The Walt Disney Company is a diversified international family entertainment and media enterprise with five business segments. It has a vision to deliver exceptional entertainment experiences for people of all ages and interests globally. Disney operates in over 40 countries with 149,000 employees worldwide across its media networks, parks and resorts, studio entertainment, consumer products, and interactive divisions. The company pursues strategies like partnerships, creative innovation, and reaching new global markets to drive growth.

1. The Walt Disney Company
Research report of
Lee Yeon Kyung
Instructor name
Special Problems (BUS 300)
9 May 2013

2. 2
Table of Contents
1. Vision and Goal....................................................................................................1
2. Business segments and Services .........................................................................1
3. Business Services .................................................................................................2
4. Countries of Operation .......................................................................................2
5. Strategy ................................................................................................................4
6. Finance .................................................................................................................5
7. Board Organization, Organizational chart and corporate citizenship...........7
8. Market Strategy ...................................................................................................9
9. Sustainability......................................................................................................10
10. Reason why I want to apply for the Disney professional internship .........11

3. 1
The Walt Disney Company is the public company which was founded by Walt and Roy Disney
in 1923 at Los Angeles, California, the United States. It’s headquarter is the Walt Disney Studios
which is located in Burbank, California. It is a diversified international family entertainment and
media enterprise which is in Entertainment–diversified market with five business segments:
media networks, parks and resorts, studio entertainment, consumer products and interactive
media.
1. Vision and goal
1) Vision: to deliver, with integrity, the most consistently exceptional entertainment
experiences for people of all ages and interests.
2) Goal: to achieve exceptional performance by embedding corporate citizenship into all of
decisions and actions guided by three core principles.
 Act and create in an ethical manner and consider the consequences of our decisions on
people and the planet
 Champion the happiness and well-being of kids and families in our endeavors
 Inspire kids, parents, employees and communities to make a lasting, positive change in
the world
2. Business segments and Services
1) Media Network
Media Network segment of Disney is composed of broadcast, cable, radio, publishing, and
digital businesses across two divisions – the Disney/ABC Television Group and ESPN Inc. The
Disney/ABC Television Group is offering entertainment and news by its own channels. ESPN,
which is the worldwide leader in sports media, is providing broad range of television, digital,
print, and radio outlets.
2) Parks and Resorts
Walt Disney Parks and Resorts (WDP&R) is one of the world’s leading providers of travel and
leisure experiences using storytelling and immersive live experiences. WDP&R includes the
Disney Cruise Line with its four ships – the Disney Magic, Disney Wonder, Disney Dream, and
Disney Fantasy. They offer unforgettable vacation experiences for guests around the world.
3) The Walt Disney studios
The Walt Disney Studios was founded when The Walt Disney Company was built. They bring
quality movies, music, and stage plays to audiences throughout the world. There are Walt Disney

4. 2
Animation Studios, Pixar Animation Studios, Disney nature, Marvel Studios, Touchstone
Pictures, and DreamWorks Studios under The Walt Disney Studios. They also provide creative
contents across multiple platforms, including original music and soundtracks from The Disney
Music Group and stage productions from The Disney Theatrical Group.
4) Disney Consumer Products
Disney Consumer Products (DCP) extends the Disney brand to merchandise ranging from
apparel, toys, home décor, and books and magazines to foods and beverages, stationery,
electronics, and fine art. Their business activities are accomplished through a franchise-based
licensing organization focused on strategic brand priorities. Moreover, they publish children’s
book and magazines throughout the world.
3. Business Services
Disney offers Business to Business services and operates studios
1) Business to Business: The Disney Interactive Media Group offers the advertising on
Disney’s websites and The Disney Travel Agents helps travel agents and their clients to plan for
Disney vacations. Disney Meetings and Conventions offers meeting and conventions to all
groups who need to plan the occasion from Disney World Resort and Disneyland Resort.
Moreover, Disney Institute has been offering business program for companies to develop
themselves for over fifteen years.
2) Studio Operation: The Walt Disney Studios includes seven soundstages ranging from
11,000 to 32,000 square feet, costume, transportation, sign graphics, and craft service support.
Moreover, The Prospect Studio offers full service of production and is equipped with six
soundstages ranging from 4,400 to 21,000 square feet, one insert stage, and a rehearsal hall.
Disney also has Golden Oak Ranch studio and KABC7 Studio B for motion pictures, television,
commercials, music videos, and photography.
4. Countries of operation
Disney plays a role as the world’s leadier in high quality family entertainment. They have five
world-class vacaion destinations with 11 theme parks and 43 resorts in North America, Europe,
and Asia. Moreover, they operate in more than 40 countries with approximately 149,000
employees and cast members around the world.

