...1. Why did Disney acquire Marvel? The acquisition of Marvel to Disney’s will add an unique portfolio of brands provides significant opportunities for longterm growth and value creation .The acquisition of Marvel will offer a similar opportunities to advance the strategy and to build a business that is stronger than the same of each company parts. The keys advantages of this acquisition are : 1. 2. 3. 4. 5. 6. 7. 8. 9. Product diversification and increase its business by taking benefit from theme parks to television shows. Reinforce the creativity and brand .( Producing films and brands that could generate sequels and spin-offs ) Introducing new product distribution over the world showing up in Disney’s stores Marvel products.( Consumer product : adding Incredible Hulk underpants and Iron Man lunch boxes ). Marvel has a great talent in movies creativities which Disney can not deliver with stories that appealed to teenage boys : So Disney is missing a segment which is important as a complementarity for its product. Marvel has a vast Library as assets of superhero more tha 5000 characters :Iron Man ,Increadible Hulk Thor … Increase Disney’s to gain a new consumers and capitalize the new preferences customers. Increase the geographically expand for Disney around the world which will help for a better growth of the firm . Marvel will have also a support from Disney profitability for funds to produce more movies and to be able to access to Disney organization and structure and experience...
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...Walt Disney and Marvel Entertainment Strategic Initiative Cynthia Morgan FIN/370 July 29, 2012 University of Phoenix Nicole L. Givens Strategic initiative plans allow organizations to identify initiatives and strategies to undertake and to accomplish the objectives and goals identified by the organization. The process for strategic initiative planning involves various steps. The steps include identifying the organizations opportunities, threats, strengths, weaknesses, creation of objectives and goals, development of tactics, strategies, use of measures, and processes to evaluate the results. Team A will discuss Walt Disney and Marvel Entertainment acquisition strategic planning initiative, identify an initiative Walt Disney discussed in their annual report, the effects the initiative will have on the organizations financial planning and the initiative will affect the organizations cost and sales. Walt Disney and Marvel Entertainment Strategic Initiative The initiative of strategic planning of Walt Disney, Team A will analyze the acquisition of Marvel Entertainment. Reports show that Walt Disney...
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...The diagnostic model I have chosen to discuss to analyze Disney and several of the companies acquired throughout the years such as Pixar, Marvel, and LucasFilm’s LTD for this assignment is the 7-S Framework model. I will also briefly discuss the many changes that Disney has implemented to improve the customer viewing as well as interactive experiences at their many new, current theme parks, and vacation destinations throughout the world. The 7-S model developed by McKinsey and Company consultants Robert Waterman Jr., Tom Peters, and Julien Phillips (Palmer, Dunford, Akin, 2009). The 7-S model may be used in a variety of situations where an alignment perspective is useful, for example, to help 1) improve the performance of the company, 2) examine the likely effects of future changes within a company, 3) align departments and processes during a merger or acquisition, 4) determine how best to implement a proposed strategy (Manktelow, J. 2014). The 7-S model is characterized by seven categories: Structure, strategy, systems, style, staff, skills, and superordinate goals (Palmer et al., 2009). The structure of the company was set and solidified by Walt Disney himself. He wanted to create something brilliant and diversified. This idea would be able to change through the years and remain a competitive force in the industry. Throughout Walt Disney’s control of the company, he developed a culture to create experiences and “magical moments” for all his guests this philosophy from the beginning...
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...Disney’s Core Competency Walt Disney once noted: “I only hope that we don’t lose sight of one thing – that it was all started by a mouse”. (Disney Dreamer, 1998). Walt Disney’s original core competence was cartoons and animated movies. By combining Imagineering with engineering Disney’s company reached unparalleled success with the creation of the first full length animated movie. This success led to new ideas and one of them was to open a park, a different kind of park. In Disneyland Walt used new technology to bring his characters to life. He called them “Animatronics”. (Magical Kingdoms, July 2008) Together with unique storytelling and high quality of service Walt Disney created a magical environment for his guests which none of the competitors could quite duplicate. It became Walt Disney’s core competency. Disney once said: “Anything that has the Disney name to it is something we feel responsible for.” (Disney Dreamer, 1998) This competency is driven by superior Disney products and most of all by cast members and their renowned guest service. It’s always been a challenge to keep up with high expectations of the guests. To continue to improve its business Disney has set up new cast member standards in the form of the Basics (Meeting the new standards, December 2007). The new standards expect cast members to create and reinforce “magical” experience for the guests by being approachable, engaging, and willing to go above and beyond. As the company developed, many new...
