Walt, after the Studio The founder had won 4 Academy Awards Walt Disney 1901-1966• Walt Disney was born on December 5, 1901 in Chicago• During the fall of 1918, Walt Disney attempted to enlist for military service but he got rejected.• He started a small company called Laugh-O-Grams, which eventually fell bankrupt.• With his suitcase, and $20 Walt headed to Hollywood to start anew.• After making a success of his "Alice Comedies," Walt became a recognized Hollywood figure.• Disney took a deep interest in the establishment of California Institute of the Arts, a college-level professional school of all the creative and performing arts.• Walt Disney passed away on December 15, 1966.• Urban legend maintains his corpse would befrozen and stored beneath the Pirates of theCaribbean ride at Disneyland. . .
HistoryOctober 16, 1923:This date is considered the start of the Disney Company first known asThe Disney Brothers Studio.1928:First Mickey Mouse cartoon, and the first appearance by Minnie Mouse.1932:Flowers and Trees, first full-color cartoon and first Academy Awardwinner.1939:The Disney Studio begins its move to Burbank, California.1940:Walt Disney Productions issues its first stock.
Growth1955:Mickey Mouse Club debuts on television.1971:Walt Disney World Resort opens with the Magic Kingdom and two hotels nearOrlando, Florida.1982:EPCOT Center opens at Walt-Disney World Resort .1983:Tokyo Disneyland, the first international Disney theme park, opens in Japan.1987:The first Disney Store opens, in Glendale, California.
Growth cont. 1989:Disney-MGM Studios opens at Walt Disney World Resort. 1992:Disneyland Paris opens. 1995:Disney agrees to purchase 25 percent of the California Angels baseballteam, Disney agrees to purchase Capital Cities/ABC for $19 billion. TheDisney Channel begins operation in the UK. 1996:Disney Online launches Disney.com.Radio Disney, a live 24-hour music-intensive radio network, debuts. 1998:ESPN Magazine debuts, Disney’s Animal Kingdom opens at Walt DisneyWorld Resort, Disney Magic cruise ship departs on its inaugural cruise.
2009 Disney purchased Marvel Entertainment Gave a $0.35 dividend per share Roy Disney died at age 79 He was a key person in Disney’s animation legacy Received approval to build a theme park in Shanghai Released the movie Up
LOCATION MAP Disney Resorts: 1. California 2. Florida 3. Tokyo 4. Hong Kong 5. Paris
Walt Disney Divisions Media Networks Park and Resorts• ESPN • Disney Land Resorts• Disney/ABC Television • Walt Disney World Resort Group • Tokyo Disney Resort• ABC Entertainment Group • Disneyland Paris• ABC News • Hong Kong Disneyland• ABC Owned Television • Disney Cruise Line Stations Group • Disney Vacation Club• ABC Family • Adventures by Disney• Disney Channels • Walt Disney Imagineering Worldwide• Hyperion Book s
Walt Disney Divisions Cont.The Walt-Disney Studios Disney Consumer Products• Walt-Disney Studios • Disney Licensing Motion Pictures • Disney Publishing• Marvel Studios Worldwide• Touchstone Pictures • Disney Store• Disneynature• Walt Disney Animation Disney Interactive Media Studios Group• Pixar Animation Studios• Disney Music Groups • Disney Online• Disney Theatrical Group • Disney Games
Mission Statement"The mission of The Walt Disney Company isto be one of the worlds leading producersand providers of entertainment andinformation. Using our portfolio of brands todifferentiate our content, services andconsumer products, we seek to develop themost creative, innovative and profitableentertainment experiences and relatedproducts in the world."
Proposed VisionWalt Disney strives to be the world’smost famous entertainmentcompany by creating an amazingexperience for individual of all ages.
Proposed MissionOur Mission is to be one of the world’s leading producerand provider of entertainment and information, fromparks to network media, and website for all ages. Weseek to provide a great experience for our customers, aswell as for our employees. By using our unique portfolio todifferentiate our content, services and consumerproducts, we seek to develop the most creative, HISTORYinnovative and profitable entertainment experiences,which would produce financial rewards to ourshareholders. In everything we do, we try to contribute toour communities by giving them the best experience.
