Mission Statement & Vision Statement Analysis - a journey through 98 years of Walt Disney Company, USA.
In
1923, Walt Disney signed an agreement with M J Winkler to distribute “Alice
comedies” under the name Disney Brothers Cartoon Studio. Headquartered in Burbank, CA the
company now boasts a market capitalization of $335.0 billion. It generated a net loss of $2.5 billion on
revenue of $65.4 billion during its 2020 fiscal year (FY), which ended Oct. 3, 2020. Under the leadership of
Bob Chapek, who took over from Robert Iger as the company’s CEO in February
2020, the company operates through the following business segments: Media
Networks; Parks, Experiences and Products; Studio Entertainment; and
Direct-to-Consumer and International.
The media networks segment includes
cable and broadcast television networks, television production and distribution
operations, domestic television stations, and radio networks and stations. The
Company's Parks and Experiences include theme parks, resorts, Disney Cruise
Line and Disney Vacation Club. The studio entertainment operations include
motion picture production and distribution, development, production and
licensing of live entertainment events, and music production and distribution.
Its DTC businesses consist of subscription services that provide video
streaming of general entertainment, family and sports programming. The
Company's International Channels produce local programs or acquire rights from
its domestic studios and from third parties.
During the 1950s, the company expanded from motion
pictures into television at a time when television was rapidly gaining in
popularity as an entertainment medium, helping to establish the company’s long
term success. It Got list on NYSE in
November 1957. Walt Disney died in 1966,
and as a result, during the 1970s Walt Disney Co. lost significant momentum.
Ron Miller, Disney’s son-in-law, is credited with initiatingthe company’s astounding resurgence. In the early 1980s Miller broadened the
company’s product line and founded Touchstone Pictures, a subsidiary
devoted to producing films for adult audiences. Touchstone produced some of the
most financially and critically successful films of the 1980s and ’90s; In
order to maintain its image as a purveyor of family entertainment, Disney does
not use its name on any Touchstone production.
It was with the hiring of Michael Eisner as CEO in 1984 that
Walt Disney Co. began to grow again. Eisner took advantage of expanding markets
in new technologies and international investment opportunities. In 1991, Walt
Disney Co.’s international operations exceeded 20% of the company’s total
revenue. The company entered the cruise line industry in 1998. In the early
2000s, the company experienced a downturn, posting losses of $158 million in
2001 and experiencing bidding withdrawals due to depressed stock prices in
2004.
These losses were partially a result of the September 11, 2001
terrorist attacks. Eisner resigned as CEO in 2004 in response to popular
demand. A string of acquisitions in the later 2000s, including a $7.4 billion
deal for Pixar Animation Studios in 2006, helped to restore the company’s
status (“The Walt Disney Company”; “Walt Disney Co.”).
Disney under Eisner
closed Florida’s animation studio in 2004, moving Disney away from its roots in
animated films. This
internal turmoil continue to be a problem until Disney can reestablish itself
with a single, cohesive brand image. Possible long term consequences include
difficulty recovering its former status and the need to reinvent itself.
Although Walt Disney Company has a long-standing and relatively well-defined corporate culture, 1980s upheavals in corporate governance and management have left the situation in turmoil. Eisner’s resignation in 2004 left a void in leadership that led to confusion about Disney’s position, values, and mission moving forward.
The narrative of upholding American values continued at the
brand’s theme parks, where Walt Disney translated it into a physical experience
using American folk history. “Disneyland,” he said at the park’s grand opening, “is dedicated to the ideals, the dreams, and the hard facts that have created America.” Visitors are made to feel as if they are
stepping into carefully curated moments of history, ones chosen to fit a tidy
narrative that highlights the nation’s past and future commitment to life,
liberty, and the pursuit of happiness.
The sections below gives review of Vision & Mission statement of Walt Disney Company in the late part of 20th century to 2021(October).
1. Analysis of Vision & Mission statements early 21st Century
Disney
is a complex company with multiple brands. Vision statements should align withbusiness units. By breaking down vision along business unit lines it becomes
much easier to understand what your business unit needs to do. And as the
vision becomes more granular, it also becomes easier to measure.
Disneyland’s vision statement is “To be the happiest place on Earth.”
Source: Collins, James C. and Porras, Jerry I.,
“Building Your Company’s Vision,” Harvard Business Review .
September-October, 1996. (Also see Collins, James C. and Porras,
Jerry. Built to Last, Harper Business, 1994.)
As a manager, yours might be something a little closer to your own team: mine is "to make working here fun”. Actually neither of these are visions, but goals, which are defined as benefits, results, motivating justifiers, broader purposes. Goals answer why we want to accomplish our purpose and what we expect to get out of it (happy people).
