Advantages and Disadvantages of Disney's Sub-Studio Structure

This case study examines the structure of Walt Disney Studios, focusing on the advantages and disadvantages of its multi-label or sub-studio organization. The analysis explores how this structure, with each studio responsible for its expertise, facilitates risk diversification, allows for the development of unique cultures, and supports future growth through acquisitions and increased employment opportunities. However, the study also highlights disadvantages such as challenges in fostering communication, promoting the overall Disney brand, and managing the workforce effectively. The document references specific examples, such as the relationship between Pixar and Disney Animation, and considers the impact of these factors on employee motivation and the company's overall success. The case study concludes by summarizing the critical trade-offs associated with Disney's organizational design.

Running head: INTEGRATED BUSINESS EXPERIENCE
Disney
Integrated Business Experience
4/27/2019

INTEGRATED BUSINESS EXPERIENCE 1
What are the advantages and disadvantages of having a structure with multiple ‘labels’
or ‘sub-studios,’ as Disney has, as opposed to one central studio being responsible for
the entire film output?
Overview of Walt Disney Studios
Walt Disney Studios is one of the well-known film studios of America and one of the key
business divisions of the Walt Disney Company. The Walk Disney studio is mostly
encouraged for its multi-dimensional divisions of film, which is the biggest film studio of
Hollywood (The Walt Disney Studios, 2019).
Advantages of having a structure with multiple ‘labels' or ‘sub-studios
Responsible for a separate department
Each of the studios of the Walt Disney Studios is accountable for their own expertise as well
as specialty. They are responsible for following what they are best.
Risk Diversification
Designing or creating sub-studios supported the Walt Disney Studios in diversifying the risk.
If any of the studios do not perform well or does not reflect to be having a bright future, then
the parent business can be sold it or wind it up in order to avoid further losses, high
expenditures, and risk (Joseph, 2013).
Allowed to make own rules and culture
Every of the sub-studio of the company is allowed to make and develop their own culture and
enable the workforce to feel like family and attached. If each and every person involved in
the business work together, they can feel big as well as corporate. The time businesses are
converted into a big one, the procedure of decision making gets slower as well as less
adaptable. Therefore, it becomes very essential to for every business like The Walt Disney
Studio to have multi labels or sub-studios.

INTEGRATED BUSINESS EXPERIENCE 2
Future Growth and Development
With the help of multiple labels structure and sub-studios, it became simple and easy for
Disney to purchase future studios from the international markets (Raval, 2016).
Increased employment
Through sub-studios, the Walt Disney Studio is able to offer and contribute towards the
society by offering employment to the people in different segments they desire to work.
According to the analysis, by 2015, the Walt Disney Studios has hired around 6,500
personnel, and spent near around $2 billion producing films yearly and hundreds of millions
of dollars in marketing and distributing them (Elberse, 2016).
Disadvantages of having a structure with multiple ‘labels' or ‘sub-studios
Tough to foster communication
Every sub-studio cannot instantly share what they have learned.
Lack in promoting the entire group
The sub-studios of the Walt Disney Studios does not advertise or promote the entire brand or
ground of Disney, because people will be only aware of the particular sub-studio from which
they are linked in any form. For instance, every trailer of Lucasfilm is not able to promote the
Disney Brand, because it does not incorporate Disney Logo.
Difficulty in managing the workforce
It becomes very difficult for the Walt Disney Studios to handle the production as well as
workforce because many times a studio such as Pixar may not be busy but Disney Animation
can be busy. The rule that has been not allowed is that Pixar can just refer and cannot offer
actual manpower (Hamid, 2017).

INTEGRATED BUSINESS EXPERIENCE 3
Lack of Motivation among the workforce to work only in a simple studio
Workforce involved in every of the sub-Studio of the Walt Disney Studio may desire to work
in any of the other sub-studios of the Walt Disney Studio. This is because; they may think
that it is better (Papadakis and Barwise, 2012). Besides this, it gets bored or tired of working
on a single thing for a long duration, i.e. Marvel. Hence, this is the reason why many of the
employees of the company desire to move around. If the entire group is a single center and
there are no sub-studios, then every one or employee will work under a single brand and that
is Disney Brand. Hence, the result will be every employee can operate or work on Pixar and
Marvel.

INTEGRATED BUSINESS EXPERIENCE 4
References
Elberse, A. (2016). The Walt Disney Studios. Case Study.
Hamid, H.A. (2017) Data for Learning: Building a Smart Education Data System 1st ed. U.S:
World Bank Publications.
Joseph, C. (2013) Advanced Credit Risk Analysis and Management 1st ed. U.K: John Wiley &
Sons.
Papadakis, V., and Barwise, P. (2012) Strategic Decisions 2nd ed. Germany: Springer Science
& Business Media.
Raval, S. (2016) Decentralized Applications: Harnessing Bitcoin's Blockchain Technology
2nd ed. U.S: "O'Reilly Media, Inc."
Walt Disney Studios (2019) Recent News [online]. Available from
https://www.waltdisneystudios.com/ [accessed 27 April 2019]