The response of multinational entertainment and media companies to unforeseen crises and risks – a case study

Abstract

Abstract This paper investigates the reaction of multinational companies in the entertainment and media (E&M) industry to different unforeseen crises and risks. The study is devoted to the research of the influence of new challenges on the E&M industry and the way how companies manage their strategies in response to various crises and risks. It is conducted through the anecdotal case study of the Walt Disney Company (TWDC), a major entertainment and media company. The article is directed at finding the answer to the research question “How can entertainment and media companies effectively manage their strategies in different segments during new challenges?” and hypothesizes that conglomerates have greater exposure to crises and risk than other organizations, and conglomerates that manage crises and risks can not only suffer but also win, and when crises or risks hit conglomerates they can offset the losses of one division with the success of another. After a thorough review of the literature on unforeseen crises and risk management, and companies’ decisions about business units’ management in the E&M industry, the author analyses the effects of different crises and risks, and the reaction of the industry as a whole and conducts an in-depth analysis via the example of TWDC. In the course of the study, the actions of companies in the moments of facing difficulties are analyzed and recommendations are given accordingly. The author also discusses the paper’s limitations and highlights areas for potential further research.