First of all we are grateful to Almighty Allah most beneficial & the most merciful, who has made us capable of making this report & has given us various opportunities for development in every walk of life. We would also like to show gratitude towards my course instructor “Ma’mKiran” for teaching & making us capable enough to work on this report & providing us with great opportunity to learn how case study analysis is done in the corporate world. Without his complete guidance and support I would not have been able to complete this endeavour. I hope this report meets his standards and expectations.
TABLE OF CONTENT
S.NO 01. 02 03 04
TOPIC INTRODUCTION THE FOUNDER HISTORY COMPANY OVERVIEW MEDIA NETWORKS PARKS & RESORTS THE WALT DISNEY STUDIOS DISNEY CONSUMER PRODUCTS DISNEY INTERACTIVE GROWTH LOCATION MAP MISSION STATEMENT PROPOSED MISSION STATEMENT COMPETITORS STAGE 1: INPUT STAGE EXTERNAL FACTOR EVALUSTION (EFE ) MATRIX. COPMETITIVE PROFILE MATRIX (CPM) INTERNAL FACTOR EVALUATION(IFE) MATRIX STAGE 2: MATCHING STAGE 1. SWOT MATRIX 2. STRATEGIC POSITION & ACTION EVALUATION (SPACE) MATRIX 3. BOSTON CONSULTING GROUP (BCG ) MATRIX 4. INTERNAL EXTERNAL (IE) MATRIX 5. GRAND STRATEGIC MATRIX
PAGE NO 4 4 5 6 - 25
05 06 07 08 09
26 27 28 28 29 - 32
TOPIC STAGE 3: THE DECISION STAGE 1. QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) FINANCIAL POSITION OF WALT DESINEY COMPANY 1. INCOME STATEMENT 2. BALANCE SHEET 3. FINANCIAL RATIO ANALYSIS IMPLEMENTATION STAGE 1. ANNUAL OBJECTIVES & POLICIES 2. STRATEGIES RECOMMENDATIONS CONCLUSION
PAGE NO 41-44
Walt Disney is one of the world's leading producers and providers of entertainment and information. It owns media networks as well as parks and resorts. The company also makes movies and markets consumer products. Walt Disney operates in North America, Europe, Asia Pacific and Latin America. It has strong portfolio of brands in entertainment business. Strong brand image helps the company attract consumers to its entertainment products. The company also has the option to leverage its strong brand image to enter new businesses.
Walt Disney 1901-1966
Walt Disney was born on December 5, 1901 in Chicago Throughout the drop of 1918, Walt Disney attempted to enlist for military service but he got rejected. He started a small company called Laugh-O-Grams, which eventually fell bankrupt. With his suitcase, and $20 Walt headed to Hollywood to start anew. After making a success of his "Alice Comedies," Walt became a recognized Hollywood figure. Disney took a deep interest in the establishment of California Institute of the Arts, a college-level professional school of all the creative and performing arts. Walt Disney passed away on December 15, 1966. Urban legend maintains his corpse would be frozen and stored beneath the Pirates of the Caribbean ride at Disneyland.
October 16, 1923:
This date is considered the start of the Disney Company first known as The Disney Brothers Studio.
First Mickey Mouse cartoon and the first appearance by Minnie Mouse.
Flowers and Trees, first full-colour cartoon and first Academy Award winner.
The Disney Studio begins its move to Burbank, California.
Walt Disney Productions issues its first stock.
digital media. the section includes supporting headquarters. is a leading diversified international family entertainment and media enterprise with five business segments:
1. owned television stations group. the Disney name has symbolized creativity. analysis and sales teams. MEDIA NETWORKS
Media Networks comprise a huge array of broadcast. communications. decency. ABC Family as well as Disney/ABC Domestic Television and Disney Media Distribution.COMPANY OVERVIEW:
For over 85 years. Additionally to content development and distribution functions.no
1 2 3 4 5 6 7 8
ESPN Disney/ABC Television Group ABC Entertainment Group ABC News ABC Owned Television Stations Group ABC Family Disney Channels Worldwide Hyperion Books
. innovation. and distribution. business enterprise and digital businesses across 2 divisions – the Disney/ABC Television cluster and ESPN Inc. The Disney/ABC Television Group is composed of The Walt Disney Company’s global entertainment and news television properties. together with its subsidiaries and affiliates. marketing. optimism and quality. The Walt Disney Company has been the preeminent name in the field of family entertainment.
