Internal weaknesses of Walt Disney company- only THEME PARKS part - Research Paper Example

Internal Weaknesses of Walt Disney Company Internal Weaknesses of Walt Disney Company All companies, including Walt Disney Company can have internal attributes that influence their success either positively or negatively. In this piece however, I will look at the internal weaknesses that Walt Disney Theme Parks and Resorts have. Internal factors are those within an organization’s operation and affect its growth. The beautiful resorts and theme parks of Walt Disney have continued to impress and influence lots of tourists and vacation lovers but some internal factors could negatively affect the company.

These weaknesses are discovered through the Internal Factor Evaluation (IFE) Matrix and SWOT that’s a tool that strategically studies the functions of an organization be they weak or strong.One main internal weakness includes the high overhead expenditures that the company accrues. First, the company targets top talent employees and this is done through attractive offers that beat other competitors. They are given inflated bonuses and exorbitant salaries. The frequent refreshment of the company’s work force especially in top management leads to huge costs.

Other costs include the setting up of theme parks, repair and maintenance, technology and construction of vacation units which cost billions together with the expenditure for publicity and promotions that are done.Dissatisfaction of employees is another weakness. Such discriminated payments bring other tensions like disputes from the labor people who cause unrest and tension and this causes internal weaknesses. Those who work on the theme parks including the writers, actors and network operators may complain through their unions as their pays are meagre compared to those of the management.

A contrasting weakness is the cost cutting measures that may be may be caused by the situation of over the roof costs that the company would incur. Sometimes, the management may introduce new structures, systems and designs for its theme parks and this would in the end sabotage the upward growth of the company. Without quality investments, the services and experiences of their customers would go down and later their reputation might be harmed.The lack of enough developmental property or assets like land is another internal weakness.

Although the company is big, matters like the acquisition of new pieces of land require a lot of hierarchy involvement and consultations and this has led to the fact that the Walt Disney Company land for resorts has been landlocked to Florida and the speculative front in California and this means that there are no new avenues for development of new parks.A huge workload is the other weakness. This is relating to the undying need for the production of successful material on a continuous streak.

The Walt Disney Company has always been privy of the position of an innovator in entertainment and ‘fun-discoveries’ and this has made it very hard for the companies’ management and workers to actually keep up with this huge demand. This pressure clamps growth and kills satisfaction among the employees.The frequent shuffling of top executives is also an internal weakness as this kills communication, continuity and momentum that is set by one executive through the next one’s administration.

This also brings about the problem of broken communication as once one executive has been accepted by the employees, their contracts expire and ‘new turks’ are brought on board and this may create tension in the company.The limitation to the locations. Unlike in the past when Walt Disney enjoyed worldwide recognition owing to its monopoly, today its faced by competition from other companies for example Esselworld and AdlabsImagica in India. This has led to the lack of prominence since former customers would prefer those within their locale from Disney which may be far away.

The lack of fast adjustment to new culture and values. In this time, children prefer more violent characters like zombies, monsters and villains and this has made it hard for Walt Disney that has continuously invested into these characters that develop over time. As a result more challenges are introduced as the audience is limited to a limited target audience, children, and the characters develop even slower.