Taking an in depth look at the organizational culture and structure of two of the most notable competitors in Central Florida. How does the organizational structure of Walt Disney World Resort and Universal Resort in Orlando, Florida compare and differ?
“an organizational system is more than the sum of its individual members and units or their particular relationship to one another” (Conrad & Poole, 2005, p.35)
Competing Parks
As we are wrapping up this project, we both feel that it enabled us to fully understand what organizational communication entails and is all about. Studying the entire culture of any organization is a time consuming but crucial part in understanding how businesses perform the way they do. Our study of Universal and Disney specifically made us realize how all aspects of an organization are parts of a system that is interconnected. In order to function successfully, these different parts must work together and communicate. The efficient flow of these processes can determine the success or failure of an organization. In return, the study thereof gives insight into changes or adaptations may need to be undergone in order to maximize their efficiency. While we are in no way organizational experts now, we do feel that we can make certain recommendations for both organizations. For Universal, we recommend that steps be taken to increase communication as much as possible. From our findings, we see that an attempt is made my management to increase both formal and informal relations between upper level members of the organization. However, it will take much more than a simple move to a different location to alleviate communication barriers. Our survey results showed that the lack of communication to lower level employees in the organization was blatantly visible to stakeholders (in this case customers and visitors of the park). Hence, communication and increasing both the quality and availability of information flowing through the hierarchy of members is number one recommendation to Universal Orlando.
Mickey Mouse, or Harry Potter?
While Disney did not have the same communication problems that we found to be apparent in Universal, they did have some problems of their own. Our survey results showed that, while most all of our survey takers were incredibly pleased with service at Disney, there were a few respondents who did not have anything nice to say about Disney’s employee customer interactions. Based on this, we suggest Disney try a little harder to ensure that all employees are embodying the essence of Disney. We understand that Disney can only do so much to ensure their employees help create magical experiences for their guests and that a few people will inevitably slip through the cracks, but we feel like there is still room for improvement. Disney should keep an eye out for unruly Cast Members that may end up ruining some park guests’ Disney experience and tarnishing the Disney brand. Ultimately, we have definitely enjoyed our time studying and blogging about these two parks. We could not have picked a more fun-loving and interesting topic! Through our study of these two massive organizations, we have concluded that the reason these two parks are able to coexist peacefully is because of their differing themes. Universal is catered more towards adventure and action, while Disney is catered more towards magic and fairytales. In the end, we have decided that the two differing themes are equally appealing in our eyes. We think it would be incredibly insightful and interesting to visit these two parks now that we know so much about their organizational culture. Seeing the magic and the adventure take place before our very own eyes would be the cherry-on-top to this engaging and entertaining project!
Conrad, C., & Poole, M. S. (2005). Strategic organizational communication: in a global
This blog post focuses on the corporate and organizational culture found in Walt Disney World. By using a functionalist approach and studying the park’s branding strategies, employee conduct, and incorporation of Disney values into park practices we will discover how Walt Disney World continues to be one of the most sought after tourist destinations in America.
Walt Disney World has branded itself as being a place “Where dreams come true.” With focuses on magic, dreams, and fairytales, Disney has successfully built themselves a reputation that promises magical adventures, dreams coming true, and fairytales awaiting every guest to walk through their park’s gates. By branding themselves as a magical place where dreams really do come true, Walt Disney World has successfully maintained their position as the top tourist attraction in Orlando, FL since its opening in 1971. Their branding strategy is remarkably successful, as exhibited by survey responses describing Walt Disney World’s atmosphere as “magical,” “welcoming,” and “the happiest place on Earth.”
Disney explicitly states six key values that they hold and that they expect their employees to promote: innovation, quality, community, storytelling, optimism, and decency. These values are exhibited by different actions taken by Walt Disney World and its Cast Members.
Every guest that comes to Walt Disney World is simultaneously receiving a one of a kind Disney vacation while still being a member of the vast Disney community. Disney has made it their goal to make their park goers feel as though they are getting a special, one of a kind experience rather than feeling like they are just another face in the crowd. By making park goers feel as though they are guests within the world of Walt Disney, Disney is able to make it’s guests feel valued by the franchise and feel as though they are part of the Disney community. This is incredibly important to Disney, because by making park guests feel valued, important, and special, Disney is connecting with their guests on an emotional level. This emotional connection is one of the biggest ways that Disney is able to hold such a large following and continue to get repeat customers. The best resource Disney has that allows them to make these important, emotional connections is through their employee interactions with guests.
