16387 walt disney
Post on 28-Oct-2014
Embed Size (px)
DESCRIPTIONwalt disney case study
A Strategic Business Analysis
Table of ContentsIntroduction Company Background Purpose of Strategic Management Company Mission Statement Objectives Strategies Internal Audit Strengths Weaknesses Internal Factor Evaluation (IFE) Matrix External Audit Opportunities Threats External Factor Evaluation (EFE) Matrix Strategic AnalysisStrenghts-Weaknesses-Oppurtunities-Threats (SWOT) Matrix
3 3 3 4 4 4 4 4 6 7 7 7 8 10 1010
Strategic Position and Action Evaluation (SPACE) Matrix Grand Strategy Matrix Internal-External (I-E) Matrix Quantitative Strategic Planning Matrix (QSPM) Recommendations Mission Statement Short-term Goals Long-term Goals Implementation Sources
12 15 15 16 19 19 19 20 20 23
IntroductionCompany BackgroundWhen brothers Walt and Roy Disney moved to Los Angeles in 1923, they went there to sell their cartoons and animated shorts. One could only dream that their name would one day be synonymous with entertainment worldwide. But then again, that is how The Walt Disney Company has made their fortunes over the last several decades: making dreams come true. The Disney brothers began creating countless cartoons (some successful and others not so much), and in 1928, introduced Mickey Mouse to the world in the animated short, Steamboat Williewidely described as the first animated film to be synchronized with post-produced music. The Mickey Mouse character gained enormous popularity, and Walt and Roy enjoyed incredible success thereafter with feature films both related and unrelated to the Mickey Mouse character. The Walt Disney Company produced several of its animated classics throughout the 1940s such as Pinocchio, Fantasia, Dumbo, and Bambi; and in 1955, Disneyland opened its doors as the Disney brothers first amusement park. In 1966, Walt Disney died leaving Roy as the new President, CEO, and Chairman of the Board of The Walt Disney Company. Walt never had the opportunity to witness his namesake creation (Roy rebranded Disney World as Walt Disney World in honor of his late brother) as Walt Disney World opened five years later on October 1, 1971. Since that first day of October in 71, The Walt Disney Company has expanded exponentially. The Company owns media networks such as ABC, ESPN, the Disney Channels, SOAPnet, and A & E (television networks); ABC Radio and The Radio Disney Network (online and satellite radio station); and Hyperion Books (literary publishing company). The Company has spread its parks across the world to Paris, Hong Kong, and Tokyo and has taken to sea with four Disney ocean liners. The Walt Disney Company continues to grow with a major expansion to Walt Disney World currently underway and several feature films currently in production in the Disney-Pixar Animation Studio (the result of the Companys 2006 acquisition of Pixar Animation Studios.) Though profits have been stagnant for the last two fiscal years, the companys revenue continues to increase.
Purpose of Strategic ManagementStrategic management is a management function that consists of three distinct actions. They are (1) formulating, (2) implement, and (3) evaluate cross-functional decisions that enable an organization to achieve its objectives. Strategic management is vital for companies wishing to prosper in such a dynamic world. With globalization at an all time high, the practice of strategic management among a companys top executives (at the very least) is an absolute necessity. Considering that communication is a key to successful strategic management and that the empowering of employees is a great benefit of strategic management, it is recommended that strategic management is implemented at a company-wide level. Simply put: successful, polished, professional companies perform strategic planning. A large percentage of the companies that fail in America each year do not perform strategic planning.
Company Mission StatementA mission statement defines in a paragraphany entity's reason for existence. It embodies its philosophies, goals, ambitions and [morals]. Any entity that attempts to operate without a mission statement runs the risk of wandering through the world without having the ability to verify that it is on its intended course. www.missionstatements.com. The mission statement can also be defined as a companys statement of purpose. The current mission statement for the Walt Disney Company is: To be the worlds leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.
ObjectivesThe objectives of a company are the same as a companys goals. When setting goals, an organization is determining what results they expect to achieve in both the short-term and the long-term. What is the goal of this company? Of this division? What do we want to have accomplished within the next year? Within the next five years? Generically, the answers to these questions would be a compiled list of objectives of which a company should strive to obtain. Given the current economic climate, setting objectives (or goal-setting) is difficult. As with every company, The Walt Disney Company should set goals for the company as a whole and along functional lines that pressure the company to greatness yet are obtainable. Measurability should be constantly remembered in setting these objectives, and precise and unambiguous language should be used to eliminate all hints of confusion. The Walt Disney Company does not publish its corporate objectives.
StrategiesStrategies are a companys methods to reaching its established objectives. Just because a company may have a final destination in mind (an objective or goal) doesnt mean that every path to that destination is a good one. After setting strategically sound objectives, it is imperative that strategically sound strategies are generated to provide the means of transportation for said objectives. The courses of action on which an organization decides to embark affects all divisions and aspects of said organization. Strategies should be formulated and implemented only once all internal and external factors are assessed. Only then can a strategy be deemed safe for a company for implementation.
Internal AuditStrengthsAll companies have actions that they perform more than capably. All companies (at least all those that have been around for a period of time) have past successes on which to build. A companys strengths
are those such factors: the positive components of a companys collective portfolio that have made the company better in one way or another. The strengths for The Walt Disney Company are detailed below. A Vast and Diverse Portfolio The Disney brothers began drawing cartoons long before moving to Hollywood. The Missouri natives spent the majority of their lives imagining characters to which to introduce to the world. Along with the Disneys impressive collection of new adaptations of old classics such as Robin Hood, Sleeping Beauty, Peter Pan, and Alice In Wonderland; the Company has created countless characters to star in their feature films. Disneys original characters include Mickey Mouse, Minnie Mouse, Donald Duck, Pluto, Chip & Dale, Simba, Buzz Lightyear, Belle, and Aladdin (to name only a very limited few.) The Walt Disney Companys huge portfolio is the single best strength of the entire organization. Diversification Disney has moved well beyond its cartoon-oriented roots. Though the company is still involved the production of original feature films and other related media (and though the media network division of the Company is still the organizations leading generator of revenue) the company has long since stopped being your typical animation studio or film production company. In 1951, with the opening of Disneys first theme park (Disneyland, in Anaheim, California) the Company made a dramatic shift from a media-oriented company to the broader category of an entertainment-oriented company. In the midst of the rollercoasters and hot dog stands in sunny California, the Company found also a unique market place for consumer products and a chance to entwine and implement the Organizations already impressive portfolio of film characters into the parks attractions. The Walt Disney Company also began launching and purchasing media outlets for which their productions and promotions to air. Disney owns now several media broadcasting networks television as well as several radio stations for terrestrial, satellite, and online hosts. Incredible Customer Service The Walt Disney Company prides itself in many things and rightfully so. If you ask the average person what Disney is known for Mickey Mouse or the castle might quickly be their reply. Ask any business professional, however, and one thing is certain to be heard time and time again. Customer service. Disney demands nothing less than stellar customer service from their employees. If you have never experienced the Disney Difference, I urge you to travel to one of their many theme parks or retail stores worldwide. Their level of customer service takes those who know to look for it back. Former customer service experts and teachers for Disney have written very successful books on the topic and their experiences from the holy grail of customer satisfaction. Acquisition of Pixar Animation Studios In 2006, The Walt Disney Company made an acquisition of Pixar Animation Studios. Until 2006, Pixar had collaborated with Disney on multiple occasions to produce such award winning films such as Toy Story, Finding Nemo, and Monsters, Inc. Because of the partnership involved in these movies, however, Disney had limitations on the rights to use and reuse the characters contained within the films. The Com