Control Mechanisms: The Walt Disney Company Essay

IntroductionOrganizations use domination mechanisms to help regulate conveylines and procedures which yield toward utilely achieving organizational goals. The Walt Disney high society is a well cognize amusement organization that has become tremendously successful both nationally and internationally over the past 70 years or so partially through successful implementation of restrainer mechanisms throughout every opinion of the organization. The purpose of this paper is to explore cardinal types of avow mechanisms utilize by the Walt Disney Company (1) budgetary, (2) financial, (3) instruction scrutinize, and (4) bureaucratic through comp be and contrast to sink the posture of each by examining the positive(p) and negative reactions to these control mechanisms in grade to explain how the different control mechanisms impact the four functions of instruction throughout the organization.Budgetary Controls Budgetary controls be a well known and frequently used control measure throughout bodily the States and the international pipeline market system. Budgetary controls are used to adapt the various keep company run costs with the companys strategic goals and to either verify goal attainment or to plan restorative action. Throughout its existence, Walt Disney has implemented many different budgetary controls reaching a comprehend numerous and diverse product lines.With the motion picture fruit division, production budgets were used to limit expenses for the cost of materials and equipment, talented actors, various support staff, and the market and placement of movies into circulation. As Walt Disney expanded its business to include multiple clear up ancestor parks, a capital budget was created to establish a brink on the cost of real estate, buildings and equipment, and the operating and maintenance costs.When the company unconquer fit to venture into the production of toys and clothing, the solicitude designed and implemented a sale s budget to manage the increased cost of entering a juvenile market. With the budgetary controls in place, Walt Disney has managed to keep operating costs at an satisfactory level and experienced remarkable success in the entertainment industry.These budgetary controls have given the company the ability to venture into new markets, cross international borders, and bring family entertainment to the world. Its filmed entertainment units have been locomote high on a string of box office successes and its theme parks continue to draw millions of visitors each year. (The Walt Disney Company, 2008). Along with the use of budgets, companies universally use various financial statements to put into practice financial controls. pecuniary Controls The Walt Disney Companys main financial objective is to be able to generate revenue through growth and long-term shareholder values. The segments of which the Disney Company is categorized are studio entertainment, parks and resorts, media networks and consumer products. from each one segment generates a different percent of the organizations profit. 42% of Disneys income is through media networking and expends 55% operating the resource. 30% is earned from parks and resorts, while it takes 22% to start the resource. studio apartment and entertainment earn 21% of Walt Disneys revenue however, 15% is used to operate this resource and lastly 7% is earned form consumer products and 8% is used to control this expense (Disney, 2008).The Disney Company resources are very effective to maintaining and operation of the business however, some of the resources are costing more to operate than producing income. Therefore, the decision to keep maintaining the resources that are costing more to operate are costly for business. provision for the future of the Walt Disney Company is a continuous parade the company strives to be the leader of the entertainment world through inventive entertainment. Disneys financial success is due to the ir efficient leaders who alike employ talented individuals to help increase profitability through the companys mission, values and goal intend.Management Audit Controls Overseeing The Walt Disney Organization is a major responsibility for Disneys Board of Directors. Responsibilities are extensive, including the overseeing of the companys systems of indwelling control, including compliance of financial reports, implementing policy and procedures, along with adhering to the applicable laws. tally to the Disney (2007) The Committee shall have responsibility for overseeing that management has implemented an effective system of internal control to promote the reliability of financial and operating education and compliance, including those related to risk management, ethics and conflicts of interest.The Committee plans periodical evaluations to discuss with management any audit findings, including management recommendations for improvement in a concomitant area in order to promo te internal control. Having an effective internal control is extremely important in any organization, especially The Walt Disney Organization, because of the order of magnitude of its organization. Internal control of management audits are designed to provide tenable assurance that goals are being achieved in all organizational areas, including effectiveness and efficiencies of operations, reliable and accurate financial reporting, and that all laws are in compliance.bureaucratic Controls bureaucratic control is a necessary tool used by large corporations. The Walt Disney Company is not an exception to when it comes to using bureaucracy to control the corporation. Bateman and Snell (2007) define bureaucratic control as the use of rules, regulations, and authority to guide performance. When a person thinks of Walt Disney, the first things that may come to mind are creativity and risk fetching. Walt Disney has released groundbreaking movies that are m consuming to garner and have large budgets. A risk is taken every time a movie is created. The risk is that there may not be a market for the product. Walt Disney uses bureaucratic control to insure that all business units are working towards performance standards set by the leaders of the corporation.Bureaucratic control can have a stifling effect on the creativity of the persons working under the system.Robert A. Iger is President and Chief Executive incumbent of Walt Disney. According to Chaffin and Waters (2006) when Mr. Iger became the CEO of Walt Disney he removed the corporations strategic planning committee. The move was made to loosen up the bureaucratic control that the committee had over the corporations business units. The loosening of the bureaucratic control could take on for new views to be explored without the fear of the idea being lost in an overbearing bureaucratic system. Not passing game through the old system of control will also allow innovations to be quickly applied. Quickly app lying innovation will help Walt Disney top a larger market share. Free thinking and risk taking must be balanced with bureaucratic control in order for Walt Disney to remain a successful corporation.Conclusion Based on the seek presented through compare and contrast one can conclude that the four control mechanisms selected (1) budgetary, (2) financial, (3) management audit, and (4) bureaucratic each has had a profound and positive impact on the Walt Disney Companys success from different aspects of the organization. Each of the four selected control mechanisms has impact the four functions of management to different degrees. Planning was impacted mainly by ever changing budget, finance and management audit controls depending on the cost of production materials, equipment, staff and so forth.Organizing was impacted by each of the four controls base on the initial planning process for each division hence, when strategic plans were altered by these control mechanisms organizing wa s altered accordingly. Leading was mainly impacted by management audit and bureaucratic controls through the companys internal and external evaluations when leading decisions lead the company in a different and more robust direction. Lastly, controlling was impacted by each of the four control mechanisms based on internal and external evaluations that lead to the implementation of each control mechanism.ReferencesBateman T., and Snell S., (2007), Management Leading & Collaborating in a Competitive manhood (7th Ed.), McGraw-Hill/Irwin, New York, NY.Chaffin, J., and Waters, R., (2006). Drawing on Jobs judgment but harnessing talents of Pixar chief could be challenge even for Bob Iger, says Richard Waters. The Financial Times, p.29. Retrieved July 10, 2008, from General OneFile via Gale http//find.galegroup.com/ips/start.do?prodId=IPS Disney. (2007). Committee Charters- Audit. Retrieved July 12, 2008, fromhttp//Corporate.disney.go.com/corporate/charters_audit.html Disney. (2008). The Walt Disney Company Reports Record Earnings for Fiscal Year 2007. Retrieved July 9, 2008, from http//amedia.disney.go.com/investorrelations/quarterly_earnings/2007_q4.pdf The Walt Disney Company. (2008). Austin, Texas Hoovers Company Inc. Retrieved July 9, 2008, from ProQuest primordial database. (Document ID 168155651).