Disney Cast Members lending a helping Mickey hand
Employees at Disney are referred to as “Cast Members.” Cast Members at Disney have one of the most important jobs in the parks because they are the people that personally interact with park guests on a one-on-one basis every single day. Cast Members are ultimately responsible for upholding high standards of quality for not only service, but also the quality of guest’s Disney experiences. Disney recognizes the important role these Cast Members play, stating that “Our Cast Members and employees are the cornerstone of our magic.”
Cast Members must exude professionalism, compassion, and graciousness at all times. Upon hiring, every Cast Member is given a lengthy “Standards of Business Conduct” that details all the legality rules Disney expects their Cast Members to follow. These legal issues include scenarios ranging from accepting money from park guests to copyright infringements. The legal responsibility held by Cast Members is vast, but Disney regards it as being necessary, stating that “We count on every Cast Member and employee to follow the letter and the spirit of those U.S. laws that may apply.”
In addition to the legality issues surrounding Disney Cast Members, they also must follow an incredibly detailed “Disney Look Book” that describes what types of appearances Cast Members must adhere to. With rules on aspects such as hair length, fingernail length, tattoo and piercing visibility, and skin exposure, Disney ensures that all of its Cast Members have a “classic” look. This strict dress code helps Cast Members to promote the decency value that Disney so clearly has. With a focus on family and children, decency is at the top of Disney’s priorities.
These specific rules on legal issues and personal appearance that Disney expects of all its Cast Members show a bigger picture of what Disney is all about. They strive to provide a family-friendly atmosphere that will be welcoming to people of all origins, cultures, and ages. With millions of guests visiting Walt Disney World every year, Cast Members must have specific rules and regulations to ensure that special, “magical” moments and memories can be made for every guest. By making sure that employees embody the essence of Disney, Walt Disney World is not only ensuring their name is not tarnished by unruly Cast Member actions, but they are also ensuring that guests have the utmost magical experience possible.
Optimism is another crucial value that falls into the hands of Cast Members. Walt Disney World radiates optimism from every angle. Based on our survey results, guests that attend Walt Disney World typically have incredibly positive things to say about the Disney Cast Members. When asked about their experiences with Disney Cast Members, survey takers responded with some notable answers that highlight the optimism and quality of service provided by Disney Cast Members: “Everyone was so happy and willing to help with what I needed,” “Went out of their way to make us feel special,” and “Always amazing guest services at Disney.” However, a select few survey responses came back with incredibly negative comments about Disney’s customer service and guest relations. One responder stated that “Disney made me feel like a face in the crowd,” which is the exact opposite intention of Disney’s meticulous Cast Member training and rules. Disney can obviously not ensure a magical experience for every single park guest, but to improve upon current conditions they should try to look out for and please disgruntled guests like the one above.
One of the key ways that Disney is able to keep the magic alive in Walt Disney World is through innovation. Walt Disney World is constantly changing, with some rides being updated while other brand new ones are built. Walt Disney World has rarely “gotten rid” of a ride, with the exception of a small handful that became outdated. Rather than get rid of old rides, Walt Disney World has chosen to update and modify their current rides but also to expand their parks numerous times to accommodate both their old rides and build new rides. In 2013, Walt Disney World’s Magic Kingdom went through the biggest expansion in the park’s history with the opening of New Fantasyland in 2014 that expanded the park by 25%. Walt Disney World’s Animal Kingdom is currently under renovation and expansion that is the biggest expansion in Animal Kingdom’s history. The new section of the park will include thrilling technological advances that will help portray the famous world of AVATAR from James Cameron’s movie franchise.
The new MyMagic+ bracelet
Walt Disney World is constantly using technology to innovate and update their parks.
Recently, they have created a new, state of the art system known as MyMagic+. The new, multi-million dollar system is being implemented in Walt Disney World with the hopes of creating a better park going experience and increasing guest’s happiness. The system interconnects the entire park, from room keys to park tickets to Fast Passes, all on a small electronic bracelet that is worn on the wrist of a park guest. The bracelet allows guests to plan their trips in advance and store all the information on the electronic bracelet. The bracelets will simultaneously act as guests roomkeys, credit cards, park tickets, meal plans, fast passes for attractions, and schedule of events. Disney recently launched a “Be Our Guest” campaign to help promote the new MyMagic+ technology while simultaneously promoting the idea of the personalized Disney vacation. The MyMagic+ system is unlike any other technology currently on the market, and it gives Walt Disney World an innovative edge over its competitors.
