RESOURCE BASED VIEW:
- tANGIBLE resources:
Resource Based View or RBV takes and ranks company resources in terms of their volubility and how difficult it is for other organizations to produce the same resources. It is an important matrix that determines how good the organization resources are. In the case of Disney it has both tangible and intangible resource. The biggest tangible resource that Disney has is its unique Theme Parks. No other company can compete with Disney in terms of its theme parks. It is also a resource that gives Disney a strategic competitive advance over its competitors. Also this advantage cannot be substitutes and it is expected to continue to provide the same level of performance in the future as well. Disney also has large number of assets all around the world. The total value of its assets in the year 2013 was around $81 billion. This is a large amount of assets. Many few companies around the world have such large amount of assets at its disposal and only a few companies can compete with it in terms of its asset strengths. Disney is known for innovation and has more than 250 patents in its books. Recently, Disney applied for drone technology and has patented it. This is a unique strength of Disney. Now even if some company wants to compete with Disney and is as financially strong, it cannot compete with it due to safety that Disney has as a result of large number of its patents and copyrights. It is also a competitive advantage for Disney and it is very rate for other companies to have such a large number of patents in its books.
- INTANGIBLE RESOURCES:
In terms of intangible resource, the company is very strong financially. It earns revenue of around $45 billion annually and earns a humongous net income of $6 billion annually. This gives unique advantage to Disney as it is very strong financially and there are very few players in the market who are as strong as Disney. Disney also has a unique brand name. The word Disney is associated with uniqueness, experience, and high quality entertainment. No company in the industry can compete with Disney when it comes to consumer entertainment. As a result, of such high quality the company has high levels of goodwill and it is synonymous with high quality. Every year, the company hires the best talent around the world. This is another unique advantage for the company as best minds hired by the company keeps its unique position safe and no company has come close to Disney in the same industry offering the same product line, same level of quality and same experience.
baLance SCORECARD:
All the companies need to pay special attention to the financial perspective and Walt Disney is no exception. The company should aim for growth, becoming the best and should add value to the company. This can be achieved by aiming for hire targets. The growth target should be set at 10%. Similarly, the company should aim for becoming the top 3 companies of the world and should try to add value by increasing the number of investors.
The company should also try to improve the customer perspective by attracting new customer through advertising and promotion. It should also try to maintain good relationship with the current lot of customers through frequent customer loyalty survey in order to make sure that there are no grievances. It is also of vital importance that the company should streamline its operations and indulge in business process reengineering to reduce any wastage or slack in the processes. It should also try to introduce one window operation and get rid of the “red-tape” in the organization. The company should also try to develop sustainable human resource through proper succession planning programs. It should also encourage organizational citizenship behavior through effective reward system. All the supervisors must be required to submit monthly report on worker’s performance and top performers should be rewarded for doing more for the organization than what was expected of them.
References:
Crook, J. (2014, August 27). Disney Files Patents To Use Drones In Park Shows |
TechCrunch. Retrieved October 21, 2014, from
http://techcrunch.com/2014/08/27/disney-files-patents-to-use-drones-in-park-shows/
Reports and Financial Information | The Walt Disney Company. (n.d.). Retrieved October 21,
2014, from http://thewaltdisneycompany.com/investors/financial-information
Human Resources. (n.d.). Retrieved October 21, 2014, from
http://thewaltdisneycompany.com/about-disney/human-resources
Hitt, M., & Ireland, R. (2004). Strategic management: Competitiveness & globalization.
(11e. ed.)
What Disney and Playboy Can Teach You About Branding. (n.d.). Retrieved October 21,
2014, from http://www.entrepreneur.com/article/231592
Appendix D: Resource-based view of the firm
Appendix e: balanced scorecard