Vision, on the other hand, is the broad how - the actions and
processes for accomplishing our purpose. (I am going to buy some land in
Florida and fill it with wonderful rides and displays, and people.)
Visions are what we really intend to happen, towards which we are
acting today. Vision does not answer what or why, but how. Vision follows
purpose or mission. A vision without a purpose is just wishful thinking.
Sometimes companies push back from the vision that includes current statements: “that isn’t a vision, we are already the leader in in-person entertainment experiences, and have been for years.”
Yes, in this example, Disney is the leader, but if they want to stay one, the aspiration should be reflected in the vision. A vision is not just about growing, but about maintaining. If the vision doesn’t include “being a leader in delivering in-person entertainment experiences” what does that mean for those parts of the business? Is there some future state that is better than being a leader? People might start asking if the company is abandoning those businesses, or de-investing until we end up with the “mediocre in the delivery of entertainment experiences.”
There was a time when Disney lost its collective soul, in the early to mid-1980s when box office share dwindled to less than 4% and they turned down films like Raiders of the Lost Ark and ET – and were the target of investment raiders. Theme parks became real estate and Disney movies thudded as uninspired. Poor management reflected a poor understanding of vision and mission. Happy people were no longer center stage.
However, an improved, author proposed vision statement for Disney is "to offer the best family entertainment in the world through theme parks, cruises, movies, and radio and television coverage of news and sporting events globally."
Walt Disney's actual mission statement is "to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world." However, an improved, author-proposed Disney mission statement is as follows: We are on a mission every day to serve customers young and old with outstanding family entertainment. By offering popular theme parks and Disney TV programming to our newly acquired ABC, ESPN, and cruise lines, we provide well-diversified family entertainment worldwide. We use many Disney characters such as Mickey Mouse and Donald Duck to excite customers globally. We produce apps for smartphones in the interactive media division. We give back generously to our communities and offer many internships for deserving college students. Everything we do at Disney is possible because of our great employees and fans worldwide.
Under the leadership of Robert A. Iger, president and CEO, Walt
Disney Co. has begun to recover some of its internal stability, but rapid
acquisitions and expansions have left residual confusion as to Disney’s
identity. Iger assumed the role
of Chief Executive Officer of The Walt Disney Company in October, 2005,
and was elected Chairman in 2012.
From the start of his time as CEO, Bob Iger began to reverse
Disney’s trend of being overly cautious toward funding and acquisitions. Peter
Murphy, head of Disney’s Strategic Planning Division, had made many budget cuts
across Disney’s assets, such as selling off ABC’s radio stations. In addition,
Strategic Planning held off on funding new projects. Therefore, less than a
month after the March 2005 announcement that Iger would be the new CEO, Iger
fired Peter Murphy and shut down the Strategic Planning Division.
The removal of Peter Murphy and Strategic Planning served as a
clear sign that Disney would no longer limit its bold vision to satisfy budget
cuts. Rather, Disney would actively seek out new opportunities to expand the
company’s scope and magic. In recognition of the shift, Roy Disney ended the
“Save Disney” campaign he started against Eisner, knowing that Disney’s future
was moving forward once more
Analysis of Vision statement
The future is something that an
organization must grapple with. Visions should provide a sense of aspiration,
they should stretch imagination. They should describe the state of the
organization, across its functions, not rush to summary.
Different parts of an organization may have different visions. A vision
statement isn’t a transformation into a future mission.
If one consider that their vision is to make people
happy.
Their vision may include:
- Be the leader in the delivery of entertainment experiences.
- Be the premier channel for sports experiences and
information.
For the first item, they would include
theme parks, hotel properties, ice shows, movies, video games, and a number of other things. Each of which would
imply a set of capabilities, and a set or measures to determine progress
(quantitative and qualitative).
If the vision is 10 years out, you
don’t have to understand how to achieve it today, but you do need to start prioritizing investments, including learning investments, that dip toes into the
future so you really understand what the organization will need to achieve the
vision. And the state that eventually arrives in a decade may be very different
than what was documented 10 years prior, but by then, the vision should be another 10 years ahead. A vision should help inform direction and help set priorities. It should be not be unchanging. As organizations learn, theyneed to adjust and adapt, and reflect that learning in the vision. That is why
scenarios are so important: They help you practice different futures in which
the vision might unfold–each scenario requiring different tactics and strategies.
3.
Analysis
of Vision & Mission statements (2010)
The Walt Disney Company’s corporate vision statement and
corporate mission statement are combined in the company’s official corporate
statement, which highlights leadership in the entertainment, amusement parks,
and mass media industries.
