Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Walt disney company 2012 annual report

05/12/2021 Client: muhammad11 Deadline: 2 Day

Walt Disney Company Case Study And Strategic Plan

Diversification and SWOT Analysis

Cassandra Williams

Introduction

The Walt Disney Company represents a truly immense organization composed of five strategic business units which, with the consideration of the consolidated revenue, represented roughly $42.3 billion as of their fiscal year end on Sept 29, 2012. (Fiscal Year 2011 Annual Financial Report and Shareholder Letter, 2011). The five SBUs are Disney Consumer products, Studio Entertainment, Parks and Resorts, Media Networks Broadcasting, and Interactive Media. (Fiscal Year 2011 Annual Financial Report and Shareholder Letter, 2011). These five SBUs can be further subdivided into 28 categories and are composed of a variety of brands. The only two common areas that can be found in the Walt Disney Company’s holdings are entertainment and information. Every business activity the organization is engaged in is related in some manner to providing its consumer base entertainment and or information.

Despite the two commonalities of their activities, there exists a wide array of variety in their operations. One of the growth strategies that has aided the corporation reach its current level of success is the fact that the organization has expanded both vertically and horizontally into new markets by targeted segmentation. In most cases, it reaches these market segments by acquiring a previously established brand such as ABC, ESPN, and recently Marvel Comics and Lucasfilms. (Walt Disney Company subsidiaries). Furthermore, it is only through the diversification in branding that Disney has grown simply because the children’s brand is comparatively limited in terms of the target demographic. It is also the same diversity that minimizes the systemic risk involved with operating in too narrow of a portfolio.

The individual external threats to Walt Disney are as diversified as the company itself. However, one of the greatest potential risks to the overall aspirations of the company is rooted in the protection of its brand(s) image and credibility. The history of the Walt Disney Company and its positive reputation are deeply engrained within the cultural heritage of people worldwide. This is also evident in the fact that their balance sheets show excessive amounts of intangible assets and goodwill. According to their balance sheet in 2011, Disney accounted for almost $80 million in intangible assets. (Fiscal Year 2011 Annual Financial Report and Shareholder Letter, 2011). They are more subject to risks than more traditional assets. Therefore, a balance must be achieved that embraces diversity in branding but also maintains a healthy risk adversity to any potential threats to brand’s integrity.

The major threats that Disney faces include protecting their intellectual properties, especially in the Studio Entertainment division, as well as threats generated by an economic downturn. Most of Disney’s products and services are priced at a premium and are at risk in a period of recession. There are several competitors in the theme park industry, but when it comes to movies and television, the number of rivals are too numerous to mention.

Disney’s internal strengths are composed mainly of the company’s innovative leveraging of its financial expertise and tremendous brand recognition to move vertically and horizontally into new markets. Innovation has been at the core of Disney’s organizational culture virtually from day one. The fact that their portfolio is so diversified also offers the company substantial advantages in terms of risk mitigation.

SWOT Analysis

Strengths

· Brand recognition

· Strong customer loyalty

· High quality products and services

Weaknesses

· High operating costs

· Brand is mainly associated with children

· Growth barriers in theme parks

Opportunities

· Further foreign expansion

· Unlimited character development

· Multicultural marketing (Cinco de Mayo, Lunar New Year, etc.)

Threats

· Other theme parks

· Other online retailers

· Recent acquisitions of Marvel and Lucasfilms could post low or unprofitable sales

Recommendations

The recommended strategies for the Walt Disney Company are composed of initiatives on two separate fronts. First, SBUs must continue to strengthen operations by identifying new opportunities in the current target markets. This lies solely in the skill set of management. One example of such is the new attractions being planned for the theme parks.

However, the most noticeable example of innovative ideas was Disney’s real estate venture that takes their “magic” to a whole new level. In this case, Disney successfully leveraged its incredible brand recognition in the real estate market by creating communities with their image marketing theme coupled with their branding and consequentially adding value to the consumer. (Watson, 2010).

This type of innovative leveraging of the Disney brand represents the second strategy recommendation. Their endeavors into new markets, both in and out of the SBU structure, must maintain Disney’s values and be fully compatible with either their entertainment niche or also possibly along the informational divisions. Another example that falls within the traditional SBU structure with regards to growth through acquisition that has proven successful is Disney’s acquirement of Pixar Entertainment in 2006. (LaMonica, 2006). This move was completely in line with Disney’s strong roots in animation and not only acted to benefit that specific SBU, but also strengthened the brand as a whole.

