1. THE WALT DISNEY COMPANYOrganizational Case StudyCallie
UnruhMGT6145December 14, 2012
2. WALT DISNEY COMPANY Its not just Disneyland! 3. OUTLINE
Introduction and Overview Internal Assessment External Assessment
Strategy Implementation and Financing Conclusion 4. MISSION AND
VISION"The mission of The Walt Disney Company is to be one of
theworlds leading producers and providers of entertainment
andinformation. Using our portfolio of brands to differentiate
ourcontent, services and consumer products, we seek to developthe
most creative, innovative and profitable entertainmentexperiences
and related products in the world." 5. INTERNAL ASSESSMENT 6.
FINANCESRatio2008 2007Current Ratio1.00.99Gross Profit Margin0.20
0.19Return on Stockholder Equity 1.36 1.52Sales7% 5% 7.
ORGANIZATIONAL STRUCTURE Walt DisneyCompany Disney ConsumerStudio
EntertainmentParks and Resorts Media Networks Products Walt Disney
PicturesBroadcastingMiramax FilmsWalt Disney WorldBuena Vista Home
Disney Hard LinesDisneyland Disney-ABC Entertainment Disney Soft
Lines Tokyo Disney TelevisionBuena Vista Disney
ToysTheatricalDisneyland Paris ESPN Inc. Disney
PublishingProductionsHong Kong Walt Disney Disney PressWalt Disney
Disneyland Internet Group Disney EditionsRecordsDisney Cruise Line
ABC-OwnedBuena VistaDisney VacationTelevision Stations Records Club
ABC RadioHollywood RecordsLyric Street StudiosPixar StudiosSource:
David, F (2011). Strategic Management. 8. Chair/Pres:ORGANIZATIONAL
STRUCTURETheme Parks andResortsLEADERSHIPCo-President:
Chairman:DisneyInteractive and this isnt all of them!Walt
DisneyIntlCo-Chairand Pres.ABC Chair: WaltTelevisionDisney
GroupStudios CEO Co-President:DisneyInteractive EVP and and Playdom
Chief HumanResourcesOfficer EVP Motion Picture DistributionEVP
Communications EVP Strategy and Business
DevelopmentPresident:ConsumerProductsPresident: ESPN
andPresidentABC SportsSource: www.theofficialboard.comESPN
andCo-Chair MediaNetworks 9. ORGANIZATIONAL STRUCTURELEADERSHIP
Recommendation Chief Executive President and Board of DirectorsSBU
1SBU 2 SBU 3SBU 4 SBU nGeographicalFunctional 10. MARKET POSITION:
THE COMPETITORS 11. DisneyMARKET POSITION Time WarnerCBS Corp. High
Market Capitalization Media Networks/Broadcasting and Studio
Entertainment Low Revenues High Revenues Low Market Capitalization
12. DisneyMARKET POSITION Six FlagsOcean Park Locations (high)
Parks and Resorts VisitorsVisitors (low) (high) Locations (low) 13.
DisneyMARKET POSITIONWarner Bros. QuantityFox (high) Consumer
Products SalesSales (low)(high) Quantity (low) 14. SWOT: STRENGTHS
AND WEAKNESSES Strengths Strong diversification Responsiveness to
markets Brand recognition Creative process Weaknesses Large R&D
costs High Risk factor Constant up gradation High sunk costs 15.
INTERNAL FACTORS MATRIXKey Internal Factors Strengths Weight Rating
Weighted Score1. Strong diversification 0.154 0.602. Responsiveness
to markets0.124 0.483. Brand name 0.123 0.364. Creative process
0.123 0.36 WeaknessesWeight Rating Weighted Score1. Large R&D
costs0.151 0.152. High risk factor 0.122 0.243. Constant up
gradation0.121 0.124. High sunk costs0.102 0.20 TOTAL1.002.51 16.
