...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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...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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...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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...DAVID COLLIS MARY FUREY The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire? In November 2005, Robert Iger, the newly appointed CEO of the Walt Disney Company, eagerly awaited the box office results of Chicken Little, the company’s second computer-generated (CG) feature film. He knew that, for Disney as a whole to be successful, he had to get the animation business right, particularly the new CG technology that was rapidly supplanting hand-drawn animation.1 Yet the company had been reliant on a contract with animation studio Pixar, which had produced hits such as Toy Story and Finding Nemo, for most of its recent animated film revenue. And the co-production agreement, brokered during the tenure of his predecessor, Michael Eisner, was set to expire in 2006 after the release of Cars, the fifth movie in the five-picture deal. Unfortunately, contract renewal negotiations between Steve Jobs, CEO of Pixar, and Eisner had broken down in 2004 amid reports of personal conflict. When he assumed his new role, Iger reopened the lines of communication between the companies. In fact, he had just struck a deal with Jobs to sell Disneyowned, ABC-produced television shows—such as “Desperate Housewives”—through Apple’s iTunes Music Store.2 Iger knew that a deal with Pixar was possible; it was just a question of what that deal would look like. Did it make the most sense for Disney to simply buy Pixar? Walt Disney Feature Animation Walt Disney Feature Animation began with the...
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...1. Why has Disney been successful for so long? (reference to Industry Analysis, Disney's chosen strategy, Disney's sources of Competitive Advantage and comment on sustainability of advantage) Disney has remained successful for myriad reasons, not the least of those is its ability to constantly realign its strategy to the trends of the market. Disney is a company that survives by continually realizing the depth of a new idea. The company harvests every available profit from its ventures before acquiring and moving to newer and more forward thinking endeavors. It uses its strength of foresight to predict up and coming industry trends and its incredible scale and wealth of resources to dominate the market. Fundamental understanding of corporate strategy has allowed Disney to vertically integrate during its early days in the film business through the creation of its own distribution network. This forward integration move proved to be an important facet in the success of the Disney strategy, as it allowed them to save at least one-third of the gross revenue for each film. In addition, Disney seemed to have a complete understanding of what it means to have corporate synergy. The company utilized its corporate strategy to successfully diversify, creating a set of complementing and cross-promoting business units that leveraged the already strong Disney brand to maximize shareholder value. A strong corporate culture offers support in uniting the effort brought together by the different...
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...Case 20: The 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...
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...The Walt Disney Company: A Corporate Strategy Analysis Written by Carlos Carillo, Jeremy Crumley, Kendree Thieringer and Jeffrey S. Harrison at the Robins School of Business, University of Richmond. Copyright © Jeffrey S. Harrison. This case was written for the purpose of classroom discussion. It is not to be duplicated or cited in any form without the copyright holder’s express permission. For permission to reproduce or cite this case, contact Jeffrey S. Harrison (RCNcases@richmond.edu). In your message, state your name, affiliation and the intended use of the case. Permission for classroom use will be granted free of charge. Other cases are available at: http://robins.richmond.edu/centers/center-‐for-‐active-‐business-‐education/research/case-‐network.html November 2012 "Walt was never afraid to dream. That song from Pinocchio, 'When You Wish Upon a Star,' is the perfect summary of Walt's approach to life: dream big dreams, even hopelessly impossible...
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...Organization, Mission, and Culture 3 Functional Area Assessment 9 Internal Environment Financial Position of Disney 14 Assorted Financial Ratios 14 IFE Matrix 17 External Environment Key External Forces 19 EFE 23 Competitive Analysis 28 CPM 30 Objectives Short Term 32 Long Term 33 Grand Strategies 34 Initial Findings 36 Company Profile Company History The Walt Disney Company, originally known as Disney Brothers Cartoon Studio, was formed by Walt and Roy Disney in 1923 with the creation of a cartoon named Alice’s Wonderland. With the start of that popular cartoon, the Disney brothers had unknowingly created a legacy that would live for generations. Since the creation of the Walt Disney Company, it has produced hundreds of chart topping animated films, put on dozens of Broadway plays, acquired TV and radio stations, and has created the most magical place on earth on three continents. Even after the deaths of the founders, the company has thrived for several decades every intent to continue growing. Organizational Mission and Culture Mission Statement The original mission of the Walt Disney Company was to “nurture the imaginations of children around the world as well as to celebrate American values.” This was a very simple mission statement for an originally simple company. As the Walt Disney Company has grown...
