...of strategic change at The Walt Disney Company which began in 2005 with the appointment of current CEO Robert Iger. The company began to experience halted growth during the late 1990s. The former CEO Michael Eisner had been successful himself in the late 1980s in changing the company during what is known as the Disney Renaissance. Eisner successfully concentrated the company’s energy back into producing animated films and helped the company to create now-classic names such as The Little Mermaid, Beauty and the Beast, The Lion King, Aladdin and others. However starting in 1999 share prices began to fall as changes in Disney’s competitive environment, consumer preferences and technology combined to alter its strategic context – which posed problems for the company in aligning its strategic objectives with its organisational structure and culture. Eisner was well known for his micromanagement and top down approach to management (Gunther, 1999), which served the company well during the 1990s when he could focus on single brands. The production of animated feature films which are successful at the box office can generate revenue for all Disney’s business divisions from theme parks to theatre to consumer products (Gunther & Hajim, 2006). However Eisner’s management approach seemed to be ineffective for the digital age in which companies have to perform at the top level at high speed in all of its divisions simultaneously. Under Iger the company has...
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...The Walt Disn ey Compan y Successful Management Practices Prepared for: Professor Jessie Richards Prepared by: Alli Hock Date: April 18, 2012 2 Table Of Contents EXECUTIVE SUMMARY……………………………………………………………3 INTRODUCTION……………………………………………………………….…….3 BACKGROUND…………………………………………………..……………….....4 Biography………………………………………….…………………….4 Beginning Of Disney Bros. Studios...…………………………………..5 Development Of Management Style……………..……………….........5 The Dreamer………………………………………………………………....5 The Realist……………………………………………………………….…..5 The Spoiler…………………………………………………………………...6 ANALYSIS………………………………………………….……………….….…….6 Original Company Values………….…………………………………..6 Hiring The Best For The Job……………………………………………...6 Talent Within The Organization….…………………………………….…6 Exceeding Customer Expectations…..………………………………..…7 The Interview Process…………….…………………………………...7 Internship Program………………..…………………………………...7 Attitude…………………………..……………………………………..…. 8 Drawbacks to Selection Standards….……………………………..…...8 Employee Training Process…...………………………………….…...8 Figure 1-1. A Balanced Approach to Employment..……………..…….8 Disney Training Programs…………………………………….....…….9 Attention To Detail…………………………………………………...……9 Training Program Downside…………………………………..………….9 Figure 1-2. Disney Manhole Cover………………………………10 Creating Employee Environment……………………………….……..10 Being Involved At All Levels……………………………...…….……..11 Effects Of Management Focus…………………………..……..………..11 Ensuring Job Significance…………..…………………………………11 ...
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...Summary Walt Disney Productions Inc. (Disney) is the target of a takeover attempt by Saul Steinberg. Over the course of several months, Disney management has resisted the takeover in several ways including the acquisition of Arvida Corporation in a "for stock" deal and the pending acquisition of Gibson Greeting Inc. (Gibson). Steinberg has countered these moves with a public tender offer of $67.50 per share if Disney acquires Gibson and $72.50 if Disney does not acquire Gibson.With a current price of approximately $50 per share, Steinberg's offer is 35% to 45% above market value. This paper addresses two questions. The first question is answered from the perspective of the shareholders while the second question is answered from the perspective of Disney management. From the shareholder perspective, the tender offer is advantageous from a financial perspective and should be accepted if profit is the sole motivation. The answer to the second question depends heavily on management's good faith in the current leadership and their ability to grow Disney, as the case clearly provides evidence of management inefficiencies that are consistently reflected in Disney’s declining profit margins and ROE since 1981 (Exhibit 6). Analysis: As a Shareholder Regular shareholders with limited financial education should look for three things in an investment: 1. Per-share growth and earnings history- As a shareholder, the incentive that comes from investing in a company comes in the...
