As it opens new attraction, Disney prepares to cut capital spending

[DizneyFreak2002]

I hope you are right but the upkeep at WDW has been bad longer than the referbs have been going on. As a matter of fact they haven't even come up with a way to fix the yeti yet and that has been years. They seem to focus on the west coast more than WDW which should be there showcase. After all it was where Walt believed all his ideas could come to be.

They have several plans to fix the yeti... Problem is, TDO does not want to pay for it, when they should... They want WDI to pay for it, and technically, this isn't WDI's problem... TDO lacks maintenance, they are in ownership of the ride... The ride breaks, they pay to fix it... But, well, those bonus checks are more important than quality and good show...

[Jared]

They have several plans to fix the yeti... Problem is, TDO does not want to pay for it, when they should... They want WDI to pay for it, and technically, this isn't WDI's problem... TDO lacks maintenance, they are in ownership of the ride... The ride breaks, they pay to fix it... But, well, those bonus checks are more important than quality and good show...

In fairness, I think this issue in particular is a bit more nuanced than you're suggesting. I can definitely see how TDO might blame Imagineering for faulty design on the yeti. It seems like this specific problem is more than just routine maintenance -- this may have been a major flaw from the outset.

[Ian]

Just want to add something I observed many years back at DL. It was the first time I took my kids there and it was while they were building DCA. What I noticed was that maintenance and up keep on DL was terrible.

DL went through that stage, you are correct... Want to know what it took to improve the park??? Canning the inept management team in TDA... Unless TDO gets the boot, things will not change...

DizneyFreak is right on this one. They had to fire the entire management team and it basically took a passholder revolt to get it done. WDW doesn't have that kind of deeply loyal, passionate fan base making up a large portion of its visitors. That's one of the things that hurts WDW.

In fairness, I think this issue in particular is a bit more nuanced than you're suggesting. I can definitely see how TDO might blame Imagineering for faulty design on the yeti. It seems like this specific problem is more than just routine maintenance -- this may have been a major flaw from the outset.

Yeah I can sort of see both sides. Bottom line, though, is that the fact that the company is so dysfunctional that they can have this kinda "You did it! No you did it!" infantile arguments going on at the expense of the guests is very disheartening to me.

[DizneyFreak2002]

In fairness, I think this issue in particular is a bit more nuanced than you're suggesting. I can definitely see how TDO might blame Imagineering for faulty design on the yeti. It seems like this specific problem is more than just routine maintenance -- this may have been a major flaw from the outset.

Yea, I'm sure there is, or was a design flaw... Seems like WDI wanted to show off its muscle and really miscalculated the power needed to operate the yeti...

Simple solution though: split the costs...

[DizneyFreak2002]

DizneyFreak is right on this one. They had to fire the entire management team and it basically took a passholder revolt to get it done. WDW doesn't have that kind of deeply loyal, passionate fan base making up a large portion of its visitors. That's one of the things that hurts WDW.

There have been attempts, but no one ever really put an effort into it... But, that doesn't mean it cannot succeed... We just need some passionate people to dedicate time to the cause..

#OccupyWDW... Lol

[March Hare]

DizneyFreak is right on this one. They had to fire the entire management team and it basically took a passholder revolt to get it done. WDW doesn't have that kind of deeply loyal, passionate fan base making up a large portion of its visitors. That's one of the things that hurts WDW.

This is another thing that infuriates me and is more proof the share holders are the ones in charge. There should be no need of a passholder revolt. Businesses and share holders need to wake up and realize that if the parks continue to be neglected they will all lose money eventually because of lost profits do to lower attendance. You can only cut so much before you have to sell stuff off to raise profits which lowers the companies worth which hurts everyone from the CEO to the Workers to the share holders.

Yeah I can sort of see both sides. Bottom line, though, is that the fact that the company is so dysfunctional that they can have this kinda "You did it! No you did it!" infantile arguments going on at the expense of the guests is very disheartening to me.

I can also see both sides but I will say that it is probably more likely the fact that both their budgets have been cut to the bare bones from the top. The fault of this does lay on both teams not just for the fact that they don't want to take blame but for the fact that they are just yes men. I say the whole tree needs to be shaken to get rid of the bad apples and replace them all with people who will uphold Walt ideals and dreams. A long lasting company does for the customers not for the few "day traders" that want quick profits and move on.

[Tekneek]

A long lasting company does for the customers not for the few "day traders" that want quick profits and move on.

It seems to be too late for that kind of reasoning. Disney is "all in" at the Wall Street casino.