Ultimately, what sets Walt Disney World apart from Universal Studios is Disney’s strive for individualized, magical experiences for each and every one of their guests. Routinely in our research we found that Disney Cast Members were trained to embody Disney values and to go out of their way to make park guests have the most wonderful vacations possible, and people typically praised Disney for their success in this realm. Disney Cast Members make park goers feel as though they are guests within the parks, and they make personal, emotional connections with guests to help make them feel important and special.
Although both Disney and Universal are theme parks hailing from Orlando, FL, they continue to thrive as neighboring competitors. This is able to happen without one failing because both parks cater towards different styled vacations. While both parks accommodate family themed vacations, Universal provides a thrilling, adventure filled vacation, whereas Disney provides a magical, fantasy filled vacation. Because of the differing style in their parks, many vacationers choose to go to both parks to get a taste of adventure AND a taste of magic.
This post focuses on the analysis of Universal Orlando’s organizational culture from a functionalist perspective. Specifically, we will establish a linkage between the visible artifacts and crucial happenings in the organization and subsequent results on their productivity and performance. Looking at these aspects and their influence on organizational performance will give insight into how the creation and maintenance of culture within Universal makes it a valid and established competitor in the market.
“Bringing Families Together” -Universal Orlando
To begin, we will take a look at the branding strategy that Universal Orlando employs to advertise and position their organization as a valuable competitor within the market. As seen by the Vacation Destination Brochure that is widely distributed as part of their marketing strategy, the organization places much emphasis on visual display in promoting one of their core values of “Bringing families together”. Their arguments are strategic in that appeals are made to both individual desires by using statements such as “where you can be courageous, be outrageous and be extraordinary” while emphasizing their ability to create ties and connections within families by being “the only place where you can turn spending time with your family into spending time as a family.” The entire organization is essentially focused on the core values of family and adventure by enabling you to go above and beyond the normal human experience found in everyday ‘mundane’ life. The effectiveness of branding their assumptions in this way is seen in our survey results, where mostly all respondents reflected these values. One respondent claimed the atmosphere to be “Adventurous…Exciting and electric” while another enjoyed the “Excitement, anticipation, [and] high energy”. Overall here we see the effectiveness of Universals marketing strategy in addition to living up to expectations that they set for their organizational performance.
In addition to successfully branding itself as a place for family and adventure, another crucial core value that Universal has demonstrated is marketing itself as an organization of innovation. Universal demonstrates a growing awareness of the need for innovation in an increasingly technology based society in order to keep up with its competitors. A prime example of the way Universal positions itself as an innovative competitor within this market is this Orlando Sentinel article, which focuses on the permanent closure of the well-known Jaws amusement ride in the Orlando park, one of the original exhibits in the parks 1990 opening. Spokesman Tom Schroder specifically states that “Jaws has been an… important part of our history… But we always have to look to the future and dedicate ourselves to providing new, innovative entertainment experiences for our guests.” This is an excellent example of Universal advertising itself as an organization that does not hesitate to adapt and change in order to keep up with demand in such a dynamic market.
Next, we will use our prior research to examine how these core values are communicated to its members at all levels of the organization. We have to keep in mind that the leadership plays a central role in communicating and also circulating the core assumptions and values to all members. Our data supports that managers in Universal do control the culture by the way they use communication, and that this directly reflects on organizational performance. Of course, we need to keep in mind that every organization must find a balance between the needs of the organization and the needs of its members. As stated in our textbook, “all organizations face at least one fundamental tension… a tension between individual members’ needs and the needs of their organizations (Conrad & Poole, 2005, p.11). The way in which Universal Orlando manages this fundamental paradox directly reflects in their organizational performance, discussed in the following.