In conclusion, to continue its growth ambitions, Disney must continue its innovative developments from within the traditional SBU structure. Moreover, it must scan for opportunities, such as the real estate venture, which lies outside the traditional hierarchy. To achieve this, Disney must not only foster the culture of innovation that builds from a bottom up approach through the SBU hierarchy. In fact, it must also be innovative itself in identifying new opportunities. This requires a corporate project coordination team that will engage in project management until the point when the project has been integrated into the SBUs, or when it becomes a standalone SBU in the future. It is difficult to forecast how much revenue this will generate, but it can be compared to the current growth in net income.

Net Income

Growth

2009

$613 million

2010

$953 million

6%

2011

$1.08 billion

30%

Between 2009 and 2011, Disney has almost doubled their net income. Below is a chart showing how much revenue each SBU is responsible for.

Based on these figures, I believe that every SBU could be classified as a Cash Cow with the exception of Interactive Media. While it’s showing to be the lease productive as far as revenue wise, it has shown the most gain over the past year, with a rise of 29%. The other SBUs each have respectable gains in their own right, except Studio Entertainment, only due to the fact they didn’t release that many movies this past year. (Fiscal Year 2011 Annual Financial Report and Shareholder Letter, 2011).

The objectives proposed consist of identifying opportunities for acquisition or entrance into a new market and creating a project team to capture this opportunity. This proposal recommends that the project portfolio be evaluated quarterly. Each separate SBU should have some freedom to decipher the projects scope, schedule and budget while a corporate team leads initiatives that fall outside the realm of the traditional SBU structure. The centralized project coordination office will then have the ability to compare the proposed net present value among all projects across the traditional divisional lines to make sure that the projects with the greatest benefits secure funding and all projects follow a set of best practices. Centralization of this unit also opens the doors to creating a knowledge management base that can also be share across divisional lines. The key advantages of this method are:

· Retain corporate control over acquisitions and projects

· Allow the SBUs freedom for creativity while maintaining functional efficiencies

· Maintain aggressive profit growth by funding projects with the greatest net present value.

It is recommended that the project coordination team be developed to maintain project management best practices without being overly intrusive to the project’s objectives. Also, acquisitions must be monitored as well since these will represent a bulk of the company’s growth strategy. Subsequently, change management practices must be adhered to during such integrations. Disney must also be cognizant of the corporate culture that is subject to any acquisition to ensure that integration does not come with insurmountable resistance.

Ultimately, the proposed focus on innovation and acquisition must be subject to evaluation, and the scorecard for all businesses is written in economic terms. Within the five primary SBUs, such evaluations are comparatively simple to conduct due to the large amount of historical performance data available. New projects and acquisitions require more craft in terms of evaluations but these can be compared with the net benefit analysis produced before the project’s inception to provide a measure of success.

Works Cited Fiscal Year 2011 Annual Financial Report and Shareholder Letter. (2011). Retrieved from The Walt Disney Company: http://cdn.media.ir.thewaltdisneycompany.com/2011/annual/WDC-10kwrap-2011.pdf LaMonica, P. R. (2006, January 25). Disney buys Pixar. Retrieved from CNN Money: http://money.cnn.com/2006/01/24/news/companies/disney_pixar_deal/ Walt Disney Company subsidiaries. (n.d.). Retrieved from The Disneywiki: http://disney.wikia.com/wiki/Category:Walt_Disney_Company_subsidiaries Watson, B. (2010, June 23). Golden Oaks: Why Disney's Latest Real Estate Gamble Isn't Such a Goofy Move. Retrieved from Daily Finance: http://www.dailyfinance.com/2010/06/23/golden-oak-why-disneys-latest-real-estate-gamble-isnt-goofy/

Sales Media Networks Parks and Resorts Studio Entertainment Consumer Products Interactive Media 18714 11797 6351 3049 982

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

University Coursework Help
Financial Assignments
Instant Homework Helper
Helping Hand
Top Writing Guru
Academic Mentor
Writer Writer Name Offer Chat
University Coursework Help

ONLINE

University Coursework Help

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$20 Chat With Writer
Financial Assignments

ONLINE

Financial Assignments

I will provide you with the well organized and well research papers from different primary and secondary sources will write the content that will support your points.

