Experiential Exercise 3A

Developing an EFE Matrix for Walt Disney Company

Purpose

This exercise will give you practise developing an EFE Matrix. An EFE Matrix summarizes the
results of an external audit. This is an important tool widely used by strategist.

EFE Matrix for Walt Disney Company

Key External Weight Rating

Weighted
Factors
Score

Opportunities

1. Spend 1.1bil in 2008-20011 to revitalize the Disney California 0.06 4 0.24

Adventure in Anaheim,California.
2. Disney and Citadel announced an agreement to merge with 0.09 3 0.27
ABC radio business.
3. Disney opened Grand Floridian Beach and Carribean Beach 0.06 2
0.12 Resorts that include three new gated attractions.
4. Parks and Resorts division increased 10% in 2006 to 9.9 billion 0.09 3
0.27
Due to domestic and internationals resorts.
5. Buena Vista Games has reach a sales growth to an increase of 0.07 3 0.21
14%.
6. Disney’s 50th anniversary celebration at its parks and resorts 0.07 4
0.28 increased attendance and hotel occupancy.

Threats

1. Time Warner is a major rival to Disney Company 0.10 4 0.40

This industry is dominated by conglomerates Walt Disney 0.08 2 0.16
, Time Warner Inc., New York Times, News Corp., and CBS
Corporation.
Disney also compete with satellite providers such as Direct TV 0.06 2 0.12
Disney competes with other advertising media such as 0.08 3 0.24
Newspapers, Billboards, Internet and magazine.
Disney’s theme park and resorts really depends on travel trends 0.08 3 0.24
Seasons and also the security to travel
6. Competitors are consolidating and spending aggressively 0.08 3 0.24
To promote new hit movies and TV shows.

Total 1.00
2.79
Experiential Exercise 3D
Developing a Competitive Profile Matrix for Walt Disney Company

Purpose
Monitoring competitors’ performance and strategies is a key aspect of an external audi. This
exercise is designed to give you practise evaluating the competitive position of organization in a
given industry and assimilating that information in the form of Competitive Profile Matrix.

Competitive Profile Matrix

Walt Disney Time Warner News

Corporation

Critical Success Factors Weight Rating Score Rating Score

Rating Score

Advertising 0.20 2 0.4 4 0.8 3 0.6

Product Quality 0.10 3 0.3 3 0.3 4 0.4
Price Competitiveness 0.05 2 0.1 3 0.45 2 0.1
Management 0.10 3 0.3 4 0.4 3 0.3
Financial Position 0.10 4 0.4 3 0.3 4 0.4
Customer Loyalty 0.15 3 0.45 2 0.3 3 0.45
Global Expansion 0.20 3 0.6 4 0.8 3 0.6
Market Share 0.10 2 0.2 3 0.3 3 0.3

Total 1.00 2.75 3.65

3.15
 Internal Factor Evaluation Matrix for Walt Disney Company

IFE Matrix for Walt Disney Company

Key Internal Factors Weight Rating

Weighted
Score
Strengths

1. Disney owns ABC Television Network 0.08 2 0.16

2. Disney’s net revenue climbed 5.2% to 35.5 billion 0.10 4 0.4
3. Walt Disney company operates using a strategic 0.08 4 0.32
business unit(SBU)
4. Disney WABC-TV ranked as the 1st in television market ranking 0.10 3 0.3
In Ney York.
5. Disney unveiled Disney Xtreme Digital which competes against 0.09 2 0.18
Myspace.
6. Parks and Resorts division increased 10% in 2006 to 9.9 billion 0.10 3 0.3
Due to domestic and internationals resorts.
Weaknesses

1. Disney revenues from Studio Entertainment and Consumer product 0.08 2 0.16
segment decreased by 1%
2. Hong Kong Disneyland has been struggling because the company 0.08 3 0.24
Might have to persuade lenders to refinance the debt.
3. Disney has lost the competitiveness on consumers products to 0.12 4 0.28
Nickelodeon as they had launch SpongeBob and it’s a hit.
4. Disney has smaller industry segments in the broadcasting industry 0.09 3 0.27
As news corp. operates in eight industry segments.
5. The theme park and resorts business experiences fluctuations 0.08 4 0.32
from the seasonal Nature of vacation travel and local
entertainment excursions.

Total 1.00
2.93
 Strategic Management

BBM 303

Individual Assignment

Name ID

Mohd Yusfaizan B. Mohd Pilus KI080365

Lecturer:

Mdm Kamarjeet Kaur