“You Maintain the Fun”
In terms of corporate culture, it is crucial to understand how employees within Universal Orlando identify themselves with the values circulated by management. Taking this Forbes article of Comcast’s acquisition of Universal from General Electric as an example, we see an attempt of Universal’s parents company to forge stronger relationships between all members of the organization. For example, it states: “Comcast, with a conservative, low-profile culture, had clashed with the G.E. approach… Comcast moved NBCUniversal’s executive offices to the 51st floor — less opulent space that features smaller executive offices and a cozy communal coffee room instead of General Electric’s lavish executive dining room.” We see that Universal attempts to break up the strict traditional power structures by encouraging more communication, both formal and informal, between its members. This is crucial because it informs us about the vision that Universal has for the structure of its corporate culture.
While the steps taken to foster a community of members through encouraging more dialogue on a relational level is commendable, our survey results support that Universal could potentially put more effort into communication within all levels of the organization. Many comments on customer interaction with employees in the park gave a sense that more communication is needed, such as “They were helpful, but they really weren’t too cheerful about it” and “More into management to keep things moving, but very polite”. While employees were not perceived to be overly evasive or unhelpful, we can draw that the leadership could put more effort into immersing employees into the envisioned culture of the organization, instead of sufficing with their outward appearance of accepting it. After all, the performance of individual members directly reflects upon the performance of the organization as a whole, especially because “an organizational system is more than the sum of its individual members and units or their particular relationship to one another” (Conrad & Poole, 2005, p.35). In the traditional structure that Universal is attempting to break up, the members on the lower end of the hierarchy do play a crucial role. Management must be aware that all employees must become fully immersed in the vision they have for the organization in order to build a stronger corporate culture and performance as a whole.
Looking at these key elements of the organization from a functional approach uncovers a few distinct similarities and differences between Universal Orlando and Walt Disney World. We can conclude that both have distinct core values and a corporate culture that they circulate though uniquely different ways. While Disney embodies the core values of “making dreams come true” and being the “happiest place on earth”, Universal aims to “bring families together” through ultimate adventure. The difference in how members embody the values communicated by management are evident in their customer interactions. While Disney employees place emphasis on optimism and bonding with visitors on an emotional level, members of Universal tend to be slightly more distant and give visitors more space to discover the ‘adventure’ on their own. In addition, both Disney and Universal are organizations of innovation constantly adapting to market needs. While Disney does this by, for example, implementing tech-savvy bracelets for superior customer satisfaction; Universal applies innovative concepts by making room for new technologically advanced theme rides. Ultimately however, we cannot find that one style works better than another, which plays a crucial role in why both Universal and Disney can co-exist peacefully. Their slightly differing approaches ensure that both organizations can and do survive in such close proximity while constantly adapting to new challenges along the way.
Conrad, C., & Poole, M. S. (2005). Strategic organizational communication: in a global
The Walt Disney Company, commonly known as Disney for short, is an international pioneer in the family entertainment industry. Although their headquarters are in Walt Disney Studios in Burbank, California, Disney has offices, parks, and hotels around the world. Most notable are their theme parks which are located in Orlando, FL (Walt Disney World), Anaheim, CA (Disneyland), Paris, France (Disneyland Paris), Tokyo, Japan (Tokyo Disney), Shanghai, China (Shanghai Disney), and Hong Kong (Hong Kong Disneyland).
With around 166,000 employees worldwide, Disney has become a colossal industry that is well past its early stages as a simple animation films studio. The company is separated into five distinct business sections: media networks, parks and resorts, studio entertainment, consumer products, and interactive media. Each of these sectors focuses on different vital aspects of Disney and it’s worldwide success. The most popular and well-known aspects of Disney are their films (under the studio entertainment, or The Walt Disney Studios section) and their resorts and theme parks. Due to Disney’s vast nature and world encompassing business strategy, we have chosen to focus on one section of the company in one specific area: their parks and resorts section located in Orlando, FL; aka: Walt Disney World.
Disney’s stated mission statement is very product oriented, with its primary goal being a financial one to “maximize earnings and cash flow.” However, Disney is renowned for creating a magical experience for their customers. Creating and maintaining the magic of Disney is of utmost importance to the company. Their employees, entitled Cast Members, are issued a lengthy “Standards of Business Conduct” article that lists all the ways in which Cast Members are expected to present themselves. The conduct rules state:
“Throughout the years, we have earned the trust of guests, audiences, consumers and shareholders because of our commitment to high standards in everything we do, everywhere we operate. Integrity, honesty, trust, respect, playing by the rules, and teamwork – these define not only the operating principles of our Company, but also the spirit of our diverse global workforce and how we function.”
