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Management Strategic Analysis: Study Case:The Walt Disney Company
Management Strategic Analysis: Study Case:The Walt Disney Company
Management Strategic Analysis: Study Case:The Walt Disney Company
ANALYSIS
STUDY CASE :THE WALT DISNEY
COMPANY
Compiled by :
Robert Ardeno 1411011117
WALT DISNEY COMPANY
It’s not just Disneyland!
OUTLINE
Introduction and Overview (Slide 4)
Internal Assessment (Slide 5-16)
External Assessment (Slide 17-22)
Strategy (Slide 23-29)
Implementation and Financing (Slide 30-32)
LEADERSHIP Co-
President:
Chairman: Disney
Walt Disney Interactive
and this isn’t all of them! Int’l
Co-Chair
and Pres.
ABC
Chair: Walt Television
Disney Group
Studios
CEO Co-President:
Disney
Interactive
EVP and and Playdom
Chief Human
Resources
Officer
EVP Motion
Picture
Distribution
EVP
Communicati
ons
EVP Strategy
and Business
Development
President:
Consumer
Products
President:
ESPN and
President ABC Sports
Source: www.theofficialboard.com ESPN and
Co-Chair
Media
Networks
ORGANIZATIONAL STRUCTURE
LEADERSHIP
Recommendation…
Chief Executive
Geographical
Functional
MARKET POSITION: THE
COMPETITORS
Disney
CBS Corp.
High Market Capitalization
Media Networks/Broadcasting
and Studio Entertainment
Ocean Park
Locations
(high)
Parks and Resorts
Visitors Visitors
(low) (high)
Locations
(low)
Disney
Quantity Fox
(high)
Consumer Products
Sales Sales
(low) (high)
Quantity
(low)
SWOT: STRENGTHS AND
WEAKNESSES
Strengths
Strong diversification
Responsiveness to markets
Brand recognition
Creative process
Weaknesses
Large R&D costs
High Risk factor
Constant up gradation
High sunk costs
INTERNAL FACTORS MATRIX
Opportunities
Growth through further diversification
Increase Media Networks/Broadcasting market share
International growth/New markets
Changes in technology and consumer consumption
Threats
Economic recession
Changes in technology and consumer consumption
Intellectual property (protection of)
Uncontrollable changes in travel and tourism
EXTERNAL FACTOR EVALUATION
Weigh Ratin
Key External Factors t g Weighted Score
Opportunities
1. Growth through further diversification 0.12 4 0.48
2. Increase Media Networks/Broadcasting market share 0.15 3 0.45
3. International growth/New Markets 0.12 4 0.48
4. Changes in technology and consumer consumption 0.15 3 0.45
Threats
1. Economic recession 0.12 4 0.48
2. Changes in technology and consumer consumption 0.15 3 0.45
3. Intelectual property (protection of) 0.1 2 0.2
4. Uncontrolable changes in travel and tourism 0.09 2 0.18
TOTAL 1.00 3.17
STRATEGY
SWOT ANALYSIS
Walt Disney SWOT Strengths Weaknesses
1. Strong diversification 1. Large R&D costs
2. Responsiveness to markets 2. High risk factor
3. Brand recognition 3. Constant up gradation
4. Creative process 4. High sunk costs
Opportunities SO Strategies WO Strategies
1. Develop and research plan around emerging markets
1. Growth through further diversification with low R&D costs (W1)
2. Increase Media Networks/Broadcasting market 2. Create a customize/targeted media advertising
share plan for all segments (S2)
3. Expand Hong Kong Disney and research one new 3.Target 3 new markets and develop expansion plan
3. International growth/New Markets market (S3) around consumer products (W4)
4. R&D into storytelling to kids through technology 4. Consumer research around the use of technology and
4. Changes in technology and consumer consumption (S4) need (W2)
