There are some structures that contribute entirely to improvement of the company. These structures include; functional structure, functions are quite separate with the leadership of the senior executive who would be below the CEO. Advantage of this structure would be efficiency as well as economies of scale towards functional skills are leadership. The disadvantage of the structure would be on the functional goals which could end up overshadowing the goals of the company (Thomas G. Cummings pg5).
If we look into the US film industry, we can identify The Walt Disney, Touchstone Pictures and Sony Pictures Entertainment as one of the most successful production houses which have been operating successfully since decades. In order to understand the process and business strategies associated with the industry, it will be beneficial to analyze in detail the success of Touchstone pictures since its establishment ( Walt Disney). Ron W Miller started the company, 1984, and the very first film that introduced was a smash hit, earning a PG Rating (highly successful), and earned a whooping $64 Million. The company has grown since then and there has been a lot of improvement in the strategy and promotions of the products, the domestic box office specifies the success of a film which is primarily related to not only the creative aspects, but now it also majorly depends upon the international network, Internet and mobile promotions (Newswrire).
In case of a blockbuster movie development a Matrix structure is usually helpful as it involves people typically having several lines of the report. A matrix organization combines the two divisional and functional lines. For instance here marketing manager might report the two to the functional marketing heads and the country leader of the division he or she would works in. The merit of matrix structure organization concentrates on divisional duties sharing functional skills as well as resources (Thomas G. Cummings).
The company requires a network structure also called a lean structure; it has fundamental functions that work the required business. It would outsource or offer subcontracts towards non-core functions depending on the business type which could include distribution, manufacturing information technology and marketing. Like in case if the company has to release a particular in-house production into a different country, then they would be required to outsource the distribution to the local market (Thomas G. Cummings).
Leadership is an essential aspect in the movie production industry, as we saw that it was the vision of the founder and CEO of Touchstone pictures that helped the company to achieve marvelous success in such short time. The leader of a production firm should be an excellent domain defender and must be able to democratically organize the employee motive toward the organization goal? A perfect leader in the industry perceives little or no uncertainty in the environment and values creativity and viewer’s discretion. Most of the time, a perfect monitoring program that could acclimatize the employees to appreciate the environment might promote the organization. (Vries pg 3)
Walt Disney. The Walt Disney Company. SEC filing Form. New York: Walt Disney, 2006.
Newswrire. "Online Movies, Taiwanese Law, and the American Film Industry." MP3 Newswire 2 Feburary 2002.
Thomas G. Cummings, Christopher G. Worley. Organization development & change. Stamford: Cengage Learning, 2008.
Vries, Manfred F. R. Kets de. Reflections on Leadership and Career Development:. New Jersey: John Wiley & Sons, 2011.