5. 3
1) North America: USA, Canada
 USA: The headquarter which is located in Burbank, California is a leading diversifed
internationaal family entertainment and media enterprise. Moreover, it has the
Disneyland parks are located in Anaheim, California and Lake Buena Vista, Florida.
 Canada: Disney has been entering business in Canada for more than 70 years. Disney in
Canada is involved in diverse business areas with The Walt Disney Studios, Disney
Consumer Products, Parks and Resorts, Media Networks, and Disney interactive Media
Group. Disney-branded TV channels are on the television and wide range of products are
sold at mass-market retailer and in Disney stores.
2) Latin America: Mexico, Venezuela, Brazil, Chile, Argentina
3) Europe, Middle east and Africa: Europe(Finland, Sweden, Norway, Ireland, United
Kingdom, Denmark, Belgium, Netherland, Germany, Czech Republic, Poland, Luxemburg,
France, Switzerland, Austria, Hungary, Italy, Portugal, Spain, Greece), South Africa, Middle
east(Turkey, Israel, United Arab Emirates)
 United Kingdom: Disney has operated in UK more than 75 years. London is the regional
headquarters for Disney in Europe, the Middle East, and Africa (EMEA). Children and
families experience Disney in TV channels, Stores, on stages.
 France: Disney has operated in France for more than 75 years and Disneyland Paris is
Europe’s number one tourist destination. It celebrated its 20th
anniversary in April 2012.
Disney has been experienced by French people through TV channels, magazines, and
stores.
4) Russia: Disney has been established CIS LLC on April 2006. It is engaged in media, studio
entertainment, and consumer products business. It has been contributing to the development of
the tourism industry working closely with Disneyland Resort Paris.
5) Asia pacific: South Korea, China, India, South East Asia, Australia, New Zealand
 China: Disney has present in China since 1930’s and they started building a Shanghai
Disney Resort on April 2011 which aims to finish its construction on 2015. Hong Kong
Disneyland Resort, which is its first theme park, celebrated its 5th
anniversary in 2010
and continues to expand more theme lands. Also, China is a huge market for Disney
English business also. More than one million English language learning books were sold
and Disney Channel contents reached 530 million views through over 40 major cable TV
channels.
6) Japan: Disney established a local subsidiary in Japan in 1959. In April 2004, it integrated all
local subsidiaries and affiliates and renamed itself The Walt Disney Company (Japan) Ltd.

6. 4
Today, WDCJ is operating five core segments - Media Networks, Parks Resorts, Studio
Entertainment, Consumer Products, and Interactive Media.
5. Strategy
1) Partnership
Disney’s Strategic Sourcing and Procurement Organization works with their business units and
suppliers across the world. They provide opportunities for suppliers to be a partner with Disney
and provide goods and services. This partnership helps Disney to create the beneficial
relationship with their supplier. Disney requests ten qualifications to be a partner which are
pricing, quality, on-time delivery, excellent communication, integrity, technical competence,
environmental protection, compliance with their standards, financial stability, and willingness to
share business risks with them.
2) Creative Strategy
Disney is known as a creative innovator in the entertainment industry, and there were specific
elements in the way they organized creative works that tended to guarantee outcomes. Walt
Disney, who is the founder of the Walt Disney Company, organized three rooms which had
different functions:
 Dreamers (“Want to”): People for whom all things are possible
 Realists (“How to”): People who sort things out
 Critics (“Chance to”): People who pick up on the bits that don’t fit
Ideas were first created in the dreamer’s room and passed to realists and critic’s room. After
that, it is returned to dreamer’s room again. This cycle always involved the three rooms.
Table1
Disney’s creative strategy
Dreamer Realist Critic
Dominant question What? How? Why?
Representational preference Vision Action Logic
Approach Toward Toward Away
Time frame Long term Short term Long/Short
Time orientation Future Present Past/Future
Reference Internal-Self External-Env. External-Others
Comparison Match Match Mismatch
3) Reaching Global Markets
Disney’s strategies for reaching global markets include foreign outsourcing, licensing, and
direct investment. Their focus for global strategies was to establish the foundations for long-term
growth in the emerging markets of Latin America, Russia, India and China.