The company prides themselves on their ability to maintain a family friendly atmosphere, even offering a “Mom’s Panel,” a place to ask and answer all types of family related questions about the parks for guests planning on vacationing with children. The company portrays itself in an extremely positive light, offering guests a magical place to visit where “fairytale dreams do come true for children of all ages.”
Jurassic Park Exhibit
Universal Orlando Resort, while also located in near proximity in Orlando, Florida measures an astonishing 673 acres in physical size, making it the notably largest property owned by NBC Universal. This large vacation destination encompasses two theme parks within the complex – Universal Studios Florida and Universal’s Islands of Adventure, in addition to three themed on-site hotels – Loews Portofino Bay Hotel, Hard Rock Hotel and Loews Royal Pacific Resort. A nighttime entertainment complex called CityWalk is also included on the resort. Furthermore, when measuring the size of this organization in terms of staff, the approximate count of 12,000 employees is just as impressive. Interestingly, we found 2,413 employees alone on the professional networking site “Linkedin.” In terms of its budget, Universal Resort is the single largest taxpayer in the city of Orlando. Its’ taxable assessed value for the 2013 fiscal year comes in at an astounding 1,079,182,207.
From a glance at a brochure of Universal Resort Orlando, they place emphasis on the value of family and vacation. While their the motto of “Vacation becomes Adventure” immediately catches the eye and draws in prospective guests, the corporate media website reiterates that it Universal Orlando is the only place where you can turn spending time with your family into spending time as a family. The organization proclaims that it is a vacation destination for the entire family “where you can be courageous, be outrageous and be extraordinary.” The entire organization is essentially focused on the values of family, friendship, and enabling you to go above and beyond the normal experience.
Growth from Past to Present
Founded by Walt and Roy Disney in 1923 as Disney Brothers Cartoon Studio (later changed to Walt Disney Studio), Disney has grown from a small animation studio into a worldwide media conglomerate, listed by Forbes as one of the world’s most valuable brands.
In 1923, brothers Walt and Roy Disney moved from Kansas City, Missouri to start an animation studio in Los Angeles. The brothers developed their first original cartoon series entitled “Oswald the Lucky Rabbit.” The cartoon rabbit’s story was distributed by Winkler Pictures through Universal. Oswald was a hit, but the brothers success with Oswald would be short lived. In 1928, Disney lost the rights to Oswald through a series of unfortunate events that culminated in Winkler Pictures essentially stealing Disney’s beloved Oswald rabbit and hiring away all of the studios animators to work for Winkler and Universal. Every single one of the Disney Brothers animators was hired away, except for one: Ub Iwerks. Iwerks would soon prove to be the most valuable animator to work for Disney.
Later in 1928, Walt Disney and Ub Iwerks were attempting to find a new story to tell to make up for the loss of Oswald the rabbit. In conjunction, the men designed and animated a little mouse that would eventually become one of the most iconic symbols in the world; the mouse’s name was Mickey Mouse. Mickey Mouse made his first sound film debut with the short animated clip entitled “Steamboat Willie.” This was the first sound film produced by Disney and the first ever cartoon to use synchronized sound.
The rest is history; Mickey Mouse’s success and popularity made the Disney brothers enough money to make their first feature length film in 1937, “Snow White and the Seven Dwarfs.” Snow White became the highest grossing film of the time period by 1939. The profits from Snow White were used to build the companies current animation studios in Burbank, CA.
Walt Disney Studio would continue making films, most notably Cinderella (1950), Sleeping Beauty (1959), and Mary Poppins (1964). They opened Disneyland in Anaheim, CA on July 17, 1955 with the intent of creating a park where families could enjoy themselves together. The success of Disneyland coupled with the continued success of the films being produced by Disney led the brothers to begin scouting territory for a new park outside of Orlando, FL. Disney World was the brainchild of then CEO Walt Disney, and the plans for the park were released to the public in 1965. Walt Disney loved Disney World and oversaw every detail of its creation. His unparalleled imagination allowed him to make the impossible possible at Disney World. Unfortunately, Walt would never live to see the grand opening of his beloved park. His death from lung cancer at age 65 on December 15, 1966 rocked the company. His brother, Roy Disney, took over his position as CEO, and his first item of business as CEO of Disney Brothers Cartoon Studio was the rename the iconic Disney World to Walt Disney World, as a tribute to his brother.
