MG4101 Operations Management Strategy: A Detailed Disney Analysis

This report analyzes The Walt Disney Company's operations management strategy, focusing on its business activities across studio entertainment, parks and resorts, media networks, and consumer products. It details the company's service delivery processes, including the application of lean six sigma methodologies to eliminate defects, reduce costs, and enhance customer value. The report also suggests improvements such as developing process manuals, automating service delivery, and strengthening customer service skills. Furthermore, it explores the factors contributing to Disney's success, including effective procurement and supply chain strategies, business process re-engineering, and the implementation of six-sigma principles. The analysis highlights Disney's ability to adapt to changing market trends and maintain a competitive edge through continuous improvement and performance monitoring. Desklib provides access to similar documents and solved assignments for students.

Running Head: OPERATIONS MANAGEMENT STRATEGY
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Operations management strategy
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The Walt Disney organization
The Walt Disney Company is an American multinational mass media and entertainment
company with its headquarters at Walt Disney Studios, Burbank in California. In terms of
revenue, it is among the world’s largest media conglomerate which is independent. Its mission is
to be the world’s leading provider of information and entertainment services.
The business activities
Walt Disney organization engages in various activities to generate profit. It operates in
four business segments including studio entertainment, parks and resorts, Media Networks, and
consumer products and interactive media. The studio engagement segment acquires and produces
animated motion pictures and live-action, live stage plays, musical and video recordings. The
business activities of the media networks segment are broadcasting television networks, radio
networks, and television production and delivery operations (Poter, 2004 p.94). The park and
resort unit develops park concepts and attractions and resort properties. The consumer products
and interactive media publish games for comic books, magazines, mobile platforms, and books.
The company has cable networks which provide programming services which it sells to
television broadcasts and video-on-demand services subscription to generate revenues. It has
established a good marketing foundation to maximize its business exposure to the target market
(Jenkins & Williamson, 2015 p.67). It achieves its marketing plan by reaching sports fans in
more than sixty countries to deliver sports news, live streams, and information updates. It also
focuses on human resource tasks to conduct an interview, determine benefits it can offer and hire

OPERATIONS MANAGEMENT STRATEGY 3
applicants and to solve interpersonal conflicts in the course of business. This has enabled the
company to have a community of employees who balance value and productivity, support
innovation, reevaluate the organizations' values and make maximum use of its resources to
generate maximum profits (Hill & Hill, 2012 p. 503).
It also provides customer services to secure new clients and promote referrals. It achieves
this by providing individualized services responding to clients’ requests through their
subscriptions (Johnston, 2005 p. 1298). For example, it provides repetition to original series,
movie programming targeting kids, shows, comedy series, and animated programming. It also
connects with clients to offer solutions on faulty networks or programs and issues with bills.
The organization also engages in business activities to grow sales by reaching out
prospects to expand customer base while securing repeat sales and maintaining relationships with
existing clients. It focuses on matching customer needs with company solutions to create demand
in its services (Lowson, 2012 p.36). For instance, it has expanded its customer base to India by
establishing a general entertainment cable network for kids with hind language game shows,
series episodes, and clips.
The service delivery process
The company applies to lean six sigma quality management strategies in delivering its
services to eliminate defects, decrease costs, add value to customers, make data-driven decisions
and reduce variations (Belekoukias, Garza-Reyes, & Kumar, 2014 p.5346). Being an
entertainment service provider, the company uses lean strategies to analyze its service delivery
flow to minimize delays thus ensuring potential clients get up-to-date information and access
upcoming episodes through its channels. It also uses lean strategies to reduce complexities and

