{"id":877,"date":"2019-04-24T19:30:16","date_gmt":"2019-04-24T19:30:16","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/?post_type=chapter&p=877"},"modified":"2024-04-24T22:40:12","modified_gmt":"2024-04-24T22:40:12","slug":"why-it-matters-organizational-structure","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/chapter\/why-it-matters-organizational-structure\/","title":{"raw":"Why It Matters: Organizational Structure","rendered":"Why It Matters: Organizational Structure"},"content":{"raw":"

Why learn about\u00a0common organizational structures?<\/h2>\r\nIn March, 2018, Walt Disney Company announced a major restructuring of their business.\u00a0The Los Angeles Times<\/em> reported the following:[footnote]Miller, Daniel, and Jaclyn Cosgrove. \"Disney Restructures Its Business as Digital Disruption Shakes up the Media Industry.\" Los Angeles Times. March 14, 2018. Accessed April 24, 2019. https:\/\/www.latimes.com\/business\/hollywood\/la-fi-ct-disney-restructuring-20180314-story.html<\/a>.[\/footnote]\r\n
The Burbank-based entertainment giant said it would combine its international media business and its content streaming operation into one unit and create another division to house its consumer products business along with Walt Disney Parks and Resorts.\r\n\r\nThe move\u2014Disney\u2019s biggest restructuring in recent years\u2014is the latest effort by a legacy entertainment and media company to adapt to rapid changes in consumer behavior driven by digital technology.\r\n\r\nDisney had been expected to make structural changes as it prepares to launch two streaming services and buy film and TV assets owned by 21st Century Fox\u2014a $52.4-billion deal that requires federal regulatory approval.\r\n\r\nDisney\u2019s new direct-to-consumer and international unit will include the upcoming ESPN+ streaming service, which launches later this year, and a Disney-branded film and TV streaming offering scheduled to debut in 2019.<\/blockquote>\r\nDisney is a company that has proven they can change with the times. As they near their 100th anniversary, they are preparing to take on some new environmental shifts in the business. People are now demanding streaming as a part of their entertainment. Disney is ready to answer that call.\r\n\r\nBut do they need to change the way their business is structured\u2014who reports to whom, functional groupings, span of control\u2014to adapt? Does this restructuring support the company\u2019s strategy? Ultimately\u2026will the restructure increase their profits?\r\n\r\nOrganizational structure is an important aspect of the organizational behavior framework, and organizations refer to them time and again as they prepare to take on the changing headwinds of their business environments. Disney feels these structure changes will set them up for success. But don\u2019t take the word of a man and his mouse. The many benefits of a solid, appropriate organizational structure will follow. \u00a0It may surprise you just how much of a difference it can make.","rendered":"

Why learn about\u00a0common organizational structures?<\/h2>\n

In March, 2018, Walt Disney Company announced a major restructuring of their business.\u00a0The Los Angeles Times<\/em> reported the following:[1]<\/sup><\/a><\/p>\n

The Burbank-based entertainment giant said it would combine its international media business and its content streaming operation into one unit and create another division to house its consumer products business along with Walt Disney Parks and Resorts.<\/p>\n

The move\u2014Disney\u2019s biggest restructuring in recent years\u2014is the latest effort by a legacy entertainment and media company to adapt to rapid changes in consumer behavior driven by digital technology.<\/p>\n

Disney had been expected to make structural changes as it prepares to launch two streaming services and buy film and TV assets owned by 21st Century Fox\u2014a $52.4-billion deal that requires federal regulatory approval.<\/p>\n

Disney\u2019s new direct-to-consumer and international unit will include the upcoming ESPN+ streaming service, which launches later this year, and a Disney-branded film and TV streaming offering scheduled to debut in 2019.<\/p><\/blockquote>\n

Disney is a company that has proven they can change with the times. As they near their 100th anniversary, they are preparing to take on some new environmental shifts in the business. People are now demanding streaming as a part of their entertainment. Disney is ready to answer that call.<\/p>\n

But do they need to change the way their business is structured\u2014who reports to whom, functional groupings, span of control\u2014to adapt? Does this restructuring support the company\u2019s strategy? Ultimately\u2026will the restructure increase their profits?<\/p>\n

Organizational structure is an important aspect of the organizational behavior framework, and organizations refer to them time and again as they prepare to take on the changing headwinds of their business environments. Disney feels these structure changes will set them up for success. But don\u2019t take the word of a man and his mouse. The many benefits of a solid, appropriate organizational structure will follow. \u00a0It may surprise you just how much of a difference it can make.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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