Disney Strategic Initiative Paper Tammy Adams, Kecia Darnell, Chelsea Hensley, Elizabeth Munns, and Zameika Williams University of Phoenix FIN 370 Professor Stephen Beadnell October 18, 2010 Strategic Initiative Paper Introduction This paper will address the strategic and financial planning associated with the operations of Disney. In addition, the paper will show the correlation between strategic and financial planning. The impact of the organization’s initiative costs, sales, and associated risks the organization encounters during the financial and strategic planning will be addressed. “Thus, the financial planning process provides a tool for preparing for the future working-capital requirements of the firm.” (Keown, 2005) …show more content…
However, focusing primarily on the impact the Disney Company, the effects could be more drastic. One scenario is the parties do not reach an agreement in regard to the streaming fees Disney wants to charge Netflix and the companies discontinue business. Netflix will no longer provide Disney movies for rent, this could lead to a decrease in potential sales and free advertising for Disney. It could be said that Netflix users will select from a the remainder of the selection of movies available, however, according to the article, the likelihood is that Netflix will negotiate with The Disney Company so there are no limitations put on the amount of streaming video Netflix can offer . This will actually increase the current acquisition costs for Netflix at an estimated incremental one percent acquisition cost. There will be a positive impact on sales for Disney due to the additional charges able to be acquired through attaching fees to the online streaming content. As a result of restructuring and creating multiple departments within Disney, the organization’s financial planning is efficient. The organization has identified financial goals, prioritized those goals, and developed a financial plan by using the legacy information to determine the organization’s financial forecast. The organization focuses on key relationships that will provide additional resources for the business,
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
Hightower brings broad career experience for this assignment for change. He has a professional background as a strategic manager. This position for Hightower came as a surprise. Hightower will face the challenge of being accepted as the leader to a very diverse market entrenched with managers. He cannot afford to fail in this initial stage. It will surely take away any opportunity of having any creditability. Hightower must be consistent in his actions.
The Disney Corporation is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. (Disney Corporate, 2009). This company did not become one of the leading corporations in the world without hard work, an extreme dedication to the mission and core values of the organization, and the successful application of the four functions of management: planning, organizing, leading, and controlling. Many internal and external factors may have a direct impact on the four functions of management like: globalization, ethics, and innovation.
Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and
Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities as well as emerging market conditions and opportunities. Disney's primary strategic objective is to product high-quality content through their entire product mix. The company also had a record financial performance in 2010 led by the Disney movie studio last year was the first in history to make two film that crossed the billion-dollar mark at the global box office Toy Story 3 and Disney's Alice in Wonderland. Another strategic objective that Disney has set is the goal to make experiences more memorable and accessible through innovative technology. The final strategic objective that Disney has focused on is international expansion.
According to Robert Iger, CEO of The Walt Disney Company, Disney’s corporate strategy for diversification is a combination of three objectives that are to be achieved through the fundamental alignment of the Company’s core business units. The three objectives to be achieved by The Walt Disney Company are (1) creating high-quality family content, (2) exploiting technological innovations to make entertainment experiences more memorable, and (3) expanding internationally. The Walt Disney Company’s three objectives that make up the Company’s corporate strategy are to be achieved through each of the Company’s core business units that are split up in to five divisions (1) media networks, (2) parks and resorts, (3) studio entertainment, (4) consumer product, and (5) interactive media.
5. Does Disney’s portfolio exhibit good strategic fit? What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? Please be specific and explain why.
1. About Disney Difference and how it will affect the company’s corporate, competitive, and function strategies.
Chapter three will cover the decision making process and for it the write of this business report will utilise different tools and frameworks in terms of thorough analysis of the case regarding The Walt Disney Company and Pixar and their external and internal factors. One of the apporpriate tool for external analysis of both comapnies is Porter’s Five Foces Analysis that has been utilised by the write for industry analysis of both companies. This tool will allow write to understand the industry in better way that The Walt Disney Company and Pixar are falling individually. Besides, it will allow the write to evaluate the current position and
Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company (Ovidijus Jurevicius).
This paper analyses the financial performance of the Walt Disney Company during FY’15 using profitability, liquidity, asset management, and debt management ratios, along with the DuPont system and a measure of Economic Value Added (EVA); and recommends purchase of the stock.
Overall Disney is in a better financial position than its competitors Time Warner and Fox. Disney’s financial ratios have been rising at a pretty consistent rate which shows Disney’s stability and
In 1939, the Valley Progress newspaper (History, p. 3) announced that San Fernando Valley in southern California would become the home of a million dollar, 51-acre lot called Walt Disney Studios. The then-current residence of Disney was established in 1925 in Los Angeles, and consisted of a single large room of 25 artists. Walt Disney (and his
1) What is the Disney Difference and how will it affect the company’s corporate, competitive and functional strategies?