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With The Name of ALLAH, With The Name of ALLAH, Who is the LORD of all Who is the LORD of all

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Page 1: Final Presentation Disney

With The Name of ALLAH, Who With The Name of ALLAH, Who is the LORD of allis the LORD of all

Page 2: Final Presentation Disney

Presented By : Foozia Akmal # 04 Shafaq Ajmal # 34 Misbah Saeed # 20 Sadia Majeed # 32 Hira Rehman # 11

Page 3: Final Presentation Disney

Company Overview

Page 4: Final Presentation Disney

Opportunities

• Global Localization: Think global, Act Local

• Characters of national or regional appeal

• Cheaper alternatives to soft toys

• Disney School of Management/Training Institute

• Move into different segments• Proper inventory management• Market development in

untapped countries.• Reduction in operating costs.

• Disney music channel• Benchmarking to improve

management practices.• Online Websites• Develop more attractions for

theme park

Page 5: Final Presentation Disney

Threats

• Competitors: National, Regional & Global• World wide inflation• Unprofitable or hasty acquisition • Brand Consistency • Product Differentiation • Lawsuits • Terrorism • Natural Disasters • Change in the younger generation's preferences • Regulations

Page 6: Final Presentation Disney

EFE Matrix

Page 7: Final Presentation Disney

Key external Factors Weights(0 to 1) Rating(1 to 4) Weighted Score

Opportunities

Global Localization: Think global, Act Local 0.09 4 0.36

Characters of national or regional appeal 0.07 4 0.28

Cheaper alternatives to soft toys 0.02 2 0.04

Disney School of Management/Training Institute 0.03 3 0.09

Move into different segments 0.04 3 0.12

Proper inventory management 0.03 2 0.06

Market development in untapped countries. 0.08 4 0.32

Reduction in operating costs. 0.03 3 0.09

Disney musical channels. 0.07 4 0.28

Benchmarking to improve management practices. 0.03 3 0.09

Develop more attractions for theme parks 0.04 3 0.12

Online Websites 0.06 4 0.24

Threats

Competitors: National, regional and global 0.09 4 0.36

World wide inflation 0.04 3 0.12

Unprofitable or hasty acquisition 0.02 3 0.06

Brand consistency 0.02 2 0.04

Product Differentiation 0.04 3 0.12

Lawsuits 0.03 3 0.09

Terrorism 0.06 4 0.24

Natural disasters 0.04 2 0.08

Change in the younger generation's preferences 0.03 3 0.09

Regulations 0.04 3 0.12

Total 1.0 3.41

Page 8: Final Presentation Disney

• RATIOS CALCULATION

Page 9: Final Presentation Disney

Name 2006 2007 2008(projected)

CURENT RATIO 0.93 0.99 1.47

Quick ratio 0.7 0.76 1.23

Cash ratio 0.23 0.32 0.44

Working Capital (648) (77000) 5435

Liquidity Ratios

Page 10: Final Presentation Disney

Leverage Ratios

Name 2006 2007 2008(projected)

Debt-to-equity ratio 9.99% 13.20% 12.6 %

Interest Coverage 10.6% 15.24% 19.13%

Return on assets 5.62% 7.69% 10.17%

Net Fixed Asset

Turnover 1.96 2.04 3.02

Page 11: Final Presentation Disney

Activity Ratios

Name 2006 2007 2008(projected)

Receivable

Turnover 7.16 7.06 6.67

Payables Turnover 5.7 5.97 8.87

Asset Turnover 0.56 0.58 0.80

Inventory Turnover 48.62 55.39 66

Page 12: Final Presentation Disney

Profitability RatiosName 2006 2007 2008(projected)

Profit Margin 9.99% 13.20% 12.6 %

Return on equity 10.6% 15.24% 19.13%

Return on assets 5.62% 7.69% 10.17%

Operating Profit

Margin 15.86% 19.10% 19.10%

EPS 1.68 2.34

Net Fixed Asset

Turnover 1.96 2.04 3.02

Page 13: Final Presentation Disney

Strengths

• Global Standardization • Creative Process • Popular Brand Name • Diversification • It is the largest media and

entertainment company in the world..

• Disney Company owns 11 theme parks and several channels.

• Innovative ideas

• Increasing trends in overall revenues and profits.

• Popular characters• High brand awareness among

the people.• Differentiation• Powerful strategy• Disney employees 150,000

people.