7. 5
 Foreign Outsourcing: Due to the higher wage in the United States, Disney adopted the
strategy of foreign outsourcing to reduce the cost of production. The main factories are
located in Asian countries especially in China and they distribute to all stores over the
world.
 Licensing: In order to have their products available worldwide, they opened Disney
Stores outside of the United States and authorized licensees to resell their products.
 Direct Investment: They opened Disney Stores around the world, as well as amusement
parks and resorts. Today, they have direct investment stores in five different countries.
Moreover, they have amusement parks and resorts in United States, France, Tokyo, Hong
Kong and an upcoming one in Shanghai.
6. Finances
1) Selected finance data
Table2
Selected finance data of Disney (2012)
(In millions)
2012 2011 2010
Statement of income
Revenues $ 42,278 $ 40,893 $ 38,063
Net income 6,173 5,258 4,313
Net income attributable to Disney 5, 682 4,807 3,963
Per common share
Earnings per share attributable to Disney
Diluted $ 3.13 $ 2.52 $ 2.03
Basic 3.17 2.56 2.07
Dividends 0.60 0.40 0.35
Balance sheets
Total assets $ 74,898 $ 72,124 $ 69,206
Long-term obligations 17,876 17,717 16,234
Disney shareholders’ equity 39,759 37,385 37,519
Statement of cash flows
Cash provided (used) by:
Operating activities $ 7,966 $ 6,994 $ 6,578
Investing activities (4,759) (3,286) (4,523)
Financing activities (2,985) (3,233) (2,663)

8. 6
2) Stock Price and the number of share purchased
Table3
Stock price and the number of share purchased of Disney (2012)
Sales Price
High Low
2012
4th
Quarter $ 53.40 $ 46.85
3rd
Quarter 48.95 40.88
2nd
Quarter 44.50 37.94
1st
Quarter 37.80 28.19
2011
4th
Quarter $ 40.97 $ 29.05
3rd
Quarter 44.13 37.19
2nd
Quarter 44.34 37.62
1st
Quarter 38.00 33.08
- Total Number of Shares Purchased: 19,313,117
- Average Price Paid per Share: $ 50.95
3) Competitor and Industry Comparison
Table4
Disney’s competitor and industry comparison (2012)
DIS NWS TWX Industry
Market Capital 111.70B 72.55B 55.78B 264.35M
Employees 166,000 48,000 34,000 744.00
Quarterly Revue Growth 0.05 0.05 -0.00 0.13
Revenue 42.84B 34.33B 28.73B 277.83M
Gross Margin 0.21 0.38 0.45 0.38
EBITDA 10.90B 6.86B 7.28B 15.60M
Operating Margin 0.21 0.17 0.22 0.05
Net Income 5.60B 4.00B 3.00B N/A
EPS 3.10 1.67 3.09 0.01
P/E 19.96 18.71 19.31 20.12
PEG (5 year expected) 1.44 N/A 1.29 1.18
P/S 2.61 2.12 1.93 1.42
NWS = News Corp.
TWX = Time Warner Inc.
Industry = Entertainment - Diversified

