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DISNEY (COHESION CASE 2008) WALT DISNEY COMPANY -2007 The Walt Disney Company was founded in 1922

and is one of the leading companies in family entertainment business. It operates using a strategic business unit (SBU) type of organizational structure. Disney is huge, well-known and well managed diversified corporation.

Experiential Exercise 1A (Step 2) The external opportunities and threats facing Disney Company are listed below: Opportunity facing Disney Company Growing rate of consumer demand for amusement park Demographic changes increase in aging population Digital technology Positive government attitude Expanding into foreign markets Acquisition of firms Strategic alliances

Threats facing Disney Company Saturated Market Foreign competition Fierce competition in the local market Usage of internet by all ages High risk of copyright infringement Low consumer disposal income High operational cost

Experiential Exercise 3A EFE Matrix for Walt Disney Company .

05 0.0 0.1 0.0 3.0 4.15 T hrea ts 8 Saturated Market 9 Foreign competition 10 Fierce competition in the local market 11 Usage of internet by all ages 12 High risk of copyright infringement 13 Low consumer disposal income 14 High operational cost T lS ota cores 0.6 Experiential Exercise 3D Competitive Profile Matrix for Walt Disney Company .40 0.2 3.0 3.04 0.20 0.12 0.35 0.1 0.1 0.18 3 5 .03 0.0 0.06 1 .05 0.54 0.03 0.5 1.5 4.05 4.5 3.18 0.1 0.0 3.18 0.1 4.05 0.40 0.0 3.2 4.40 0.50 0.03 0.K E ey xterna F ctors l a Opportunities 1 Growingrate of consumer demand for amusement park 2 Demographic changes increase in agingpopulation 3 Digital technology 4 Positive government attitude 5 Expandinginto foreign markets 6 Acquisition of firms 7 strategic alliances Weig ht R ting a Weig hted S core 0.0 1.09 0.05 0.5 4.12 0.

1 0 .4 N W C R O A IO E S OP RT N W hted eig R ting a S core 2 0 .1 3 .6 2 0 .3 2 0 .6 3 .2 3 0 .4 2 .4 3 0 .8 3 0 .2 2 0 .3 2 0 .2 3 0 .8 4 0 .3 Experiential Exercise 4A .2 0 .6 4 0 .2 1 D NY IS E T EW R E IM A N R W hted eig W hted eig R ting a R ting a S ore c S ore c 2 0 .8 3 0 .3 3 0 .3 4 0 .2 3 0 .2 0 .8 4 0 .4 2 0 .3 3 0 .C ritica S l uccess Fa tors c Ma rket S hare Fina ia Position nc l E xperience Advertising L ow-C S teg ost tra y R esources Innova tion T ta o l W ht eig 0 .3 4 0 .2 3 0 .1 0 .1 0 .1 0 .

2 IFE Matrix for Walt Disney Company .Experiential Exercise 4B Step.

2 0 8 .2 0 .0 4 .5 4 .1 0 .1 0 5 .2 w a n se ek es s 8 L rg workforc a e e 9 Frequent c ng in topm na em ha e a g ent 1 H h overhea expenses 0 ig d 0 .5 4 .0 0 7 .3 0 .2 5 .0 3 .0 3 .0 0 .In e n l F c r t r a a to s S e gh tr n t s 1R esourc es 2E xperienc in the B e usiness 3L ow-c stra y ost teg 4S tronga well known bra na e nd nd m 5S trongfina ia c nc l ondition 6S ervic a produc innova e nd t tionc pa ity a c 7 E onom of sc le c y a W ig t e h 0 3 .0 W ig te e h d So e cr 0 2 .1 0 0 .5 3 .5 0 5 .0 3 0 .9 Step 3 Disney Corporation has the following Strengths and Weaknesses Strengths Resources Experience in the Business .0 1 .0 0 5 .0 0 5 .5 0 0 .0 5 .1 0 0 .6 T t lSo e oa c r s 1 .0 0 5 .1 0 3 .0 Rt g a in 4 .2 0 8 .0 2 .

A well documented handbook or manual to be prepared and kept for references for information not to be lost with the retirement of some experienced staff. . This would encourage staff to get involved in the process of the company. Strong Financial Condition: Must take advantage of their financial positions to expand into other areas where there is ready market by merging or buying out some other companies. Consider utilizing your own resources as well by having the employee who has the sharpest skill set in a particular area lead a company-wide workshop on how they developed and best employed that strength. during the political season most politicians often advertise on the media networks and print media. There is more buying and selling of Disney’s products during the Yuletide Incentive awards to be given out to staff that come out with innovative ideas. For instance. For instance. Service and Product Innovation Capacity: Research and identify needs of clients at particular seasons. to go into different directions to expand their already broad product portfolio whilst maintaining quality. Strong and Well Known Brand Name: To continue to create innovative products and packages that would continue to attract its target market.Low-cost strategy Strong and well known brand name Strong financial condition Service and product innovation capacity Economies of scale Weaknesses Large work force Frequent change in top management High overhead expenses Strategies to allow Walt Disney to capitalize on its major Strengths. Experience in the Bussiness: Training sections together with seminars to be organized occasionally by experienced staff for knowledge to be transferred to new and existing staff.

Strategies to allow Walt Disney to capitalize on its major Weakness. Have a web site mainly for communication among staff to reduce the possibilities for miscommunication since most staff members would have access to check for valid information on the web portal. Surveys should be conducted to find out why people at top management are leaving the company. Large Work Force: Improve on technological advancement to help reduce the work force and also to save cost in the long run. Frequent Change in Top Management: Clear job specifications must be given to top management for them to know their job roles and what is expected of them. High Overhead Expenses: .