The Walt Disney Company’s international popularity is a
result of effective strategic management that applies a mission statement and a
vision statement suited to the entertainment, amusement park, and mass media
industries. In theory, the corporate mission determines what the business
organization does. On the other hand, the corporate vision sets the direction
of growth and development, pertaining to a desired future condition of the
business. This business analysis case of The Walt Disney Company involves a
mission statement that focuses on industry leadership. Similarly, the company’s
vision statement specifies leadership for the business. However, as in the case
of many other companies, Disney improved its corporate vision and mission
statements to suit the needs of the business, and to address current trends
affecting the industry by 2010.
Company Description: “The Walt Disney Company, together with its subsidiaries and affiliates, is a leadingdiversified international family entertainment and media enterprise.”
Disney’s Vision and Mission Vision: “to deliver, withintegrity, the most consistently exceptional entertainment experiences for
people of all ages and interests.”
Mission: “To produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling.”
4. Analysis of Vision & Mission statement(2013)
“The Walt Disney Company’s objective is to be one of the world’s leading producers and providers of entertainment and information, using its portfolio of brands to differentiate its content, services and consumer products. The company’s primary financial goals are to maximize earnings and cash flow, and to allocate capital toward growth initiatives that will drive long-term shareholder value.”
This does reflect the product, services and the firm’s survival instinct, but not the customers, technology, values, employees, etc..
5.
Analysis of Vision
& Mission statement(2019)
Disney’s Official Statement. The Walt Disney Company has the following for itsmission statement: “to be one of the world’s leading producers and
providers of entertainment and information. Using our portfolio of brands to
differentiate our content, services and consumer products, we seek to develop
the most creative, innovative and profitable entertainment experiences and
related products in the world.” (March 02, 2019) However, this corporate
statement is actually a combination of Disney’s mission statement and vision
statement. Technical conventions on writing missions and visions indicate that
a corporate mission statement presents what the business does, and the
corporate vision statement is a future-oriented business target. In this
regard, The Walt Disney Company’s official corporate mission actually includes
the company’s corporate vision, as well
Disney’s mission statement is “to
entertain, inform and inspire people around the globe through the power of
unparalleled storytelling, reflecting the iconic brands, creative minds and
innovative technologies that make ours the world’s premier entertainment
company.” While the mission statement talks about the entertainment and
impact it purposes to give its customers, the primary focus of the company is
on leading in developing the entire industry into one of the most dynamic and
progressive ones. The company is, therefore, all about stimulating positive
changes. The mission statement by Disney has the following characteristics:
1. Improvement
of communities
2. Improving
lives
3. Entertain
4. Exceeding
expectations
The 2019 statement is more focused and multi-faceted compared to that of 2010 and 2013. The reason the organization existscould interchangeably be its overall goal. With the answer to those questions, Disney opens its mission statement, says “to entertain, inform and inspire… “. We wouldn’t stress on this as much as we had already talked about when we talked about the vision statement. So at first glance of its mission statement, we already have an idea of what the company does, of what it’s about, what its overall goal is.
- What kind of product or service does it offer? It
goes again to tell us that the company’s services are entertaining,
informative, and inspiring, and they achieve this via storytelling. So one
gets a broader picture now. It tells us this is how we entertain-by
telling stories.
- Who are its primary customers? “…people
around the globe… “. It tells us everyone in the globe, whether young,
old, African or European, it doesn’t matter, what matters is you live on
earth.
- What part of the world is its services restricted to? Clearly,
we see there are no restrictions as long as we are still talking about our
planet.
Only by constantly innovating and pushing theboundaries of not just animation but also what Disney became as a business was the company able to go from a moderately successful animation studio to a complete entertainment experience – with theme parks, merchandising, cruise ships, and so forth. In a quote often attributed to Walt Disney, a Disney Imagineer once said, "If you can dream it, you can do it."
When broken down, we makeout three things from the company’s vision statement:
- The targetted audience
- The company’s aspired
position
- The service that is/would be
rendered
- The Targeted Audience: They make it clear that
the Disney company is not looking to dominate America only but the world.
One can imagine that this particular aspect of the vision statement is
constantly being engraved into the Disney employees’ hearts. Hence having
this in mind, every content, series, product, or service aims to reach out
to the world. This goes further to affect the quality and diversity of
each product or service.
- Quality and Diversity: if you knew that the
bowl of soup you prepared was going to be served at a meeting with all of
your neighbors, friends, family, and colleagues from your office in
attendance, you would be meticulous, deliberate, and very cautious of
everything that goes into its preparation. Knowing that the soup wasn’t
going to be consumed by you alone and so it had to be just right! That is
the same feeling that goes into the preparation of every Disney movie you
see on your screens, the same feeling that goes into the building of
every of the Disney parks and world you visit, the same feeling that goes
into the production of every Disney product you use. Because they know
that the target isn’t just America but the world, hence it has to be just
right! The consciousness of the company’s targetted audience
gingers creativity, spontaneity, and a higher sense of responsibility to
the team of workers. All of these give the customer, spectator, or
visitor the desired result.
