 22-37.
Palmeri, C., & Faries, B. (2014). Big Mickey is watching. Bloomberg Businessweek , (4370), 22-23. Retrieved from EBSCO – Business Source Complete.
Reframing Teaching Resources . Leebolman.com. (2020). Retrieved 2 August 2020, from http://www.leebolman.com/reframing_teaching_resources.htm .
Sandlin, J. A., & Garlen, J. C. (Eds.). (2016). Disney, culture, and curriculum . Routledge.
Scarselletta, M., Bolman, L., & Deal, T. (1994). Reframing Organizations: Artistry, Choice, and Leadership. Industrial And Labor Relations Review , 47 (2), 342. https://doi.org/10.2307/2524435
Weick, K.E. (1995). Sensemaking in organizations . Thousand Oaks, CA: Sage.
Wiltz, D., Arevalos, C. A., Balaoing, L. R., Blancas, A. A., Sapp, M. C., Zhang, X., & Grande-Allen, K. J. (2013). Extracellular matrix organization, structure, and function. Calcific aortic valve disease , 3-30.
