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Control Mechanisms – The Disney Company Bonita Johnson, Christi Cavanaugh, Gloria Aguilar, Hillary McCabe, Jeffrey Harriman MGT 330 January 9, 2012 Susan Mills Control Mechanisms – The Disney Company In more than eight decades The Disney Company continues to be one of the largest media and entertainment corporations in the world. Founded on October 16, 1923 by brothers Walt and Roy Disney as a small animation studio, today The Walt Disney Company is one the largest Hollywood studios and owns 11 theme parks, two water parks, and several television networks including the American Broadcasting Company (ABC).
The name Walt Disney has and always will be preeminent in the realm of family entertainment. Additionally, The Disney Company continues proudly to provide quality entertainment for all family members across American and around the world. The Walt Disney Company did not become one of the largest entertainment corporations in world without developing secure control mechanisms. The Disney Company has earned its reputation by tight control and although control pervades the company, Disney’s control mechanisms are not considered heavy-handed or condescending.
This paper will examine that although The Disney Company enforces strict control mechanisms within its organization, it is also an organization independent in its thinking and approaches. The Walt Disney Company has always, and continues to use control mechanisms to help regulate policy and procedures which contribute toward effectively achieving organizational goals (The Walt Disney Company, 2008).
The Disney Company has been widely successful both nationally and internationally for over 70 years primarily through successful implementation of control mechanisms throughout all aspects of the organization (The Walt Disney Company, 2008). The four types of control mechanisms that best serve The Disney Company would be budgetary, financial, management audit, and bureaucratic. The bureaucratic control function is the lifeline of Disney’s corporate structure because it provides the company’s ethical standards, mission statement, and organizational structure.
Moreover, bureaucratic control is a constructive system used to influence subordinates and structure reward systems. Budgetary control is a method used by The Disney Company to bring their vision to life. Budgetary control is detailed, step-by-step documentation of a company’s accomplishments or deficiencies by contrasting data. The Disney Company has implemented many ways of using budgetary control before building or acquiring any new real estate. Management audit controls are equally important to The Disney Company particularly if expansion is in their future.
The Disney Company uses both an internal and external audit system. Through management audits The Disney Company has a set checks and balances system to ensure all assets are properly maintain and nothing is compromised (The Walt Disney Company, 2008). Financial controls are just as vital as budgetary controls with a company such as Disney. The marketing strategies that Disney employs help to produce revenue for the company thereby stabilizing assets and liabilities.
Financial controls also help to make it possible for Disney to build more parks and resorts in the future. These four control mechanisms enforced by The Disney Company helps provide the company with a format in sustaining the company in a profitable direction. Equally important, these four components of Disney’s control mechanisms are the key in keeping the organization focused, and diverting away from any unethical misconduct from their employees.
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