Running Head: Walt Disney Company Portfolio Project Part 3

Walt Disney Company Portfolio Project Part 3

BUSN601 Global Management Perspective

To be successful in international markets companies must be able to reach consumers and

establish business relations that will outweigh what their competition is offering through

diversification and continuous process of improvement is the distribution of products and

services offered. Furthermore, the company must analyze how they will need to design

operations internationally or domestically depending on company goals and capabilities. The

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Walt Disney Company has taken such strides in both directions through many business concepts

to bolstering international market outreaches to gain diverse revenue streams to support

workforce professionalism and personal development programs.

Walt Disney Company Labor Union Relations

With the vast array of entertainment venues from which the Walt Disney Company has

employee diversification in with its teamsters, the company has become associated with many

unions supporting their employees. Within the United States, the company has relations with the

following unions: the Services Trade Council Union, Unite Here Local 737, Teamsters Union

Local 385, United Food and Commercial Workers Union, Unions at Walt Disney World: Actors

Equity, (Security, Police and Fire Professionals of America local 603), Unions at Disneyland:

Local 50 (Theme parks food service), Unite Here Local 11 (Hotels & Resorts), Master Service

Council: SEIU local 1877, Teamster Local 495, and the UFCW Local 324 (“Local 362 Unite

Here,” 2020). Internationally the company has union relations with the following: International

Association of Theatrical Stage Employees Union Local 631, Reedy Creek Firefighters

Association (International Association of Fire Fighters Local 2117), Transportation

Communications International Union (Allied Services Division District 1908), International

Association of Theatrical Stage Employees Union Local 631, and the Hong Kong Confederation

of Trade Unions (“Local 362 Unite Here,” 2020).

Walt Disney Company International Exchange Programs

Internationally the company employs expatriates through its Academic Exchange

Program, Cultural Representative Program, and its Cultural Exchange Program (“Disney

International Programs,” 2020). The Academic Exchange Program offers U.S. colleges and
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university student to study their course while they gain related training at Walt Disney World

Resort, in which the student can gain knowledge and experience working along some of Disney

leading talent within entertainment and guest services venues of the resorts (“Academic

Exchange Program,” 2020). The Cultural Representative Program allows international

expatriates to enhance and expand cultural representations through international exchange

employees that can work in different areas from being a greeter to being a tour guide in different

venues related to the employee’s culture. (“Cultural Representative Program,” 2020). The

program lasts for 12 months and the company offers room and board at low cost with amenities

to needs of the foreign exchange employees during their stay (“Cultural Representative

Program,” 2020). Or For this program, the company hires cultural representatives to be

ambassadors from such foreign areas as Brazil, Canada, China, France, Germany, Italy, Japan,

Mexico, Morocco, Norway, South East Asia, Sub Saharan Africa, and the United Kingdom that

are represented within the Walt Disney World Resort (“Cultural Representative Program,”

2020). The Cultural Exchange Program provides the opportunities for college students to spend

their school break to work at one of the international Walt Disney World Resorts while living at

Disney apartment communities at a low cost with amenities provides to meet needs of those

participating in the Cultural Exchange Program (“Cultural Exchange Program,” 2020). The

program recruits in 13 countries to include Australia, Hong Kong, Mexico, Singapore, United

Kingdom, Brazil, India, New Zealand, Thailand, Canada, France, Peru, and Turkey (“Cultural

Exchange Program,” 2020). During the whole process of these programs from arrival to

departure of the programs, those participants are responsible for all of their traveling expenses

(ex: passport fees, visa documents, airfare, etc) (Devonne, personal communication, June 9,

2020).
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Walt Disney Company Internet-Based Training Opportunities

The Walt Disney Company has created the Disney Institute, which offers online

professional development. The institute provides courses on Leadership excellence, employee

engagement, quality service (“Online Professional Development Courses from Disney Institute,”

2020). The website also provides reviews on the Customer Experience Summit, Disney Data and

Analytics Conference, success stories, testimonials, overview with careers at Disney Institute,

and group engagements for blogging and conferences (“Online Professional Development

Courses from Disney Institute,” 2020). Courses are all also offered regional locations and Disney

destinations for employees and supervisors (“Online Professional Development Courses from

Disney Institute,” 2020). Other ways of reaching the institute offer business solutions, advisory

services, meetings, and conventions to support companies through both business and

professional development of their employees (“Online Professional Development Courses from

Disney Institute,” 2020).

Walt Disney Company International Market Activities

Internationally Disney products and services are separated into two separate divisions:

(Consumer Products, Games, and Publishing for Disney Parks and Experiences and Products,

which creates digital and physical products to the consumer across 100 categories of products

(“Consumer Products, Games and Publishing,” 2020). Furthermore, these divisions are broken

up into five business segments to include: Global Products (Pixar, Star Wars, Marvel, Media,

Disney Classics, etc), Licensees (allow subsidiaries to partake in the good and services of Disney

products), Retails stores, (300 locations across North America, Europe, and Asia, along with an

e=commerce site: shopDisney), Games (stories and characters from Disney, Pixar, Marvel, and

Star wars, varied across console and mobile media devices), Disney Publishing World Wide
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(children's books and magazines offered through licensing in 68 countries communicated

through 48 different languages, with a focus on education and development of children)

(“Consumer Products, Games and Publishing,” 2020).