9. 7
7. Board Organization, Organizational chart and corporate citizenship
1) Board organization
The Disney Company believes that corporate citizenship is central to the business and brings
long-term value to shareholders.
Fig. 1 Disney’s Board Organization
Each function including community engagement, strategic philanthropy, environment and
conversation, and international labor standards have dedicated to develop strategy, manage
compliance, and oversee stakeholder engagement. The Insight and Integration Team analyzes
emerging issues, trends, and policy for the company.
The Board of Directors monitors trends in governance practices to assure the representation of
shareholder interests. The Board has established committees–the Audit Committee, the
Compensation Committee and the Governance, and Nominating Committee–to assist in the
execution of the Board’s responsibilities.
2) Organizational chart
 Creative organizational chart
Disney’s organizational chart is popular for its creativity. It is based on the process of
story flow–from ideas to the final release of the film. We can follow the track of their
story making process by looking arrows from the top to the bottom.
In the chart, all divisions are classified as the production and the management, and all
positions in the chart are supporting the work flow. Walt Disney Studios put out this
organizational chart five years after its foundation to explain how the company works and
how creative stories are made by them.
CEO(Chief Executive Officer) – Robert A. Iger
CFO(Chief Financial Officer) – James A. Rasulo
SVP(Senior Vice Present), Corporate Citizenship – Leslie Goodman
Community
Engagement
Strategic
Philanthropy
Environment
and
Conservation
International
Labor
Standards
Insight & Integration

10. 8
Fig.2 Disney’s creative organizational chart
 Multidivisional Structure
Disney has the multidivisional structure, which is organized of groups of related
businesses with divisions that are responsible for the strategy of a coherent group of
businesses or market.
Fig. 3 Disney’s organizational chart
President
and CEO
Studio
Entertain
ment
Park and
Resorts
Consumer
Products
Media Internet Internatio
nal
Corporate
Responsibi
lity
Functional
areas e.g.
finances,
marketing
Functional
areas e.g.
finances,
marketing
Functional
areas e.g.
finances,
marketing
Functional
areas e.g.
finances,
marketing
Functional
areas e.g.
finances,
marketing
Functional
areas e.g.
finances,
marketing
Functional
areas e.g.
finances,
marketing

11. 9
3) Business and ethics standards
 Business standards and ethics training: Disney provides its own learning management
system known as Disney Development Connection to their employees and cast members.
They let all of their employees and cast members have knowledge and training to act
ethically and legally, in compliance with the Company’s Standards of Business Conduct.
 Hiring and Human Resources: They provide equal opportunity for all employees and
applicants for employment without regard to race, religion, color, sex, sexual orientation,
national origin, age, marital status, covered veteran status, mental or physical disability,
pregnancy, or any other basis prohibited by state or federal law. Moreover, they train
their employees and cast members to fulfill their business goals consistent with their
culture and values.
8. Marketing Strategy
The Walt Disney Company’s marketing strategy takes into consideration the following
characteristics: Sell more to existing customers, expand their market place, continuous
promotion, tracking business, and always improve or add to existing products. They always
modify, expand, and create new ways to bring their customer to magic making their experience
never be the same.
(1) Product Strategy
Disney products offer well known high quality by the worldwide known brand. They also
customize their products with specific characteristics of the company, which demarcates and
differentiates their products from others. They continually improve their products and service
offerings and constantly update and modernize their ride so as to please regular customer while
attracting new ones.
(2) Price Strategy
They don’t have low price strategy. However, it is considered to be fare taking into
consideration the quality compared to other goods and services.
(3) Place/Distribution Strategy
Disney has its products distributed all over the world, and keeps seeking an expansion of the
market. Moreover, they position their main attractions in places with a high flux of people, so
more people can be familiar with the brand.
(4) Promotion and advertising Strategy
Disney is famous for continuous advertisement and various kinds of promotions. Especially,
continuous advertisement helped making people keep the company at all times. Disney's
ownership of media networks such as "ABC," "Disney Channel," and "ESPN" were effective for

12. 10
television advertising, as well as radio commercials, print, and outdoor advertising. Moreover,
internet has been the main means of advertising recently. Disney is taking actions to digitalize their
contents and to offer the online interaction that develops customer loyalty, as children have more access
to the network with the new technology. They aim to reach a broader market at a lower cost.
9. Sustainability
1) Nature Conservation
Disney is actively involved in protecting habitats around the world. They provide the financial
support to animals and conservation projects through the Disney Worldwide Conservation Fund,
protect ecosystems with nonprofit organizations, and create opportunities for children and
families to discover experience and support nature.
Fig. 4 Disney Worldwide Conservation Fund Contributions
2) Environment
Disney is reducing its environmental impact through various projects. They have goals
throughout six environmental areas. They set long-term goals and targets for each area and report
them every year. They also have climate Solutions Fund to achieve the goal of “zero net direct
greenhouse gas emissions”. Since 2009, Disney has invested $15.5 million globally.
Table 5
Disney’s environmental sustainability activities
Section Long-Term Goals Targets
Climate
and energy
Achieve zero net direct greenhouse
gas emissions
Achieve 50% of long-term goal
through a combination of reductions,
efficiencies and offsets by 2012

