Walt Disney Case Analysis

In: Business and Management

Submitted By rsox0310
Words 1120
Pages 5
DISNEY CASE
PREPARED BY
RYAN MENZIES
September 29, 2013
FOR
OL 421 STRATEGIC MANAGEMENT AND POLICY

INTRODUCTION:

The Walt Disney Corporation was founded on October 16, 1923 by brothers Walt and Roy Disney. They were primarily an animation studio before expanding their operations to include other ventures. The company became publicly traded on May 6, 1991 on the Dow Jones Industrial Average. The company has come under some criticism for its productions, which are mainly targeted towards children, for having overt sexual references hidden among them. Other accusations made toward the company include human rights violations for its various employees that manufacture millions of the products the company sells in its stores and theme parks. Despite some of these negative occurrences, the company brought in over $42 billion in revenue in 2012 and also employs almost 200,000 people.

CURRENT MISSION, GOALS, AND STRATEGY:

Walt Disney Corporation has one of the most diverse venture portfolio of any company today. They own production studios, theme parks, television networks, radio stations, retail establishments and other things in all corners of the globe. The company maintains what can be considered as “modest” goals for themselves, which is to continue the Disney brand around the world, with a strong emphasis on the Asian market, which is not as strong as the company would like.

EXTERNAL ANALYSIS: See attached EFEM

Disney is a moderate company externally with an EFEM score of 2.92

FINANCE: Disney is in a very strong financial position. With revenue totaling over $42 billion dollars and total assets over $75 billion, the Disney Corporation has a plethora of leverage to work with should it ever find itself with the need to.

MANAGEMENT: The number of employees taken care of by the Disney Corporation numbers close to 200,000, which can be…...

Similar Documents

Walt Disney Harvard Case Analysis

...Case Summary The Walt Disney Company had successfully grown internationally by diversifying its entertainment empire. From its humble beginnings as a cartoon business starring one character, its business expanded to feature films – animated and live-action, film distribution, network and cable television, theme parks, retail stores, merchandising, publishing, and Broadway. After years of growth however, the company recently experienced sub-par performance and slower growth. Strategic Issue This deterioration in performance was preceded by Disney’s ambitious acquisition of CapCities/ABC, which made Disney the largest entertainment company in the U.S. Given its size and recent financial downturn, what opportunities exist for the company to achieve CEO Michael Eisner’s goal of 20% annual growth? Factors Contributing to Problem - With the purchase of ABC, Disney vertically integrated into a mature and highly competitive television industry. The merger also posed synergy challenges due to the immense size of both organizations and the difficulty in eliminating overlap across businesses and processes. - The ABC merger also presented culture clashes between the two organizations. In an attempt to achieve synergies across the company, Disney’s corporate culture became increasingly competitive and cost-driven, leading to an exodus of many high-level executives. - Rising costs in television programming, especially sports, hurting profitability. ESPN, for example, paid...

Words: 509 - Pages: 3

Case Conflict at Walt Disney

...Management Organization ____________________________________________________________________________ Week 6 Case Assignment 1. How would you describe the conflict between Michael Eisner and the Weinstein brother, the two board members (Disney and Gold), and Steve Jobs” Was it functional or dysfunctional? The functional conflict is defined as a confrontation between groups that enhances and benefits the organization’s performance’ while dysfunctional conflict is defined as any confrontation or interaction between groups that harms the organization or hinders the achievement or organizational goals. Though, a point the Ivancevich makes is that in most cases, the point at which functional confrontation becomes dysfunctional is impossible to identify precisely. My opinion is that the conflict was mostly dysfunctional as it was starting to “hinder the achievement of organizational goals.”. It was also to some small degree a functional conflict as well – but it was largely dysfunctional. One could argue that this was a functional conflict to a point because Eisner helped turn around Disney in the 1980s and mid-1990s. They were functional in that even though the conflicts existed between Eisner and the Weinstein brothers and with Steven Jobs, the company was successful despite these widely publicized issues. Also, even though the conflicts were high profile in the media, Disney was still very successful. And also functional conflict because Eisner’ Conflicts......

Words: 880 - Pages: 4

Walt Disney Analysis

...Week 8 Financial Analysis of The Walt Disney Company Executive Summary The following report provides an analysis of the current and prospective profitability, and financial stability of The Walt Disney Company (Dis). The Walt Disney Company, together with its subsidiaries, “is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive” (The Walt Disney Company Annual Report, 2013). The report will additionally examine three areas of financial strength; liquidity, leverage debt to equity ratio, and sustainable growth as well as summary descriptions of each business segment in order to fully understand the company’s profitability in the short and long run. Organizational Overview The Walt Disney Company was founded in 1922, and has become a world leader in family entertainment. Disney is operating on a multinational level under the direction of CEO, Robert A. Iger. The Company and its affiliated companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. Each division under The Walt Disney Company’s umbrella provides distinct products and services and caters to diverse market segments. All divisions, however, are united in their creative and imaginative efforts to “reach hundreds of millions of people worldwide and...

