Executive Summary

The following report is prepared on the overview of the organization named “The Walt Disney

Company”. We tried our best to gather informative information as much as possible. The report

is divided into 8parts that includes the strategic management function. The first part is about the

company’s

a. Mission statement

b. Strategic goal

c. Business model

which is under the first step of strategic management process. The second part of the report is

about SWOT analysis where we analyzed the organizations strength, weakness, opportunity

and threats. The third part of report is about situational analysis which includes both internal

and external environment. In fourth part of the report includes Porters Five Forces Model

which is under competitive strategy. The fifth part of the report is about strategic application.

The sixth part is management issues where we analyze the current managerial issues. The

seventh part is conclusion and the final part is for reference which lets the reader know where

we collected our information for the report.

We tried our best to implement all the knowledge that we gained throughout the semester and

use management tools to analyze the organization.

Mission Statement

The mission of The Walt Disney Company is to entertain, inform and inspired people around the

globe through the power of unparalleled storytelling, reflecting the iconic brands, creative mind

and ground-breaking technologies that make ours the worlds premier entertainment company.

Strategic goals

Strategic goals are the particular financial and non-financial purposes and results a company

aims to achieve over a particular period of time, usually the next three to five years. Strategic
goals are necessary because they implant priority setting, resource setting, strength necessity and

budgeting performances.

To be one of the world’s key manufacturers and survivors of not only amusement but also

intelligence is the fundamental goal of the Walt Disney Company. The company aims to acquire

this by exploiting its extensive brand portfolio so as to separates employments, kernel, and

clients products. Meanwhile this is the overall goal, there exist other constitutive milestones that

basically relish on associatively liable business in promoting sustainability. They add, but are not

limited to; zero net greenhouse gas emissions, by which the company goals to have decrease net

greenhouse gas emissions by 50% by 2020; zero misuse, by which Walt Disney hopes to achieve

a 60% shortening in misuse from burnings and landfills by 2020; and water conservation, by

which the company goals to spread unrelenting water conservation resources at its sites by 2018.

The overall financial goals of the Walt Disney Company is the maximization of earning and

cash-flow, and the setting of capital to sponsor growth commencements so as to promote long-

term shareholder value.

Business Model

Business model tells how a company is going to make money.

Analyzing The Walt Disney Company we found out that their business model is scalable.

Disney’s business sector divided into five major parts.

1. Media Network
2. Parks and resorts

3. Studio entertainment

4. Consumer products

5. Interactive Business

Media Networks

The media networks segment of Disney accounts for the largest parts of its revenue. This

segment includes Television production and distribution, broadcast television, radio network and

stations. The company has also invested its essence that manages programming, allocation and

content management service. Affiliate fees, ad sales and sales programs are the primary segment

of revenue. Ad sales are the fees received from selling ad time to advertisers in programs.

Parks and resorts

This segment includes the resort Disney has all over the world. This company is the owner of the

The Walt Disney Company in Florida and California. They also operate the resort. The resort

includes theme park, resort hotels, dining and entertainment complex, water parks and

conference center. They earn most of their revenues from this segment also.

Studio entertainment

The business in this segment generates revenue from the distribution of films through the

theatrical, home entertainment and television markets worldwide. The company also generate

revenue from distribution of recorded music, sage play ticket sales and many other ways.

Consumer products business

In this segment the company generates revenue from licensing characters from Disney land,

television and comics books for children. They both retail and wholesale, their product through

The Disney Store and DisneyStore.com. The company publishes many kinds of entertainment

and educational books for children.

Interactive business

In this segment the company branded entertainment and lifestyle content throughout the

interactive media. The business in this segment generates revenue from subscription to any

online games, sponsorship, online advertising.

Disney Business Segment Revenues and Revenue Share charts given below:
Walt Disney SWOT Analysis

Strength Weaknesses

1. Brand Reputation 1. High cost operation

2. Loyal customer 2. Large investment with high risk
3. Diversified business involved
4. Special discount offer online 3. Limited range of target audience

Opportunity Threats

1. Release of new successful stories and 1. Increasing piracy

cinema
2. Strong competition
2. New global market
3. Change in consumer preference and
3. Increase of movies production to new taste
country
Strength

1. Brand Reputation

The Walt Disney Company has their own image and brand reputation throughout the

world for their movies, animation stories, park and resorts. This company holds a very

important place in every year. In 2012 this company becomes the 13th most valuable

brand in the world.

2. Loyal customer

Some people are so addict in Walt’s stories that they can’t quit Walt Disney. Even most

of the time we see that people grown up but still enjoying the animated movies of Walt

Disney.

3. Diversified business

The business operates five different business segments, media networks, parks and

resorts, studio environment, cosumer product and interactive products and interactive

media. In these five segments the company generates their income by using different

business model. For this divers operation the company is performed well then their

competitors.

4. Special discount offer online

 To hold their current customer and to grab the new customers’ attention they always

provide some special discount offer on their services .That’s a innovative way so that

they are one step ahead from their competitors.

Weaknesses

1. High cost operation

The segment Walt Disney operates has high cost. The operating expense of Disney land is quite

higher than we think. Their programming and production is also getting higher day by day which

impacts on their whole area.

2. Large investment with high risk involved

They invest a high amount without knowing if their consumer will like it or not. This is a major

weakness for any company.

3. Limited range of target audience

The other weakness of this company is they have specific number of target audience. Mainly

children and mothers are their customer.

Opportunity

1. Release of new successful stories and cinema

This is one of the major opportunity because those loyal customer are do wait for new movies

and cinema. if Disney’s cinema get successful then they get most of the revenues which is very

helpful for an organization.

2. New global market

Walt Disney is known around the world. In order to compete with its competitors Disney must

have a strategic plan to be successful. With its Imagineering new designs and theme parks

Disney has the opportunity to do well in global market.

3. Increase of movies production to new country

Disney has an chance to increase its movies manufacture in countries like India and china.

Because these countries acceptance is higher than others. This would result lesser movie

manufacture price.

Threats

1. Increasing piracy

This is one of the major threats for a company .In this Digital and advancement technology

allows copying, transmitting data and imitating much easier. This causes a great effect on

Disney’s revenue. When their video is available in online then how many people will go to

watch movies.

2. Strong competitors

Disney has competitors in more than one segment such as parks and resorts ,tv, online media and

others. Its tough for a company to compete with those strategy’s and overcome those problem

easily.

3. Change in consumer preference and taste

Consumer can switch any time. Every customer has their own fondness and taste. Consumer can

quit and switch both as per their own problems or issues. so, this is one of the threats for a

company.