Page 14: Final Presentation Disney

Weaknesses

• High sunk cost • Excessive Research &

Development • High Investment • Cultural Imperialism • Media Network Competition• High operating cost• Frequent change in top

management• Criticism from Religious

welfare group• Obsolete Facilities (out

dated/old) in radio

• Criticism by animal welfare group

• Limited range of target audience mainly Children

• Continuous innovative ideas are required to retain the attention of customers.

• High Risk Factor

Page 15: Final Presentation Disney

Key Internal Factors Weights(0 to 1) Rating(1 to 4) Weighted Score

Strengths

Global Standardization 0.07 4 0.28

Creative Process 0.04 4 0.16

Popular Brand Name 0.06 4 0.24

Diversification 0.04 3 0.12

It is the largest media and entertainment company in the world. 0.06 4 0.24

Disney Company owns 11 theme parks and several channels. 0.05 4 0.20

Powerful strategy 0.04 3 0.12

Strong financial condition 0.05 4 0.20

Increasing trends in overall revenues and profits. 0.05 4 0.20

Popular characters 0.04 3 0.12

Disney employees 150,000 people. 0.05 4 0.20

Differentiation 0.06 4 0.24

Weaknesses

High sunk cost 0.07 4 0.28

Excessive Research & Development 0.04 3 0.12

Cultural Imperialism 0.04 3 0.12

Frequent change in top management 0.02 2 0.04

Criticism from Religious welfare group 0.04 3 0.12

Limited range of target audience mainly Children 0.03 3 0.09

Obsolete Facilities (out dated/old) in radio 0.03 2 0.06

Criticism by animal welfare group 0.03 3 0.09

High operating cost 0.05 3 0.15

High risk factor 0.04 4 0.16Total 1.0 3.55

Page 16: Final Presentation Disney

Strengths (S)1. Global standardization2. Creative process 3. popular brand name 4. Diversification5. Largest media entertainment

company6. 11theme parks and several channels7. Innovative ideas 8. Increase in revenues 9. High brand awareness10. Differentiation

Strengths (S)1. Global standardization2. Creative process 3. popular brand name 4. Diversification5. Largest media entertainment

company6. 11theme parks and several channels7. Innovative ideas 8. Increase in revenues 9. High brand awareness10. Differentiation

Weaknesses1. High sunk cost2. Excessive R&D 3. high investment4. Cultural imperialism5. Media network competition6. High operating cost7. Frequent change in operating

management8. Obsolete facilities in radio9. Limited range of targeted customers

mainly children

Weaknesses1. High sunk cost2. Excessive R&D 3. high investment4. Cultural imperialism5. Media network competition6. High operating cost7. Frequent change in operating

management8. Obsolete facilities in radio9. Limited range of targeted customers

mainly children

SO Strategies(S4-O2) As they have diversified product line, from this strength they can capture economic growth in different segments by

following any or all Intensive strategies

SO Strategies(S4-O2) As they have diversified product line, from this strength they can capture economic growth in different segments by

following any or all Intensive strategies

WO StrategiesWO Strategies

Threats (T)

.

Threats (T)

.

ST Strategies

(S2-T8)Due to creative production process, company can maintain its edge on substitutes.(S6-T1)through diversification strategies they can increase and improve their products and services

and can compete the competitors

ST Strategies

(S2-T8)Due to creative production process, company can maintain its edge on substitutes.(S6-T1)through diversification strategies they can increase and improve their products and services

and can compete the competitors

WT Strategies

(W6-T2) as the prices are high due to inflation, company should adopt the backward integration

strategy to reduce operating cost.

WT Strategies

(W6-T2) as the prices are high due to inflation, company should adopt the backward integration

strategy to reduce operating cost.

Opportunities(o)1. Move into different segments2. Market development in untapped

countries.3. Reduction in operating costs.4. Disney musical channels.5. Benchmarking to improve

management practices.6. Develop more attractions for theme

parks7. Online Websites8. Global Localization: Think global, Act

Local

1. Competitors: National, regional and global

2. World wide inflation3. Brand consistency4. Product Differentiation5. Lawsuits6. Terrorism7. Natural disasters8. Change in the younger generation's

preferences

.

Opportunities(o)1. Move into different segments2. Market development in untapped

countries.3. Reduction in operating costs.4. Disney musical channels.5. Benchmarking to improve

management practices.6. Develop more attractions for theme

parks7. Online Websites8. Global Localization: Think global, Act

Local

1. Competitors: National, regional and global

2. World wide inflation3. Brand consistency4. Product Differentiation5. Lawsuits6. Terrorism7. Natural disasters8. Change in the younger generation's

preferences

.

