You are on page 1of 8

Strategic Management Case Study Submitted to: Sir Muhammad Asad Submitted by: Jamila Hassan Abida Hamid

Khadija Rahim Masooma Asad Ruqaiya Hussain Date: 19.10.2011 Department: Management Sciences

Experimental exercise 1A SWOT Analysis of Walt Disney Company Strengths

Strong reputation and brand name. Global competitor: It is operating in Japan, France, Hong Kong, Canada, USA and many other big countries of the world. It is competing in every country (stated above) with other companies providing entertainment. Disney is financially sound as its revenue and profit has increased as almost it has doubled its profit from 2004 till 2007 i.e. in 2004 its profit was 4860 million dollars and in 2007 it became 7827 million dollars.

Weak performance of studio entertainment as its revenue decreases from 58 million dollars to 7.5 million dollar due to lower world wide home entertainment. Disney is investing intensively through out the world. It is large corporation and it has large number of employees. This causes employee dissatisfaction. Walt Disney Companys current ratio was in a decreasing rate from 2005 till 2007 i.e. it was 0.965 in 2005,0.936 in 2006 and 0.993 in 2007 which shows that the company is inefficient in terms of short term debt paying ability i.e. it is less liquid.

Competitors: Disney is facing Global, local, national competition. For example in media broadcasting networks Disney is in second number with 68% broadcasting while discovery network is at the top with 72% broadcasting which is a big threat for Walt Disney Company. Internet is a big threat for Disney as people are using more internets for entertainment purposes. Increase in unemployment, interest rates, fuel costs i.e. economic downsizing has limit consumers disposable income for entertainment purposes.

Media expension: Disneys revenue has increased due to growth from cable and satellite operators, which are derived for from fees charged on per subscribes basis and high advertising rates. Disney is largest world wide licensor of character based merchandise and producer/distributor of childrens film related products based on retail sales. Two major TV networks of world Disney corporation(ABC and ESPN) offer hit shows , movies and games on demand which is a major industry and growing

rapidly which was about 3.9 billion dollars in 2010.consumer preferences are shifting to more on demand movies and shows.

Exercise 1B: Three Aspects which is liked most in Walt Disney:

1. Our Cast Members and employees are the cornerstone of our magic: The Company and its management are committed to treating all Cast Members and employees with fairness, dignity and respect. We strive to provide our Cast Members and employees with a challenging, exciting and fulfilling environment. 2. Teamwork and Communications: We are committed to providing open, free and effective channels of communication among Cast Members and employees, and between Cast Members, employees and the Company's management. Not only does open communications foster teamwork and facilitate a healthy working environment, but such free and open channels, both within departments and divisions, as well as between divisions, promote synergy and enable the Company as a whole to realize greater potential than the sum of its individual businesses. 3. Respect for the Individual: We are committed to providing a work environment in which all Cast Members and employees are afforded the respect that they deserve, free of any discrimination or harassment. No discrimination on the basis of race, religion, color, sex, sexual orientation, national origin, age, marital status, covered veteran status, disability, pregnancy, or any other basis prohibited by applicable law will be allowed. Further, the Company expects Cast Members and employees to treat each other with the same dignity and respect that they expect from the Company.

Three Aspects which is liked least in Walt Disney:

1. Professional Development: We are committed to having our Cast Members and employees develop and advance professionally in a manner consistent with their abilities. Although difficult decisions may arise in hiring, evaluating performance, promoting, disciplining or terminating Cast Members and employees, the Company expects such responsibilities to be carried out with fairness, discretion and respect for privacy, as well as compassion for the individuals involved

2. Diversity: We seek to be multicultural, tapping the unique talents and potential of every member of our diverse work force. Our goals are to: Attract and sustain a work force that reflects our guests and customers, business partners, shareholders, labor markets and communities in which we do business; and Maintain a workplace that reflects open opportunity, where everyone is advantaged by their potential and no one is disadvantaged by their belonging to a particular group. We are committed to these goals for their own sake, but we also believe that diversity is the best way to develop superior products and services. 3. Safety: The Company is committed to providing a safe working environment for all its Cast Members and employees

Three Aspects which is liked most in News Corporation:

1. Drug-Free Workplace: We maintain a workplace free of alcohol abuse and the use of illegal drugs. 2. Accommodations for Individuals with Disabilities: We make reasonable accommodations for qualified individuals with disabilities in accordance with the applicable laws. 3. Data Privacy: We respect the privacy rights of employees in how the Company handles personal data, consistent with the Electronic Communications Policy applicable to your business unit.

Three Aspects which is least most in News Corporation:

1. On Site Security: We follow the procedures established at each Company site for access and security. 2. Crisis Management: We work to prepare appropriate crisis management plans, and participate in any emergency drills and planning that our business units may institute. 3. Non-Discrimination: We make all employment related decisions (hiring, promotion, compensation, etc.) without unlawful regard to a persons race, color, religion, age, nationality, gender, sexual orientation, pregnancy, disability, military or veterans status, marital status or any

other characteristic prohibited from consideration by the laws of the countries, states and cities in which we do business.