13. 11
Waste Send zero waste to landfill Decrease solid waste to landfill to 50%
of 2008 baseline by 2013
Ecosystems Have a net positive impact on
ecosystems
Develop and integrated approach to
design, engineering, and habitat
protection for all new construction
projects by 2010
Water Minimize water use By the end of 2012, Water
Conservation Plans will be adopted to
identify areas for water conservation
improvement
Product
footprint
Minimize product footprint Develop a product footprint target
Education
and action
Inform, empower and activate
employees, business partners and
consumers to take positive action for
the environment
3) Community
Disney has community projects including corporate giving support, employee volunteerism, and
inspiring communities as community sustainability work. Moreover, they have MWBE
(Minority and Women Business Enterprises) which is an important part of its sourcing and
procurement activities which is actively seeking minority owned firms in the process. The
MWBE program has enhanced value received from the supply by identifying, developing, and
referring qualified minority owned businesses.
10. Reason why I want to apply for the Disney professional internship
I had grown up with many cartoons and animations when I was young. Disney stories and
characters were famous even when I was a little kid. I knew most of the characters but I don’t
think I was a big fan of that, because Japanese animations were more famous in Korea at that
time. The time when I started watching Disney movies is, surprisingly, just a year ago after I
came to America. I was really surprised that most of college students have watched almost all of
Disney movies and are still watching them. Many friends of mine here are huge fan of Disney,
and they even memorize lines and songs of movies because they’ve watched them so many times.
I thought animations are for just kids, but it was still really fun for me to watch many movies.
Many stories in Disney are loved by all people over the world and they are remade in many ways
like products and performances. I think beloved stories have that much power in the
entertainment market. I wanted to learn and know how they create such stories despite of cultural
differences, and their strategy formation and implementation. I want to work in a field of
international entertainment business such as exporting and importing movies and performances,
so I thought it would be really helpful for me to learn in the company which is the most creative
and which has the broadest entertainment business over the world.

14. 12
References
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2013.
 Csikszentmihalyi, M Creativity: flow and the psychology of discovery and invention.
Harper Collins, 1996. Print.
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journal of business and design 07, Aug 2010. Web. Retrieved 5 May. 2013.
<http://www.atissuejournal.com/2009/08/07/walt-disney’s-creative-organization-chart>
 Dilts, R. B. Strategies of genius: volume 1 Aristotle, Sherlock Holmes, Walt Disney,
Wolfgang Amadeus Mozart. Meta Publications, 1994. Print.
 Dilts, R. B. Tools for dreamers: strategies for creativity and the structure of innovation.
Meta Publications, 1991. Print.
 Drew, Abbie. Starting a Business. 5 Secrets to Walt Disney World's Success. Web.
Retrieved 30 Apr 2013. <http://demc.com/artman/publish/article_130.shtml>
 "Fiscal Year 2012 Annual Financial Report And Shareholder Letter.". The Walt Disney
Company. Web. Retrieved 20 Apr 2013.
 Nugget, Tom. (n.d.). The University of Chicago. Marketing Disney's mighty mouse. Web.
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 The Walt Disney Company website. Web. Retrieved 27 Apr 2013.
<http://thewaltdisneycompany.com/>
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Web. Retrieved 5 May 2013.
<http://www.ideamarketers.com/?articleid=1211892&CFID=39870490&CFTOKEN=32
609700>

15. 13
 “Walt Disney International.” Disney: Corporate. Web. Retrieved 5 May 2013.
<http://corporate.disney.go.com/investors/annual_reports/2009/keyBusinesses/waltDisne
yInternational.html>
 Yahoo Finance. Web. Retrieved 25 Apr 2013.
<http://finance.yahoo.com/q/co?s=DIS+Competitors>