Implementation of planning

tools and techniques within

Walt Disney.
1101IBA MANAGEMENT CONCEPTS

NEVE TUFUGA | S50999 59

GOLD COAST CAMPUS

WORD COUNT: 1625
TABLE OF CONTENTS

1. Introduction and Problem Identification.....................................................................2

2. Discussion........................................................................................................................3

2.0 Scenario Planning Theory

2.1 Benchmarking Planning Theory

3. Recommendations ..........................................................................................................5

4. Conclusion ......................................................................................................................6

5. References .......................................................................................................................7

NEVE TUFUGA
PAGE 1
 1. INTRODUCTION AND PROBLEM IDENTIFICATION

Over the years, Walt Disney has achieved remarkable accomplishments, and has become
very successful. Although previously facing unfavorable circumstances such as
controversy within the company and alliances, they have overcome a problematic
company environment to successfully thrive under new management and re-established
relationships with creative partners. However, they were still experiencing numerous
strategic problems with production quality that needed addressing by Disney.
Unfortunately, due to the complexity of today’s environment, Walt Disney were suffering
from brand fatigue, audiences were left disappointed by the weak scripts a low
production quality films produced. Although Disney demonstrate a strong and persistent
approach to being successful, it is evident that management have neglected the
importance of the management function: planning, further causing them the loss of
viewers and the failure to meet financial goals, ultimately causing a management problem
for Walt Disney.

Planning is a vital management function that can be defined as an underlying blueprint,

that incorporates the determination of goals and the specific resource allocations,
resources and tasks that define the means of achieving them (Schermerhorn, 2014). It is a
process essentially viewed as ‘managing’ the decision-making process, a collaborative
approach that dominates the planning practice today. Researches Vila & Canales, suggest
that planning has the ability, to then connect desired outcomes of the strategy process,
such as setting direction, creating flexibility and providing an overall better understood
meaning to an organisation. (Vila & Canales, 2008). Due to the overwhelming
complexity of the continuously changing environment, Disney shows a lack of planning
which has ultimately hurt the performance and reputation of Walt Disney.

This report will identify the management issue of planning within the organisation Walt
Disney outlined in the case study: “Walt Disney company Headquarters, Burbank
California”. It will focus on the 2 theories: The Scenario Planning Theory and The

NEVE TUFUGA
PAGE 2
Benchmarking Planning Theory. These will be analysed and feasible recommendations
for management that are concise and creative, with actionable outcomes will be provided.
Furthermore, in order to circumvent this management problem, planning is the ultimate
strategy to help maintain both the company’s global position and their reputation, as
being the best. (Schermerhorn 2014).

2. DISCUSSION

2.0 SCENARIO PLANNING THEORY

Chermack, Coons, O’barr & Khatami, along with other researchers such as Ramirez,
Churchhouse & Palermo, state that Scenario planning seeks to develop an individuals or
organisations ability to flexibly adeptly manage the uncertainty of future possibilities.
(Chermack, Coons, O’barr & Khatami, 2017: Ramirez, Churchhouse & Palermo, 2017).
It helps all levels of an organisation to critically examine an array of factors that may
cause turbulence and unpredictable uncertainty further, having a detrimental impact to the
company’s direction and position (Ramirez, et al. 2017). Scenario planning is
implemented within organisations to condition them to think beyond the surface and
furthermore prepare for future shocks which may cause the organisation to experience
challenges. It is vital for organisations that deal with an unfavourable amount of
uncertainty or those which operate with large risk of significant change to utilise such
plans, as it will only be beneficial for the performance of the organisation. (Ramirez et al,
2017: Schoemaker 1994: Schermerhorn, 2014). Chermack et al, argue that the
implementation of strategic scenario planning by organisations will results in a minimal
uncertainty as well as improved thinking (the consideration of uncontrollable factors that
may impact an organisations goal) for an organisation, which will lead to improved
performance outcomes, which Walt Disney will benefit from. (Chermack et. Al, 2017)

Aspects of contingency planning and scenario planning have been implemented,

however, it is evident that the implementation of a strong coherent scenario planning
system is lacking. The focus of scenario planning is to alter the thinking of participants,
to help them better sight of future possibilities (Chermack et al, 2017). Unfortunately,