MARKETING STRATEGIES Top Strategies Create a customized/targeted
media advertising plan for allsegments Expand Hong Kong Disney and
research one new market R&D into storytelling to kids through
technology Target 3 new markets and develop expansion plan
aroundconsumer products Consumer research around the use of
technology and need Digitize content to utilize technology and
lower costs Create and bank marketing strategies and promotions to
useduring adverse conditions or slow periods 17. EXTERNAL
ASSESSMENT 18. COMPETITORS Disney CBSTime Warner IndustryMarket Cap
39.00B4.31B 26.28B499.59M# of employees 150,000 25,92087,000
7.51KQtrly Rev Growth-8.2%-6.20%-2.70% 5.10%Revenue$36.99B
13.95B46.98B930.87MGross Margin 17.81%37.99%41.92%41.92%EBITDA
$8.18B2.69B 13.34B166.44MOper Margins 17.81%15.48%18.62%10.39%Net
Income $4.02B-11.67B -13.40B NAEPS$2.100-17.428 -11.224 NA 19.
COMPETITIVE PROFILE MATRIX DisneyCBSTime Warner Critical
SuccessFactorsWeight Rating ScoreRatingScore Rating Score
Advertising 0.20 30.6 2 0.403 0.6 Product Quality 0.15 40.6 2 0.302
0.3 Price Competiveness 0.12 20.241 0.122 0.24Management 0.10 20.2
3 0.303 0.3Financial Position 0.10 20.2 3 0.304 0.4Customer Loyalty
0.10 30.3 2 0.202 0.2Global Expansion 0.11 40.441 0.111 0.11Market
Share 0.12 30.361 0.123 0.36TOTAL1.002.941.852.51 20. INDUSTRY
TRENDS Social Technology Economic CulturalPoliticalMedia HD,
Mobile,BroadcastingMulti-platformcontent, Videoon
demandStudio3-DRise in ticket prices; Home video
spendingParksTraveling with kids;GroupCombining Older
adultsbusiness work andfamily timeProducts Consumer-centricity
Retail Growth of Product safety, collaborationprivate label
tighterregulations 21. SWOT: OPPORTUNITIES AND THREATS
Opportunities Growth through further diversification Increase Media
Networks/Broadcasting market share International growth/New markets
Changes in technology and consumer consumption Threats Economic
recession Changes in technology and consumer consumption
Intellectual property (protection of) Uncontrollable changes in
travel and tourism 22. EXTERNAL FACTOR EVALUATION WeightedKey
External Factors Weight RatingScore Opportunities1. Growth through
further diversification 0.1240.482. Increase Media
Networks/Broadcasting market share0.1530.453. International
growth/New Markets 0.1240.484. Changes in technology and consumer
consumption 0.1530.45 Threats1. Economic recession 0.1240.482.
Changes in technology and consumer consumption 0.1530.453.
Intelectual property (protection of) 0.1 2 0.24. Uncontrolable
changes in travel and tourism0.0920.18 TOTAL1.00 3.17 23. STRATEGY
24. SWOT ANALYSIS Walt Disney SWOTStrengths Weaknesses1. Strong
diversification 1. Large R&D costs2. Responsiveness to
markets2. High risk factor3. Brand recognition3. Constant up
gradation4. Creative process 4. High sunk costs Opportunities SO
Strategies WO Strategies1. Develop and research plan around
emerging markets1. Growth through further diversification with low
R&D costs (W1)2. Increase Media Networks/Broadcasting market2.
Create a customize/targeted media advertisingshare plan for all
segments (S2)3. Expand Hong Kong Disney and research one new
3.Target 3 new markets and develop expansion plan3. International
growth/New Markets market (S3) around consumer products (W4)4.
R&D into storytelling to kids through technology 4. Consumer
research around the use of technology and4. Changes in technology
and consumer consumption (S4)need (W2) Threats ST StrategiesWT
Strategies1. Digitize content to utalize technology and lower 1.