S. trust. ABC Entertainment Group. Disney. Disney Channels Worldwide. This includes the ABC Television Network. ABC Owned Television Stations Group. as well as radio and publishing businesses. Hyperion publishing and the Company’s equity interest in A&E Television Networks round out the Group’s portfolio of media businesses. cable. radio.
ESPN The Magazine. ABC Owned Television
Stations Group. ESPN3. TV networks (five w/HD services).
Industry: Sports Media Founded: 1979 Headquarters: Bristol.com. CA Properties: ABC Entertainment Group. Disney/ABC Television Group Digital Media. other sport.S.
1. ESPN.1. and more. CT Properties: Eight U. Watch ESPN. Disney/ABC Domestic Television.2. ABC News. Radio. radio. owned events.1. Publishing & Digital Media Founded: 2004 Headquarters: Burbank. ABC Family. DISNEY/ABC TELEVISION GROUP
Industry: Television.& market-specific sites. Mobile ESPN. ESPN Audio. ESPN International (48
networks plus HD. digital platforms & more).
NY Properties: ABC News Digital. ABC Studios.3. ABC ENTERTAINMENT GROUP
Industry: Television & Digital Media Founded: 2009 Headquarters: Burbank. ABC News Now. ABC News Radio
. ABC Entertainment.
1. Radio & Digital Media Founded: 1962 Headquarters: New York. Times Square Studios.1. ABC NEWS
Industry: Television. CA Properties: ABC Digital.4.
IL. PA. ABC FAMILY
Industry: Television & Digital Media Founded: 2001 Headquarters: Burbank.5. Live Well Network.6. CA. WTVD-TV Raleigh-Durham. KFSN-TV Fresno. CA Properties: WABC-TV New York. CA. TX. NY. WPVI-TV Philadelphia.1. CA Properties: ABC Family Digital. KTRK-TV Houston. CA. NC. ABC Spark
. ABC OWNED TELEVISION STATIONS GROUP
Industry: Television & Digital Media Founded: 1948 Headquarters: Burbank. KGO-TV San Francisco. WLS-TV Chicago.
1. KABC-TV Los Angeles.
NY Properties:Hyperion. DISNEY CHANNELS WORLD WIDE
Industry: Television.8. Disney Junior. CA Properties: Disney Channel.
Radio Disney.7. Hungama. HYPERION BOOKS
Industry:Publishing Founded:1991 Headquarters: New York. Disney XD.1. Disney Cinemagic. Voice
1. Radio & Digital Media Founded: 1983 Headquarters: Burbank.
ushering in a new era of family entertainment. he created a unique destination built around storytelling and immersive experiences. At the heart of WDP&R are five world-class vacation destinations with 11 theme parks and 43 resorts in North America.no
1 2 3 4 5 6 7 8 9 10 11
Parks and Resorts
Disney Land Resorts Walt Disney World Resort Tokyo Disney Resort Disneyland Paris Hong Kong Disneyland Disney Cruise Line Disney Vacation Club Adventures by Disney Disney Shanghai Resort Aulani Disney Resort & Spa Walt Disney Imagineering
. More than 55 years later. Walt Disney Parks and Resorts (WDP&R) has grown into one of the world’s leading providers of family travel and leisure experiences. providing millions of guests each year with the chance to spend time with their families and friends making memories that will last forever. WDP&R also includes the Disney Cruise Line with its four ships the Disney Magic. PARKS AND RESORTS
When Walt Disney opened Disneyland on July 17. Disney Vacation Club.000 individual members. Disney Dream and Disney Fantasy. which provides guided family vacation experiences to destinations around the globe. with a sixth destination currently under construction in Shanghai. and Adventures by Disney. 1955. with 11 properties and more than 500.
S.2. Disney Wonder. Europe and Asia.
California Properties: Disneyland Park. 1971 Headquarters: Lake Buena Vista.
.2. Florida Properties: Magic Kingdom. 1955 Headquarters: Anaheim. Disney California Adventure
2.2. WALT DISNEY WORLD RESORT
Industry: Theme Park and Resort Founded: October 1. Disney’s Hollywood Studios. Epcot. DISNEY LAND RESORT
Industry: Theme Park and Resort Founded: July 17.1. Disney’s Animal
. 1983 Headquarters: Chiba Prefecture. HONG KONG DISNEYLAND
Industry: Theme Park and Resort Founded: September 12. 1992 Headquarters: Marne-la-Vallée in the IIe-de-France region Properties: Disneyland Park. Tokyo Disney Sea
2.2.4. TOKYO DISNEY RESORT
Industry: Theme Park and Resort Founded: April 15. Japan Properties: Tokyo Disneyland Park. Walt Disney Studios Park. DISNEYLAND PARIS
Industry: Theme Park and Resort Founded: April 12.5.