[Crow]

This is another thing that infuriates me and is more proof the share holders are the ones in charge. There should be no need of a passholder revolt. Businesses and share holders need to wake up and realize that if the parks continue to be neglected they will all lose money eventually because of lost profits do to lower attendance. You can only cut so much before you have to sell stuff off to raise profits which lowers the companies worth which hurts everyone from the CEO to the Workers to the share holders.


I can also see both sides but I will say that it is probably more likely the fact that both their budgets have been cut to the bare bones from the top. The fault of this does lay on both teams not just for the fact that they don't want to take blame but for the fact that they are just yes men. I say the whole tree needs to be shaken to get rid of the bad apples and replace them all with people who will uphold Walt ideals and dreams. A long lasting company does for the customers not for the few "day traders" that want quick profits and move on.

its a company, its not a dream anymore......yes we forgot it was a small mouse Walt sorry.
i couldnt even see the strobe Yeti last time

[March Hare]

It seems to be too late for that kind of reasoning. Disney is "all in" at the Wall Street casino.

I would disagree with this only because they still have a large fan base. They can turn it around as long as they replace the management with people who start to care about the long term profits instead of the dividends of share holders. That is a small window of opportunity though because as soon as Universal surpasses Disney it will take a lot to catch up.

[Tekneek]

I would disagree with this only because they still have a large fan base. They can turn it around as long as they replace the management with people who start to care about the long term profits instead of the dividends of share holders. That is a small window of opportunity though because as soon as Universal surpasses Disney it will take a lot to catch up.

I believe that they only care about Universal in so much as it might damage revenues and the share price. If they can keep increasing profits and be #2, they might get away with it. Death by MBA.

If they cared about being better than everybody else in the execution of their parks, they wouldn't bank a $1 billion profit with known operational concerns that are still not being addressed.

[AgentC]

I believe that they only care about Universal in so much as it might damage revenues and the share price. If they can keep increasing profits and be #2, they might get away with it. Death by MBA.

If they cared about being better than everybody else in the execution of their parks, they wouldn't bank a $1 billion profit with known operational concerns that are still not being addressed.

My opinion here is not Disney specific but as an employee of a major corporation for the last 15 years. No company who has been number 1 ever really wants to become number 2, even if they are making a profit. Companies who aren't number 1 are always trying to move up the ladder which can make them more eager and innovative.

At my company I've seen us change from a company that wanted to expanded and make a certain amount of money to a company where cost cutting was the most important thing. Suddenly we have a new executive who no one expected. Now, we are a company that wants to make our customer happy and through happy customers make our stockholders happy. It takes just one person to turn a massive ship around.

Do I think this is going to happen with Disney? I have no idea. If someone told me my company would be heading down the path we are now last year, I would not have believed it.

Anything is possible.

[March Hare]

My opinion here is not Disney specific but as an employee of a major corporation for the last 15 years. No company who has been number 1 ever really wants to become number 2, even if they are making a profit. Companies who aren't number 1 are always trying to move up the ladder which can make them more eager and innovative.

At my company I've seen us change from a company that wanted to expanded and make a certain amount of money to a company where cost cutting was the most important thing. Suddenly we have a new executive who no one expected. Now, we are a company that wants to make our customer happy and through happy customers make our stockholders happy. It takes just one person to turn a massive ship around.

Do I think this is going to happen with Disney? I have no idea. If someone told me my company would be heading down the path we are now last year, I would not have believed it.

Anything is possible.

I am very happy to hear this has happened to your company and it gives me hope. The company I have worked for the last 23 years has been going down the cost cutting path right now and I am truly fearful that if it doesn't turn around real soon we will be out of business. This is what I see happening with Disney as of late. The "Walmarting" effect has taken over companies as of late. I am sick and tired of companies blaming the economy when they are the ones that control it. When you cut jobs, spending, and raise prices only to squeeze every penny of profit out then you are the only ones to blame for the failure of the companies you are " in charge" of. Just a note the companies before you that have done the same thing have lost their faithful share holders and are stuck with the day traders and there for see your stock price plummet. I have seen this first hand as the stock prices went from over $40 to under $4 a share.

[DizneyFreak2002]

My opinion here is not Disney specific but as an employee of a major corporation for the last 15 years. No company who has been number 1 ever really wants to become number 2, even if they are making a profit. Companies who aren't number 1 are always trying to move up the ladder which can make them more eager and innovative.

At my company I've seen us change from a company that wanted to expanded and make a certain amount of money to a company where cost cutting was the most important thing. Suddenly we have a new executive who no one expected. Now, we are a company that wants to make our customer happy and through happy customers make our stockholders happy. It takes just one person to turn a massive ship around.