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... Inc. is an organization with aspirations of globally expansion as well nationally. The primary basis of it’s desire to expand is one of increased revenue which will translate to profits. In an effort for InterClean to ensure the desired results human resources will endure various challenges. InterClean is managing one issue which is the acquisition of EnviroTech. The acquisition of EnviroTech long term goal is to help InterClean manage the issues it will face as it expands globally. InterClean will have to train the EnviroTech staff as well as ensure that they blend into the corporate culture. The institution of the items which must be executed will assist in the competitive edge that will distance InterClean from any of its competitors. Collectively Team D evaluated the InterClean case and benchmarked its results with various companies such as Pfizer, Little Tikes, The Disney Company, AT&T, Mead and Verizon and examined what tools these companies have utilizes in order to expand globally and become successful. Pfizer Pfizer was created in 1849 by two cousins Charles Erhart and Charles Pfizer. The company began to market products for the common day problems, from skin irritation to upset stomachs. Throughout the years Pfizer works on producing the current products, while research and development attempts to find new products for different problems. The new products and solutions evolve as time goes on and the leadership changes. The leadership of Pfizer is a...
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... Mr. Bevington, Capt Goyet, ladies and gentlemen, and welcome to this celebration of the Hispanic Heritage Month. It is my distinct honor to speak to you today. Hispanic culture is deeply intertwined with the history of this Nation. We live on the same side of the world with the largest Spanish speaking population due to our proximity to Mexico, Central, South America and the Caribbean. So it is important to recognize the contributions of the Hispanic culture as well as other cultures to celebrate and acknowledge how the history, culture, values and traditions of the United States were and continue to be shaped by the make-up of its ever changing population profile. When I started to think about what I would say, it occurred to me that perhaps I should do a little research and review history instead of presuming I know everything about my heritage. I am glad I did because I learned many facts that challenged my own understanding of history. I want to share some of these facts with you today. On September 1968, Congress authorized President Lyndon B. Johnson to proclaim National Hispanic Heritage Week, observed during the week that included Sept. 15 and Sept. 16. The observance was expanded in 1989 by Congress to a month long celebration (Sept. 15 – Oct. 15), America celebrates the culture and traditions of those who trace their roots to Spain, Mexico and the Spanish-speaking nations of Central America, South America and the Caribbean. Sept. 15 was chosen as the...
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...– Michael Eisner, the famously hands-on CEO of Walt Disney, is up to his old tricks. Last night he screened a rough cut of Dinosaurs, Disney's big animated movie for next summer; he loved the story but complained that some jokes were stale. Today he's holding a four-hour brainstorming session about Mickey Mouse, looking for ways to keep the 71-year-old rodent relevant. (One idea: a skateboarding Mickey.) Later, he'll watch Peter Jennings' newscast on Disney-owned ABC and surf the Internet to see how the company's Websites stack up. Is this any way to run the world's most troubled entertainment giant? After all, as Eisner sweats the details, earnings are dropping, top executives are defecting, and Disney stock is plunging like a ride down Splash Mountain. "Maybe I'm crazy," Eisner says, "but I don't consider this a crisis. I don't think our problems are in the fabric of our company. And I don't have my head in the sand." Sitting down for a two-hour interview, he admits mistakes. He says, for instance, that he should have settled former studio chief Jeffrey Katzenberg's suit against the company earlier to avoid a "parade of horrors" (see box). And he concedes that the company has sustained real damage: "It's like a train wreck, only nobody got killed." But Eisner denies that he has lost his touch. "The criticisms of me and Disney today," says the 57-year-old chief executive, "are as shortsighted as were the praises of me and Disney in the high economic times." Sunday nights on...