NEVE TUFUGA
PAGE 3
Walt Disney has overseen the dynamic nature of the audiences, and the future possibility
in which their preferences are continuously undergoing change. For example, characters
and shows that were once represented as classic (Mickey Mouse created in 1928, and
Winnie the Pooh licensed by Disney in 1961), have now aged immensely. Despite
having many successful films, over time Walt Disney has developed a reputation for low-
quality production, average acting and poor scripts. (DISNEY) By disregarding an
alternative action course for movies such as Mickey Mouse and Winnie the Pooh, which
prove inadequate at providing viewers and revenue, they have faced massive loss in the
company: both revenue and audience. These findings are useful in assessing the lack of
scenario planning within Walt Disney as they encourage Disney to implement an
alternative plan for productions when they prove inadequate due to changing
circumstances. A further developed scenario plan would ensure that Walt Disney will
acquire action plans or alternative production methods to cater for the continuous change
in audience preference who find the original classic films no longer desirable. Scenario
planning will also strongly benefit Disney as they operate in both a competitive and
changing environment. By being aware and considering the significantly vast changing
environment, they will be more prepared for the uncertainties (such as audience
preference) allowing them to alternate their goals and gaining a competitive advantage
over their competitors.

2.1 BENCHMARKING PLANNING THEORY

Some researchers (such as Maleyeff) assert that benchmarking is the continuous process
of measuring performance against competitors, in search for and implementation of the
best practices, to enhance successful performance within an organisation. The key to
benchmarking lies within an honest analysis of its current performance standard and
comparing these to a benchmark standard, to identify gaps between the two standards.
The goal being to establish and validate objectives to help guide the organisation in
meeting these benchmark standards (Maleyeff, 2003). Isenburg states that organisations
that use the process of benchmarking to establish performance assessment parameters by
comparing these to successful competitors, results in overall better company

NEVE TUFUGA
PAGE 4
performance. This planning theory is one of the foundations of continuous quality
improvement, and enable managers to better understand goals and further help achieve
these by eliminating the gap between the organisations standard and the benchmark.
(Isenburg, 2004). Voss, Ahlstrom & Blackmon similarly found in their studies that
Benchmarking promotes higher performance by identifying practices and setting
challenging performance goals set to meet the expectations of the benchmark standard
resulting in a better overall business performance. (Voss, Ahlstrom & Backmon, 1997).
Benchmarking planning is critical in organisations to maintain ongoing quality
performance, and would be extremely useful within the Walt Disney enterprise.

Walt Disney has successfully recognised the importance of Benchmark Planning

implementation. By recognising their weaknesses and past failed performances: such as
the production of low quality films (such as High School Musical 3: Senior Year, Beverly
Hills Chihuahua, Bolt, Confessions of a Shopaholic & Race to Witch Mountain) the
organisation is able to successfully identify the gaps that have previously disappointed
audiences resulting in an overall failed performance within the company, setting them
further behind the benchmark. Walt Disney have also identified the strong performance
of competitors such as Nickelodeon in the industry, who have since become the more
popular company within the marketplace, now placing them as the benchmark standard.
By recognising the benchmark standard, it will help enable managers to better understand
the aspects of competitors such as Nickelodeon productions, that Walt Disney are
missing or lacking in. By identifying these differences, they can utilise those techniques
used by Nickelodeon in hopes to re-gain viewers and their audience, to further eliminate
this gap.

3. RECOMMENDATIONS

Based on the research conducted in this report, the planning function is imperative to the
overall performance and success of an organisation. Walt Disney’s planning techniques are
present but not evident enough, more so are focused on how to re-establish older characters,
rather than establishing new and upcoming assets (such as MARVEL) which would appeal
to much of the children population (more specifically teenagers, which audience they are

NEVE TUFUGA
PAGE 5
currently lacking in). By utilising relationships with partners such as Pixar, Marvel and
Lucas film, when a change in audience is noticed, they will re-gain potential followers from
the teenager age group and soon compete with other enterprises such as Nickelodeon in
hopes to gain competitive advantage and generate a better relationship with their audience.
This alternative plan should be implemented as soon as noticed.