OPERATIONS MANAGEMENT STRATEGY 4
only deliver services it is able to manage and to locations, it can reach with its resources hence
reduce waste, excess costs and time (Balogun, Hailey, & Johnson, 2016 p. 123). It also uses lean
and six sigma strategies to solve problems in service delivery hence produce a return on
investment without investing more capital. It ensures each workforce is responsible for their
tasks, for example, the researchers, program designers, live streaming cameramen and those in
the studio deliver their services to their maximum ability.
It also applies the strategies to identify business services required by its business units.
The senior managers meet with marketing, service providers and other significant business units
to understand the competitive marketplace, and the specific services each unit will require to
deliver services and achieve organizational objectives (Hill & Hill, 2012 p. 611). It also uses the
strategies to identify key stakeholders and priority for its delivery services. Through the process,
they validate the key stakeholders, their responsibilities, list of delivery services and level of
service to be delivered. Through the process, they solve problems such as complex workforce
structure, relationship with stakeholders, and policies which may hinder service delivery.
The company also develops a list of service delivery required from each business activity
to set priorities in depending on consumer needs. The company workforce socializes with the
customers through service delivery. Through the process, they communicate and understand key
areas to improve, improve customer satisfaction, and support engagement. In the service delivery
process, the company fosters strong culture to align its employees with its principles,
methodology, interactions, and relationships with customers in service delivery (De Ruyter,
Wetzels, Lemmink, and Mattson, 2013 p.248).

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The company also employs location strategy in its service delivery to improve the
efficiency of movement of business information and human resources. It aims at maximizing
market reach by availing the entertainments services such as live actions, radio networking,
broadcast television networks and parks and resorts to locations where potential customers stay.
The company’s operations management focuses on process and capacity design through
forecasting, continuous monitoring and behavioral analysis in the service delivery process.
Behavioral analysis of its employees and customers serves as a basis in the design and capacity
of its service delivery process (Johnson, Scholes & Whittington, 2008 p.104). Continuous
monitoring informs the managers to keep or change current service delivery designs. Forecasting
helps the service delivery process to expand and grow.
The Walt Disney organization also uses total quality management (RQM) to improve its
overall service delivery quality and customer satisfaction. It applies this by ensuring customer
feedback, continuous improvement, process action teams, and empowerment. The company also
applies lean strategies to reduce touch points in its service delivery process such as unnecessary
reporting, reconciliation of services or waiting supervisor to administer orders (Johnston, 2005 p.
1308). It also aids in workflow rearrangement to increase process efficiency and flow in studio
entertainment and parks and resorts. The company uses simulation software to optimize
configurations and service delivery process without making changes and incurring costs to
streamline operations than create extra revenue and value to customers (Lowson, 2012 p. 56).
What should be done to improve the process?
The company can improve the service delivery process by developing a process manual
to carry out its daily operation and achieve process standardization which is cost effective. This

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will help the company to increase consistency, act as a quick reference guide and assist
transitioning process from one service to another. It can also improve the process by automating
the service delivery process by using interactive voice response (Slack, Chambers & Johnston,
2010 p.49). This will eliminate variations, increase productivity and standardize the service
delivery process.
The company can also reduce failure demand which is caused by failure to satisfy
customer needs. Improving value demand in the service delivery process will reduce wastes and
increase customer satisfaction, efficiency and free up for new services capacity (Ritchie and
Brindley, 2017 p. 300). The company can also conduct a blueprinting exercise to service
improvement and innovation. It can achieve this by identifying the target customer segment
hence provide a customer-focused basis to track service performance by developing metrics. In
the exercise, it can also identify opportunities for service improvement and failure points and
map service from the perspective of the customer.
The company operations management can strengthen the skills of the team in customer
services such as consistency, empathy, patience, adaptability, and communication (Ritchie and
Brindley, 2017 p. 303). It can also focus on improving its customer interactions. The
representatives can identify shared interests, listen to customers and reflect their feelings, admit
mistakes and ensure follow-ups to improve customer satisfaction such as sending emails. The
company can also improve the service by enhancing customer service strategy by getting
personal to make customers access real people but not automated online responses by giving
relevant responses in Twitter and Facebook. It can also give a way for customers to provide
feedback through email or phone surveys to understand its weaknesses and strengths hence act