7.Headquarters:Lantau Island. Disney Wonder (1999). DISNEY CRUISE LINE
Industry: Cruise Line Founded: 1998 Headquarters: Port Canaveral. Disney Dream (2011). DISNEY SHANGHAI RESORT
Industry: Theme Park and Resort Founded: Targeted to Open in Late 2015 Headquarters:Pudong New District.6. Florida Properties: Disney Magic (1998). Shanghai Properties: Shanghai Disneyland Park
. Hong Kong Properties: Hong Kong Disneyland Park
9. California. a Disney Resort & Spa. DISNEY VACATION CLUB
Industry: Timeshare Founded: October 1991 Headquarters: Florida. Hawai‘i
. South Carolina. Hawai‘i Properties: Disney Vacation Club
2. KoOlina. O`ahu.2. Hawai‘i Properties:Aulani.8. AULANI DISNEY RESORT & SPA
Industry: Hotel and Timeshare Founded: August 2011 Headquarters:KoOlina.
1952 Headquarters: Glendale.10.11.
Industry: Guided Vacations Founded: 2005 Headquarters: Burbank.WALT DISNEY IMAGINEERING
Industry: Theme Park and Resort Founded: December 16. California Properties: Walt Disney Imagineering
. CA Properties: Adventures by Disney
S. Marvel Studios. THE WALT DISNEY STUDIOS
For more than 85 years. Disney nature. including Walt Disney Animation Studios and Pixar Animation Studios. music and stage plays to consumers throughout the world. The Disney Theatrical Group produces and licenses live events. including Disney on Broadway. Feature films are released under the following banners: Disney.no
1 2 3 4 5 6 7 8
Walt Disney Studios
Walt-Disney Studios Motion Pictures Marvel Studios Touchstone Pictures Disney nature Walt Disney Animation Studios Pixar Animation Studios Disney Music Groups Disney Theatrical Group
. as well as Disney Music Publishing.3. The Walt Disney Studios has been the foundation on which The Walt Disney Company was built. the Studio brings quality movies. The Disney Music Group encompasses the Walt Disney Records and Hollywood Records labels. Disney on Ice and Disney Live. the banner under which live-action films from DreamWorks Studios are distributed. Today. and Touchstone Pictures.
CA Properties: Disney
3. WALT DISNEY STUDIOS MOTION PICTURES
Industry: Live-Action Film Production Founded: 1950 Headquarters: Burbank. MARVEL STUDIOS
Industry: Live-Action Film Production Founded: 1996 Headquarters: Manhattan Beach.2.1. CA Properties: Marvel Studios
Industry: Film Distribution Founded: 1984 Headquarters: Burbank. DISNEY NATURE
Industry: Nature Films Founded: 2008 Headquarters: Paris.3. CA Properties: Touchstone Pictures
3.3. France Properties: Disney nature
3. DisneyToon Studios
3. CA Properties: Walt Disney Animation Studios.5. DISNEY ANIMATION STUDIOS
Industry: Animated Film Production Founded: 1923 Headquarters: Burbank. PIXAR ANIMATION STUDIOS
Industry: Animated Film Production Founded: 1986 Headquarters: Emeryville. CA Properties: Pixar Animation Studios
7. Hollywood Records. Disney
Live. DISNEY MUSIC GROUPS
Industry: Music Founded: 1956 as Disneyland Records Headquarters: Burbank. CA Properties: Walt Disney Records. Disney On Ice. DISNEY THEATRICAL GROUP
Industry: Theatre Founded: 1993 Headquarters: New York.8.
.3. Disney Music Publishing
3. NY Properties: Disney Theatrical Productions (Disney on Broadway).
electronics and fine art.com and www.uk.4.co. the company's official shopping portals. Europe. home décor and books and magazines to foods and beverages.DisneyStore. DISNEY CONSUMER PRODUCTS
Disney Consumer Products (DCP) is the business segment of The Walt Disney Company (NYSE:DIS) and its affiliates that extends the Disney brand to merchandise ranging from apparel. toys. Disney Media Networks & Games. stationery. is owned and operated by Disney in North America. Disney Princess & Disney Fairies.no
1 2 3
Disney Consumer Products
Disney Licensing Disney Publishing Worldwide Disney Store
. The Disney Store retail chain. and www.