Words: 2221 - Pages: 9

Swot Analysis of Walt Disney

...An  Analysis  of  The  Walt  Disney  Company    1   An Analysis of The Walt Disney Company Kendall Forward TELE 3310 October 29, 2013 An  Analysis  of  The  Walt  Disney  Company   Overview & History  2   The Walt Disney Company is a leading American diversified multinational entertainment and mass media conglomerate, headquartered in Burbank California. Founded on October 16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the company struggled through years of unsuccessful creations but turned around after the debut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger, Disney is one of the largest entertainment corporations in the world with approximately 166,000 employees and annual revenues approaching the $45 billion mark (Walt Disney). For eight decades, Walt Disney has entertained people around the world with its theme parks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before diversifying into live-action film production, television and travel, the company established itself as a leader in the American animation industry. The company went public in 1940 and was reincorporated under its current name in 1986 and expanded operations and also started divisions focused on theatre, radio, music, publishing and online media (Cohesion Case). Mission Statement The mission of The Walt Disney Company is to be one of the......

Words: 3954 - Pages: 16

Walt Disney Case Study

...                The  Walt  Disney  Company:   A  Corporate  Strategy  Analysis                               Written  by  Carlos  Carillo,  Jeremy  Crumley,  Kendree  Thieringer  and  Jeffrey  S.  Harrison  at  the  Robins   School  of  Business,  University  of  Richmond.  Copyright  ©  Jeffrey  S.  Harrison.  This  case  was  written  for   the  purpose  of  classroom  discussion.  It  is  not  to  be  duplicated  or  cited  in  any  form  without  the  copyright   holder’s  express  permission.  For  permission  to  reproduce  or  cite  this  case,  contact  Jeffrey  S.  Harrison   (RCNcases@richmond.edu).  In  your  message,  state  your  name,  affiliation  and  the  intended  use  of  the   case.  Permission  for  classroom  use  will  be  granted  free  of  charge.  Other  cases  are  available  at:   http://robins.richmond.edu/centers/center-­‐for-­‐active-­‐business-­‐education/research/case-­‐network.html   November  2012     "Walt was never afraid to dream. That song from Pinocchio, 'When You Wish Upon a Star,' is the perfect summary of Walt's......

Words: 10115 - Pages: 41

Walt Disney Case Study

...The Walt Disney Company Danjel Lessard & Lauren Northcutt Business 308: Principles of Marketing Professor Simpson The Walt Disney Company Description What started out to be nothing more than a dream of Walter Elias Disney, with the release of Alice in Wonderland, a series of short film comedies, the beginning of a world renowned global corporation Walt Disney had evolved. Walter and his brother Roy were equal partners in what was originally the Disney Brothers Cartoon Studio in 1923 and with the suggestion of Roy, it soon was renamed The Walt Disney Studio. After four years of success and profit, Walter and Roy experienced a business set back when they found their film distributor M.J. Winkler had stolen their cartoon characters and animators in attempt to undercut them. With the help from their chief and loyal animator, Ub Iwerks, Walt created Mortimer Mouse, which was renamed Mickey Mouse by his wife. The first cartoon with synchronized sound was released at the Colony Theater in New York, November 18, 1928. Walt Disney won its first Academy Award for Best Cartoon in 1932 and continued to be honored with an Oscar every year for a decade. Walt Disney consumer products started when Walt and Roy accepted $300.00 from a man that insisted Mickey should be applied to paper towels for school children. The company became public in 1940 and followed with the release of five successful feature films, including Snow White, Fantasia, Pinocchio, Bambi and Dumbo. In......

Words: 5465 - Pages: 22

Walt Disney Case Analysis

...Walt Disney Case Analysis Corporate Strategy The Disney brand is extremely well known, but most may not realize how diversified the company actually is. The company is made up of media networks, theme parks and resorts, studio entertainment, consumer products, and interactive media. Walt Disney Company’s corporate strategy involves three aspects; creating high-quality family content, exploiting technological innovations to make entertainment experiences more memorable, and internal expansion. Disney wants the whole family to be involved. Much of their success is due to targeting not just children, but the entire family. The movies and shows they release are done with family in mind. Theme parks and resorts, Disney Cruises, live performances and interactive media are all aimed at creating high quality family content. Disney acquired Pixar, Marvel, and Playdom in order to satisfy their second corporate strategy. The acquisition of Marvel and Pixar was intended to enhance Disney’s animation abilities to make experiences more memorable. Playdom gave the company new online gaming capacities that Disney hoped would help to improve its struggling interactive media division. UTV was acquired to facilitate its international expansion efforts. Disney’s international expansion strategy mainly focused on opportunities in emerging overseas markets. As of 2012 The Disney Channel was available in more than 100 countries and reached 75 percent of viewers in China and Russia. This......

