This document provides an overview of The Walt Disney Company. It was established in 1923 by Walt Disney and is currently headquartered in California. Disney has a highly diversified portfolio including media networks, parks and resorts, studio entertainment, consumer products, and interactive. The document discusses Disney's organizational structure, mission and vision statements, divisions, strategies, SWOT analysis, and competitive profile. It also provides financial information showing the impact of the economic downturn in 2009, with recommendations for Disney to improve its performance in the next three years through strategic investments and addressing challenges in the entertainment industry.

2. Presented by:
Harram Aneeqa

5. Some historical clues…
Founded by Walt Disney
Established in 1923
Headquartered in California, USA
Currently world’s largest conglomerate in
terms of revenue.

6. Walt Disney: In 1920s

7. Walt Disney: Today

8. Corporate CEO
Chairman, Walt Disney International
Senior Executive Vice President, General
Counsel and Secretary, The Walt Disney
Company
Senior Vice President, Global Security, The Walt
Disney Company
Executive Vice President and Chief
Communications Officer, The Walt Disney
Company
Executive Vice President and Chief
Human Resources Officer, The Walt
Disney Company
BusinessUnit
CEO
Executive Chairman, ESPN,
Inc.
President, Disney Consumer
Products
Chairman, The Walt Disney
Studios
President, Disney
Interactive
Co-Chairman, Disney Media
Networks Group and
President, ESPN
Walt Disney Organizational Structure

9. Walt Disney Mission Statement 2013
“The Walt Disney Company's objective is to be one of the
world's leading producers and providers of entertainment and
information, using its portfolio of brands to differentiate its
content, services and consumer products. The company's
primary financial goals are to maximize earnings and cash flow,
and to allocate capital toward growth initiatives that will drive
long-term shareholder value.”

10. Walt Disney
Mission Statement’s Evaluation
 Product oriented
statement
 Focus on what
products to sell
and what services
to offer rather
than on how to
satisfy customer
needs
Lack of 5 essential
components:
1. Customers
2. Technology
3. Philosophy
4. Concern for
public image
5. Employees

11. Walt Disney Recommended Mission
Statement
“As the world’s leader in entertainment and
information we seek to create an engaged and
collaborative culture for our employees in order to
turn our customers‘ moments into a unique
experience, by providing special services and
innovative products through movies, parks and the
e-world. By taking advantage of our diversified
portfolio to differentiate our content in all
segments, we aim to develop the most profitable
entertainment company worldwide, which would
yield increasing profits to our shareholders.”

12. Walt Disney Vision Statement
“To make people happy ”

13. Walt Disney
Proposed Vision Statement
“To make entertainment the wheel of life”

14. Walt Disney Divisions
Media Networks
• ESPN
• Disney/ABC Television
Group
• ABC Entertainment Group
• ABC News
• ABC Owned Television
Stations Group
• ABC Family
Park and Resorts
• Disney Land Resorts
• Walt Disney World Resort
• Tokyo Disney Resort
• Disneyland Paris
• Hong Kong Disneyland
• Disney Cruise Line
• Disney Vacation Club
• Adventures by Disney

15. Cont…..
The Walt-DisneyStudios
• Walt-Disney Studios
Motion Pictures
• Marvel Studios
• Touchstone Pictures
• Disneynature
• Walt Disney Animation
Studios
• Pixar Animation Studios
• Disney Music Groups
• Disney Theatrical Group
DisneyConsumerProducts
• Disney Licensing
• Disney Publishing
Worldwide
• Disney Store

16. Market penetration
• Targeted market segmentation
through acquisitions
New products
• Related Diversification
• Diversification in branding
• Vertical & Horizontal
integration
Market development
• Foreign Outsourcing
• Direct Investment
• Licensing
Conglomerate diversification
-
Existing
New
Existing New
PRODUCTS
MARKETS
Walt Disney Corporate Strategies