$37 Chat With Writer
Instant Homework Helper

ONLINE

Instant Homework Helper

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$29 Chat With Writer
Helping Hand

ONLINE

Helping Hand

As per my knowledge I can assist you in writing a perfect Planning, Marketing Research, Business Pitches, Business Proposals, Business Feasibility Reports and Content within your given deadline and budget.

$30 Chat With Writer
Top Writing Guru

ONLINE

Top Writing Guru

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$18 Chat With Writer
Academic Mentor

ONLINE

Academic Mentor

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$43 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

How did harold lasswell defined politics - Map of viking homelands and settlements - Bermingham v corrective services commission of nsw 1988 - Cracker jack commercial jack gilford - British airways restructures its entire organization - Notre dame advanced standing - El imperio inca comprende (spans over) territorios de lo que actualmente (currently) son ecuador, - Jamae summer heights high - How to install elfa easy glider - Knowledge Management Overview - Week 1 Case Assignment - Temperate deciduous forest human impact - Twisted steel micro rebar - Use the real zeros to factor f - Max mara dfo homebush - Survey Jazz - Postulates of special theory of relativity ppt - 2015 ap test dates - Excel chapter 1 grader project travel expenses - Csestudy - Psychology paper - Lucas puz5a battery equivalent - Explain the kinked demand curve - Taco bell case analysis - Discussion 1 - Impact of Consumer Behavior on Marketing Strategy - Business Ethics : D4 :How would you describe that factors that determine the tone at the top - CAM lesson 3 assignment - Nursing information management and technology discussion W2 - Wk 2, IOP 490: Team Debate Question - What is sploosh from holes - Non experimental approach in psychology - Spooky forest descriptive writing - Rosana y héctor las palabras del profesor. - Evs worksheet for class 2 - The grammatical structure "a unless b" is a logically equivalent to __________ - Cl luminaire ip65 tube - Sex linked traits virtual lab - Law Dissertation Help - What was the human toll of the great depression - Purple heart patricia mccormick sparknotes - Manageral Accounting week 1 discussion - Objectives of report writing pdf - Porsche kettle and toaster - Policy and politics in nursing - 5 P's Discussion - Ghost in the shell deaf mute - How important is it to trace costs appropriately explain - Leadership themes in the new testament - Two minute speech word count - Chesterfield drive surgery ipswich - Edit My Paper Narrative Paper - 4 Discussions - Assessment 3 Theory and Its Role in Research - Which source would provide credible information about the life of jazz musician charlie parker? - How to make 0.1 m naoh - Physiological effects of whirlpool bath - Essentials of negotiation lewicki 5th edition pdf - Homework 3 2 mystatlab module three problem set - Advertising campaign assignment - Sam cengage access project 1 - Centurion media doing the right thing - American History Reform - How the west and the rest got rich - Twin lakes mining company - Ashfield park primary school - Percent yield problems worksheet - Mary watson is 24 years old and single - Internal control weakness over cash receipts - Truth table for gated sr latch - Victorian certificate of title - Elc spell and learn - NRS-410V-0L191 Pathophisiology and Nursing Management of Client Health. - Dr aafia siddiqui wikipedia - Amp flexible lifetime super abn number - Acme corporation currently has a 20 - Amada punching machine programming - NEED IN 10 HOURS AT MAX - 4 52 x 3 51 - Apple ethical issues - Lewis dot diagram lithium and oxygen - Sharman quinney werrington peterborough - The caux principles for ethical international business - Computer Science - How many clock cycles does the cpu require to act on a command? - Goal programming excel solver example - Claire andre and manuel velasquez credentials - Lab twelve dissolved oxygen answers - Mullins slaughterhouse stuarts draft va - Weak acid strong base titration curve - The jit lean lean pull system ensures that - Two pellets each with a charge of - Analytical geometry questions and answers pdf - Looking at movies 4th edition chapter 1 - Introduction to christian ethics crook - Fragmentation of benzyl alcohol - Achievement and success american values - Accountable care organizations vs managed care - 31a keane street peppermint grove - Informative speech outline on how to make a pizza