If we compare the Standards of Business Conduct statements of Walt Disney and its competitor The News Corporation, we can find out that Walt Disney focuses on the employees self respect and their reputation, and they believe on the teamwork and communication of the employees within the organization through departments and divisions. They give their employees an environment free from discrimination and harassment. While News Corporation focuses on the drug free work place where employees are free from alcohol and drugs. Ethics of the news corporation includes Crisis management and problem solving and data privacy of employees; they also provide accommodations for the employees who have disabled individual family members. This is a plus point of the news Corp as compared to Disney.

Experiential Exercise 1C
1: Buying competitors garbage. Ethical 2: Dissecting competitors products. Unethical and illegal 3: Taking competitors plant tours anonymously. Unethical and illegal 4: Counting tractor trailer trucks leaving competitors loading bays. Ethical and legal 5: Studying aerial photographs of competitors facilities. Ethical and legal 6: Analyzing competitors help wanted ads. Ethical and legal 7: Analyzing competitors labor contracts. Unethical and illegal 8: Quizzing customers and buyers about the sales of competitors products. Ethical and legal 9: Infiltrating customers and competitors business operations. Unethical and illegal 10: Quizzing suppliers about competitors level of manufacturing. Unethical but legal 11: Using customers to buy out phony bids. Unethical and illegal 12: Encouraging key customers to reveal competitive information. Unethical but legal 13: Quizzing competitors former employees. Unethical but legal 14: Interviewing consultants who may have worked with competitors. Ethical and legal 15: Hiring key managers away from competitors. Ethical and legal 16: Conducting phony job interviews to get competitors employees to reveal information. Unethical and legal 17: Sending engineers to trade meetings to quiz competitors technical employees. Ethical and legal 18: Quizzing potential employees who worked for or with competitors. Unethical but legal

Experiential exercise 1D
The major strengths, weaknesses, opportunities and threats of BUITEMS University are as follows:

Qualified teachers (PhD teachers). Financial strength. Strong brand name. Time management. New technology.

In experience lecturers. Inefficient management and administration. Weak admission system Lack of communication between departments.

Competitors (Iqra, Balochistan University etc). Economic downsizing. Political situation. Terrorism.

Due to scholarship and financial help large pool of students from every class gets admission in our university. Expectations of people towards quality education system in BUITEMS. Due to bad environment of Balochistan University (main competitor of BUITEMS) most of the people are attracted here.

Exercise 1G Case Study of YAMAHA (Strategic Plan):

Yamaha is worlds largest manufacturer of a full line of musical instruments. It was established 1897 as Nippon Gakki Co., Ltd. Its Headquarter was in Japan. It was listed in first section; code N.7951 in stock exchange of Tokyo. It has 106 subsidiary company out of which 88 of them are consolidated companies. It has its products in musical instruments, AV/IT, electronic devices, golf, and cars lifestyle-related products. YAMAHAS Changing Strategy: 1) Yamaha has shifted its focus from the lower end segments to the premium segments. It aims to provide its customers the full range of its engineering marvels that make Yamaha the company that it is. 2) Yamaha has a very strong focus on the technical department, the result of which can be seen with Yamaha comfortably leading the constructors championship in the Super bikes racing with Valentino Rossi and Colin Edwards as their riders. 3) Yamaha has aimed to become the No.1 in customer satisfaction and is looking forward to providing the customer with an experience with its products. 4) The target market of India Yamaha Motors is the young and enthusiastic 18-25 yr. Olds who are willing to try taking the not so much treaded path of buying the sports bike (rather than a utility two wheeler) these young guns are very conscious of the style quotient and look forward to their ride being a personality statement. Sales by Business Division: The sale of Yamaha by business division is diversified in five categories; 1. musical instrument 2. AV/IT 3. Electric Devices 4. Lifestyle-Related Products 5. Others The sale ratio of musical instrument covers a major ratio of the Yamaha products which is about 66.7%, AV/It is about 12.36%, electric devise 4.7%, life style related products 9.3% and others have 6.7% share. Sales by Business Region: The sale of Yamaha business Region covers almost all over the world and is divided into four sections; 1. Japan 2. North America

3. Europe 4. Asia, Oceania and Other Areas The biggest area of sale is in Japan which is about 51.2 %, then the ratio of sale in Europe is 18.9%, Asia, Oceania and other areas are 15.5 % and North America is about 14.5 %. Vision Statement: The Slogan of Yamaha is, creating KANDO together. Kando means to develop an inspired state of mind. Yamaha aims to create Kando and enrich culture with technology and passion born of sound, music and lifestyle, together with people all over the world. Business Strategic of Yamaha: Yamahas main corporate objectives are to gain more market share and to become the market leader in its business divisions.