S5-O7) They are doing differentiation; from this strength they can develop more attractions in theme parks by using Differentiation strategy.(S5,S8-O8) retain more and more customer through strong marketing

(W1-O7) through differentiation they can attract different customers and overcome the cost.(W5-O3) through market development in those countries which have been remained un served.(W8-O7)they can abort the obsolete line

of radio by focusing on websites lines)

Page 17: Final Presentation Disney

CPM

Page 18: Final Presentation Disney

DIS Time Warner News corporation

Critical success factors

Weights(0- 1) ranking(0-4)

weighted score

ranking(0-4) weighted score

ranking(0-4) weighted score

Advertising 0.1 4 0.4 3 0.3 3 0.3Financial position 0.1 4 0.4 3 0.3 3 0.3Consumer loyalty 0.1 3 0.3 3 0.3 4 0.4Televisions network 0.2 4 0.8 2 0.4 2 0.4

Park and resorts 0.05 3 0.15 - - - -Studio entertainment 0.05 2 0.10 3 0.15 - -

Consumer products 0.1 4 0.4 - - - -

Brand awareness 0.1 3 0.3 3 0.3 3 0.3Product diversity 0.1 4 0.4 3 0.3 2 0.2International expansion 0.1 4 0.4 4 0.4 4 0.4

Total 1.00 3.65 2.45 2.3

Page 19: Final Presentation Disney

Walt Disney’s Strategies in 2008-09(Actual)

Page 20: Final Presentation Disney

• Creating franchising.• Developing Attractive pricing and marketing strategies.• Creating differentiation to compete the rivals.• Acquiring new technologies.• Plan for diversification in Disney's Resorts, Disney

vacation club and two cruises ships, that will be setting sail in 2010 to 2011.

• Maintaining financial discipline to compete the challenging environment.

• Continue to expand creative pipeline of high quality content to strengthen the brand and reach on a global basis.

Page 21: Final Presentation Disney

• Globalization and localization.• Through creative process differentiating products in

customer’s mind.• Managing cash flows at its best efforts.• Made acquisition to enhance company’s position in

youth oriented sports and online sport’s community.

Page 22: Final Presentation Disney

Walt Disney’s recommended strategies for the year 2008-09

Page 23: Final Presentation Disney

• It should adopt cost leadership strategy to attract more customers in developing countries.

• It should focus on Intensive strategies.

• It should make its park services, attractive for the old age people as well.

Page 24: Final Presentation Disney

BCG matrix

Page 25: Final Presentation Disney

Division Revenues of Disney Revenue of Warner Relative Market shareDivision Revenues of Disney Revenue of Warner Relative Market share

(2007) (2007)(2007) (2007)

($ millions)($ millions)

Media Networks 15046 Media Networks 15046 2231 2231 87% 87%

Parks & Resorts 10626 Parks & Resorts 10626 972.780 91 91

Studio Entertainment 7491 19417 27.8 Studio Entertainment 7491 19417 27.8

Consumer Products 2347 9238 20.3Consumer Products 2347 9238 20.3

((ANNUAL REPORT 2007 NYSE:TWX)

Relative Market ShareRelative Market Share

(ANNUAL REPORT 2007 News corporations)

(ANNUAL REPORT 2007 SIX FLAGS)

Page 26: Final Presentation Disney
Page 27: Final Presentation Disney

Increase In Sales Growth

Divisions Increase in sales

(2005-2007)

% Media Networks 8.78

Parks & Resorts 8.52

Studio Entertainment -0.88

Consumer Products 5.06

Page 28: Final Presentation Disney

Media Networks

(II)

(Stars)

0.20

5.06 (I)

(Question Marks)

CONSUMER PRODUCTS

(III)

(Cash Cows)

(IV)

(Dogs)

0.00.0.05.051.01.0

-20-20

00

+20+20

(Low)(Low)Market Share (Medium)Market Share (Medium)(High)(High)

(High)(High)

Growth RateGrowth Rate

(Medium)(Medium)

(Low)(Low)

Page 29: Final Presentation Disney

Studio Entertainment

0.87

8.78

(II)

(Stars)

MEDIA NETWORKS

(I)

(Question Marks)

(III)

(Cash Cows)

(IV)

(Dogs)