Walt Disney World would open in 1971 and would eventually be expanded to include four different parks (Magic Kingdom, Epcot, MGM which would later be renamed Hollywood Studios, and Animal Kingdom). Roy Disney passed away on December 20, 1971, just two months after the opening of Walt Disney World.
The company continued to grow and expand, going international with Tokyo Disney in 1983. In Walt Disney World, hit attractions like The Hollywood Tower of Terror (opening in 1994) and Dumbo’s Flying Elephants (remodeled in 1994 and again in 2013), had ticket sales continuing to grow and expand. In 1995, Walt Disney World welcomed their 500 millionth guest into the park. Disney’s film industry skyrocketed with hit films in the 90’s such as Beauty and the Beast (1994) and The Lion King (1994). They joined arms with Pixar Animation Studios to create films such as Toy Story. The company went on to buy Pixar from Steve Jobs in 2006. They continue to top the charts in family entertainment with their highly successful film industry and theme parks.
In 2013, Walt Disney World underwent its biggest expansion in the history of the park. New Fantasyland opened in 2014, increasing the size of The Magic Kingdom by 25%. Disney recently announced plans to expand their Animal Kingdom park in Walt Disney World. The expansion is the biggest in Animal Kingdom’s history and is expected to open sometime in 2016. The new part of the park will be dedicated to the film “AVATAR” by James Cameron.
Disney has been blessed with creative and innovative minds to run their company. The most noteworthy leader of The Walt Disney Company is non other than Walt Disney himself. Other important leaders include Roy Disney and the current CEO and President Rob Iger. John Lasseter has more recently become a leading figure in the Disney company due to his chairman position in Pixar.
In terms of its history, Universal Resort is a relatively new competitor in comparison with Disney. Universal Resort Orlando opened its door on June 7th, 1990, just three years after MCA (the parent company of Universal Studios) began construction in 1987. While the original Universal Studios in Hollywood was a major attraction, it was decided that a larger area and the addition of another park would yield opportunity for the ability to expand and create larger versions of the attractions, in addition to new and innovative ones. The initial opening included popular attractions such as Jaws and King Kong that were single self-contained instead of being simply a small part of a tram tour like at the Hollywood park.
1995 marked a notable year as The Seagram Company, Ltd. Purchased MCA, the original owner and creator of the Orlando destination. MCA was then renamed to Universal Studios in 1996, a year later. The year 1999 then marked a big year for Tourism and profits as the second theme park in the complex, named Universal’s Islands of Adventure opened, with The Amazing Adventures of Spiderman being the main attraction. The whole complex is rebranded Universal Orlando. A decade after its opening in 2000, Vivendi merged with Seagram, including its interest in Universal Studios, Inc. A few years later in 2004 General Electric purchased Vivendi Universal’s acquired interest and merged the company with NBC. From then on it became NBC-Universal. Most recently in 2010,The Wizarding World of Harry Potter was opened and has since drawn in record crowds.
Looking at corporate leadership positions at Universal Orlando Resort, William A. Davis sits at the top of the list. He is the President and Chief Operating Officer of Universal Orlando Resort, and reports directly to Tom Williams, Chairman of Universal Parks and Resorts. Thomas L. Williams, having served as Chairman and Chief Executive Officer since September 1999, oversees Universal Studios Parks & Resorts, including the entire Universal Orlando resort and its counterpart in Hollywood. In addition to this, he is in charge of the Universal Parks & Resorts in Japan, in addition to developing new theme parks in metropolitan areas as far away as Dubai, Singapore and South Korea. It is quite notable and speaks to his experience that Williams has been with the organization since he joined Universal Studios Resort since its origins in 1987, being a member on a team in charge of essentially developing all aspects of the brand new theme park.
When it comes to past and recent performance, Universal Resort Orlando shows constantly innovation and growth, a large part of which may be a result by the rising pressure amounting from Disneyworld. Just by taking a quick look into their press releases, 2014 appears as if it may become one of their most epic years yet. It has been announced that the CityWalk will undergo a historic expansion in 2014, yet this is only the beginning. Plans have been announced for the opening of the vacation destination’s largest hotel yet, to be named Cabana Bay Beach Resort. Furthermore, already extremely profitable and crowd drawing Wizarding World of Harry Potter will be opening the new Diagon Alley exhibit. Naturally, new business ventures also call for more staffing needs. In response to this, Universal Resort has also announced the the addition of 3,500 new jobs in 2014 in order to keep all new operations running smoothly.