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...Analysis of The Walt Disney`s Strategy PESTEL SWOT STRATEGIC ANALYSES “Fiscal 2011 was a great year financially and strategically, demonstrating the strength of our brands and businesses with record revenue, net income and earnings per share,” said Disney President and CEO Robert A. Iger. “We are confident the Company is well-positioned to deliver long-term value for our shareholders with our focus on quality content, compelling uses of technology and global asset growth.” According to the PESTEL analysis, the Walt Disney Company has been shaped mainly with respect to social, economic and political. First, it is politically shaped because the government and lobby groups have an important role in establishing policies, requirements and competition rules. Furthermore, the local governmental rules are crucial in establishing foreign ownership for subsidiaries or business units. Alongside with the political factors, both the economic and social factors influence the group`s profitability and activity because customers and economic conditions are closely related. For instance the financial crisis of 2007 brought serious economic downturns that affected most of the activities at Disney 11 parks. The group is also dependent on oil prices, inflation and interest rates that might affect exchange rates. Social trends influence the company strategic decisions, mainly due to demographic changes, attitudes or certain fashion cycles. According to PESTEL, technological factors...
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...SHANGHAI DISNEY: MILESTONE JOINT VENTURE Rita Lemoine Southern New Hampshire University Abstract This paper examines the significant collaborative efforts of both a U.S. multi-national corporation, The Walt Disney Company and its foreign socialistic counterpart, the Shanghai Shendi Group, Ltd. negotiation of an Equity International Joint Venture agreement. The paper will disclose the joint venture agreement, the financial structure, and funding arrangements for the construction of the Shanghai Disney Resort. Then a SWOT analysis will demonstrate the strengths, weaknesses, opportunities, and threats that could affect The Disney Company’s operations in China according to current economic, political, and legal policies regarding foreign joint ventures. Finally, an assessment of the cultural differences between the two companies in the form of managerial and leadership styles that could hinder the success of this joint venture. Keywords: Equity International Joint Venture, SWOT analysis, Cultural Dimensions SUMMARY OF THE WALT DISNEY COMPANY The Walt Disney Company, the leading producer of family entertainment for the past nine decades, beginning in October 16, 1923 when Walter Elias Disney “signed a contract with M.J. Winkler to produce” a series of cartoons, the early stages of The Disney Brothers Studios, founded by Walter Elias and Roy O. Disney. (Retrieved from “http://thewaltdisneycompany.com/about-disney/disney-history/1920-01-01--1929-12-31”). The...
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...The Walt Disney Company: Business Environments Daniel A. Parra Lozano Lynn University The Walt Disney Company: Business Environments The success of organizations within their specific market niches and competitive environments is based on a myriad of factors, both internal and external. The detailed overview and analysis of these factors exists within the general business environments of the organization. In order to maintain a leading competitive advantage, managers on every level must actively assess these environments and markets, while making the most appropriate decisions that will allow the organization to sustain leverage when faced with high environmental dynamism and/or complexities. The Walt Disney Company has clearly proven to withstand the test of time, through dedicated market analysis and environmental scanning. Internal Environment From the company motto, corporate credo, mission and visions statements, to the overall culture and climate of an organization, the internal environment defines the intramural business atmosphere of the entity. The Walt Disney Company’s strong internal environment and clear strategic intent makes Disney an evident leader in its industry. The Walt Disney Company also basks in unparallel name recognition, experienced upper management, and a conglomerate diversification of goods, products, and services offered. Developing strategic management based on a company’s core competencies, makes for a constant, yet not necessarily evolving...
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...strategic initiatives taken by The Walt Disney Company relative to organizational and operational adaptations to the changing markets. An explanation of how recent economic trends are influencing the company, strategies Disney has used or could use for adapting to the changing markets. In addition, tactics Disney has implemented or could implement to achieve their strategic goals, the role human resources management plays in helping them achieve the goals, and would I be willing to invest in this company as a mutual fund manager. How Recent Economic Trends Are Influencing Disney. Even though the economy has been in a recession for the past couple years The Walt Disney Company has been doing well and shown continued growth. The company continues to show signs of being a healthy company as indicated by their continued increase in their net income Nelson (2012) “Disney’s income for 2011 and 2010 was $4,807 and $3,963 respectively, which represents a 21.30% increase.” (p. 4). In addition, the company had a net income of $3,307 in 2009, which represents a 19.84% increase for 2010. As shown in Figure A, Disney has shown growth in all areas of its financial statements during the past three years. Over all the company has not been significantly effected by the current economic downtrun and has been able to hold its market share. Strategies Disney Has Used to Adapt to Changing Markets The Walt Disney Company has the capital to allow management to expand the company’s investments...
