hollygolitely93
DIS Veteran
- Joined
- Feb 13, 2011
- Messages
- 1,025
I agree 1000%
I agree about the pressures from Wall St. It's gotten ridiculous. Companies can not take measures that will improve their results long-termif it means some short-term pains. Two bad (or even just mediocre) quarters and the hedge fund and pension fund managers are calling for the CEO's head. Long-term, value-based investing has pretty much gone the way of the dinosaur. In today's climate, they are always forced to have too much of a short-term approach as they must be supremely focused on the next quartely earnings and not enough on the future. That's a problem in every business in every sector - Disney included. And many times this is what leads to a lot of the seemingly "silly" or "trivial" cutbacks. Some may be good business decisions - in Disney's case, I would consider generic napkins one. Some are bad decisions - generic merchandise across the board, or cutting performers such as the living statues in Epcot or the street performers in DHS I would categorize as poor decisions.
Management in just about all businesses these days have a terrible approach. They focus on all the wrong things. Many times, because those are the things that some management text book said they should be focusing on. They are obsessed with "metrics" (oh how I hate that word) and generally lack good old common sense.
I don't know if I completely agree. While certainly companies are very caught up in quarterly earnings...they can't report good earnings consistently without a long-term strategy. The stock ratings are on more than earnings but the entire balance sheet. Think back to Sears-Roebuck days when they were trading at nothing and their rating was horrible...they were pulling a profit but completely through op ex (cut backs) and not through increase revenue. Most successful companies have long-term strategies that include GOP targets, revenue targets, and levers like pricing, distribution, acquisitions, etc.
I also disagree that business these days all have a terrible approach. Talent Acquisition and Talent Development is a growing sector as businesses realize there is an emotional aspect to becoming a brand with staying power. Digital Marketing has turned power to the consumer in a way they never had before (see Pampers Diaper Rash example). Companies that don't spend time on the human capital and only focus on the "metrics" will find themselves as a commodity in today's world. Disney does not fall into that position to me, at all.
Where I do agree is there are companies out there that for sure our chasing the quarterly profit and focusing only on the metrics without strategy of leadership. But they aren't showing strong results and staying power. They aren't the Fortune 500, now!