Your SlideShare is downloading. ×
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Walt Disney Annual Report Analysis
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Walt Disney Annual Report Analysis

7,988

Published on

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
7,988
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
315
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. PD PROJECT [Type your address]  [Type your phone number]  [Type your e-mail address] Walt Disney  Divya Ragatha Srivastava Singh Gupta Bera
  • 2. Introduction For more than eight decades, the name Walt Disney has been preeminent in the field of family entertainment. From humble beginnings as a cartoon studio in the 1920s to today's global corporation, The Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across America and around the world. Walt Disney Walt Disney is one of the largest media and entertainment corporations in the world. Founded on October 16, 1923, by brothers Walt and Roy Disney as an animation studio, it has become one of the biggest Hollywood studios, and owner and licensor of eleven theme parks and several television networks, including ABC and ESPN. Disney's corporate headquarters and primary production facilities are located at The Walt Disney Studios in Burbank, California. The company is a component of the Dow Jones Industrial Average. John E. Pepper, Jr. ( ) Robert I ger ( )& ( ) Anne Sweeney ( ) ABC, ABC Family, ABC Kids, Walt Disney Distribution, Walt Disney Motion Pictures Group, Disney Channel, ESPN, Jetix, Walt Disney Studios, Walt Disney Parks and Resorts, Walt Disney Television Animation, Walt Disney Records, Walt Disney Pictures, Touchstone Pictures, Miramax Films, ABC Studios, Playhouse Disney,
  • 3. Disney Consumer Products, Pixar Animation Studios, SOAPnet , Disney Interactive Studios, Muppets Holding Company, Disney Store, Toon Disney, New Horizon Interactive, and Hollywood Records Walt Disney The Walt Disney Studios is the foundation on which Disney was built, and at its heart are world-renowned animated features and live-action motion pictures. With the creation of Mickey Mouse and Snow White and the Seven Dwarfs, the world's first full- length animated feature, the Disney name quickly became synonymous with quality entertainment for the whole family Disney's Parks and Resorts is not just home to Disney's beloved characters but the place "Where Dreams Come True." The segment traces its roots to 1952, w hen Walt Disney formed w hat is today known as Walt Disney I magineering to build Disneyland Park in Anaheim, California. Since then, Parks and Resorts has grown to encompass the world- class Disney Cruise Line, eight Disney Vacation Club resorts (with more than 100,000 members), Adv entures by Disney (immersive Disney-guided travel around the world), and five resort locations (encompassing 11 theme parks, including some owned or co- ow ned by independent entities) on three continents:
  • 4. Disney merchandising began in 1929 w hen Walt Disney was approached by a businessman interested in placing Mickey Mouse on the cover of a children's writing tablet. Disney Consumer Products and affiliates (DCP) extend the Disney brand to merchandise ranging from apparel, toys, home décor and books and magazines to interactive games, foods and beverages, stationery, electronics and fine art. This is accomplished through DCP's various lines of business w hich include: Disney Toys, Disney Apparel, Accessories & Footwear, Disney Food, Health & Beauty, Disney Home and Disney Stationery. Disney Publishing Worldwide (DPW) is the world's largest publisher of children’s books and magazines, reaching more than 100 million readers each month in 75 countries. Disney's imprints include Disney Libri, Hyperion Books for Children, Jump at the Sun, Disney Press, and Disney Editions. Media Networks comprise a vast array of broadcast, cable, radio, publishing and Internet businesses. Key areas include: Disney-ABC Television Group, ESPN Inc., Walt Disney Internet Group, ABC ow ned television stations, and a supporting headquarters group. Marketing, research, sales and communications functions also exist within the segment.
  • 5. Competitors The recent AOL/Time Warner merger is one of the most significant mergers in the history of corporate America. For years, Time Warner was a media giant, producing films, television networks, professional sports, and digital media. They also held the brand name, Warner Brothers. America Online is currently the #1 internet service and owns Netscape and Compuserve. Together, AOL Time Warner, Inc. will challenge the industry dominance of The Walt Disney Company. AOL Time Warner, Inc. is Disney's chief competitor. This company not only challenges Disney's television interests, but also looks to be competitor in merchandising. The Warner Brother label will be the name brand name in this merchandising effort. The merger put the final nail in the coffin of The Go Network and has had a significant effect upon Disney Internet interests. Viacom is the world's third largest media company. They operate well known affiliates such as CBS Enterprises, Paramount Television, Blockbuster Video, and Infinity Broadcasting. Viacom also produces TV shows and mot ion pictures through popular cable outlets. The most popular of these channels are Black Entertainment Television, Showtime, MTV Networks.