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...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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...of the other now international theme parks people become entranced and reborn from the magic and spectacle that has been a trademark of Disney for many years and generations. Reality is that customers seeking audience with “Mickey Mouse” have no interest in the financial aspects that make Disney a major company and probably never review the company’s financials or examine their ethics and compliance functions. Team C in this paper will examine, asses, and conclude in its review of Disney and how they utilize ethics and compliance in their daily operations. “Large corporations are managed by a team separate from the firm’s owners. Though management is expected to make ethical decisions that reflect the best interest of the firms owners, this is not always the case. Indeed managers often face situations where their own personal interests differ from the interest of the shareholders. Some of these situations can be viewed as a straightforward test of the financial manager’s ethics.” (Titman, Keown, Martin 2011) In all businesses whether they be large companies as we are examining here are of course all different in structure as well as corporate beliefs. In the case of Disney as in any large company it is invaluable to view the policies and mission statements that the company pursues and trains its staff as well as “Cast...
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...Walt Disney Company Introduction The Walt Disney Co. is an enigma in these rough economic times for the sole purpose that they show minimal signs of slowing down. Mickey Mouse has his hands dipped into everything and from an investor’s standpoint that’s a good thing because that equals diversification, and in turn, diversification lowers risk. The Disney Company operates in several areas of the media and entertainment industry. They have recently acquired Pixar, which consistently provides box office record sales with their animated films. Along media entertainment lines, Disney also operates dominant media channels ABC and ESPN. These are two channels that carry with them a strong loyal following. Sports have always been America’s past time and it’s unlikely to see them ever declining or the viewership that goes along with it. People have always poured capital into sports and will continue to for many centuries to come. Aside from Disney’s ventures, investors focus and confidence should be in the trademark of Disney. Characters such as Mickey Mouse and Buzz Light-year are icons that will never be lost in the pages of time. Kids and adults alike will always want to participate in the next big thing the company has to offer and these kinds of expectations will always lead to Disney having a stable stock price and even unstable in the positive manner because the growth potential is limitless for this company. You can see that limitless with the many franchises Disney has...
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...........................................................................................................................................3 3.1. 3.2. 3.3. ALTERNATIVE PIXAR: BUILDING NEW ZONE WITH IMPORTING IDEAS FROM DISNEY GLOBAL..................................... 4 ALTERNATIVE THE PIRATES OF THE CARIBBEAN: BUILDING BRAND NEW THEME ON A GLOBAL LEVEL ......................... 4 ALTERNATIVE HOME OF MULAN: CREATING A BRAND NEW THEME TARGETING SPECIFICALLY THE LOCALS ................ 4 4. 5. 6. 7. CSR INITIATIVES ....................................................................................................................................................5 GENERAL OPERATIONAL UPGRADE ............................................................................................................5 CONCLUSION ............................................................................................................................................................6 APPENDIX ...................................................................................................................................................................7 LOSING MAGIC IN THE MIDDLE KINGDOM 2 1. Introduction Aiming to tap into the huge Chinese market, The Walt Disney Company created a joint venture with the Hong Kong government, where the former had a 43% stake and the latter a 57%...