0.00.0.05.051.01.0

-20-20

00

+20+20

(Low)(Low)(High)(High)

(High)(High)

(Low)(Low)

Market Share (Medium)Market Share (Medium)

Growth RateGrowth Rate

(Medium)(Medium)

Page 30: Final Presentation Disney

Consumer Products

(II)

(Stars)

(I)

(Question Marks)

0.91

(III)

(Cash Cows)

PARKS & RESORTS

8.52

(IV)

(Dogs)

0.00.0.05.051.01.0

-20-20

00

+20+20

(Low)(Low)(High)(High)

(High)(High)

(Low)(Low)

Market Share (Medium)Market Share (Medium)

Growth RateGrowth Rate

(Medium)(Medium)

Page 31: Final Presentation Disney

Parks & Resorts

(II)

(Stars)

(I)

(Question Marks)

(III)

(Cash Cows)

0.28

(0.88 ) (IV)

(Dogs)

STUDIO ENTERTAINMENT

0.00.0.05.051.01.0

-20-20

00

+20+20

(Low)(Low)(High)(High)

(High)(High)

(Low)(Low)

Market Share (Medium)Market Share (Medium)

Growth RateGrowth Rate

(Medium)(Medium)

Page 32: Final Presentation Disney

Potential Strategies:

- Market Development

- Market Penetration

- Product Development

- Backward Integration

- Concentric Diversification

The Grand Strategy Matrix

Page 33: Final Presentation Disney

               Projected Income statement    For the year ended 2008    (In Millions)    2007 2008  

Revenues 35510 53265 50 % increase

cost & expenses 80.90397 -28729 -43091  Gains on sales of equity investment & business 1052 1200  EBIT 7833 11374  

Net interest expenses 7.6% 0.075705 593 861.0726  Equity in the income of investees 485 500  Income from operations before Tax,miniroty  

interest, cumulativ effect of accounting change 7725 11012.93  

Income Taxes 0.372039 -2874 -4097.24  Minorty interests -177 -177  

Income from continuing operations  4674 6738.691  discontinued operations, net of tax 13 20  

Net Income 4687 6758.691  Divend 512 800  

Retained Earnings     4175 5958.691  

Page 34: Final Presentation Disney

Projected Balance SheetProjected Balance Sheet For the year ended 2008For the year ended 2008 (In Millions)(In Millions) 20072007 20082008 AssetsAssets Cash & cash EquivalentCash & cash Equivalent 36703670 51535153 ReceivablesReceivables 50325032 79857985 InventoriesInventories 641641 800800 Television costsTelevision costs 559559 559559 Deferred income taxesDeferred income taxes 862862 800800 Other current assetsOther current assets 550550 600600

Total current assetsTotal current assets 1131411314 1589715897   Film & television CostsFilm & television Costs 51235123 53235323 InvestmentsInvestments 995995 10251025 Investment in 3 Projects of 10 M eachInvestment in 3 Projects of 10 M eachParks & resorts at costParks & resorts at cost 3026030260 3026030260 AccumulateddepreciationAccumulateddepreciation -15145-15145 -15145-15145 1511515115 1511515115

Projects in progressProjects in progress 11471147 13001300 LandLand 11711171 11711171    1743317433 1758617586      2355123551 2393423934   Intangible assets,netIntangible assets,net 24942494 24942494

GoodwillGoodwill 2208522085 2300023000 Other assetsOther assets 14841484 11001100 2606326063 2659426594 Total AssetsTotal Assets 6092860928 6642566425   LIABILITIES & SHAREHOLDER'S EQUITYLIABILITIES & SHAREHOLDER'S EQUITY A/PA/P 59495949 60006000

Current portion of borrowingsCurrent portion of borrowings 32803280 34003400 Unearned roalties & other advancesUnearned roalties & other advances 21622162 21622162 Total current liabilitiesTotal current liabilities 1139111391 1156211562   BorrowingsBorrowings 1189211892 1234212342 Deffered income taxesDeffered income taxes 25732573 30003000 other long term liabilitiesother long term liabilities 30243024 30003000 Minority interestsMinority interests 12951295 12001200 Total liabilitiesTotal liabilities 3017530175 3110431104   SHAREHOLDER'S EQUITYSHAREHOLDER'S EQUITY