Threats ST Strategies WT Strategies
1. Digitize content to utalize technology and lower 1. Digitize content to utalize technology and lower costs
1. Economic recession costs (S2,4) (W4)
2. Focus on one high tech segment and focus content and
2. Changes in technology and consumer consumption R&D there (W1, 3)
3. Document and Create TM and IP Protection Plan
3. Intelectual property (protection of) (S2)
4. Create and bank marketing strategies and
promotions to use during adverse conditions or slow
4. Uncontrolable changes in travel and tourism periods for parks and resorts (S2)
SPACE MATRIX
INTERNAL-EXTERNAL MATRIX
I II III
EFE Total Weighted Scores
3.0
2.0 IV V VI
1.0
VII VIII IX
EFM 3.17
IFM 2.51
GRAND STRATEGY MATRIX
Rapid Growth Market
Quad II Quad 1
Weak Strong
Competitive Competitive
Position Position
Quad III
Quad IV
Total 1.00
Strengths
1. Strong diversification 0.15 4 0.60 1 0.15 3 0.45
2. Responsiveness to markets 0.15 4 0.60 4 0.60 2 0.30
3. Brand recognition 0.10 3 0.30 3 0.30 1 0.10
4. Creative process 0.10 4 0.40 1 0.10 2 0.20
Weaknesses 0.00
1. Large R&D costs 0.15 2 0.30 4 0.60 4 0.60
2. High risk factor 0.10 2 0.20 2 0.20 2 0.20
3. Constant up gradation 0.10 1 0.10 4 0.40 2 0.20
4. High sunk costs 0.15 2 0.30 4 0.60 4 0.60
Strategy 3: Digitize
Strategy 1: R&D into
content to utilize
storytelling to kids through
technology and lower
technology (S4)
costs (W4)
IMPLEMENTATION AND FINANCING
EPS/EBIT ANALYSIS
Common Stock Debt Financing 50-50 Financing
Recession Normal Boom Recession Normal Boom Recession Normal Boom
EBIT $30.000 $35.00 $40.00 $30.000 $35.00 $40.00 $30.000 $35.00 $40.00
Interest $0.00 $0.00 $0.00 $1.50 $1.75 $2.00 $0.75 $0.88 $1.00
EBT $30.00 $35.00 $40.00 $28.50 $33.25 $38.00 $29.25 $34.13 $39.00
Taxes $11.40 $13.30 $15.20 $10.83 $12.64 $14.44 $11.12 $12.97 $14.82
EAT $11.40 $13.30 $15.20 $10.83 $12.64 $14.44 $11.12 $12.97 $14.82
#Shares 1 1 1 1 1 1 1 1 1
EPS $11.40 $13.30 $15.20 $10.83 $12.64 $14.44 $11.12 $12.97 $14.82
12
10
50/50
6
DF
CSF
0
30 35 40
CONCLUSION
Strategic Planning Needed
Implement strategies that help lower costs, and maintain
competitive advantage
Balanced approach to innovation and cost-savings
SOURCES
““Home, The Walt Disney Company”, < http://thewaltdisneycompany.com/<ALDRIDGE, B. “Walt
Disney”, Brad Aldridge Productions, Berkley, CA, August 2002, http://www.justdisney.com/walt_disney/
’>
“ Annual Reports, The Walt Disney Company”,
<http://thewaltdisneycompany.com/investors/financial-information/annual-report>
“ Who Owns the Media? Media Ownership Charts, Free Press”, Florence, MA,
<http://www.freepress.net/ownership/chart>
“ Investor Relations, The Walt Disney Company”, <http://thewaltdisneycompany.com/investors>
“ Walt Disney Company (DIS) News – The New York Times”
<http://topics.nytimes.com/top/news/business/companies/disney_walt_company/index.html>
“ Stock Quote for Walt Disney Co – MSN Money”, page generated 9:55PM,
<http://investing.money.msn.com/investments/stock-price?Symbol=dis&ocid=qbeb>
“ DIS: Summary for Walt Disney Company (The) Common – Yahoo! Finance”
<http://finance.yahoo.com/q?s=dis&ql=1>
“ Organizational Chart The Walt Disney Company – TheOfficialBoard”, <
http://www.theofficialboard.com/org-chart/walt-disney>
“ Disney Corporate Press Releases , The Walt Disney Company”, <
http://thewaltdisneycompany.com/disney-news/press-releases?tid=All&field_press_release_date_value[v
alue][year]=2009&title=&page=3
>