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...broadcasting holdings. Disney creates, develops, produces, markets, and distributes content through an unrivaled range of media platforms. The company derives its revenues from five operating segments. Media Networks (43% of companywide business in fiscal 2014) includes ESPN, ABC, Disney Channel, among others, and generates sales from affiliate fees, ad sales, and the distribution of television programs. Parks and Resorts (31%) operate the company’s internationally prominent theme park and resorts holdings, such as Disneyworld, Disneyland, and a number of international locations. Studio Entertainment (15%) produces and acquires films for international distribution through Walt Disney Pictures, Pixar, Marvel, and Lucasfilm, among others. Consumer Products (8%) licenses Disney’s intellectual property to...
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...theme parks as well as movie production. This article will discuss Disney’s acquisition of Lucasfilm, a strategic planning initiative released in Disney’s 2012 annual report. The article will delve into how this acquisition affects the Disney’s financial planning; that is, how this initiative affects costs, how will the initiative affect sales, and the risks associated with the initiative and financial effects they may have. What was the strategic and financial rationale for Disney’s purchase of Lucasfilm for $4 billion? As noted by Robert A. Iger, Chairman and Chief Executive Officer of the Walt Disney Company, the strategic acquisition of Lucasfilm provides tremendous new opportunities and creative potential across the entire company (The Walt Disney Company, 2012). The cornerstone of the purchase is Stars Wars franchise, which Disney has already announced plans to release a new feature film to continue the epic saga. Star Wars Episode 7 will be in theaters in 2015, with more feature films planned – along with television programming, games and merchandise, and an expanded Star Wars presence in our parks around the world (The Walt Disney Company, 2012). Disney CEO Robert Iger: "This is one of the great entertainment properties of all time, one of the best branded and one of the most valuable, and it's just fantastic for us to have the opportunity to both buy it, run it and grow it" (Krantz, 2012). Disney’s purchase of Lucasfilm is their fourth largest deal ever. It's behind...
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...STRAT Case Study “The Walt Disney Company: Its Diversification Strategy in 2012 LELE SONG February 9, 2015 February 9, 2015 KEY ISSUES * Understand why a company’s resources and capabilities are central to its strategic approach: Diversification is Disney’s main strategy for constant growth. The company is broadly diversified, including five major segments. Disney attempted to capture synergies existing between its business units. * Strengthening a company’s market position by expansion: Disney aims to expand globally and exploit the business opportunities in the emerging market since the domestic market is about to be saturated. * Become aware of what the company should do to achieve operating excellence: Instead of letting technology throw threats at the company, Disney decides to embrace technology to enhance quality of products and improve customer experience. Disney’s success is highly dependent on technology. * Become aware of the strategic benefits and risks of expanding a company’s horizontal scope through mergers and acquisitions: Disney has a very clear acquisition strategy, and they have successfully acquired some valuable brands. Acquisition also benefits Disney for global expansion. ANALYSIS The Walt Disney Company (“Disney” or “the company”) was a broadly diversified median and entertainment company. In 2012 the company’s business units were organized into five divisions, which include media networks, parks and resorts, studio entertainment...