S. Disney & Pixar Animation Studios. Disney Live Action Film. the world's largest publisher of children's books and magazines. and Marvel. including: Disney Classic Characters & Disney Baby.DisneyStore. This is accomplished through a franchise-based licensing organization focused on strategic brand priorities. and Japan. which debuted in 1987. Other businesses involved in Disney's consumer products sales are Disney Publishing Worldwide.
Disney Libros (Spain). Disney Press. NY Properties: Disney Editions.2. and Disney Libri (Italy). DISNEY LICENSING
Industry: Licensing Founded: 1929 Headquarters: Glendale.1. Disney-Pixar and Marvel properties
4. Disney Book Apps.4. DISNEY PUBLISHING WORLDWIDE
Industry: Publishing Founded: 1930 Headquarters: White Plains. and Disney Learning. Disney Jump at the Sun. CA Properties: All Disney.
. Disney Hyperion. Disney Kids Magazines.
CA Properties: All Disney. DISNEY STORE
Industry: Retail Founded: 1987 Headquarters: Pasadena. Disney-Pixar and Marvel properties
Disney Online Disney Games
5. Disney Epic Mickey. families and Disney enthusiasts everywhere with world class products that push the boundaries of technology and imagination. CA Properties: Club Penguin.1. Where’s My Water.5. and #1-ranked web destinations Disney. DISNEY GAMES
Industry: Interactive Entertainment Founded: 1986 Headquarters: Glendale.com.com.
S. Babble. Disney Interactive creates high-quality interactive entertainment across all digital media platforms. DisneyBaby.com. social and console games. Gardens of Time
. DISNEY ONLINE
Industry: Digital Media Founded: 1995 Headquarters: North Hollywood Properties:
BabyZone. online virtual worlds.com Disney.com and the Moms and Family network of websites.com.2. DISNEY INTERACTIVE
Founded in 2008. DisneyFamily.
5. including blockbuster mobile. Disney Interactive entertains kids.
EPCOT Centre opens at Walt-Disney World Resort.
Disneyland Paris opens. Radio Disney. a live 24-hour music-intensive radio network.
Disney agrees to purchase 25 percent of the California Angels baseball team.
Disney-MGM Studios opens at Walt Disney World Resort. The Disney Channel begins operation in the UK. in Glendale.GROWTH
Mickey Mouse Club debuts on television. the first international Disney theme park. opens in Japan.
Walt Disney World Resort opens with the Magic Kingdom and two hotels near Orlando.
Disney Online launches Disney. Florida. Disney agrees to purchase Capital Cities/ABC for $19 billion. Disney Magic cruise ship departs on its inaugural cruise.
The first Disney Store opens. Disney’s Animal Kingdom opens at Walt Disney World Resort.
ESPN Magazine debuts.
as kids grow. establish their tastes. in order to reach the ones that have the purchasing power.
. Disney might lose market for being associated to younger children and family. we will become the most approachable and flexible to serve the needs of the consumers in our targeted markets and the most innovative and profitable entertainment experiences. Using our portfolio of brands to differentiate our content. Constantly making parents aware and comfortable with Disney goods and services. NBC Universal Times Warner
They compete with Disney in all the five branches. "The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Hence. while its competitors gain advantage for that reason. we seek to develop the most creative. and have their decisions taken into consideration by the parents while purchasing. is the marketing objective of The Walt Disney Company. Disney has a marketing advantage while appealing for not only children but also for the parents. However. the ones that often has the power of purchase decision.THE MISSION STATEMENT:
mission statement of Walt Disney is committed to balancing environmental stewardship with its corporate goals and operations throughout the world. Disney uses marketing more focused in the family. innovative and profitable entertainment experiences and related products in the world. 4. Viacom. which calls for the parents. while the others call customers individually. as well as their way of advertising. most reliable and relevant informational services and related products in the world. services and consumer products. But. 2. services and consumer products. News Corporation.
Competitors of Disney are: 1. 3."
PROPOSED MISSION STATEMENT:
By means of our collection of different brands.
