There are four different types of planning within and organization, strategic, tactical, operational, and contingency. Each will have an impact on each other and how they are carried out. Disney’s operational planning consists of how things are run on a day-to-day basis within a year helping to reach the company’s strategic planning goals. “Operational planning identifies the specific procedures and processes required at lower levels of the organization. ” (Scott, 2004 ) Within Disney this would be the processes for day-to-day operations within the Theme parks, the stores, on the e-commerce site etc.
Some of the strengths Disney’s operational planning has would be their customer focus. Take Disney’s theme parks were there hundreds of employees working on daily basis trying to accomplish one thing, which is to make the customer happy. Disney knows that if they don’t make the customer happy, people will not return. Comparing the size of Disney’s theme parks to that of a shopping store this can be a little harder to accomplish. Each area of the theme park must be broken down and managed, like different departments within a department store, only on a much larger level.
When the theme park will open, when shifts will start and end, how many street vendors will be in the park and where, and how long rides will last. These are all things that need to be planned so the company can reach a larger goal. So how Disney’s theme parks are managed would be part of their operational strategy. A weakness Disney may have in the operational strategy is the shear size of the day-to-day operations. Managing all of the daily operations that Disney has can become quite a job to over see. If something goes wrong on ground level, Disney’s customers directly see this breakdown and could have a negative affect on sales.
Disney’s ground level operations are always being viewed by the customer, if a ride breaks down, what is the backup plan? If someone does not show up for his or her shift, will he or she have someone to cover him or her? These are all things that need answers when developing the operational strategy. Opportunities A business operational opportunity was stated by Merriam-Webster Online Dictionaryam (2005) “as a good chance for advancement or progress”. When companies look across their business they describe opportunities as way to position the business to succeed were their competition has failed.
The Walt Disney Corporation has taken business opportunities to a different level by using its brand name recognition. They have mixed advertising, travel, and Disney Institute to the highest opportunities. The Walt Disney Corporation has used radio, video, and printed media to advertise their business to obtain a leadership role in the industry advertising. They use these media outlet to promote their theme parks, hotels, and business institutes to draw millions of fans and business executives every year.
The theme parks draw people from all over the world because of their original buildings, themes, and characters that entertain and turn the oldest of age to the youngest of heart. The Walt Disney Corporation is a high point of travel opportunity to all of its visitors that travel from across the world to visit. They are a trip destination for world travelers and the value visitors that are escaping the cold winter weather or want to get relief from the everyday doldrums. Disney has made the travelers experience an opportunity for a value packed trip destination.
Disney promotes their locations using a state of the art multimedia distributions network. Walt Disney has become associated with a great family yearly event capital. Disney has taken advantage of their brand name to become a new professional business, using their Disney Institute according to The Walt Disney Company (2005). The Disney Institute in know for “experience the business behind the magic” of our core business strengths: Leadership Development, Quality Service, Customer Loyalty, Organizational Creativity, and Teambuilding” stated by The Walt Disney Company (2005) website.
This institute takes advantage of it name to allow a new business opportunity for company to experience the Disney success story of this great company. The Walt Disney Corporation has utilized it name and brand institution to promote their theme parks, hotels, and businesses. Through a mix of advertising, travel, and business institutions, this makes them a true success by in powering their business opportunities. Threats The fourth part of SWOTT is the threats to the company. There are many threats to the Disney organization.
Disney exists in a “competitive environment, which is composed of the firm and competitors, suppliers, customers, new entrants, and substitutes. At the more general level is the macro environment, which includes legal, political, economic, technological, demographic, and social and natural factors that generally affect all organizations. ” (Bateman, Snell 2004). First possible threat is, there are many laws and regulations that Disney must abide by. “The Government can affect business opportunities through tax laws, economic policies, and international trade rulings.
” (Bateman, Snell 2004). Some of the agencies that regulate laws are: “the Occupational Safety and Health Administration (OSHA), Interstate Commerce Commission (ICC), the Federal Aviation Administration (FAA), the Equal Employment Opportunity Commission (EEOC), the National Labor Relations Board (NLRB), and the Environmental Protection Agency (EPA). These agencies all have the power to investigate company practices and take legal action to ensure compliance with the laws. ” (Bateman, Snell 2004). The next possible threat is the economy.
When the economy is down, it is less likely for tourists to visit theme parks like Disney. The economy can be a huge threat for Disney at times. “The economic environment dramatically affects companies’ ability to function effectively and influences their strategic choices. Interest and inflation rates affect the availability and cost of capital, the ability to expand, prices, costs, and consumer demand for products. Unemployment rates affect labor availability and the wages the firm must pay, as well as product demand.
” (Bateman, Snell 2004). Another area that affects or threats the corporation is social issues and the natural environment. “Social trends regarding how people think and behave have major implications for management of the labor force, corporate social actions, and strategic decisions about products and markets. ” (Bateman, Snell 2004). Disney is aware of social changes and adjusts its entertainments and prices accordingly. They change the some of the characters and show productions according to the latest Disney movie’s out at that time.
They also provide package deals when purchasing tickets for more than one entertainment location. Another area that pertains as a threat to the Disney organization is the competitive environment. This includes rivalry among existing competitors, the threat of new competitors, and the threat of substitutes, the power of the suppliers, and the power of the customers. Existing competitors for Disney would be other theme parks that compete for the same customer base which is adults with children.
“Competitors use tactics such as price reductions, new-product introductions, and advertising campaigns to gain advantage over their rivals. ” (Bateman, Snell 2004). The last threat of the competitive environment for the Disney Corporation is environmental uncertainty, and how it affects the company to make decisions and execute plans. Disney is innovative and keeps up on customer likes and dislikes designing new products, scheduling productions, and develops marketing plans because timely and accurate environmental information is critical for keeping Walt’s dream alive.