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...Pixar Animations MBA 615 Mickey Langford/Kimberly Horne Spring 2013 Mickey Langford Pixar Animations is our company of choice for this case study analysis. In 2006, Walt Disney acquired Pixar, but before we get to all of that, let us start at the beginning. Before Pixar, there was Lucas Films. George Lucas, of Lucas Films, decided in 1979 to upgrade their computer division (Animations, 2012). Lucas had a desire to see how far they could take computer graphics within the film industry. Lucas Films succeeded by creating Andre & Wally B., in 1984 (Animations, 2012). Andre & Wally B. - First Ever Pixar Short Movie - The Adventures of André and Wally B. [1984 HD] - YouTube, was the first ever computer-generated imagery short movie (Movies, 2009). This was the foundational establishment in the film industry that Steve Jobs was seeking. In 1986, Jobs purchased the Computer Division from Lucas Films and named it Pixar Animations Studios. Walt Disney and Pixar Animation agreed to do a number of films together, the first being Toy Story which was a huge success. The movie debut on November 22, 1995 grossed $192 million domestically and $362 million worldwide (Animations, 2012). Listed below is a table of the gross amounts that Disney/Pixar movies have made: Released | Movie Name | 1st Weekend | US Gross | Worldwide Gross | Budget | 11/22/1995 | Toy Story | $29,140,617 | $191,796,233 | $361,948,825 | $30,000,000 | 11/20/1998 | A Bug's Life | $291,121...
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...An#Analysis#of#The#Walt#Disney#Company# !1! An Analysis of The Walt Disney Company Kendall Forward TELE 3310 October 29, 2013 An#Analysis#of#The#Walt#Disney#Company# Overview & History !2! The Walt Disney Company is a leading American diversified multinational entertainment and mass media conglomerate, headquartered in Burbank California. Founded on October 16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the company struggled through years of unsuccessful creations but turned around after the debut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger, Disney is one of the largest entertainment corporations in the world with approximately 166,000 employees and annual revenues approaching the $45 billion mark (Walt Disney). For eight decades, Walt Disney has entertained people around the world with its theme parks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before diversifying into live-action film production, television and travel, the company established itself as a leader in the American animation industry. The company went public in 1940 and was reincorporated under its current name in 1986 and expanded operations and also started divisions focused on theatre, radio, music, publishing and online media (Cohesion Case). 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...
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...An Analysis of The Walt Disney Company 1 An Analysis of The Walt Disney Company Kendall Forward TELE 3310 October 29, 2013 An Analysis of The Walt Disney Company Overview & History 2 The Walt Disney Company is a leading American diversified multinational entertainment and mass media conglomerate, headquartered in Burbank California. Founded on October 16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the company struggled through years of unsuccessful creations but turned around after the debut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger, Disney is one of the largest entertainment corporations in the world with approximately 166,000 employees and annual revenues approaching the $45 billion mark (Walt Disney). For eight decades, Walt Disney has entertained people around the world with its theme parks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before diversifying into live-action film production, television and travel, the company established itself as a leader in the American animation industry. The company went public in 1940 and was reincorporated under its current name in 1986 and expanded operations and also started divisions focused on theatre, radio, music, publishing and online media (Cohesion Case). Mission Statement The mission of The Walt Disney Company is to be one of the world's...
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...The Walt Disney Company MBA 648 Company Research Project Megan Burke, Candace Longo, Irini Pertesis Table of Contents Executive Summary3 Products and Services4 Financial Planning and Analysis6 Operating Performance of the Firm6 Financial Statement Analysis 7 Financial Forecasting………..………………………………………….…………………...11 Sustainable Growth Rate………...………………………………………………………....13 Additional Funds Needed…………………………………………………………………...13 Cost of Capital……………………………………………………………………………….14 WACC………………………………………………………………………………………..14 Dividends and Stock Policies………………………………………………………………….15 Objectives of Business Corporations 16 Working Capital Management: 19 Cash and Marketable Securities Management: 21 Accounts Receivable Management…………………………………………………………….26 Financing Activities…………………………………………………………………………...26 Overall Analysis………..……………………………………………………………………….27 Executive Summary “I knew if this business was ever to get anywhere, if this business was ever to grow, it could never do it by having to answer to someone unsympathetic to its possibilities, by having to answer to someone with only one thought or interest, namely profits. For my idea of how to make profits has differed greatly from those who generally control businesses such as ours. I have blind faith in the policy that quality, tempered with good judgment and showmanship, will win against all odds.”—Walt Disney...
