Question

With reference to the following organizational chart, is the Walt Disney Company a mechanistic or organic organization? How can the advantages of this type of organizational structure help Walt Disney to achieve their industry leader position?

The Walt Disney Company Parks & Resorts Studio Entertainment Consumer Products & Interactive Media Media Network & Broadcasting California Production Disney Publishing Worldwide (DPW) Disney-ABC Television Group Florida Distribution Disney Consumer Products (DCP) ESPN Inc. Disney Interactive Tokyo Disney Music Group (DI) Paris Disney Theatrical Group DCPI Labs Hong Kong Disney Studio Services Shanghai

Answer 1

Q.1- With reference to the following organizational chart, is the Walt Disney Company a mechanistic or organic organization?

Ans.- Considering the given organisational chart, it can be said that the Walt Disney Company is an organic organisation. An organic organisation, as defined by Tom Burns and G.M. Stalker, is an organization characterised by flatness, low specialization and decentralization. It is comparatively a bit complex and harder to create, but is highly flexible and suitable due to the rapid continuous economical, technological and other changes faced by the market.

Q.2- How can the advantages of this type of organizational structure help Walt Disney to achieve their industry leader position?

Ans.- This type of organizational structure help Walt Disney to achieve tits industry leader position in the following ways-

· Provide enabling environment for synergistic diversification which helps its global business expansion.

· Helps in effective centralized managerial control which is necessary to ensure co-operation among its various divisions and SBUs.

· Helps in building customized plan and its implementation to cater the need of targeted customers residing in the different geographical locations.

· Increases the productivity of the employees and the overall organizational efficiency.

· Helps to effectively control its supply chain and business operations.

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