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Company Analysis
For: Professor John Genzale
BUEN 307 – B
American University of Rome
May 5, 2014
By: Jim Bailey III
Spring Semester 2014
Table of Contents
Page
Company History and Background ……………………………………………………. 1
Current Situation ……………………………………………………………………. 1
· Past Corporate Performance Indexes ……………………………………………. 1
· Strategic Posture ……………………………………………………………. 2
· Competition ……………………………………………………………………. 3
Corporate Governance ……………………………………………………………. 4
· Board of Directors ……………………………………………………………. 4
· Top Management ……………………………………………………………. 5
External Environment ……………………………………………………………………. 5
· Opportunities ……………………………………………………………………. 5
· Threats ……………………………………………………………………. 6
Internal Environment ……………………………………………………………………. 7
· Strengths ……………………………………………………………………. 7
· Weaknesses ……………………………………………………………………. 7
· Financials ……………………………………………………………………. 8
External and Internal Environment Summary: SWOT ……………………………. 9
Conclusion/Recommendations ……………………………………………………. 9
Bibliography …………………………………………………………………………... 11
Executive Summary
This report provides a comprehensive analysis of The Walt Disney Company. Methods of analysis include external and internal environments. Recommendations and conclusions will be made based on the analysis.
Company History
Founded on October 16, 1923 as the Disney Brothers Cartoon Studio, The Walt Disney Company established itself in the animation industry before expanding into the global mass media corporation that it is today.
The Walt Disney Company Today
The current mission 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.
Corporate Governance
Board of Directors
· 10 members with CEO on the board
Top Management
· 9 members
· CEO – Robert A. Inger – Also chairman of the board
SWOT External
Opportunities
· Emergent countries – Specifically China’s growing consumer market
· Expansion of online presence
Threats
· The reduction of competitor cable fees
· Increasing costs of sports rights
· The creation of competitors in sport media
SWOT Internal
Strengths
· Brand reputation
· Excellent strategic acquisitions
· ESPN’s cable dominance
· Financial strength of A++
Weaknesses
· Expensive box office failures
· Broadcasting segment underperforms
Recommendations
· Use global brand image to move into the Asia-Pacific and Chinese markets
· Continue to support ESPN sports rights
· Focus more on producing established big budget films (Star Wars 2015)
· Sell ABC while maintaining ownership of ESPN
· Foster an online presence
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Company Analysis
Company History and Background
The Walt Disney Company (commonly known as Disney) was originally founded on October 16, 1923, as The Disney Brothers Cartoon Studio by Roy and Walt Disney. The initial Disney Brothers Cartoon Studio became an established leader within the animation industry before expanding into the multifaceted and international mass media corporation that it is today. The company took on its current official name in 1986 and is now the largest media conglomerate in the world in regards to total revenue. In collaboration with its 142 subsidiaries, Disney owns and operates: broadcast and cable television networks, publishing, merchandising, theatre divisions, a music division, and 14 amusement parks worldwide. Disney has been a constituent of the Dow Jones Industrial Average since 1991 and is headquartered in Burbank, California. Disney is traded in the New York Stock Exchange and listed as: DIS.
Current Situation
Past Corporate Performances Index
Over the past five years Disney has shown a slight growth in net income and revenue as well as maintaining a stable net profit percentage, which can be seen in Figure 1 on the next page.
Figure 1: 2009-2013 Financial Revenue and Profit Margin Overview
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Source: Google Finance NYSE DIS
Disney has a Debt to Total Capital ratio of 24.56%, which is lower than that of previous years (Financial Times, DIS:NYQ).
Strategic Posture
· Mission Statement: “The mission of The Walt Disney Company 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.”