In the Headlines
Disney is in the news on a routine basis. Being an international household name with hubs of business across the world, there is always some Disney related news to report on. Recently, Disney has been receiving a lot of coverage for their newest feature film “Frozen,” which has been widely successful, surpassing the $900 million mark for box office totals. Their recent increase in ticket prices at Walt Disney World also has the news sphere buzzing; a daily ticket to Walt Disney World now costs $99. Disney’s impressive performance on the Dow Jones Industrial Average has also been receiving some attention, seeing as how their business is able to continuously grow, largely in part due to their continual success at the box office. Another exciting event that is catching Disney media attention is the AVATAR-themed land currently being built in Walt Disney World’s Animal Kingdom. Check out this blog post on Disney Parks Blog to catch a first glimpse at this amazing new world currently under construction in Orlando, Florida!
There has been recent and noteworthy coverage of Universal Resort Orlando in the media. Just last year, quite a few employees of Universal became outraged at the effect that the newly passed Affordable Care act would have on their benefits. Specifically, this article details that the coverage for part-time employees of Universal would have to be dropped by the end of 2013. While Universal spokesman Tom Schroder mentioned that only approximately 3 percent of the 17,000 team members were affected, it appears Universal Resort is not alone in struggling with the adjustment to the new policy. Both Walt Disney World and Sea World Orlando were also mentioned to be in discussions about making decisions about the matter at a later date.
We are Emily Huxford and Eileen Sellman. In this blog we aim to document the organizational structure of Universal Studios Resort and Disney World Resort, both located in Orlando, Florida. We believe these tourism competitors, located just fifteen miles apart, will exhibit both similarities and differences when it comes to their organizational structures. Studying their respective organizational set ups will hence lead to their using of various strategies in order to gain a competitive advantage over the other. These organizations are of personal interests to the both of us; having grown up watching both Disney and Universal’s movies throughout our childhoods – they have always been a part of our lives.
“Experience the Movies.” -Universal
Orlando has been a prominent tourist destination for some time, and inevitable questions that visiting tourists must always face include which park to visit first, visit longest, and which their families would enjoy the most: Disney World, or Universal Studios? However, for our purpose the biggest question to answer is how the underlying organizational structure of each company will ensure that their company becomes and remains the number one choice in the tourism market. Through our primary and secondary research, we hope to discover how the choices and decisions of management in both organizations have influenced their status and power in the industry. These findings will help us understand both organizations and how they make their decisions in order to ensure continued growth and success of their organization in a market that is competitive on essentially every level of business.
While we are in no way organizational experts now, we do feel that we can make certain recommendations for both organizations. For Universal, we recommend that steps be taken to increase communication as much as possible. From our findings, we see that an attempt is made my management to increase both formal and informal relations between upper level members of the organization. However, it will take much more than a simple move to a different location to alleviate communication barriers. Our survey results showed that the lack of communication to lower level employees in the organization was blatantly visible to stakeholders (in this case customers and visitors of the park). Hence, communication and increasing both the quality and availability of information flowing through the hierarchy of members is number one recommendation to Universal Orlando.
that Disney can only do so much to ensure their employees help create magical experiences for their guests and that a few people will inevitably slip through the cracks, but we feel like there is still room for improvement. Disney should keep an eye out for unruly Cast Members that may end up ruining some park guests’ Disney experience and tarnishing the Disney brand. Ultimately, we have definitely enjoyed our time studying and blogging about these two parks. We could not have picked a more fun-loving and interesting topic! Through our study of these two massive organizations, we have concluded that the reason these two parks are able to coexist peacefully is because of their differing themes. Universal is catered more towards adventure and action, while Disney is catered more towards magic and fairytales. In the end, we have decided that the two differing themes are equally appealing in our eyes. We think it would be incredibly insightful and interesting to visit these two parks now that we know so much about their organizational culture. Seeing the magic and the adventure take place before our very own eyes would be the cherry-on-top to this engaging and entertaining project!
Walt Disney World vs. Universal Resort 