17. SWOT
Analysis

18. Strengths Weaknesses
Walt Disney SWOT
Combined Strategies
1. Brand Reputation
2. Highly Diversified Portfolio
3. Strategic & Tactical Acquisitions
4. Global Expansion & Alliances
5. Top Management
6. Loyal Customers
7. Strong Financial Position
1. High Cost of Operations
2. Concetration of Revenues In North
America
3. Approaches Antitrust Law Limits
Opportunities SO - Strategies WO - Strategies
1. Benefits From IT Advances &
Mobile Gaming
2. Further expansion in new emerging
economies (India, Russia)
3. Release of New Successful Stories
& Characters
2-1: Develop mobile game applications with
Disney characters
1-2: Collaborating with WWF so as to promote
environmental issues
6-3: Build a multinational management team
1-1: Digitalization of our operations in order to low
costs & utilize technology
2-3: Target India as possible expansion through
consumer products
Threats ST - Strategies WT - Strategies
1. Financial Récession
2. Increasing Piracy
3. Strong Competition
4. Continous Need For Technological
Update
5. Change in Consumers Preferences &
Tastes
6. Negative Publicity Due to
Unexpected Event
7-1: Offer discounts to all members of
Disney fun club
3,4-3: Expansion in Brazil market
through alliances and synergies
8-4: Invest on R&D for one high tech
department
6-5: Monthly consumer research via
online polls
1-1: Re-edit and release in cinemas old
classic Disney films
2-3,4: Take advantage of operations that
take place in N. America by investing in
Technology and R&D for that area

19. Competitive Profile Matrix
WALT DISNEY WARNER BROS UNIVERSAL
CRITICAL SUCCESS
FACTORS
WEIGHT
RATING
1 - 4
SCORE
RATING
1 - 4
SCORE
RATING
1 - 4
SCORE
Advertising .12 4 .48 4 .48 3 .36
Market Share .10 3 .30 4 .40 2 .20
Financial Position .10 4 .40 3 .30 2 .20
Management .08 3 .24 3 .24 3 .24
Global Expansion .10 4 .40 4 .40 4 .40
Technology .15 3 .45 4 .60 3 .45
Customer’s Loyalty .10 3 .30 3 .30 2 .20
Brand Awareness .15 4 .60 4 .60 3 .45
Creativity .10 4 .40 4 .40 4 .40
TOTAL 1.00 3.57 3.72 2.90

20. “I do not like to repeat successes, I like to
go on to other things.”
Walt Disney

21. Current Scenario of case study

22. Disney - contribution of segments to
revenues in current scenario
Media Networks 45%
Parks & Resorts 31%
Studio Entertainment 13%
Consumer Products 8%
Interactive 3%

23. Financial Trends During 2007-2009
Net Profit
Margin (%) Debt/ Equity
Return on
Equity (%)
Return on
Assets (%) Interest Coverage
01-Oct-09 9.1 0.38 9.8 5.2 9.6
01-Sep-08 11.7 0.46 13.7 7.1 10.4
01-Sep-07 13.2 0.5 15.2 7.7 10.4
01-Sep-06 9.8 0.43 10.4 5.5 7.5
01-Oct-05 7.8 0.49 9.4 4.6 6.3

24. Balance Sheet

26. Now What happened in 2009!!!

27. Selected Financial Ratios
2009 2008
Liquidity Ratios
Current Ratio 1.33 1.01
Quick Ratio 1.19 0.91
Leverage Ratios
Debt-to-Total Assets Ratio 1 1
Debt-to-equity Ratio 1.12 1.93
Activity Ratios
Inventory Turns 28.44 33.67
Fixed Assets Turnover 1.11 1.2
Total Assets Turnover 0.57 0.61
Profitability Ratios
Gross Profit margins 1.84 1.8
Operating Profit Margin 0.16 0.2
Net Profit Margin 0.09 0.12
Return on Total Assets 0.05 0.07
Return on Stockholders equity 0.06 0.14
Earning per share 1.78 2.34
Price-earnings Ratio 15.31 12.61
Growth Rations (yearly)
Sales -4.48% 7.66%
Net Income -25.30% -5.55%

28. • 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.
Assumptions
Total Investment of 19.01 billion

29. • High Employment
• Recession
• Slow economic growth
• Reduced customer spending
All contributed to a 7 percent drop in
revenue and a 46 percent drop in
Walt Disney’s profitability for the first
quarter of 2009.

30. • 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.
• Overcome 2 entertainment industry’s challenges:
- File sharing
- Copyright infringement
• Adapt and change their management system in order to
integrate into the digital age
• Follow its philosophy to make people happy
• Recognize new technology trends and develop plans to
minimize the risks associated with technology
Recommendations
In the next three years Walt Disney should..

31. Conclusion
• Strategic Planning Needed
• Implement strategies that help lower costs,
and maintain competitive advantage
• Balanced approach to innovation and cost-
savings

32. Any Questions????