STAGE 1 INPUT STAGE
1. COPMETITIVE PROFILE MATRIX (CPM) 3. EXTERNAL FACTOR EVALUSTION (EFE ) MATRIX. INTERNAL FACTOR EVALUATION(IFE) MATRIX
travel industry trends. High unemployment rate 6. 5. oil and transportation prices.05 0. 7.15 0.09
0. Lasting economic recession leading to slow growth rate. 3. Target new costumers group. 4.08 0. 3. Growth from cable and satellite operators creating even more potential for Disney to make money with their network.EXTERNAL FACTOR EVALUATION (EFE MATRIX)
KEY EXTERNAL FACTORS OPPORTUNITIES
1. 2. 6. 0.1
0. Prospect to build more theme park and resorts worldwide.1
2 2 4
1.07 0. Online streaming makes Disney vulnerable to piracy and violation of its intellectual property.24
0.08 3 4 3 4 0.32 0.Disney expenses due to their large amount of employees.06 0. and weather patterns and seasonality.21 0. amount of available leisure time.24 0. Changes in technology leads customers to stream online instead of buying DVD.4
0. 2. Opportunity to build & renovate attractions in Park and Resorts division to increase in profit. Retail distribution business is influenced by seasonal consumer purchasing behavior and by the timing and performance of animated theatrical release. Park and Resorts Divisions’ success is unpredictable because of exchange rate fluctuations.12 0. 4. Increase in labor cost which will have a noticed impact in Walt.4 0. Openings in other areas of the travel business. Opportunity to invest in building theme parks to satisfy the increase in guest spending.06 0.08 3 0.4
0. theme park attendance.12 0.29 30
0. and hotel occupancy. 5.07
COMPETITIVE PROFILE MATRIX
News Corporation Rating Score 2 0.36
3.48 3 0.24 3 0.36 2 0.48 4 0.48 4 0.12 0.44 4 0.59
3.27 4 0.77
critical success factor Advertising Technology Management Financial position Customer loyalty Global expansion Market share Company Image Production capacity
Weight 0.12 0.48 3 0.27 3 0.48 3 0.48 2 0.44 3 0.12
Walt Disney Rating Score 4 0.09 0.48 4 0.27 3 0.36 3 0.09 0.11 0.36 4 0.22 3 0.48 4 0.36 3 0.33 3 0.12 0.27 4 0.12 0.11 0.44 4 0.67
Time Warner Rating Score 4 0.27 3 0.33 4 0.
High cost of entertainment production. 3. High employee turnover. 4. Disney as such a diversify product range that it can reduce efficiency and lead to a lack of strategic focus. 7.2 0.04 0. 3.05 0.08
0. Innovative entertainment business.08 4 3 4 4 3 4 4 0. Strong advertising. 7.24 0.09 1 0. Walt Disney’s Park and Resorts are not easily accessible which leads people to associate Disney World with a costly trip. Disney owns a range of companies. 5.04 0.08 0.36 0.09
. Disney is the largest worldwide licensor of character-based merchandise and producer of children’s film-related products based on retail sales. which permits them to come up with high profits from different industry division such as Media Networks and Broadcasting.INTERNAL FACTOR EVALUATION (IFE) MATRIX
KEY INTERNAL FACTORS STRENGTHS
1. Strong Media Networks and Broadcasting division. Park and Resorts.07 0.32
1. One of the most familiar an amusement company in the world.4 0. 5.08 0.07 2 2 2 0.07 0.1 0.08 0. Wide and unique portfolio.21 0.08 0. Studio entertainment and Disney consumer product divisions have been experiencing declining revenue for the last few years. Studio Entertainment and Disney Consumer Products. 2. 6.04 0.04 0. Disney has a narrow target market.12 0.09 0. Costs of operation are high. 8.32
0.07 2 1 1 0. 4. 0. 32 0.06 0. Strong customer service 6. 2.14 0.08 0.
BOSTON CONSULTING GROUP (BCG ) MATRIX 4. SWOT MATRIX 2. STRATEGIC POSITION & ACTION EVALUATION (SPACE) MATRIX 3.00
2. GRAND STRATEGIC MATRIX
STAGE 2 THE MATCHING STAGE
1. INTERNAL EXTERNAL (IE) MATRIX 5.
Disney is the largest worldwide 3. 1. Openings in other areas of the travel business. Strong advertising.
1. (O1. S4) Build more accessible resorts internationally since there is an increase in guest spending. O3) Design parks and resorts with a new modern strategy. Disney as a market.
4. Prospect to build more theme park and resorts worldwide. 1. Innovative entertainment business. Growth from cable and satellite operators creating even more potential for Disney to make money with their network. 4. S1.(W2. which is the new trend in movie theaters. S3. Disney as such a diversify
licensor of character-based merchandise and producer of children’s film-related products based on retail sales. Opportunity to invest in building theme parks to satisfy the increase in guest spending. 3. theme park attendance.
ST. Target new costumers group.