Common stockCommon stock 2420724207 2465724657 issue 15 Mmore at Rs 30 eachissue 15 Mmore at Rs 30 each Retained earningsRetained earnings 2480524805 3076430764 Accumulated other comprehensiv lossAccumulated other comprehensiv loss -157-157 -100-100 Treasur stock at costTreasur stock at cost -18102-18102 -20000-20000 total Equitytotal Equity 3075330753 3532135321   Total liabilities & EquityTotal liabilities & Equity    6092860928 6642566425            

Page 35: Final Presentation Disney

Walt Disney's Net Worth Input variables 2007  $ Millionsshareholders equity 30753Net income 4687Stock price 35.38No of shares outstanding 2004EPS 2.34Goodwill 22085Total asssets 60928Intangible assets 2494 Company worth analysis 1.The net worth or stock holder Equity Method Shareholder's equity +goodwill+intangibles 553322.The Future Value of earnings Net income *5 234353.The Price Earning Ratio Stock price /EPS*NI 70865.837614.Outstanding Shares Method No of shares outstanding*stock price 70901.52

Page 36: Final Presentation Disney

  (In MILLION)

Required Amount of Fund 10000

Tax Rate 38%  

Interest Rate 5%  

Outstanding Shares 2000  

Market Price Per Share 30  

EBIT 7725-10000  

   

  Common Stock Financing Debt Financing Combination Financing

   

EBIT 7,725 10,000 7,725 10,000 7,725 10,000

Less: Interest (5%) 0 0 50 50 25 25

EBT 7,725 10,000 7,675 9,950 7,700 9,975

Less:Tax(38%) 2,936 3,800 2,917 3,781 2,926 3,791

Earning After Tax 4,790 6,200 4,759 6,169 4,774 6,185

No. of outstanding shares 2,033 2,033 2,000 2,000 2,017 2,017

EPS 2.356 3.050 2.379 3.085 2.367 3.066

Page 37: Final Presentation Disney
Page 38: Final Presentation Disney

Strategic Alternatives

Key Factors Weight Vertical Conglomerate

Integration Diversification

AS TS AS TS

Opportunities:• Global Localization 0.20 2 0.40 3

0.60• Disney School of Management 0.15 - - -

-& Training institute• Market development in untapped countries0.05 2 0.10 3 0.15• Acquire new technology 0.15 1 0.15 3

0.45• Extend Product Line 0.10 1 0.10 3

0.30

Key factorsstrengths

Weights Verticalintegration

Conglomeratediversification

AS TAS AS TAS

Strong Financial Position 0.05 4 0.2 3 0.15Diversification 0.04 3 0.12 4 0.16Company owns 11 theme parks and several channels

0.05 4 0.2 2 0.1

Disney employees 150,000 people.

0.05 4 0.2 3 0.15

Creative process 0.04 4 0.16 3 0.12

Differentiation 0.06 4 0.24 2 0.12

Popular Brand Name 0.06 - - - -Popular characters 0.04 - - - -

Increasing trends in overall revenues and profits

0.05 4 0.2 3 0.15

Global Standardization 0.07 - - - -

It is the largest media and entertainment company in the world.

0.06 4 0.24 3 0.18

Powerful strategy 0.04 - - - -

Page 39: Final Presentation Disney

Strategic Alternatives

Key Factors Weight Vertical Conglomerate

Integration Diversification

AS TS AS TS

Opportunities:• Global Localization 0.20 2 0.40 3

0.60• Disney School of Management 0.15 - - -

-& Training institute• Market development in untapped countries0.05 2 0.10 3 0.15• Acquire new technology 0.15 1 0.15 3

0.45• Extend Product Line 0.10 1 0.10 3

0.30

Key factorsweakness

Weights Verticalintegration

Conglomeratediversification

AS TAS AS TAS

High sunk cost 0.07 - - --

Excessive Research & Development

0.04 4 0.16 3 0.12

Cultural Imperialism 0.04 - - - -

Frequent change in top management

0.02 - - - -

Criticism from Religious welfare group

0.04 - - - -

Limited range of target audience mainly Children

0.03 4 0.12 3 0.09

Obsolete Facilities (out dated/old) in radio

0.03 4 0.12 3 0.09

Criticism by animal welfare group

0.03 - - - -

High operating cost 0.05 4 0.2 3 0.15

High risk factors 0.04 4 0.16 3 0.12

total

Page 40: Final Presentation Disney

Strategic Alternatives

Key Factors Weight Vertical Conglomerate

Integration Diversification

AS TS AS TS

Opportunities:• Global Localization 0.20 2 0.40 3

0.60• Disney School of Management 0.15 - - -

-& Training institute• Market development in untapped countries0.05 2 0.10 3 0.15• Acquire new technology 0.15 1 0.15 3