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...Analysis In the 1980s and 90s Disney was seen as an American icon which was credited to its former CEO Michael Eisner for the company’s success, but following the mid-90s Disney had struggled with “brand fatigue” in that it was mainly associated with young children. Disney’s brand concentrated on this narrow segment of the market and Eisner’s successor, Bob Iger, had plans to broaden Disney’s brand to include tweens, teens, and adults. Iger recognized that Disney was more than just a brand but that its cross platform success with such franchise like Cars would help Disney reinvent itself when it comes to entertainment. Disney’s other platforms includes the Disney Channel, ABC, ESPN, Disney theme parks & resorts, publishing, film, and music label. Bob Iger franchise strategy had been supported by the other moves he put into place at Disney and his top priority as CEO was to revitalized Disney’s animation business. In 2006, Disney bought Pixar for $7 billion dollars, and in that same year Pixar released movie Cars, which grossed $462 million worldwide and over $2 billion in merchandise sales each year. Capitalizing on it’s the use of its franchises, Disney sought to broaden the tween and teenage markets through its multiple company platforms such its Hollywood Records music label and Disney channels with such artists and shows such as the Jonas Brothers, Hannah Montana, High School Musical, the Disney Princess, and the list goes on. Disney also focus attention on being...
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...Chapter 8 – Social Influences and Culture Motives for Social Conformity 1. Compliance. Members might conform because of compliance which is the simplest, most direct motive for conformity to group norms. It occurs because a member wishes to acquire rewards from the group and avoid punishment. As such, it primarily involves effect dependence. 2. Identification. Some individuals conform because they find other supporters of the norm attractive. In this case, the individual identifies with these supporters and sees himself or herself as similar to them. Identification as a motive for conformity is often revealed by an imitation process in which established members serve as models for the behaviour of others. 3. Internalization. Some conformity to norms occurs because individuals have truly and wholly accepted the beliefs, values, and attitudes that underlie the norm. Internalization occurs when individuals have truly and wholly accepted the beliefs, values, and attitudes that underlie the norm. Organizational Socialization Socialization is the process by which people learn the norms and roles that are necessary to function in a group or organization. Socialization methods (realistic job previews, employee orientation programs, socialization tactics, mentoring, proactive tactics) influence immediate or proximal socialization outcomes such as learning, task mastery, social integration, role conflict, role ambiguity, and person–job and person–organization fit. Proximal...
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...Bloodlines of Illuminati by: Fritz Springmeier, 1995 Introduction: I am pleased & honored to present this book to those in the world who love the truth. This is a book for lovers of the Truth. This is a book for those who are already familiar with my past writings. An Illuminati Grand Master once said that the world is a stage and we are all actors. Of course this was not an original thought, but it certainly is a way of describing the Illuminati view of how the world works. The people of the world are an audience to which the Illuminati entertain with propaganda. Just one of the thousands of recent examples of this type of acting done for the public was President Bill Clinton’s 1995 State of the Union address. The speech was designed to push all of the warm fuzzy buttons of his listening audience that he could. All the green lights for acceptance were systematically pushed by the President’s speech with the help of a controlled congressional audience. The truth on the other hand doesn’t always tickle the ear and warm the ego of its listeners. The light of truth in this book will be too bright for some people who will want to return to the safe comfort of their darkness. I am not a conspiracy theorist. I deal with real facts, not theory. Some of the people I write about, I have met. Some of the people I expose are alive and very dangerous. The darkness has never liked the light. Yet, many of the secrets of the Illuminati are locked up tightly simply because secrecy is a way...
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...Year 2011 Annual Financial Report And Shareholder Letter January 2012 Dear Shareholders, Fiscal 2011 was a year of great accomplishment for The Walt Disney Company, marked by creativity and innovation across our businesses globally, record financial results and numerous important steps to position the Company for the future. While 2011 brought us so much to cheer about, it was also marked by profound loss, with the passing of Steve Jobs. Steve’s incredible stewardship of Pixar, and his decision to sell Pixar to Disney in 2006, brought Steve into the Disney family, as a board member, a shareholder, a mentor, and a friend, and we were so lucky for all that he represented and all that he contributed. Disney, ESPN, ABC, Pixar, and Marvel are an amazing collection of brands that grow stronger every day as new platforms and new markets provide enormous new opportunities for high quality content and experiences. To that end, we are fortunate to have a talented group of employees who are committed day in and day out to building our brands around the world. Since becoming President and CEO in 2005, I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally. In fiscal 2011, net income attributable to Disney was a record $4.8 billion, an increase of 21% over last year, and revenue was a record $40.9 billion, up 7% from last year. Diluted earnings per share...
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