  • 6. CBS promises new programming and a stong late night lineup that may challenge the success of ABC and their hit telev ision show, "Who Wants To Be A Millionaire". CBS offers a huge threat to the future of The Walt Disney Company and The ABC television network. In order to maintain its position as the world's #1 media conglomerate, Disney must continue to improve upon the quality of its television programming. The Fox Entertainment Group is a serious competitor to the strength of Disney's television networks. Popular Fox shows, such as Ally McBeal, and sporting interests, such as the broadcasting rights to the National Football league have challenged Disney's television dominance. Paramount Pictures Corporation is an United States motion picture production and distribution company, based in Hollywood, California. Founded in 1912, it is the oldest running movie studio in Hollywood, beating Universal Studios by a month.I t has the largest studio market share. It has produced most of the popular Hollywood Titles. Titanic produced by Paramount is currently the Biggest grosser in both the domestic and I nternational market. The following chart shows 2007 domestic studio market share by gross revenue. Total gross revenue in that year was ~$9.7B for the industry as a whole.
  • 7. Rank Company Market Share 1 Paramount 15.50% 2 Warner Bros 14.70% 3 Buena Vista 14.00% 4 Sony/Columbia 12.90% 5 Universal 11.40% 6 20th Century 10.50% Fox 7 New Line 5.00% 8 Lion Gate 3.80% 9 MGM/UA 3.80% 10 Fox Searchlight 1.40% 11 Miramax 1.30% 12 Rogue Pictures 0.80% 1 Paramount 2 Warner Bros 3 Buena Vista 4 Sony/Columbia 5 Universal 6 20th Century Fox 7 New Line 8 Lion Gate 9 MGM/UA 10 Fox Searchlight 11 Miramax 12 Rogue Pictures 2% 1% 4% 1% 4% 5% 16% 11% 15% 15% 12% DISNEY 14%
  • 8. Method used for forecasting This method is a ‘classical method’ of business forecasting . It is essentially concerned with the study of movement of variables through time . The use of this method requires a long and reliable time-series data . Trend projection method is used under the assumption that the factors responsible for past trends in the variable to be projected will continue to play their part in fut ure in the same manner and to the same extent as they did in the past in determining the variable. There are 3 techniques of trend projection based on time-series data: In this method, a trend line is fitted to the time-series sales data either visually or by regression analysis. The linear regression model will take the form of St = So + bt Where: St= value of time series to be forecasted for period t S0= estimated value of time series in the base period b= absolute amount of growth per period t= time period for which series is to be forecasted
  • 9. So = [(∑S)( ∑(t2))-( ∑t)*( ∑s*t)]/d b=[n∑s*t-(∑t)( ∑s)]/d where d=n∑(t2)-( ∑t)2 One characteristic of this method is that each observation has the same weight. Shortcomings of trend projection: One of the most successful forecasting methods is the exponential smoothing (ES) techniques. Exponential smoothing overcomes many objections of simple moving averages. ES is an averaging technique that uses unequal weights; however, the weights applied to past observations decline in an exponential manner. Exponential smoothing is a technique of time series forecasting that gives greater weight to more recent observations. The first step is to choose a smoothing constant w where 0<w<1. If there are n observations in a time series, the forecast for the next period i.e. (t+1) is calculated as a weighted average of the observed value of the series at period t and the forecasted value for that same period. Thus, the value of the forecast of the time series in period t+1 is Ft+1 = wAt + (1-w)Ft where:
  • 10. A small w provides a detectable and visible smoothing. While a large w provides a fast response to the recent changes in the time series but provides a smaller amount of smoothing. For selecting the value of w, we will calculate RMSE(root mean square error) RMSE=√(∑(A –F)2/n) The value of w is accepted for which RMSE is minimum.