Strengths One of the most recognizable entertainment company in the world Strong advertising Wide and unique portfolio Innovative entertainment business Strong customer service Strong Media Networks and Broadcasting division Disney owns a variety of companies, which allows them to generate more profits from different industry such as Media Networks and Broadcasting, Park and Resorts, Studio Entertainment and Disney Consumer Products Disney is the largest worldwide licensor of character-based merchandise and producer of children’s film-related products based on retail sales
Weaknesses Disney sends a corrupted influence to children Jasmine was in a forbidden relationship with Aladdin Snow White lived alone with 7 men Pinocchio was a liar Robin Hood was a thief Tarzan walked without clothes on A stranger kissed sleeping beauty and she married him Cinderella lied and sneaked out at night to attend a party Coyote runs off cliffs and blows himself up
Weaknesses Studio Entertainment and Disney Consumer Products divisions have been experiencing declining revenue for the last 3 years Disney as a narrow target market Disney as such a diversify product range that it can reduce efficiency and lead to a lack of strategic focus High cost of entertainment production High employee turnover Poor working conditions in factories Walt Disney’s Park and Resorts are not easily accessible which leads people to associate Disney World with a costly trip
Opportunities Opportunity to renovate attractions in Park and Resorts Division due to increase in profit Growth from cable and satellite operators creating even more potential for Disney to make money with their network Prospect to build more theme park and resorts worldwide Openings in other areas of the travel business Opportunity to invest in building theme parks to satisfy the increase in guest spending, theme park attendance, and hotel occupancy Target new costumers group
Threats Lasting economic recession leading to slow growth rate High unemployment rate Park and Resorts Divisions’ success is unpredictable because of exchange rate fluctuations; travel industry trends; amount of available leisure time; oil and transportation prices; and weather patterns and seasonality. Changes in technology leads customers to stream online instead of buying DVD. Online streaming makes Disney vulnerable to piracy and violation of its intellectual property. Retail distribution business are influenced by seasonal consumer purchasing behavior and by the timing and performance of animated theatrical release Increase in labor cost which will have a noticed impact in Walt- Disney expenses due to their large amount of employee.
Internal AuditDisneyland will never be completed. It will continue to growas long as there is imagination left in the world. - Walt Disney
Organizational Chart Theme Parks & Resorts International ABC Television Group Co-Head Interactive Co-Head Interactive & Playdon Human Resources Motion Picture Distribution CommunicationCEO Stategy and Business Development Government Relations Disney Consumer Products ESPN & ABC Sports ESPN & Disney Media Networks CFO Legal and Secretary CID Security
Income Statement(in Millions, except per share data) 2009Revenues $36,149.00Costs and expenses $(30,452.00)Restrucuring and impairment charges $(492.00)Other income (expense) $342.00Net interest expense $(466.00)Equity in the income of investees $577.00Income from continuing operations before income taxes and minority interests $5,658.00Income taxs $(2,049.00)Minority interests $(302.00)Income from continuing operations $3,307.00Discontinued operations, net of tax -Net income $3,307.00Diluted earnings per share: Earnings per share, continuing operations $1.76 Earnings per share, discontinued operations Earnings per share $1.76Basic earnings per share Earnings per share, continuing operations $1.78 Earnings per share, discontinued operations Earnings per share $1.78Weighted average number of common and common equivalent shares outstanding: Diluted $1,875.00 Basic $1,856.00
IE Matrix Total IFE Score Strong 3-4 Average 2-2.99 Weak 1-1.99 Media Networks High 3-4 Studio EntertainmentTotal EFE Medium Consumer Products Score 2-2.99 Parks and Resorts Low 1- 1.99 Interactive media
Implementation “Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.” Walt Disney“Pixar is the most technically advanced creativecompany; Apple is the most creatively advancedtechnical company. “ Steve Jobs 2005-02-21
Assumptions Eliminate 10 billion out of the borrowings from the retained earnings Finance 1 billion to buy a land in order to open indoor resort in New York in the next three years. Invest 10 million for advertisement Spend 1 billion in each of the five existing Park for renovation and new attractions. = Total of 5 billion Total Investment of 19.01 billion
Balanced Score CardArea of Objectives Measure of Target Time Expectations Primary ResponsibilityCustomers 1. Costumer satisfaction Customer Survey Yearly Human Resources & Webinar CEO Representatives 1. Employee Conditions Employee Satisfaction Biannually CEO 2. Career Opportunity Lower employee turnover Biannually CEO Community / Socially Responsible 1. Eco-Friendly Company Maintain clean environment in Yearly CEO resorts Marketing Department Increase presence of recycling in resorts Limit food, paper and water waste Limit land destruction 2. Ethical Company Increase in donations and Yearly CEO presence of charitable events Marketing Department Operations/Processes 1. Innovation Number of new products in each Yearly CEO segment Marketing Department Number of renovated products in each segment2. Brand expansion/ Accessibility Numbers of new resorts built Yearly CEO Financial 1. Reduce cost of production Decrease in cost of Parks, Resorts Yearly CFO and other property 2. Increase profitability Increase Sales Quarterly CFO Reduce Expenses
Strategies Use product development to renovate and build new attractions in order to attract an older target market. Use market development to build a new theme park which will be more accessible to the North East area.
RecommendationsIn the next three years Walt Disney should.. Build an indoor theme Park and Resort in New York. Improve advertising to promote entertainment which target a more mature audience. Remove the Interactive Media Segment. Remodel and build new attractions in every Park and Resorts to stay appealing to our customers.
ObjectivesIn the next year Walt Disney should… Improve advertising to promote entertainment Remove the Interactive Media Segment Buy a land in New York City
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[value][year]=2009&title=&page=3>