The Walt Disney Company: A Corporate Strategy Analysis Carlos Carillo Jeremy Crumley Kendree Thieringer Jeffrey S. Harrison ... because they really can come true. Such vision is critical as a firm seeks to acquire assets in highly competitive markets, where the key is not merely recognizing synergy with available assets. The map has, of course, evolved over the ensuing years as additional assets have accumulated (in fact, there are evolving depictions of this Disney synergy map in the archives). Although a veteran in the film business, Katzenberg had no experience with animation and little appetite for it. While drawing such a map today would require more boxes and more arrows, (and perhaps an independent web of interconnected assets surrounding the ESPN franchise), the fundamental patterns and the underlying insight and intuition would remain quite consistent. Finally, there is cross-sight — the ability to identify adjacent assets uniquely valuable to your firm or assets with value that others are simply unable to perceive. Only firms that possess such vision can participate in markets for assets and predictably generate value post acquisition. Synergy is when a conglomerates subsidiary’s promotes a product owned by the company themselves. Does it reveal uniquely valuable assets and opportunities? His recent book, Beyond Competitive Advantage: How to Solve the Puzzle of Sustaining Growth While Creating Value (Harvard Business Review Press, June 2016) explores how value creating corporations compose corporate theories that guide their ongoing growth, including acquisitions. Todd Zenger is the N. Eldon Tanner Professor of Strategy and Strategic Leadership and Presidential Professor at University of Utah’s Eccles School of Business. Vision-providing corporate theories need not be as visually compelling as Disney’s synergy map. Many firms may also possess synergy with the assets you target. ... has still been one of the most successful, frequently visited theme parks in history. The basic idea behind M&A is that company A has a product/service and seeks to merge with, or acquire, company B because company B has a product/service that, in THEORY, works well when paired with those of company A, resulting in financial benefits. Huh? In theory, a corporate structure or organizational structure is the design of the business system, involving its composition, arrangement of components, and pattern of interactions for management. The Walt Disney Company’s organizational structure facilitates the achievement and maintenance of synergy through the related operations of various business segments. Does it provide you with a clear understanding of what is truly distinctive and unique about your organization? Disney long-timers, however, informed him that Walt Disney had left extensive notes and audio recordings concerning his experiences making animation, which were stored in the Disney archives. This corporate theory is largely captured in the adjacent drawing also from the Disney archives, published in 1957. Does it provide you with clear predictions about the relevant future of your industry (or related industries)? First, there is foresight about an industry’s evolution, including relevant technological change or evolving consumer preferences. Harvard Business Publishing is an affiliate of Harvard Business School. All rights reserved. As I explain in my HBR article, What Is the Theory of Your Firm, the vision provided by a good theory has three distinct components. Walt Disney, however, left another, arguably even more valuable, recipe for his company. Anything for a corporate sibling: ABC, which is owned by Disney, has been blowing trumpets for Disney Plus as part of a kingdom-wide advertising offensive — one that Ricky Strauss, president … It must point to a succession of strategic actions that are value creating for the firm. In the academic world, the most powerful theories are at once elegant and parsimonious. Many corporate theories are perhaps better captured in words. In a recent interview, Jeffrey Katzenberg described his first day at Disney as the newly appointed head of The Walt Disney Studios. Does your firm currently possess a corporate theory that reveals foresight, insight and cross-sight to guide your growth? If not, it may be time to set about composing your own corporate theory of value creating growth. Second, there is insight about the distinctive and valuable assets and resources of the firm. This is known as synergy, and often doesn’t work out. Instead, the key is either recognizing synergy unique to your firm — synergy unavailable to others — or recognizing value that while available to others, they simply cannot see. They explain vast terrain using but a few short symbols or words — offering compelling predictions about how the world operates. Disney and Pixar – Synergy Strategies Synergy is an aspect that many conglomerates use to promote their products without the public knowing it. The hallmark of an effective corporate theory is one that simply and succinctly captures how the relevant strategic terrain will react and respond as the firm takes strategic actions. A corporate strategy that keeps on giving. The company is able to grow over a long term period, and has to develop from the departments of Research and Development (R&D), marketing, and finance.By depending on past experience, the company officials know to a large extent what the target customer …

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