Professional Documents
Culture Documents
05/03/2012
Company Overview The Founder Growth Location Map Walt Disneys Division Existing Mission Proposed Mission and Vision SWOT Analysis External Audit CPM Positioning Map EFE Internal Audit Organizational Chart Financial Trends Balance Sheet Financial Ratios IFE
Overview
Strategic Plan SWOT Matrix Space Matrix IE Matrix Grand Strategy Matrix BCG Matrix Analysis QSPM Implementation Assumptions Projected Income Statement Projected Balance Sheet Projected Ratios Evaluation Stock Price Balance Scored Card Strategies Recommendations Objectives
The founder
Walt Disney was born on December 5, 1901 in Chicago During the fall of 1918, Walt Disney attempted to enlist for military service but he got rejected. He started a small company called Laugh-O-Grams, which eventually fell bankrupt. With his suitcase, and $20 Walt headed to Hollywood to start anew. After making a success of his "Alice Comedies," Walt became a recognized Hollywood figure. Disney took a deep interest in the establishment of California Institute of the Arts, a college-level professional school of all the creative and performing arts. Walt Disney passed away on December 15, 1966. Urban legend maintains his corpse would be frozen and stored beneath the Pirates of the Caribbean ride at Disneyland. . .
History
October 16, 1923: This date is considered the start of the Disney Company first known as
Flowers and Trees, first full-color cartoon and first Academy Award
winner. 1939: The Disney Studio begins its move to Burbank, California. 1940: Walt Disney Productions issues its first stock.
Growth
1955: Mickey Mouse Club debuts on television.
1971:
Walt Disney World Resort opens with the Magic Kingdom and two hotels near Orlando, Florida. 1982: EPCOT Center opens at Walt-Disney World Resort . 1983: Tokyo Disneyland, the first international Disney theme park, opens in Japan.
1987:
The first Disney Store opens, in Glendale, California.
Growth cont.
1989: Disney-MGM Studios opens at Walt Disney World Resort. 1992: Disneyland Paris opens. 1995: Disney agrees to purchase 25 percent of the California Angels baseball team, Disney agrees to purchase Capital Cities/ABC for $19 billion. The Disney Channel begins operation in the UK. 1996: Disney Online launches Disney.com. Radio Disney, a live 24-hour music-intensive radio network, debuts. 1998: ESPN Magazine debuts, Disneys Animal Kingdom opens at Walt Disney World Resort, Disney Magic cruise ship departs on its inaugural cruise.
2009
Disney
purchased Marvel Entertainment Gave a $0.35 dividend per share Roy Disney died at age 79 He was a key person in Disneys animation legacy Received approval to build a theme park in Shanghai Released the movie Up
LOCATION MAP
Disney Resorts: 1. California 2. Florida 3. Tokyo 4. Hong Kong 5. Paris
Media Networks ESPN Disney/ABC Television Group ABC Entertainment Group ABC News ABC Owned Television Stations Group ABC Family Disney Channels Worldwide Hyperion Book s
Park and Resorts Disney Land Resorts Walt Disney World Resort Tokyo Disney Resort Disneyland Paris Hong Kong Disneyland Disney Cruise Line Disney Vacation Club Adventures by Disney Walt Disney Imagineering
The Walt-Disney Studios Walt-Disney Studios Motion Pictures Marvel Studios Touchstone Pictures Disneynature Walt Disney Animation Studios Pixar Animation Studios Disney Music Groups Disney Theatrical Group
Disney Consumer Products Disney Licensing Disney Publishing Worldwide Disney Store Disney Interactive Media Group Disney Online Disney Games
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."
Proposed Vision
Walt Disney strives to be the worlds most famous entertainment company by creating an amazing experience for individual of all ages.
Proposed Mission
Our Mission is to be one of the worlds leading producer and provider of entertainment and information, from parks to network media, and website for all ages. We seek to provide a great experience for our customers, as well as for our employees. By using our unique portfolio to differentiate our content, services and consumer products, we seek to develop the most creative, HISTORY innovative and profitable entertainment experiences, which would produce financial rewards to our shareholders. In everything we do, we try to contribute to our communities by giving them the best experience.