Digitize content to utalize technology and lower costs1. Economic
recession costs (S2,4)(W4)2. Focus on one high tech segment and
focus content and2. Changes in technology and consumer consumption
R&D there (W1, 3)3. Document and Create TM and IP Protection
Plan3. Intelectual property (protection of) (S2)4. Create and bank
marketing strategies andpromotions to use during adverse conditions
or slow4. Uncontrolable changes in travel and tourismperiods for
parks and resorts (S2) 25. SPACE MATRIX 26. INTERNAL-EXTERNAL
MATRIX IFE Total Weighted Scores4.0 3.02.0 1.0EFE Total Weighted
Scores I IIIII3.0IVVVI2.0VIIVIIIIX1.0 EFM 3.17 IFM 2.51 27. GRAND
STRATEGY MATRIXRapid Growth MarketQuad IIQuad 1 Weak Strong
CompetitiveCompetitive Position Position Quad IIIQuad IVSlow Growth
Market 28. QUANTITATIVE STRATEGIC PLANNING MATRIX Strategy 2:
Target 3 new Strategy 3: Digitize Strategy 1: R&D intoWalt
markets and develop content to utilizestorytelling to kids Disney
expansion plan around technology and lower through technology (S4)
consumer products (W4) costs (W4)Key Factors Weight AS
TASASTASASTAS Opportunities1. Growth through further
diversification0.11 4 0.4410.1140.442. Increase Media
Networks/Broadcasting marketshare0.09 1 0.0940.3610.093.
International growth/New Markets0.15 3 0.4540.6010.154. Changes in
technology and consumer consumption 0.154 0.6010.1540.60
Threats0.001. Economic recession0.15 2 0.3020.3040.602. Changes in
technology and consumer consumption 0.124 0.4810.1240.483.
Intelectual property (protection of)0.08 3 0.2410.0820.164.
Uncontrolable changes in travel and tourism 0.15 1
0.1510.1510.15Total 1.00Strengths1. Strong diversification 0.154
0.6010.1530.452. Responsiveness to markets0.154 0.6040.6020.303.
Brand recognition0.103 0.3030.3010.104. Creative process 0.104
0.4010.1020.20 Weaknesses 0.001. Large R&D costs0.152
0.3040.6040.602. High risk factor 0.102 0.2020.2020.203. Constant
up gradation0.101 0.1040.4020.204. High sunk costs0.152
0.3040.6040.60Total 1.005.55 4.82 5.32 29. RECOMMENDATIONS Strategy
3: DigitizeStrategy 1: R&D into content to utilize storytelling
to kids throughtechnology and lower technology (S4) costs (W4) 30.
IMPLEMENTATION AND FINANCING 31. EPS/EBIT ANALYSIS Common StockDebt
Financing50-50 FinancingRecession NormalBoom Recession Normal Boom
Recession NormalBoomEBIT $30.000 $35.00 $40.00 $30.000 $35.00
$40.00$30.000 $35.00 $40.00Interest $0.00 $0.00$0.00$1.50$1.75
$2.00$0.75$0.88$1.00EBT $30.00 $35.00 $40.00$28.50 $33.25
$38.00$29.25$34.13 $39.00Taxes $11.40 $13.30 $15.20$10.83 $12.64
$14.44$11.12$12.97 $14.82EAT $11.40 $13.30 $15.20$10.83 $12.64
$14.44$11.12$12.97 $14.82#Shares 111 111 1 11EPS $11.40 $13.30
$15.20$10.83 $12.64 $14.44$11.12$12.97 $14.82 Amount Needed $5
million EBIT Range$30-40 billion Interest Rate 7.00% Tax Rate38.00%
Stock Price $65.00 Stock Outstanding 1 billion Annual Divident per
share $0.65 32. EPS/EBIT ANALYSIS 12 10850/506DFCSF4203035 40 33.
CONCLUSION Strategic Planning Needed Implement strategies that help
lower costs, and maintaincompetitive advantage Balanced approach to
innovation and cost-savings