  • 11. Analysis Of Data PERIOD REVENUES 1 27061 2 30752 3 31347 4 33747 5 35510 40000 35000 30000 25000 20000 15000 REVENUES IN 10000 MILLIONS 5000 0 1 2 3 4 5 YEAR PERIOD REVENUES S*t 2003 1 27061 27061 2004 2 30752 61504 2005 3 31347 94041 2006 4 33747 134988 2007 5 35510 177550 15 158417 495144 55 d= 50 s0= 25715.5 b= 1989.3 2003 2004 2005 2006 2007 2008 st= 27704.8 29694.1 31683.4 33672.7 35662 37651.3 A-F -643.8 1057.9 -336.4 74.3 -152 (A- 1675420 F)^2 rmse 578.8645
  • 12. PERIOD PROFITS 1 1267 2 2345 3 2533 4 3374 5 4687 5000 4500 4000 3500 3000 2500 2000 PROFITS 1500 (In millions) 1000 500 0 1 2 3 4 5 YEA PERIO PROFITS P*T R D 200 1 1267 1267 3 200 2 2345 4690 4 200 3 2533 7599 5 200 4 3374 13496 6 200 5 4687 23435 7 15 14206 50487 55 d= 260 p0= 92.403846
  • 13. 15 b= 151.32692 31 pt 243.73076 395.05769 546.384 697.711 849.038 1000.36 92 23 6 5 5 5 2101.2692 2137.9423 2827.61 3989.28 13356.9 (A- 2.11E+0 31 08 5 8 6 F)^2 8 rms 6500.83 e 7 YE PERI REVE A-F FORECA A-F FORECA A-F w=0. A-F w=0. A-F A OD NUES FOREC STING STING 8 9 R ASTIN WITH WITH G W=0.6 W=0.7 WITH W=0.5 20 1 2706 31683. - 31683.4 - 31683.4 - 316 - 316 - 03 1 4 4622 4622 4622 83.4 4622 83.4 4622 .4 .4 .4 .4 .4 20 2 3075 29372. 1379 28909.9 1842 28447.7 2304 279 2766 275 3228 04 2 2 .8 6 .04 2 .28 85.4 .52 23.2 .76 8 4 20 3 3134 30062. 1284 30200.0 1146 30338.0 1008 304 870. 306 732.
  • 14. 05 7 1 .9 8 .92 6 .94 76.0 96 14.0 98 4 2 20 4 3374 30704. 3042 30833.0 2913 30961.5 2785 310 2656 312 2528 06 7 55 .45 4 .96 3 .47 90.0 .98 18.5 .49 2 1 20 5 3551 32225. 3284 32530.0 2979 32834.2 2675 331 2371 334 2067 07 0 775 .225 2 .98 65 .735 38.5 .49 42.7 .245 1 6 20 33867. 34196.3 34524.7 348 351 08 8875 1 325 53.1 81.5 6 8 SUM 1584 17 SIGMA 4496 4344 4261 4246 4299 (A-F)^2 4034 6562 2649 2294 5496 rmse 2998 2947 2919 2914 2932 .801 .764 .337 .182 .422 AVE 3168 RAG 3.4 E YE PERIO PRO A-F FORECAS A-F FORECAS A-F w=0.8 A-F w=0.9 A-F AR D FITS FORECA TING TING STING WITH WITH WITH W=0.6 W=0.7 W=0.5 20 1 126 2841.2 - 2841.2 - 2841.2 - 2841. - 2841. -1574.2 03 7 1574. 1574. 1574. 2 1574. 2 2 2 2 2 20 2 234 2054.1 290.9 1896.68 448.3 1739.26 605.7 1581. 763.1 1424. 920.58 04 5 2 4 84 6 42 20 3 253 2199.55 333.4 2228.64 304.3 2257.73 275.2 2286. 246.1 2315. 217.09 05 3 5 6 7 82 8 91 20 4 337 2366.27 1007. 2399.62 974.3 2432.96 941.0 2466. 907.6 2499. 874.345
  • 15. 06 4 5 725 8 5 35 31 9 655 20 5 468 2870.13 1816. 2970.91 1716. 3071.68 1615. 3172. 1514. 3273. 1413.77 07 7 75 863 09 25 318 455 545 228 25 3778.56 3960.25 4141.94 4323. 4505. 875 5 125 628 314 SUM 142 06 SIGMA 6990 6666 6415 6238 613593 (A-F)^2 416 113 598 871 3.105 rmse 1182. 1154. 1132. 1117. 1107.78 406 653 749 038 4555 AVER 284 AGE 1.2 PERIOD REVENUES PROJECTED 1 27061 27704.8 2 30752 29694.1 3 31347 31683.4 4 33747 33672.7 5 35510 35662 40000 40000 35000 35000 30000 30000 25000 25000 REVENUE REVENUES ACTUAL 20000 ACTUAL 20000 15000 REVENUES 15000 REVENUE PROJECTED PROJECTE 10000 D 10000 5000 5000 0 1 0 2 3 4 5 1 2 3 4 5
  • 16. YEAR PERIOD PROFITS PROJECTED 2003 1 1267 2841.2 2004 2 2345 1424.42 2005 3 2533 2315.91 2006 4 3374 2499.655 2007 5 4687 3273.228 5000 4500 4000 3500 3000 2500 PROFITS 2000 PROJECTED 1500 1000 500 0 1 2 3 4 5
  • 17. Conclusion A The Walt Disney
  • 18. Bibliography

×