SWOT Analysis
Strengths
One of the most recognizable entertainment company in the world Strong advertising Wide and unique portfolio Innovative entertainment business Strong customer service Strong Media Networks and Broadcasting division Disney owns a variety of companies, which allows them to generate more profits from different industry such as Media Networks and Broadcasting, Park and Resorts, Studio Entertainment and Disney Consumer Products Disney is the largest worldwide licensor of character-based merchandise and producer of childrens film-related products based on retail sales
Weaknesses
Weaknesses
Studio Entertainment and Disney Consumer Products divisions have been experiencing declining revenue for the last 3 years
Disney as a narrow target market Disney as such a diversify product range that it can reduce efficiency and lead to a lack of strategic focus
Opportunities
Opportunity to renovate attractions in Park and Resorts Division due to increase in profit
Growth from cable and satellite operators creating even more potential for Disney to make money with their network
Prospect to build more theme park and resorts worldwide Openings in other areas of the travel business Opportunity to invest in building theme parks to satisfy the increase in guest spending, theme park attendance, and hotel occupancy
Threats
Lasting economic recession leading to slow growth rate High unemployment rate Park and Resorts Divisions success is unpredictable because of exchange rate fluctuations; travel industry trends; amount of available leisure time; oil and transportation prices; and weather patterns and seasonality. Changes in technology leads customers to stream online instead of buying DVD. Online streaming makes Disney vulnerable to piracy and violation of its intellectual property. Retail distribution business are influenced by seasonal consumer purchasing behavior and by the timing and performance of animated theatrical release Increase in labor cost which will have a noticed impact in WaltDisney expenses due to their large amount of employee.
External Audit
CPM
Media Network Segment
Critical Success factors Weights Rating 0.0 to 1.0 1 to 4 Weighted Score Rating 1 to 4 0 Advertising 0.12 4 0.48 4 Weighted Score Rating 1 to 4 0 0.48 2 Weighted Score
0 0.24
Market Share
Company Image Financial Position Management Global Expansion Consumer Loyalty Production Capacity Technology Totals
0.11
0.12 0.11 0.09 0.12 0.12 0.12 0.09 1
3
4 4 3 4 4 3 3
0.33
0.48 0.44 0.27 0.48 0.48 0.36 0.27 3.59
4
3 4 3 4 4 3 4
0.44
0.36 0.44 0.27 0.48 0.48 0.36 0.36 3.67
2
3 3 3 4 3 2 3
0.22
0.36 0.33 0.27 0.48 0.36 0.24 0.27 2.77
Positioning Map
Media Network Segment
Positioning Map
Park and Resorts Segment
EFE
Internal Audit
Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world. - Walt Disney
Organizational Chart
Theme Parks & Resorts International ABC Television Group Co-Head Interactive Co-Head Interactive & Playdon Human Resources Motion Picture Distribution Communication Stategy and Business Development Government Relations Disney Consumer Products ESPN & ABC Sports ESPN & Disney Media Networks CFO Legal and Secretary CID Security
CEO
Financial Trends
Book Value/ Share
Avg P/E
Price/ Sales
Price/ Book
Debt/ Equity
Interest Coverage
01-Oct-09
12.9
1.41
1.47
9.1
$18.55
0.38
9.8
5.2
9.6
01-Sep-08
14.2
1.69
1.85
11.7
$17.73
0.46
13.7
7.1
10.4
01-Sep-07
15
2.03
2.19
13.2
$15.67
0.5
15.2
7.7
10.4
01-Sep-06
16.9
1.87
1.98
9.8
$15.42
0.43
10.4
5.5
7.5
01-Oct-05
22.2
1.58
1.82
7.8
$13.06
0.49
9.4
4.6
6.3
01-Sep-04
21
1.52
1.7
7.6
$13.05
0.53
4.4
5.9
01-Sep-03
28.4
1.52
1.68
4.9
$11.82
0.57
5.6
2.7
3.4
01-Sep-02
33.4
1.2
1.29
4.9
$11.61
0.62
5.3
2.5
Income Statement
(in Millions, except per share data) Revenues Costs and expenses Restrucuring and impairment charges Other income (expense) Net interest expense 2009 $36,149.00 $(30,452.00) $(492.00) $342.00 $(466.00)
$577.00
$5,658.00 $(2,049.00) $(302.00) $3,307.00 $3,307.00