Products and Services Promotions Overview

With the Walt Disney Company 4P (Product, Place, Promotion, and Price) Market mix, it

can reach its target markets within its diverse operations in entertainment through the company’s

goods and services offered in the physical and media realms (Williams, 2019). The promotional

focus is are designed to be the same or closely related to brands and or products through the

company’s many business segments and subsidiaries (Williams, 2019). Through acquisitions, the

company has been able to establish a mix of advertising growth and connective structure through

Media Networks, Resorts, Studio productions, consumer goods, and services, which the

company use these tools in reach multinational audiences by implementing global marketing

communication campaigns that involve advertising, public relations, sponsorship, sales

promotion, direct selling that reach target markets in the international, local, and regional areas

that the company operates out of (Williams, 2019). These promotions are designed to be

streamlined across all Disney market interest globally but differentiation is based on market and

industry conditions that lead to pricing strategies in market-oriented and value-based pricing,

such examples of these can be derived from the movie industry with pricing concerns with the

market of where movies will be offered to the public, and value-based refers to Disney products

and physical entertainment venues, additionally, these prices are based on view and or factual

value of the Disney target market (Williams, 2019).

Distribution Channels and Global Production

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Depending on the construct of a specific item to be distributed, the industry upon

distribution and markets to which it will be too would a distribution channel be defined for that

specific item, but The five main distribution channels from which The Walt Disney Company

products and services are sent through to consumers: Movie theaters, Disney stores, Official

websites, mobile apps, licensees and other parties (Williams, 2019). With the diversification of

the company marketing 4P marketing, these distribution channels are used interchangeably to

reach revenue streams goals. The company practices global procurement and production of

products and services in creating its desire product and service line through tens of thousands of

operational locations within 100 countries (“International Labor Standards,” 2020). Physical

categories of products including apparel, toys, electronics, food, home goods, personal care, and

books (“FY19 Facility List Disclosure,” 2019), while in the media outlets to include ABC,

ESPN, Freeform, FX Networks, National Geographic, and the Disney Channels are distributed

through Disney+, Hulu, Movies Anywhere, and 3rd party channels under the Disney’s Direct-to-

Consumer & International offer through North America, South America, Europe, Asia, and

several other countries (Hobson, 2019). The Disney FY19 Facility List provides a

comprehensive list of locations where the company’s branded and classical products are

produced from 7,300 facilities in over 70 countries and distributed to retail businesses where

Disney entertainment is represented (“FY19 Facility List Disclosure,” 2019).

Outsourcing and Insourcing Concepts of the Walt Disney Company

The company outsources from the likes of the Garner Holt Productions in building

Disney ride animatronics for over 17-years, and another outsourced company utilized by Disney

is The Besark Company that assisted Disney Imagineers to create attractions like the Pirates of

the Caribbean: Battle for the Sunken Treasure, at Disneyland Shanghai (Porter, 2016). For
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insourcing the company still employees 94,000 employees in the United States through over 20

streams of revenue residing in the country (Iger, 2019). Not only are these employees but the

company has continually invested in their employees through education, family support,

healthcare, diversity, inclusion, personal and professional development programs ( 2019

Corporate Social Responsibility Update-Workforce, 2019).

Walt Disney Supplier Diversity and Business Concepts

The Walt Disney Company is not a supplier in a supply themselves but rather the

company has many suppliers in multiple supply chains to manufacture, produce, and distribute

its products and services. The brands divided among four business outlets by which these

suppliers support include: 1. Media Networks, 2. Disney Parks Experiences and Products, 3.

Studio Entertainment, 4. Direct-To-Consumer and International (“About-Our Businesses,”

2020). The company continues to develop a robust supply chain through its diversity strategy

through the identification of diverse suppliers, qualification base on company business

requirements, Due Diligence through supplier business validation processes, and Outreach

initiatives through national, regional, and local supplier organizations, conferences, trade shows,

and organizations representing diverse supplier groups (Diversity Is Always Part of Our Big

Picture- How We Do It,” 2020). The major suppliers stem from the example of the digital

communication: Comcast, dish network, while others are more so manufacturing-based with

operational supply chains operated out of 13 countries funneled through over 100 countries

worldwide (“Responsible Supply Chain-International Labor Standards,” 2020).

Countries of Interest for Exports and Imports

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The Walt Disney Company has business imports from over 40 countries with permitted

sourcing (“Permitted Sourcing Countries,” 2020), with regards to physical Disney products.

