The document discusses The Walt Disney Company's strategies for hedging currency exchange rate risk from royalties earned in Japanese yen. It considers options like currency forwards, futures, loans, and swaps. Disney ultimately chose a Eurocurrency bond issuance with an ECU/Yen currency swap, which provided the lowest interest rate of 7.01% and allowed Disney to take advantage of attractive foreign borrowing rates through additional swaps.
- Analysis based on research around the entertainment industry, where the strategic challenges of Walt Disney Company are addressed.
- Development of strategic plan for Walt Disney
The Springfield Nor'easters:Maximizing revenues in minor league case analysis...Sameer Mathur
This presentation gives a detailed analysis on the Springfield Nor'easters case. Gives a detailed solution on ticket pricing and concession for the upcoming home matches in Springfield.
Bethesda Mining is a coal mining company with mining fields across different locations including Ohio, Pennsylvania, West Virginia and Kentucky. The company sells its products either by contract or on spot market. Recently, the company was approached by Mid-Ohio Electric Company for the supply of five hundred tons of coal for a period of four years on a contract basis. Currently, the company does not have enough coals in its mines to take the contract. However, the company has another option that they need to consider and maybe take the contract.
The Rosewood Hotel Harvard Business CaseRACHIT TANDON
The presentation talks about:-
1) The Rosewood Hotels and Resorts
2) Its Branding model
3) Corporating branding analysis
4) How to establish Rosewood Hotels as a corporate brand.
Initially, Rosewood hotels followed and individualistic brand Model where all the 12 hotels under the Rosewood umbrella had a different identity. The customers were not aware of Rosewood as a Brand. Thus the management thought to adopt the corporate branding model and market Rosewood as a brand and increase the brand awareness. The goals behind management's decision were to increase the multi-property guest's usage. To create a brand equity and increase the brand awareness without compromising the company revenue and profits.
This is a simple and clear overview of what the credit crunch is, what caused it and the current status of the financial system with special focus on hte Irish situation.
I had to write an in-depth evaluation of The Walt Disney Company. I learned a lot about researching companies and finding the information that is available to us via the web. I put together a presentation and had to present it in front of my Marketing class. It was a very fascinating to find out the behind the scenes happenings and financial holdings of the company. I learned ways to find a companies Target market and segment it down.
This allows for a sufficient tax shield to maximize the profitability of the buyout. By utilizing such leverage, we incur a great deal from the tax shield. Further, we would pay off the debt using our excess free cash flow to pay off the debt. By the end of the 5th year, we would sell the firm andgain from any excess value found within the firm.
Presentation on the Strategies of Disney over the years.
How Disney started to animate our world and how the iconic brand stuck with their core competency and leveraged their assets which are timeless.
- Analysis based on research around the entertainment industry, where the strategic challenges of Walt Disney Company are addressed.
- Development of strategic plan for Walt Disney
The Springfield Nor'easters:Maximizing revenues in minor league case analysis...Sameer Mathur
This presentation gives a detailed analysis on the Springfield Nor'easters case. Gives a detailed solution on ticket pricing and concession for the upcoming home matches in Springfield.
Bethesda Mining is a coal mining company with mining fields across different locations including Ohio, Pennsylvania, West Virginia and Kentucky. The company sells its products either by contract or on spot market. Recently, the company was approached by Mid-Ohio Electric Company for the supply of five hundred tons of coal for a period of four years on a contract basis. Currently, the company does not have enough coals in its mines to take the contract. However, the company has another option that they need to consider and maybe take the contract.
The Rosewood Hotel Harvard Business CaseRACHIT TANDON
The presentation talks about:-
1) The Rosewood Hotels and Resorts
2) Its Branding model
3) Corporating branding analysis
4) How to establish Rosewood Hotels as a corporate brand.
Initially, Rosewood hotels followed and individualistic brand Model where all the 12 hotels under the Rosewood umbrella had a different identity. The customers were not aware of Rosewood as a Brand. Thus the management thought to adopt the corporate branding model and market Rosewood as a brand and increase the brand awareness. The goals behind management's decision were to increase the multi-property guest's usage. To create a brand equity and increase the brand awareness without compromising the company revenue and profits.
This is a simple and clear overview of what the credit crunch is, what caused it and the current status of the financial system with special focus on hte Irish situation.
I had to write an in-depth evaluation of The Walt Disney Company. I learned a lot about researching companies and finding the information that is available to us via the web. I put together a presentation and had to present it in front of my Marketing class. It was a very fascinating to find out the behind the scenes happenings and financial holdings of the company. I learned ways to find a companies Target market and segment it down.