$1.76
$1.76
$1.78
$1.78
$1,875.00 $1,856.00
Balance Sheet
Liquidity Ratios
Current Ratio Quick Ratio 1.33 1.19 1.01 0.91
Leverage Ratios
Debt-to-Total Assets Ratio Debt-to-equity Ratio Long-term debt-to-equity Ratio Times-Interest-earned Ratio 1 1.12 0.1 -12.14 1 1.93 0.12 -14.13
Activity Ratios
Inventory Turns Fixed Assets Turnover Total Assets Turnover 28.44 1.11 0.57 33.67 1.2 0.61
Profitability Ratios
Gross Profit margins Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholders equity Earning per share Price-earnings Ratio 1.84 0.16 0.09 0.05 0.06 1.78 15.31 1.8 0.2 0.12 0.07 0.14 2.34 12.61
IFE
Strategic Formulation I do not like to repeat successes, I like to go on to other things. Walt Disney
SWOT Matrix
Strategies: Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Related Diversification Unrelated Diversification
Space Matrix
IE Matrix
Strong 3-4 Total IFE Score Average 2-2.99 Weak 1-1.99
Media Networks
High 3-4
Studio Entertainment Total EFE Medium Score 2-2.99 Consumer Products Parks and Resorts
Low 11.99
Interactive media
Strategies: Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Related Diversification Unrelated Diversification
BCG
Matrix Analysis
QSPM Matrix
QSPM Cont.
Implementation
Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world. Walt Disney
Pixar is the most technically advanced creative company; Apple is the most creatively advanced technical company. Steve Jobs 2005-02-21
Assumptions
Eliminate
10 billion out of the borrowings from the retained earnings Finance 1 billion to buy a land in order to open indoor resort in New York in the next three years. Invest 10 million for advertisement Spend 1 billion in each of the five existing Park for renovation and new attractions. = Total of 5 billion
Total Investment of 19.01 billion
Assets
Liabilities
Leverage Ratios
Debt-to-Total Assets Ratio Debt-to-equity Ratio Long-term debt-to-equity Ratio Times-Interest-earned Ratio 1 1.12 0.1 -12.14 0.86 1.84 0.26 -12.14
Activity Ratios
Inventory Turns Fixed Assets Turnover Total Assets Turnover 28.44 1.11 0.57 40.39 1.11 0.62
Profitability Ratios
Gross Profit margins Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholders equity Earning per share Price-earnings Ratio 1.84 0.16 0.09 0.05 0.06 1.78 15.31 1.84 0.16 0.09 0.06 0.012 1.72 14.27
Evaluation You're dead if you aim only for kids. Adults are only kids grown up, anyway. Walt Disney
2. Ethical Company
Yearly
Operations/Processes 1. Innovation Number of new products in each segment Number of renovated products in each segment Numbers of new resorts built Yearly CEO Marketing Department
Yearly
CEO
Yearly
CFO
2. Increase profitability
Quarterly
CFO
Strategies
Use product development to renovate and build new attractions in order to attract an older target market. Use market development to build a new theme park which will be more accessible to
Recommendations
In the next three years Walt Disney should..
customers.
Objectives
In the next year Walt Disney should
Improve
advertising to promote
entertainment
Remove Buy
Questions
Sources
Home, The Walt Disney Company, < http://thewaltdisneycompany.com/<ALDRIDGE, B. Walt Disney, Brad Aldridge Productions, Berkley, CA, August 2002, http://www.justdisney.com/walt_disney/> Annual Reports, The Walt Disney Company, <http://thewaltdisneycompany.com/investors/financial-information/annual-report> Who Owns the Media? Media Ownership Charts, Free Press, Florence, MA, <http://www.freepress.net/ownership/chart> Investor Relations, The Walt Disney Company, <http://thewaltdisneycompany.com/investors> Walt Disney Company (DIS) News The New York Times <http://topics.nytimes.com/top/news/business/companies/disney_walt_company/index.html> Stock Quote for Walt Disney Co MSN Money, page generated 9:55PM, <http://investing.money.msn.com/investments/stock-price?Symbol=dis&ocid=qbeb> DIS: Summary for Walt Disney Company (The) Common Yahoo! Finance <http://finance.yahoo.com/q?s=dis&ql=1>