2. and 2. 3. Strong
Media Networks Broadcasting division. theme park attendance and hotel occupancy. S2) Sell Disney products at more places at not only Disney stores.
5. Therefore the money could be used to innovate some attraction. Build parks and resorts in
worldwide to be more accessible and allow people to enjoy a one day experience rather than a week long trip. (O4. (S5. narrow target
1. O3). O4. which will find a better balance between ages.STRATEGIES
The park & resorts division is experiencing profit.
Entertainment and Disney Consumer Products divisions have been experiencing declining revenue for the last 3 years. S2) Better advertise of other parks of Walt Disney world such as EPCOT resort. (W1. Opportunity to build & renovate attractions in Park and Resorts division to increase in profit.(02.
3. O5. Especially with Disney’s with highly recognized characters by children. S1. S2. O6. Walt Disney’s Park and Resorts
are not easily accessible which leads people to associate Disney World with a costly trip. O6)
amusement company in the world.
6. product range that it can reduce efficiency and lead to a lack of strategic focus.
Create block buster motion picture movies with the 3D option. One of the most familiar an 1. 4. in order to break the reputation that Disney is only a magic kingdom and appeals to children. and hotel occupancy.
4. Studio 2.
1. Have a movie rental website with
high definition and high speed movies for low prices.
1. travel industry trends. Offer lower fees for entrance into 1. (T3. S3)
3. and weather patterns and seasonality. T1. Build an indoor park and resort
theme parks and discounts on onsite hotel prices.(W4. Online streaming makes Disney vulnerable to piracy and violation of its intellectual property.
STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX
. oil and transportation prices. S1) on the north east side United States in order to be more accessible and to prevent closure with unpredictability of weather.
4. Changes in technology leads customers to stream online instead of buying DVD. T4.
Lasting economic recession leading to slow growth rate. amount of available leisure time.
2. (T2. Park and Resorts Divisions’ success is unpredictable because of exchange rate fluctuations.
INDUSTRY POSITION (IP)
1. Barriers to entry. Control over suppliers and distributers Total Average =
-1 -1 -3 -3
FP average is = 4 IP average is = 5. Return on investment 4. Market share 2. profit potential Total Average = ⁄
6 6 3 6 21 5. 3.25 CP average is = -2
DIRECTIONAL VECTOR COORDINATES
.Price range from competing products. Ease of entry. Financial stability 4. product quality 3. Customer loyalty 4. Liquidity 2.25 SP average is = -3. Growth potential 3. 4. 2. Earnings per share Total Average = ⁄
6 4 4 2 16 4
STABILITY POSITION (SP)
COMPETITION POSITION (CP)
1. Demand variability 2. Price elasticity of demand Total Average =
-6 -1 -1 -5 -13 -3. cash flow 3.FINANCIAL POSITION (FP)
25 Y-axis: -3.25) = 3.X-axis:.25+ (4) = 0.75
Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Related Diversification Unrelated Diversification
BOSTON CONSULTING GROUP (BCG ) MATRIX
.2 + (5.
2.INTERNAL-EXTERNAL (IE) MATRIX
The Internal-External (IE) matrix is another strategic management tool used to analyze working conditions and strategic position of a business. The Internal External Matrix or IE matrix is based on an analysis of internal and external business factors which are combined into one suggestive model.0 3. it is high and the score of IFE is 2.79 Average Weak
2.0 to 4. forward integration. Total weighted score of EFE is 3.0
This position described on grows and build.0 2.99 Strong 1.29 3.0
IFE Total weight scores 3.79 average positions.0 to 4.
.0 2.99 4. market development and product development) or integrative (backward integration.99 High 3.01.0
Low 1.0 to2. This position Intensive (market penetration.0 EFE Total Weight scores Medium 2.0 to2.0 to 1.99 1. and horizontal integration) strategies.29.0 to 1.
. For these Walt Disney continued concentration on current markets (market penetration and market development) & products (product development) is an appropriate strategy. They can take risks aggressively when necessary.GRAND STRATEGIC MATRIX
Walt Disney located in Quadrant 1 of the grand strategy matrix are in an excellent strategic position. forward or horizontal integration are effective strategies. Walt Disney has excessive resources so backward. Walt Disney can afford take advantage of external opportunities in several areas.
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
.STAGE 3 THE DECISION STAGE
6. 4. 3. 2. travel industry trends.32 1 0.