Words: 1872 - Pages: 8

Walt Disney Analysis

...Walt Disney World Company is an international media and entertainment conglomerate. Disney has integrated itself within global culture as a premiere theme park and resort service. Its high quality of standards, unsurpassed customer service, and originality make it like nowhere else in the world. The Walt Disney World Company manages 5 theme park and resorts around the world. Having two based in North America, and with the other 3 based in Europe and Asia. Having been ranked in the top 100 public companies in the world according (Forbes.com, 2014) Disney is seen as having anything but financial difficulty. That however is not the case for one of its prestigious theme parks. Since opening in 1992, Euro Disney, or currently recognized as Disneyland Paris, has become one of the largest tourist attractions in all of Europe. Though touted as one, if not the happiest places on earth, financially it is not much but a mirage. Euro Disney has not turned a profit since 2008, and has already had to be bailed out on 3 other occasions over its 2 decade existence. To many investors, this does not surprise them that it is happening a fourth time. Euro Disney has followed the same cycle that all products go through. This is known as the International Product Life Cycle Theory. Much like the regular product life cycle, the international theory adds on three stages, new product, maturing product and standardized product. In 1992, Euro Disney would have been going through the new product......

Words: 1112 - Pages: 5

Walt Disney Stock Analysis

...A. BACKGROUND ANALYSIS 1. Provide a brief description of your company: nature of operations, size (in market capitalization and net income), and which industry it is in. Also list the names of several competitors (at least 3) of your company. In www.finance.yahoo.com, you can find a limited list of your company’s competitors by inputting the ticker symbol or the name of your company and hitting “get quotes”. Then look at the vertical menu on the left part of your screen. Under the COMPANY menu, click on COMPETITORS. If you don’t get at least 3 competitors from Yahoo, you need to find another source. “The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments, these five segments include: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The Media Networks segment operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels Worldwide, ABC Family, and SOAPnet, as well as UTV/Bindass. This segment owns eight domestic television stations. The Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation club properties; a retail, dining, and entertainment complex; a sports complex; conference centers; campgrounds; golf courses;......

Words: 3015 - Pages: 13

Walt Disney Case

... Executive Summary The Walt Disney is an American diversified multinational mass media and entertainment company, founded in Burbank, California in 1923 by two brothers Walt and Roy O. Disney. The companies success can be attributed to the ability exceed customer’s expectation and deliver magical moments to the audience. The main core value of the company can be identified in the cast members, who are considered the main bridge to deliver the company’s core values. As well to support cast members the company equipped the park with new technologies, the process not only reduce waiting time but also increase customer’s satisfaction. However the company initially face some globalization issues due to the lack of communication between corporate and regional offices. Walt Disney today in order to avoid culture clash has enabled local office globally distributes to compare and contrast the local customs and demands. The company in order to financial grow and reaming the leader in this sector has to invest in emerging market, as well as technology. Executive Summary 2 Methodology 4 Introduction 4 Issue of Statement 5 Company highlights 5 Market impact 5 Service deliver 6 Technology innovation 7 Centralization process 7 Competitor analysis. 8 Decentralization process. 8 Service issues. 8 Glocalization 9 Disney parks experiences. 10 ......

Words: 3137 - Pages: 13

Walt Disney Case

...Case 20: The Walt Disney Company Introduction The Walt Disney Co. is an enigma in these rough economic times for the sole purpose that they show minimal signs of slowing down. Mickey Mouse has his hands dipped into everything and from an investor’s standpoint that’s a good thing because that equals diversification, and in turn, diversification lowers risk. The Disney Company operates in several areas of the media and entertainment industry. They have recently acquired Pixar, which consistently provides box office record sales with their animated films. Along media entertainment lines, Disney also operates dominant media channels ABC and ESPN. These are two channels that carry with them a strong loyal following. Sports have always been America’s past time and it’s unlikely to see them ever declining or the viewership that goes along with it. People have always poured capital into sports and will continue to for many centuries to come. Aside from Disney’s ventures, investors focus and confidence should be in the trademark of Disney. Characters such as Mickey Mouse and Buzz Light-year are icons that will never be lost in the pages of time. Kids and adults alike will always want to participate in the next big thing the company has to offer and these kinds of expectations will always lead to Disney having a stable stock price and even unstable in the positive manner because the growth potential is limitless for this company. You can see that limitless with the many......