This allows for a sufficient tax shield to maximize the profitability of the buyout. By utilizing such leverage, we incur a great deal from the tax shield. Further, we would pay off the debt using our excess free cash flow to pay off the debt. By the end of the 5th year, we would sell the firm andgain from any excess value found within the firm.
Presentation on the Strategies of Disney over the years.
How Disney started to animate our world and how the iconic brand stuck with their core competency and leveraged their assets which are timeless.
InKnowVision October 2012 HNW Technical Webinar w/ Guest Presenter Bob ScarlataInKnowVision
As an investment banker for some 26 years who has sold dozens of middle market privately held companies to private equity groups throughout the U.S. and Canada, Bob Scarlata will describe for us how private equity groups make their money and how private business owners can benefit and profit from their professional management strategies.
2. Team
10
Steven Lambe Fred Patet Petr Khalfen
Yunyun Xu Ashmita Srivastava
3. Established in 1923 by Walt & Roy Disney
Largest Media Conglomerate Today
Component of DJIA & S&P500
4. Movies
Music
Disneyland Theme Parks
Resorts
Recreational facilities
Restaurants
Hotels
Games
Consumer Products; etc.
5. $1,800,000 Revenue
3000000
$1,600,000
2500000
Costs and Expense
$1,400,000
$1,200,000 2000000
Income(Loss)Before
$1,000,000 1983
Corporate Expenses 1500000
and Unusual 1984
$800,000
Charges +244%
Corporate Expenses 1000000
$600,000
500000
$400,000
Net Income
$200,000 0
Total Asset Borrowing
$0
1982 1983 1984
Financial development Total Assets & Borrowings
6. Net Income, Total
Assets , Consolidated
Revenues Borrowings
& Corporate expenses
Operating profit before
corporate expenses for
entertainment &
Recreation segment
7. Currency
Exchange
Royalties in Rate Risk
Yen
Disneyland,
Japan
10. Hedging method Advantages Disadvantages
Options •Flexibility •Short Term Hedge
•Low transaction cost •Up-Front premium
•Leverage
Futures •Standardized •Short Term Hedge
contracts •Difficult to customize
•High liquidity •Initial Margin
•Low Transaction cost
Forwards •Long Term Hedge •Limits upside potential
•Negotiable size •High Bid Ask spread
•No Initial Margin •Counterparty Risk
Term Loan •Spot exchange rate •Balloon payment at the end
•Long Term Hedge •High Debt
•High Leverage •Expensive
Swap •Long Term Hedging •No upside potential
•Flexibility •Low Market Liquidity
•Off Balance Sheet •Counterparty Risk
Transaction
11. Hedging method Recommendation Reason
Options Not Recommended Doesn’t provide long term
hedge
Futures Not Recommended Doesn’t provide long term
hedge
Forwards Not Recommended Bank requires
Term Loan Recommended Disney can borrow ¥ 15 billion
Swap Recommended Disney can swap ECU
14. 1. ECU 80 million ten-year Eurobonds at
100.25% of par, 9.125% coupon, 2%
underwriting fees.
2. ECU/¥ swap intermediated by Industrial
Bank of Japan (IBJ)
3. French state-owned utility interested in
swapping yen debt for ECU debt
15. ECU 80
Million
loan
Price
Fees 2%
100.25%
ECU/Yen
SWAP with
French Utility
Coupon Expenses
9.125% $75,000
USD/ECU
0.7420
17. Yen Loan
- IRR:
7.753 %
ECU/Yen
Swap -
IRR:
7.010%
Best Choice - ECU/Yen Swap
18. The Walt Disney • Cost reduction of
0.743%
Company
Industrial Bank of • In total it makes ECU
Japan 400,000
• Cost reduction of 0.28%
French Utility
• Single payment of 1.6
Goldman Sachs Million ECU (2% Fees)
19. The Walt Disney Co. Accepted Goldman Sachs
Proposal with ECU/Yen swap.
It was followed by a second ECU note offering
in December 1985.
Disney began engaging in more foreign
currency swaps in order to take advantage of
attractive borrowing rates.
Editor's Notes
Yen depreication to protect against the currency fluctuationReduced the currency risk to got the 10-20% expected growth
1. Cost reduction of 0.743% from Yen Loan with IRR = 7.753% to ECU/YEN Swap with IRR = 7.010%2.IBJ makes a total of ECU 400,0003. Cost reduction of 0.28%from ECU Loan with IRR = 9.47% to ECU/YEN Swap with IRR = 9.19%. 4. Goldman gets a Single payment of 1.6 Million ECU (2% Fees)