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accordingly (Santa, Hyland, & Ferrer, 2014 p.969). It can also improve employee engagement to
boost their productivity in service delivery.
The company can also improve service delivery by improving customer and employee
satisfaction, and meeting expectations. It can achieve this by listening to them, communicating
feedback, being polite, approachable and friendly and treating them with respect. It can also
improve the process by keeping promises and improving trust.
The company can also implement a strategy on its layout design based on consumer
organization standards and behavioral analysis. For instants Walt Sidney company consumer
products and interactive media places goods in convenient areas to improve efficiency and for
cost-effectiveness. It can also focus on job design and human resource which enables the
company maintains standardized service delivery process and service quality standards. It can
also improve its supply chain management by using bargaining power and information
technology to minimize the costs of the service delivery process.
The company can also combine maintenance approaches to improve effectiveness in
service delivery. For instance, it can implement training programs to ensure efficient and
effective employees who maintain facility equipment used in service delivery hence reduce the
cost of repair. It can also use flexible scheduling and conventional shifts based on current trends
to optimize the service delivery process by addressing anticipated demand changes and respond
to changes in inventory levels (Danaher and Mattsson, 2014 p.569).
Why the organization is successful

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The Walt Disney Company has implemented procurement and supply chain strategies to
handle the demand patterns which are rapidly changing and the agile business operating models
(Santa, Hyland & Ferrer, 2014 p.979). This makes the organization successful as it can deliver
maximum customer satisfaction and achieve its business objectives by collectively harnessing its
planning, manufacturing, inventory management, procurement, and logistics functions. It has
also implemented strategies on capacity and process technology that makes it run the necessary
process efficiently and support production goals including resources and technology (Balogun,
2016 p. 167). This makes the company successful as it can determine and plan its production
capacity to meet changing demands and maximize the amount of work its capable to complete in
a certain period.
Walt Disney organization has also implemented a business process re-engineering as a
business management strategy to analyze and design its processes and workflows. This has made
the organization successful as it has achieved positive changes in its performance measured by
service quality, cycle time and cost. It has also boosted its competitiveness in operations through
more productive processes. It has also led to radically new designs in the organization that help it
to increase profitability and market share, quality, cost ratios and respond better to competitive
pressures (Scholes, 2015 p.105). It has also made it successful in job redesign by creating more
rewarding and challenging jobs with broader employee responsibilities hence boosted
productivity.
The company uses six-sigma as a strategic tool which has enabled it to be successful in
elimination of waste and variations in its business processes and reducing defects thus the
company has been able to meet the overall quality expectation of its services (Belekoukias, 2014

OPERATIONS MANAGEMENT STRATEGY 9
p.5366). It has also created continuous improvement hence the company has developed new
high-quality products.
Walt Disney organization has adopted operations strategy monitoring which has made it
successful. It has enabled the company to keep up with changing market trends and stay ahead of
the competition. It allows the company to have a sense of direction hence establish realistic goals
and objectives which it has been able to achieve. It has also implemented performance metrics
which drive its performance, help it make better decisions, and produce good public relations. It
has also developed risk management plans which guide it to identify risks and respond
accordingly. This has made it successful in terms of efficiency and consistency of its operations
and has boosted customer satisfaction. It has also assisted it in improving the company’ brand
reputation and protect its resources (Näslund, 2008 p. 287).
Walt Disney Company has developed a product-service mix which has allowed its
continued existence, improved society and added new value to customers (Jenkins &
Williamson, 2015 p.80). The company is successful in project management which allows it to
improve quality control as it ensures projects have enough resources and time to deliver and
ensures the quality of the output is tested. The company is successful in inventory management
by minimizing stock-outs and its inventory size hence supporting its cost minimization efforts.
The approach makes the company successful through its performance in the specific area of
operations management. The organization’s services are designed to allow easy mass production
at minimal production cost (Slack & Lewis, 2015 p.96).

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References
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operational marketing. FT Prentice Hall, pp.123-167.
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manufacturing organisations. International Journal of Production Research, 52(18),
pp.5346-5366.
Danaher, P.J. and Mattsson, J., 2014. Customer satisfaction during the service delivery
process. European journal of Marketing, 28(5), pp.569.
De Ruyter, K., Wetzels, M., Lemmink, J. and Mattson, J., 2013. The dynamics of the service
delivery process: a value-based approach. International journal of research in marketing, 14(3),
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Hill, A and Hill, T (2012). Operations Management Strategic Context and Managerial Analysis.
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