Words: 10253 - Pages: 42

The Walt Disney Company Case

...Case Presentation Chart re: The Walt Disney Company: The Entertainment King HBS Case #2 Introduction The Walt Disney Company has truly been “the entertainment king” in the 83 years since its founding. This is largely due to the vision of Walt Disney, as well as the strategic management skills of Michael Eisner. The work of these two men, as well as countless others at The Walt Disney Company has created an innovative business model with universal appeal. A History of Disney The Disney Brothers Cartoon Studio was founded in California in 1923 by Walt and Roy Disney. The brothers had a contract to produce “Alice Comedy” films about a live girl in an animated world. Over the next four years, around 55 films are produced in the series. In 1927, The Disney Studio began indirect production for Universal Pictures’ films “Oswald the Lucky Rabbit.” The brothers produced 26 films in their first year. In 1928, Universal took the contract from the Disney Studio, and Walt Disney created Mickey Mouse by widening Oswald’s ears and changing his clothes slightly. Mickey’s film debut was also in 1928 in the film “Steamboat Willie.” 1937 saw the release of Disney’s first feature-length animated film, Snow White and the Seven Dwarfs. In 1940 the company made its initial public stock offering, and ten years later, Treasure Island, Disney’s first entirely live-action film was released. Walt Disney himself also appeared on television for the first time in 1950. In 1955, Walt......

Words: 2042 - Pages: 9

Walt Disney Financial Analysis

...| The Walt Disney Company Financial Document | Analysis &Forecast | | | 2011-11-1 | Executive Summary From the analysis and calculations in the report, we forecast that in the future, Walt Disney will face more fierce competition from their rivals, like Universal, Fox; There is a lack of new impressive cartoon imagines besides these classic ones; Acquisition of Pixar in 2009 still needs the reality to check. In conclusion, our suggestion for investors is to short their stock | The Walt Disney Company Financial Document The Walt Disney Company (NYSE: DIS) (commonly referred to as Disney) is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The company is best known for the products of its film studio, the Walt Disney Motion Pictures Group, and it is one of the largest and best-known studios in Hollywood today. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. The company has been a component of the Dow Jones......

Words: 1706 - Pages: 7

Walt Disney Case

...Walt Disney Company Walt Disney is more than just a billion dollar industry in not only the United States, but all over the world. Walt Disney represents the idea of happiness and a sense of tradition for families all over the world. According to the case in the text, Walt Disney has fallen 26 percent in 2006 with their Movie Studio being the worst performing division reporting in an operating loss of $12 million dollars. Their number of DVD sales is also part of their structure that has been declining since 2006 up to 2009. Walt Disney needs to change up their strategic plan from what it was when the company was founded back in 1923. They cannot expect to keep up with the competition if they are not willing to change their plan and start gearing it towards their future instead of the past and present. Mission and Vision Statements. According to the text, Disney’s mission statement is “To be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.” It also states that Disney does not have vision statements. In order to gear their strategy for the future, it is crucial that Disney develops clear and concise vision statements. I think this is the first problem that contributes to their recent dramatic revenue drop and a simple......

Words: 1274 - Pages: 6

Walt Disney Financial Analysis

... Walt Disney Company Financial Analysis Managerial Finance BUSA 302 Dr. Frederick Wolf May 24, 2007 Completed By: Shanna Baumgarten Michaela Baylous Laura Buckner Kari Gurtel Table of Contents: • Executive Summary . . . 3 • Background . . . 3 • Financial Statement Analysis . . . 5 o Balance Sheet . . . 5 o Income Statement . . . 8 o Cash Flow Statement . . . 9 • Ratio Analysis . . . 10 o Liquidity . . . 10 o Profitability . . . 12 o Activity . . . 12 o Leverage . . . 14 o Valuation . . . 15 • Sales Forecast . . . 15 o Projected Sales . . . 15 o Forecast Earnings . . . 17 o Pro Forma Statement . . . 17 o Sustainable Growth . . . 18 • Risk Assessment . . . 19 o Economic Conditions . . .20 o Changes in Consumer Demand & Preferences . . . 20 o Changes in Regulation . . . 21 o Intellectual Property Rights . . . 21 o Employee Costs . . . 21 o Pixar . . . 22 o Interest Rates . . . 22 o Foreign Exchange Rates . . . 22 o Restrictions on Trade . . . 23 o Taxes . . . 23 • Financial Restructuring . . . 23 • Recommendations to Management . . . 23 • References . . . 26 • Appendix . . . 27 Executive Summary: The Walt Disney Company Financial Analysis details the finances at The Walt Disney......

Words: 5438 - Pages: 22