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...) Walt Disney Company’s corporate strategy is centered on creating high quality family content, exploiting technological innovations to make entertainment experiences more memorable, and international expansion. Walt Disney Companies acquired Pixar and Marvel to enhance the resources and capabilities of its core animation business with the addition of new animation skills and characters. The acquisition of UTV in 2011 was executed for international expansion efforts into India and Russia. Disney’s corporate strategy also allocates substantial capital to its core theme parks and resorts business to sustain its advantage in the industry. Disney has started to integrate its highest grossing movies into its theme parks such as Pirates of The Caribbean and Cars 2 in attempt to capture synergies existing between its business units. 3.) My assessment of the competitive strengths of Walt Disney’s different business unit is that they have a strong competitive advantage of other companies in the same market. Disney’s strengths consist of: strong product portfolio, brand reputation, Competency in acquisitions, and diversified business. Disney’s ability to acquire technologically advanced companies and companies that complement Disney’s weakness in each individual unit and industry. Also the ability to integrate the different business units is a key strength for Disney. The Studio Entertainment unit shares major Motion Picture characters with the Consumer Products unit to sell products...
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...The Fluidity of Disney. Gender Norms & Racial Bias in the Study of the Modern “Disney” The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media corporation headquartered at the Walt Disney Studios in Burbank, California. It is the world's second largest broadcasting and cable company in terms of revenue, after Comcast. Disney was founded on October 16, 1923, by Walt Disney and Roy O. 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 theme parks. The company also operated under the names The Walt Disney Studio, then Walt Disney Productions. Taking on its current name in 1986, it expanded its existing operations and also started divisions focused upon theater, radio, music, publishing, and online media. In addition, Disney has created new corporate divisions in order to market more mature content than is typically associated with its flagship family-oriented brands. The company is best known for the products of its film studio, the Walt Disney Studios, which is today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E Networks, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a...
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...Business The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. For convenience, the terms “Company” and “we” are used to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. On December 31, 2009, the Company completed an acquisition of Marvel Entertainment, Inc. (Marvel). See Note 4 to the Consolidated Financial Statements. Marvel businesses are reported primarily in our Studio Entertainment and Consumer Products segments. Information on the Company’s revenues, operating income, and identifiable assets appears in Note 1 to the Consolidated Financial Statements included in Item 8 hereof. The Company employed approximately 156,000 people as of October 1, 2011. MEDIA NETWORKS The Media Networks segment is comprised of international and domestic cable networks and our broadcasting business, which consists of a domestic broadcast television network, television production operations, domestic and international television distribution, domestic television stations, domestic and international broadcast radio networks, domestic radio stations, and publishing and digital operations. Cable Networks Our cable networks group operates the ESPN, Disney Channels Worldwide, ABC Family and SOAPnet networks. The cable networks group...
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...successful. We review the Corporate Level Strategy – which is on the outside a diversified approach, with a breakdown of all business segments, then go further in depth with their major Business Segment, Media Networks. The Media Networks segment is a highly diversified segment that includes domestic and international elements, with both internal productions as well as many subsidiaries that expand their offerings beyond traditional Disney productions. We will analyze Disney with the Porters 5 forces model, as well as a SWOT analysis. Within these two analysis models, we find Disney is well positioned for the current moment as well as the future. Disney is well positioned against new entrants to the industry as well as current rivals. Disney’s history of family friendly, safe, and “magical” entertainment that is neither offensive or vulgar has paid off, with 87% of parents who watched Disney productions as a child introducing their own children to current Disney movies, television broadcasting, and theme parks. Attempting to expand in the current entertainment industry is not without its threats. Rival entertainment options, especially in the media networks, studio productions, and interactive media (which is still not profitable) has a chance to encroach upon the market share that Disney has...
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