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Disney World Control Mechanisms Essay

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Disney World Control Mechanisms

(1)    Control over Copyright Infringement (Khayat, 2004)

Electronic Media Management System (EMMS)(C)  is a software suite developed for the protection of the entertainment industry to control the distribution of media and protecting the industries assets.

An advantage is that it protects digital media assets such as books, video games, music and software – most of which are products of Disney World.

This system protects managerial control within the organization by implementing a motivational factor for employees – it also protects the sanctity of revenue and profit.

(2)    Control over Peer to Peer (P2P) File Sharing Architecture (Khayat, 2004)

This control also affects Disney World’s revenue as their files can be uploaded and strewn across the internet for free. This invokes piracy and is a grave infringement of rights.

Disney World should adopt the Digital Rights Management (DRM) structure where all “peers” are linked to a central server with password protected Ids – this determines who can access what within the organization.

(3)    Control over Managerial Compensation (Stern, 1997)

Managerial compensation is extremely high in Disney World. For example, one employee and top management, Mr Eisner, earned $8.25 million in salary

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and bonus. From 1992 to 1997 his total compensation from Disney has amounted to $ 235.95 million and 8 million options.

 Management should therefore increase transparency of high earnings as part of the cost to Disney World and allow shareholders to vote on compensation amounts should they see them unfit or unnecessary.

(4)    Control over Reputation and Relationships with Suppliers (Stern, 1997)

Disney, the family-friendly corporation, came under criticism for using child labor and unsafe working conditions in its toys and clothes factories overseas. Disney terminated the contract with the company.

Disney’s management should be dedicated to the social responsibility in Disney’s day-to-day decision making.

References

Khayat, S. The Walt Disney Case Study, Management 100W (2004).

A Corporate Financial Analysis of Disney, NYU Stern (1997).

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