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...The Walt Disney Co.: The Entertainment King Marta Aparici Hornero Business Strategy MG530 1. Why has Disney been successful for so long? Nowadays, the small animation studio which was created in 1923 by Walt and Roy Disney has been converted in one of the biggest Companies in the entertainment field. With a $30.000 million annual income. The Walt Disney Company manages eighteen theme parks, thirty-nine hotels, eight cinematographic studios, and eleven TV channels. Walt Disney pictures, the most important cinematographic studio, continues producing animated feature film, in a pretty fast pace. In May 2006, The Walt Disney Company acquired the animations studios Pixar. Although Pixar movies achieved a greater success, Walt Disney was the pioneer to animations in creating irreplaceable characters, which became extremely popular among children and adults. Its creativity was unreachable by anyone; they had a talent that nobody could approach. But not only Walt Disney was creative, also Roy Disney had a business talent, he handled money pretty good. Both of their skills and knowledge guided them to what the world wanted to see, to hear, to imagine at that time. Walt always wanted emphasized teamwork, communication, and cooperation. For example, when Walt learnt that his distributor owned the copyright of the Oswald franchise. Instead of fighting for it, and wasting time and money they decided to create a new character, Mickey Mouse. After creating him, to attract...
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...financial ratio analysis of a company is a useful indicator to measure the success of a company. By comparing financial ratios between companies in the same industry (competitors) it is a useful way for investors and shareholders to determine the financial health and/or the sustainability of a company. Disney’s main competitors within the industry include Time Warner and 21st Century Fox. There are five key areas of comparison that provide excellent financial analysis of a company. They are short-term solvency, long-term solvency, asset management, profitability, and market value. Liquidity Ratio The short-term solvency ratio is a measurement used to measure how well a company is able to meet debt obligations. Specifically, the current ratio measurement takes the current assets divided by the current liabilities of a company. This measurement shows how well a company can pay back its liabilities from its current assets (cash, inventory, or receivables). The current ratio is also an indication of how efficient a company’s operating cycle is because if it takes a long time to turn products into cash a company may have issues fulfilling obligations. Disney had the lowest current ratio for 2013 between its competitors with a ratio of 1.21. Even though it has the lowest amongst its competitors Disney’s ratio is still significantly higher than a ratio of 1. Therefore using this current ratio measurement it can be strongly perceived that Disney has the ability to fulfill all...
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...The Walt Disney Corporation Background The Walt Disney Corporation has been around for many years bringing a lot of different kinds of entertainment to every member of your family around the entire world. Walt Disney is one of the largest entertainment and media conglomerates. We have four key businesses with in our company: Studio Entertainment, Parks and Resorts, Media Network, and Consumer Products. Product Lines Studio Entertainment- Disney Company produces a variety of movies, television programs, musical recordings and even live stage plays. Our company has banners in the theatrical, home video and television distribution of Disney’s film and television library; includes in Walt Disney Pictures, Buena Vista, Miramax, and Touchstone. Media Network- Disney Company media network is made up of two categories; Broadcasting and Cable Network. The broadcasting units include the ABC Network. Our television networks include; Disney Channel, ESPN-branded cable networks, Disney Channel International, incentives in E! Entertainment and Lifetime and start-up cable processes in Soap Net and Toon Disney. Parks and Resorts- Our parks and resorts are the most popular ones in the world, from Walt Disney World in FL, Disneyland Park and a couple hotels in CA, and the Disney Cruise Line based out of Florida. Our company generates management fees on profits from Disneyland Paris and Tokyo Disneyland. Consumer Products- This part of our corporation licenses the characters...
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...Walt Disney Company Introduction Brief definition of diversity Overview on Walt Disney * What is Walt Disney and its services? What the company offers to consumer and employees Amount of global employees Why is diversity important to the company? Planning Inclusive environment for creativity Various races enhances experiences and entertainment Connects all experiences and talents Leading Improving with customer’s feedback Organizing Restructuring management Adding more mangers based on geographic locations Adding general managers to each hotel Training their employees (MasterCard) * Managerial/coaching skills * Reach employees highest potential Seeking alternatives for success Creating other forms of entertainment Decision making as a team Freedom of ideas * Volunteering/Cross Fit Projects (MasterCard) * Employees empower themselves * Financial assistance for employees who are in school (MasterCard) * Scholarships for the children of the employees (MasterCard) Controlling * Employee recognition * Providing medical and retirement programs for employees Challenges compromising for solutions Poor communication Combining various communication styles Miscommunication and misunderstandings Disorganization Carrying disorganized plans Unable to communicate it with others Resistance Employees not showing full potential Negative attitudes...
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