Disney exports vary depending on what channel of distribution is being assessed. Example

Disney DTIC is broadcasted in 165 countries, while ESPN has a broadcast number 55 countries,

and Fox Network has a broadcast range of 95 countries (“ The Walt Disney Company 2019

Annual Report: Direct-to-Consumer and International-International Channels, page: 15,” 2019).

Values in the currency will fluctuate the revenues for the company depend on how the market

flows for which the company is operating out. Any value change will affect profit margins for

the company. The company utilizes option and forward contracts that allow for the purchase and

sale of foreign currencies within regard to forecasted foreign currency revenues and expenses

while hedging foreign currency assets and liabilities, yet economic offsets would impact the

company’s ability to hedge currency effectively in a currency rate change and or the possibility

for the company withdrawal money of the country with economically risk indicators (The Walt

Disney Company 2019 Annual Report: Forward-Looking Statements- Policies and Procedures,

page: 60,” 2019).

The Walt Disney Company’s integration within so many markets has diversified how the

company operates through all of its international markets. From multiple distribution channels to

their robust diverse efficiency-focused supply chain development program, the company

continues to reach expansion and desire of untapped potential of other international markets. At

the home court, the company continues to maintain its foundational reinforcements through its

insourcing, employee investment programs, and the corporate social responsibility initiatives,

with the culmination of both domestic and international business conquest the company has
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established itself as a force to reckon with in the entertainment industry and company desired by

employee and consumer alike.

References:
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About-Our Businesses (2020). The Walt Disney Company. Retrieved from

https:/thewaltdisneycompany.com/about/#our-businesses

Academic Exchange Program (2020). Disney Careers. Retrieved June 11, 2020 from

https://jobs.disneycareers.com/cultural-academic-program

Consumer Products, Games and Publishing (2020). Disney Parks, Experiences and

Products. Retrieved from https://dpep.disney.com/consumer-products

2019 Corporate Social Responsibility Update (2019). Retrieved from

https://thewaltdisneycompany.com/app/uploads/2020/02/CSR2019Report.pdf

Cultural Representative Program (2020). Disney Careers. Retrieved June 11, 2020 from

https://jobs.disneycareers.com/cultural-representative-program

Cultural Exchange Program (2020). Disney Careers. Retrieved June 11, 2020 from

https://jobs.disneycareers.com/cultural-exchange-program

Devonne. “[Disney Internships & Programs] Re: Expatriate support and training for

international program.”Email message to John B. Webb IV, June 9, 2020.

Disney International Programs (2020). Disney Careers. Retrieved June 11, 2020 from

https://jobs.disneycareers.com/international-programs

Diversity is Always Part of Our Big Picture-How We Do It (2020). Supplier Diversity.

Retrieved from https://supplierdiversity.disney.com/

FY19 Facility List Disclosure (2019). The Walt Disney Company. Retrieved from

https://thewaltdisneycompany.com/app/uploads/2020/02/FY19-Facility-

List- Disclosure.pdf
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Hobson, K. (2019, July 18). The Walt Disney Company Aligns Media Distribution

Under Direct-To-Consumer & International Segment, Integrates Disney

& ESPN Media Networks Affiliate Sales & Marketing Into DTCI Organization.

Walt Disney Direct-to-Consumer & International. Retrieved from

https://dtcimedia.disney.com/news/dtci-integrates-disney-espn-media-network-

affiliate-sales

Iger, R. A. (2019). Letter From Our Executive Chairman. The Walt Disney Company.

Retrieved from

https://thewaltdisneycompany.com/app/uploads/2020/02/CSR2019Report.pdf

Links. (2020). Local 362 Unite Here!. Retrieved June 11, 2020 from

https://www.uniteherelocal362.org/links/

Online Professional Development Courses from Disney Institute (2020). Disney Institute.

Retrieved from https://www.disneyinstitute.com/online-professional-

development-courses/

Permitted Sourcing Countries (2019). The Walt Disney Company. Retrieved from

https://thewaltdisneycompany.com/app/uploads/2019/08/Permitted-Sourcing-

Countries-Policy.pdf

Porter, S. (2016, December 6). Clarification on Disney “Outsourcing” Imagineering.

Disney Information Station. Retrieved from

https://www.wdwinfo.com/disneylandcalifornia/clarification-on-disney-

outsourcing-imagineering/
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Responsible Supply Chain (2020). The Walt Disney Company. Retrieved 2020 June 9

from https://thewaltdisneycompany.com/responsible-supply-chain/

Responsible Supply Chain-International Labor Standards (2020). The Wal Disney

Company. Retrieved from https://thewaltdisneycompany.com/responsible-supply-

chain/

Walt Disney Company 2019 Annual Report (2019). The Walt Disney Company.

Retrieved from https://thewaltdisneycompany.com/app/uploads/2020/01/2019-

Annual-Report.pdf

Williams A. (2019 March 7). Walt Disney Company Marketing Mix (4Ps) Analysis.

Panmore Institute. Retrieved 2020 June 13 from http://panmore.com/walt-disney-

company-marketing-mix-4ps-analysis