KEY FACTORS External OPPORTUNITIES:
1. Target new costumers group.32 0
0.1 0. Changes in technology lead customers to 0. 3.07
0. Opportunity to build & renovate attractions in Park and Resorts division to increase in profit.08 -
0. Openings in other areas of the travel business.27
0. and hotel occupancy. Prospect to build more theme park and resorts worldwide. amount of available leisure time. 2. 5.1
0. Lasting economic recession leading to slow growth rate. Growth from cable and satellite operators creating even more potential for Disney to make money with their network.08 0.05
0 0.06 4 0. theme park attendance. Park and Resorts Divisions’ success is unpredictable because of exchange rate fluctuations.4 0. oil and transportation prices.QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
Expand parks & resorts world wide Improve products to target young costumer as well as older one. Opportunity to invest in building theme parks to satisfy the increase in guest spending.1
.08 0. and weather patterns and seasonality.08 0.28
0.24 0 0
0. 7.07 2. One of the most familiar an amusement 0.28
0.04 4 4 4 4 3 0.06 0. Online streaming makes Disney vulnerable to piracy and violation of its intellectual property. Increase in labor cost which will have a noticed impact in Walt.Strong customer service 0.1 0.06 0. 4.Disney expenses due to their large amount of employees. 7. Studio Entertainment and Disney Consumer Products. Innovative entertainment business.12
0. 0.36 0.stream online instead of buying DVD. 4.06
0.2 0.28 4 4 4 4 4 0.Strong Media Networks and Broadcasting 0. Retail distribution business is influenced by seasonal consumer purchasing behavior and by the timing and performance of animated theatrical release. Strong advertising.Disney is the largest worldwide licensor of character-based merchandise and producer of children’s film-related products based on retail sales.36 0.14 0 0.4 0. 5.1
0. which permits them to come up with high profits from different industry division such as Media Networks and Broadcasting.05 division.High unemployment rate 6. Wide and unique portfolio.07 0.09 company in the world.08
. Disney owns a range of companies.08
0. Park and Resorts. 5.24 0
6. 0.24 0. 8.2
Disney has a narrow target market. 4.37
0. 2. 0.07 0. Costs of operation are high.09 2 0. High cost of entertainment production.77
3. 3. Walt Disney’s Park and Resorts are not easily accessible which leads people to associate Disney World with a costly trip.04 0
0.08 0. High employee turnover.WEAKNESSES:
1. 5. Disney as such a diversify product range that it can reduce efficiency and lead to a lack of strategic focus.18 2 0. Studio entertainment and Disney consumer product divisions have been experiencing declining revenue for the last few years.14
3. 7.07 0.08 0.07
0 0.04 0.08
1 2 1 1
0.08 0.04 0. 6.
BALANCE SHEET 3. INCOME STATEMENT 2. FINANCIAL RATIO ANALYSIS
.FINANCIAL POSITION OF WALT DESINEY COMPANY
continuing operations Earnings per share.00 $5.307.INCOME STATEMENT
(in Millions.856.00 $ (30452.00 $(466.00
$1.307.049. discontinued operations Earnings per share Basic earnings per share: Earnings per share.658.875.00 $342.76
$1. except per share data)
Sales revenue Cost & expenses Restructuring and impairment charges Other income (expense) Net interest expense Equity in the income of investees Income from continuing operations before income taxes and minority interests Income taxes Minority interests Income from continuing operations Discontinued operations.00 $(2.76
$1.000) $(492.00) $3.00 $1.0
$1.00) $(302. discontinued operations Earnings per share Weighted average number of common and common equivalent shares outstanding: Diluted Basic
$ 36149.00) $577. continuing operations Earnings per share.0 -----$3. net of tax Net income Diluted earnings per share: Earnings per share.
00 property.inventory Television Cost Deferred Income Taxes Other current Assets Total Current Assets Film & television cost Investments Park.00 $2554.00 $5444.00 $1271.00
Commitments & contingencies shareholder’s equity preferred stocks.00) depreciation
EQUITIES Current liabilities
Accounts payable& other accrued liabilities Current Portion of borrowing Unearned royalties & other $5616.00 Total Current Liabilities Borrowings Deferred Income taxes Other long-term liabilities $8934.BALANCE SHEET
ASSETS Current assets
Cash & cash equivalent $3417. at attractions.00 $1140.01 par value Authorized 100 million shares issued non-common stocks $.00
Minority Interest $15080. resorts & other $32475.00 $2112.00 $1819.889.00
Accounts receivable Merchandise .00 $11.00 $11495.00 $631.00 $5125. building & equipment Accumulated $(17395.01 par value Authorized 3.