- The Company’s Aspired Position: “…the world’s
LEADING… “ the Disney company isn’t just interested in
giving to the world. It is also particular about being among the leading
companies to do so. Therefore, to stay leading, it must have to be good
enough to wade off many other competitors. No one needs to remind us how
many companies like Disney spring out every day worldwide. But the Disney
princesses, the Mickey Mouse clubhouse, the Avengers, the Disney land, and
a host of others that has revolutionized entertainment across the globe
would linger for a long time. Why? Because the aim is to be among
the leading producers and providers.
- The Service That Is/Would Be
Rendered: “Entertainment
and Information” have always been the reason behind all of
the fuss for over ninety-six years. It has always been why they do what
they do. This aspect of the vision statement reminds the team and
the public that entertainment and information are the company’s core and
will remain so even in the future.
Walt Disney – the man and the company – is one of the most successful and powerful entertainment companies in the world. Disney theme parks are story-telling and visual experiences, also known as “The Art of the Show.” The use of theming, atmosphere, and attention to detail are essential in the Disney experience
Only by constantly innovating and pushing the
boundaries of both animation and business, was the company able to go from
a moderately successful animation studio to a complete entertainment experience
– with theme parks, merchandising, cruise ships, and more.
After its acquisition
of 21st Century Fox in March 2019, Disney became the largest media powerhouse
on the planet.
The Walt Disney
Company carries out its Mission Statement quite effectively. As Apel (2007)
succinctly stated, “Disney does it right.” He was referring to the Disney
Company’s three-pronged approach of combining research of the market to find
out how to best please its clients, considering who its clients are and making
sure that all cultures are represented, and a long history of pleasing its
patrons, the “Disney Way,” which has been effective for over fifty years. In
other words, Disney combines research, client culture and preferences, and
expertise to assure that the company fulfills the Disney Mission Statement, a
statement that defines the Disney Company’s plan for today.
Direct-to-consumer digital
platforms for movies and television are the future. They are serving audiencesaround the world the way they want to be served. It’s imperative that we go
into that space, and we are with Disney+…Our goal is to create a one-stop
shopping for library and original product under those
brands. Because of the brands and the stories we tell under those brand umbrellas, it
differentiates our brand from Apple, Amazon, Netflix and anyone else. We don’t
see it as competing directly because of the brand proposition of the service we’re bringing
out.”( Oct 17, 2019)
6. Analysis of Vision & Mission statement(2021)
The mission of The Walt Disney Company is to
entertain, inform and inspire people around the globe through the power of
unparalleled storytelling, reflecting the iconic brands, creative minds and
innovative technologies that make ours the world’s premier entertainment
company.
In
their Corporate Statement, under the heading ‘ Leadership’it is stated that ” Disney’s leadership team oversees the world’s
premier entertainment company, home of the most respected and beloved brands
around the globe; and the title ‘Our Businesses’ gave its vision: “The Walt
Disney Company, together with its subsidiaries and affiliates, is a leadingdiversified international family entertainment and media enterprise that
includes Disney Parks, Experiences and Products; Disney Media &
Entertainment Distribution; and three content groups—Studios, General
Entertainment and Sports—focused on developing and producing content for DTC,
theatrical and linear platforms.
The company’s vision statement specifies leadership
for the business. However, as in the case of many other companies, Disney can
improve its corporate vision and mission statements to suit the needs of the
business, and to address current trends affecting the industry. For example, amore specific vision can function as a better guide for strategic management
for expanding Disneyland and other parks and resorts. Such improvements can
open new opportunities for the corporation’s development.
Although Disney
doesn’t provide a definite vision statement, from the documents of 2021, it can
be retrieved that the vision of Disney is, “To be one of the world’s
leading producers and providers of entertainment and information.”
Over his 15 years leading the Company, Mr. Iger built Disney into one of the world’slargest and most admired media and entertainment companies, while focusing on the three fundamental pillars of his strategic vision: generating the best creative content possible; fostering innovation and utilizing the latest technology; and expanding into new markets around the world.
Over the 98 years from
1923 to 2021, how its corporate statements evolved is a good text book for
management students because of its transformation from being just a cartoon
company to a global leader in entertainment, media and information services
It’s been said, "Leaders bring vision, faith, and
courage to coordinated activity." Managers learn about the
conditions that their business will have to operate
in by doing strategic analysis, and understanding those conditions is required
in order to develop the plans and actions that will lead to success. The 98
years of Walt Disney Company found its Vision & Mission statements undergo
change over a period of a decade or two give us insight as to how to set them.
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