MBA522 Case Study 4

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Anissa Corrales Park University MBA522: Organizational Behavior and Leadership Gregory Moore February 2nd, 2024
Case Study 11.1: Walt Disney One of the most well-known companies in the world, Walt Disney has been able to hold onto the same perception of itself that consumers have had since the company's founder took over in the early years. Disney has managed to preserve the magical aspect of their brand even as they have integrated hundreds of other businesses into its daily operations. Disney’s tactics are the same principles that the original owner envisioned for the company, they ensure that they maintain the same association with the brand they have had since the visionary founder was still in charge (Neck et al., 2020, p. 329). Discuss how Disney’s negotiation tactics differ from most in their industry Due to its emphasis on preserving relationships, appreciating cultural fit, and giving acquisitions' long-term potential precedence over short-term cost savings, Disney employs a range of distinctive negotiating strategies that set it apart from many other companies in the sector. Disney's strategy takes a more holistic stance and places greater emphasis on certain growth strategies, whereas traditional bargaining frequently centers around cutting costs and generating short-term advantages. “They have never made themselves the cutthroat negotiators business from top studio heads but instead tend to pay more than what an asset is worth if it is an asset trending upward” (Neck et al., 2020, p.329). Disney places significant emphasis on upholding the identity and core principles of the businesses it acquires. Their handling of Pixar, Marvel, and Lucasfilm is indicative of this. Disney aims to incorporate the best aspects of the acquired company while preserving their creative independence, as opposed to forcing their own culture on them. Employee loyalty and inventiveness are encouraged by this strategy. Expectations and Investing for the Future has allowed Disney to properly prepare to make a higher payment for businesses that fit with their long-term goals and exhibit growth potential.
This proactive approach stands in stark contrast to the business standard of chasing quick profits on investments. This strategy was made clear when Disney spent hefty sums to acquire Marvel and Lucasfilm, capitalizing on the huge potential of these properties. Relationship building strategies are also employed by Disney as one of their tactics. Disney's negotiation strategy is now more collaborative than confrontational thanks to this approach. Their goal is to establish a solid rapport with the management and important stakeholders of the businesses they purchase. This strategy may result in more successful integration of the acquired assets and more seamless transitions. Disney also used the strategy of balancing creativity and finances in negotiations. Disney understands how critical it is to strike a balance between artistic creativity and financial security. Through purchases like Pixar, they have made it possible for creative enterprises to flourish under Disney's larger financial structure and ensure that they are free to concentrate on their creative endeavors without interference from external sources. Discuss briefly the characteristics that has lead Disney to its current size The vision of cultural affinity has been Fostering a strong, forward-thinking culture and flexibility in response to shifting market conditions is one of the fundamental qualities that has propelled Disney to its current level of success and size. Disney also use integration and consolidation to maintain their current size. Disney's organizational prowess and foresight are demonstrated by its ability to successfully combine and integrate a number of businesses under its brand, including Pixar, Marvel, and Lucasfilm. As mentioned in an article, “ Disney has demonstrated an impressive attempt to create products and tell stories that accurately represent the vastly diverse human world. This is evident in Disney’s storytelling, where fresh, inspiring, and modern messages are depicted and inside their culture” (Alonso, 2023). Disney's distinct culture makes it possible for these disparate organizations to prosper in unison while retaining
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their distinctive identities. Another factor contributing to its current size is its Long-Term Strategies. Disney's emphasis on long-term investments and initiatives has enabled them to recognize and seize possibilities that might not provide profits right away but have a lot of potential down the road. Despite early opposition, Disney has been able to access incredibly successful franchises by acquiring companies like Marvel and Lucasfilm. Adapting to technology is another one of Disney's defining traits. Disney's approach is forward-looking as evidenced by its readiness to invest in streaming services and adjust to shifting consumer demands. Disney is able to adapt and stay relevant in a changing media world because to this. Among the other essential characteristics that Disney emphasizes is brand continuity. Disney has been able to hold onto its fundamental brand identity of magic, inventiveness, and family entertainment in spite of its expansion. Because of their ability to appeal to viewers of various ages and cultural backgrounds, they are able to consistently expand into new markets while holding onto their devoted following. The key factors contributing to Disney's success include its smart acquisitions, cultural flexibility, visionary leadership, and ability to reconcile creative with business. Due to this special blend, Disney has grown into a multinational media company that still has a significant influence on the entertainment sector. All things considered, Disney has been able to strike a balance between their traits and their understanding of the right strategies. It makes sense why Disney has attracted and retained so many devoted fans over the years.
References: Alonso, T. (2023). How disney became the world’s entertainment leader . Strategy Study. https://www.cascade.app/studies/disney-strategy-study Neck, C. P., Houghton, J. D., & Murray, E. L. (2020). Organizational behavior a skill-building approach (2nd ed.). SAGE.