$(22693.00 $2247.00 $21683. 2008.00)
$63.shares issued.117.1 million shares at September 27.00
Treasury Stocks at cost 781.00 $2022.00 $1167.117.6 billion shares Retained Earning Accumulated other comprehensive $27038.00 $31033.00
$63.7 million shares at october3.00
.00 $(1644.00) $56427.00 2. 2009 & 777.
Project in progress Land Intangible Assets Goodwill Other Assets
93 0.48% -25.84 0.13
Inventory Turns Fixed Assets Turnover Total Assets Turnover 28.14 1 1.67 1.34 12.2 0.12 0.05 0.14 2.11 0.FINANCIAL RATIO ANALYSIS:
2009 Liquidity Ratios
Current Ratio Quick Ratio 1.31 -4.30% 1.61 7.1 -12.2 0.55%
Growth Rations (yearly)
Sales Net Income
Gross Profit margins Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholders equity Earnings per share Price-earnings Ratio 1.19 1.07 0.78 15.91
Debt-to-Total Assets Ratio Debt-to-equity Ratio Long-term debt-to-equity Ratio Times-Interest-earned Ratio 1 1.66% -5.12 -14.12 0.06 1.57 33.01 0.8 0.44 1.33 1.16 0.09 0.
ANNUAL OBJECTIVES& POLICIES 2.IMPLEMENTATION STAGE
Disney must also be cognizant of the corporate culture that is subject to anyacquisition to ensure that integration does not come with insurmountable resistance. creating a project team to capture the opportunity.acquisitions must be monitored as well since these will represent a bulk of the company’sgrowth strategy. Maintain aggressive profit growth by funding projects with the greatest NPV It is recommended that the project coordination team be developed to maintain projectmanagement best practices without being overly intrusive to the project’s objectives. Allow the SBUs freedom for creativity while maintaining functional efficiencies 3. The annual objectives and policies proposed consist of identifying opportunities for acquisition or entering into a new market.ANNUAL OBJECTIVES AND POLICIES
1. 2. change management practices must be adhered to during such integrations. Also. Subsequently. and moving into operations management among various time intervals.
In the next year Walt Disney should be:
Improve advertising to promote entertainment Remove the Interactive Media Segment Buy a land in New York City
Establish time frames and milestones for progress. Think constructively and devise an action plan. Ask yourself "What could go wrong and how do we adjust to accommodate that?”
. The dreamer position typically ‘sees’ the ideal future. Think of what could go wrong. according to Robert Dilts. Ask yourself "What do customers really want. no limits . and the two mentioned in the next two items) can all be within the same person. limitations or restraint. Make sure it can be initiated and maintained by the appropriate person or group.just every sort of outrageous creative hunch or idea was freely developed This is where the visionary big picture is produced. look for problems. what is missing. if you’ve ever used that approach to creativity – wearing a different hat means adopting that position and outlook for a while.not just point out what is wrong. Ask yourself "What will I do to make these plans a reality?" Again.
3. and evaluated to determine what is realistic. This is where you test the plan. by the way.’ This can actually be a group rather than just you – Convene a ‘dreamer group’ to come up with what Ken Blanchard (One Minute Manager author) would call the ideal organization for your customer. It’s similar to Edward De Bono’s Six Thinking Hats. where the plans are organized.STRATEGIES
1. THE CRITIC
The third role in the Disney Creativity Strategy. this could be a group meeting rather than an individual. Remember that a critic is someone who should evaluate . ‘For the next hour I am going to dream up what we want for our customers and picture it in as much details as possible. no restrictions. it could be the same group. what the spins-offs will be. THE REALIST
This is the second role within the Disney Creativity Strategy. With no boundaries. difficulties and unintended consequences. you’d say to yourself. THE DREAMER
The place where dreams were dreamed. with a different brief – The Dreamer Group becomes The Realist Group. The three roles (Dreamer.
2. So. ideas were spun out. In fact. in an ideal world?" Then see it.
. Remodel and build new attractions in every Park and Resorts to stay appealing to our customers. Remove the Interactive Media Segment.RECOMMENDATIONS
In the next three years Walt Disney should. Build an indoor theme Park and Resort in New York. Improve advertising to promote entertainment which target a more mature audience.
American icon thanks to its innovation.
. The Disney company has managed to bring fantasies to life on the movie screen for over 80 years. and artistic style. Walt Disney Studios is still a strong. fantasy.CONCLUSION
Walt Disney has definitely worked its way into the hearts of almost everyone who watches it.