Scenario planning also presents an opportunity to help allocate the resources within the
company during time of crisis. For example, if used successfully, scenario planning will
outline that when the movie sector of Disney is deteriorating or experiencing crisis, it will
advise managers to focus primarily on allocating resources to all other aspects of Disney
(e.g. Television or Theme parks) to ensure that their resources are not being wasted,
resulting in more effective performance. With the development of a strong scenario
planning theory, they will be able to produce films that cater to the continuously changing
preference of the audience. As soon as this significant in preference is noticed, the Scenario
panning theory will then be put in place. Not only will having a developed scenario plan
address the changing preference of audience, it will also address other impacting factors
that are constantly affecting our environment such as terrorism, geopolitics, natural
disasters and many more, as well as allowing a more developed understanding of how to
approach and address the marketplace when in times of struggle, to maintain a high
performance and reputation.

4. CONCLUSION

In Conclusion, Walt Disney is undeniably one of the leading and successful companies in
the entertainment industry, and will continue to rise above unfavourable circumstances to
produce legendary and successful animation films. However, it is imperative that Walt
Disney continue to implement a strong benchmarking plan, as well as implement
Scenario planning to maintain their global position. By doing so, they will provide a
stronger performance in the marketplace and be able to rise against uncertainties,
ultimately growing their company and maintaining their reputation as one of the best.

NEVE TUFUGA
PAGE 6
5. REFERENCES

Chermack, T. J.,Coons, L. M., O’barr, G., &Khatami, S. (2017). The effects of scenario
planning on participant reports of resilience. European Journal of Training and
Development, 41(4), 306-326. https;//doi.org/10.1108/EJTD-08-2015-0068

Isenberg, S. F (2004). Benchmarking. Ear, Nose and Throat Journal, 83 (1), 25-25.
Retrieved from:
http://go.galegroup.com.libraryproxy.griffith.edu.au/ps/i.do?p=EAIM&u=griffith
&id=GALE|A113337428&v=2.1&it=r&sid=summon&authCount=1

Maleyeff, J. (2003). Benchmarking performance indices: Pitfalls and

solutions. Benchmarking: An International Journal, 10(1), 9–28.
https;//doi.org/10:10.1108/14635770310457511

Phadnis, S., Caplice, C., & Sheffi, Y. (2016). How scenario planning influences strategic
decisions. Mit Sloan Management Review, 57(4), 24-27. Retrieved from:
https://search.proquestcom.libraryproxy.griffith.edu.au/docview/1802194520?pq-
origsite=summon&https://search.proquest.com/central

Ramirez, R., Churchhouse, S.,Palermo, A., &Hoffmann, J. (2017). Using scenario

planning to reshape strategy. Mit Sloan Management Review, 58(4), 31-37.
Retrieved from: https://search-proquest-
com.libraryproxy.griffith.edu.au/docview/1916720878?pq-
origsite=summon&https://search.proquest.com/central

Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., McBarron, A.
(2014). Management Foundations and Applications (2nd Asia-Pacific ed.). New
York, United States: John Wiley & Sons Australia.

Schoemaker, P. J. H. (1995). Scenario planning: A tool for strategic thinking.

Sloan Management Review, 36(2), 25. Retrieved from

NEVE TUFUGA
PAGE 7
 http://search.proquest.com.libraryproxy.griffith.edu.au/docview/224969642?acco
untid =14543

Ulusoy, G. & Ikiz, I. (2001). Benchmarking best manufacturing practices. A study into
four sectors of Turkish industry. International Journal of Operations and
Production Management, 21 (7), 1020-1043.
https;//doi.org/10:10.1108/01443570110393478

Vila, J., & Canales, J. I. (2008). Can strategic planning make strategy more relevant and
build commitment over time? The case of RACC. Long Range planning, 41(3),
273-290. https;//doi.org10:10.1016/j.lrp.2008.02.009

Voss, C. A., Ahlstrom, P.,&Blackmon, K. (1997). Benchmarking and operational

performance: Some empirical results. International Journal of Operations &
Product Management, 17(10), 1046-1058.
https;//doi.org/1010.1108/0144357971017705

NEVE TUFUGA
PAGE 8
NEVE TUFUGA
PAGE 9