Do I think this is going to happen with Disney? I have no idea. If someone told me my company would be heading down the path we are now last year, I would not have believed it.

Anything is possible.

It could be possible once Iger is gone and he takes Rasulo and Staggs with him... Then the new CEO, from outside the company and a creative mind, can replace the Crofton Minions in Orlando...

[Tekneek]

It could be possible once Iger is gone and he takes Rasulo and Staggs with him... Then the new CEO, from outside the company and a creative mind, can replace the Crofton Minions in Orlando...

Maybe they need a partnership at the top again. Eisner/Wells was good. Left to pilot the ship by himself, Eisner lost his way.

The magic of Disney was not made just by the brilliant mind of Walter E. Disney. It took the brilliant mind of Roy O. Disney, as well. The company was lucky to have them. They were even luckier to put Eisner/Wells together. Will they be able to find that kind of partnership again? Might be easier than finding one person that knows how to manage both sides?

I still don't think a company that is determined to be the best would post a $1 billion profit without everything being top notch. They've 'managed' their way to that, while putting the parks on a decidedly non-Disney maintenance schedule. Why? Because the marketplace doesn't seem to care much if everything looks real nice or works properly. The company itself is no longer worried about putting on a bad show, as long as people line up to see it.

[Ian]

Listen I have news for you guys ... this is not an uncommon occurrence. There are entire books, corporate training sessions, seminars and all manner of other things geared around teaching companies to think "outside in" and not "inside out."

It's a natural progression to some degree. Companies go through life-cycles where they start out customer focused and then, through a series of small steps, gradually become focused internally instead. They start to view the customer almost like an enemy ... they're never happy, they complain about everything, they don't do what we want them to do, they don't behave the way we want them to behave ... and that builds a level of animosity that eventually pervades the entire organization from the top down.

The good news it typically changes eventually and the cycle starts all over again.

[Aurora]

Listen I have news for you guys ... this is not an uncommon occurrence. There are entire books, corporate training sessions, seminars and all manner of other things geared around teaching companies to think "outside in" and not "inside out."

It's a natural progression to some degree. Companies go through life-cycles where they start out customer focused and then, through a series of small steps, gradually become focused internally instead. They start to view the customer almost like an enemy ... they're never happy, they complain about everything, they don't do what we want them to do, they don't behave the way we want them to behave ... and that builds a level of animosity that eventually pervades the entire organization from the top down.

The good news it typically changes eventually and the cycle starts all over again.

The question is, what's the catalyst? Is it customer demand? A new leader who recognizes things must change for the good of the company? A precipitous drop in stock price? A board of trustees revolt?

Maybe I'm wrong, but none of these seem imminent right now.

[Ian]

The question is, what's the catalyst? Is it customer demand? A new leader who recognizes things must change for the good of the company? A precipitous drop in stock price? A board of trustees revolt?

Yes.

But seriously it can be any of those things or a combination of them or something just blind luck (as Cindy mentioned in her post).

I do agree, though, that none of those things seems imminent, although I'm not sure. I've seen and heard a few things that maybe indicate TDO as it exists today isn't long for this "world".

[Jared]

A corporate shake-up is a lot closer than you probably think. Bob Iger is likely out as CEO within the next 18 to 24 months. I would be surprised if Rasulo and Staggs don't go with him. Alan Horn's appointment as studio chief may mark the beginning of a new leadership group that hopefully will mean good things for the company. The TDO that you know is definitely not long for this "World."

[March Hare]

Yes.

But seriously it can be any of those things or a combination of them or something just blind luck (as Cindy mentioned in her post).

I do agree, though, that none of those things seems imminent, although I'm not sure. I've seen and heard a few things that maybe indicate TDO as it exists today isn't long for this "world".

First of all with my experience it will probably take a combination. I have seen first hand a drastic drop in stock price and a CEO that has decided to cut even deeper even though it has only hurt the company in the first place. A share holder that is worth while having will stick around through a rebuilding period because they know what the company is capable of.

Second of all I hope you are right but i am not sure it will be enough. I think they really need to start at the top and work all the way to the bottom and get rid of anyone who won't keep true to Walt's way of running the business. They need to go back to the old saying of "you need to spend money to make money" and fix the problems they have let go so they will entice more repeat customers.

[joonyer]

I just hope that whatever needs to happen to get Disney "moving forward" as Walt envisioned it happens soon. It's not like I have another lifetime to wait for them to get it going right again.