Walt Disney Company

The owners, directors, or trustees of an organization set its goals, often with the help of management. For example, The Walt Disney Company’s goals are set by its board of directors, who are elected by the company’s stockholders. The overall goal of The Walt Disney Company, according to a recent annual report, may be expressed as a commitment to creative excellence and guest service coupled with strict financial discipline in order to maximize value to the company’s shareholders.³

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0073022853/lo2.gif','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> Explain four fundamental management processes that help organizations attain their goals.

In pursuing its goals, an organization acquires resources, hires people, and then engages in an organized set of activities. It is up to the management team to make the best use of the organization’s resources, activities, and people in achieving the organization’s goals. The day-to-day work of the management team comprises four activities:

• Decision making.
• Planning.
• Directing operational activities.
• Controlling.

Decision Making

Several years ago, Disney’s board of directors decided as one of the company’s growth objectives to expand its theme park operations in Florida. It was not immediately clear, however, what would be the best way to accomplish that goal. Would it be best to expand one of the company’s three existing theme parks—the Magic Kingdom, Epcot, or Disney-MGM Studios? Or should the company branch out in an entirely new direction with a brand new theme park attraction? How would each of these alternative courses of action mesh with the company’s other goals of bringing the best in creative entertainment to its customers and maintaining sound financial discipline? Disney’s top management team had to make a decision about the best way to expand the company’s Florida operations, which entailed choosing among the available alternatives.

Planning

Disney’s top management team decided to expand the company’s Florida operations by building an entirely new theme park named Disney’s Animal Kingdom. Created and designed by Walt Disney’s Imagineering Division, this 500-acre theme park would offer guests wide-ranging adventures and tell the fascinating stories of all animals—ancient and present-day, real and imagined. Now the detailed planning phase began. How would the Animal Kingdom’s many attractions designed by the Imagineering Division be laid out and organized? What food and beverage operations would be appropriate? How many employees would be needed on a day-to-day basis? What supplies would be required to run the park? How much would electricity and other utilities cost? How much would running the park during a typical year cost? Finally, how should the park’s admission be priced given predicted patronage? Disney’s management team had to plan for running the Animal Kingdom, which meant developing a detailed financial and operational description of anticipated operations.

Directing Operational Activities

Now the theme park has been built, equipped, and staffed. How many cashiers should be on duty on Saturday morning? How much food should be ordered each day? How much cash will be needed to meet the payroll, pay the utility bills, and buy maintenance supplies next month? All of these questions fall under the general heading of directing operational activities, which means running the organization on a day-to-day basis.

Controlling

The theme park has operated for several years now. Is the company’s goal being accomplished? More specifically, have the theme park’s operations adhered to the plans developed by management for achieving the goal? In seeking to answer these questions, management is engaged in control, which means ensuring that the organization operates in the intended manner and achieves its goals.

Exercise  1-25