0.45• Extend Product Line 0.10 1 0.10 3

0.30

Key factorsopportunities

Weights Verticalintegration

Conglomeratediversification

AS TAS AS TAS

Global Localization: Think global, Act Local

0.09 3 0.18 4 0.36

Characters of national or regional appeal

0.07 4 0.28 3 0.28

Cheaper alternatives to soft toys

0.02 4 0.08 1 0.08

Disney School of Management/Training Institute

0.03 - - - -

Move into different segments

0.04 4 0.16 1 0.04

Proper inventory management

0.03 - - - -

Market development in untapped countries.

0.08 3 0.24 4 0.32

Reduction in operating costs.

0.03 4 0.12 3 0.09

Disney musical channels. 0.07 3 0.21 2 0.14Benchmarking to improve management practices.

0.03 - - - -

Develop more attractions for theme parks

0.04 3 0.12 4 0.16Online Websites 0.06 - - - -

Page 41: Final Presentation Disney

Strategic Alternatives

Key Factors Weight Vertical Conglomerate

Integration Diversification

AS TS AS TS

Opportunities:• Global Localization 0.20 2 0.40 3

0.60• Disney School of Management 0.15 - - -

-& Training institute• Market development in untapped countries0.05 2 0.10 3 0.15• Acquire new technology 0.15 1 0.15 3

0.45• Extend Product Line 0.10 1 0.10 3

0.30

Key factorsThreats

Weights Verticalintegration

Conglomeratediversification

AS TAS AS TAS

Competitors: National, regional and global

0.09 4 0.36 2 0.18

World wide inflation 0.04 3 0.12 1 0.04Unprofitable or hasty acquisition

0.02 4 0.08 1 0.02

Brand consistency 0.02 -

-

- -

Product Differentiation 0.04 4 0.16 3 0.12Lawsuits 0.03 - - - -Terrorism 0.06 - - - -Natural disasters 0.04 - - - -Change in the younger generation's preferences

0.03 4 0.12 2 0.06

Regulations 0.04 - - - -

Total 4.39 3.59

Page 42: Final Presentation Disney

Conclusion

• The company should adopt vertical strategies.

Page 43: Final Presentation Disney

Space matrix

Page 44: Final Presentation Disney

44

SPACE MatrixFS

+6

+1

+5+4+3

+2

-6

-5

-4

-3

-2

-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

ES

CA IS

Conservative Aggressive

Defensive Competitive

Page 45: Final Presentation Disney

Financial Strengths

Financial Strengths Rating

• Operating income increased in 2007 in 03 each segment.• Strong financial position as compared to 03 competitors.• Market capitalization is 71.40B which is much 04 higher as compared to industry.i.e 2.248. • EPS in 2007 is 2.123 which is much higher 03 as compared to industry requirements. • High credibility in industry due to strong financial 02 position.

Page 46: Final Presentation Disney

Continue… • Disney has established strategies for risk 04 Management credit risk, foreign risk, exchange risk).• Return Assets(ROA) in 2007 is 7.6% which show 05 strong & consistent return. • Revenues increased by 37.843 billion in 2007 04 which helped in gaining strong position.• Due to diversification sources of financial revenues 04 are higher. 38

Average = 38 / 10 = +3.8

Page 47: Final Presentation Disney

Environmental Stability

Environmental Stability Rating

• Change in trade policies of different companies. -2• Recession phase in economy affects the operations. -3• Inefficient cultural & social analysis of the country in -2

which they are operating. • Incomplete or inefficient training of employees in -3

understanding culture.• Change/fluctuations in prices of oil & energy has impact -2

on strategies.

Page 48: Final Presentation Disney

• Change in taxation method of different countries. -3• Political instability & inflation in less developed countries. -4• Up-to-date technology is necessary for Broadcasting -3 & media networks & for product differentiation.• Barrier to entry into the market. -5

27

Average = -27 / 9 = -03 Y-axis = 3.8 + (-3) = + 0.8

Page 49: Final Presentation Disney

Continue…

• Market share -3

i.e. $ 71.40 Billions• Low cost strategy -2• Global expansion -3• Quality products -2

Total Competitive advantage score -19

Page 50: Final Presentation Disney

Industry Strength

Particulars Rating• Growth potential is high i.e. 2000 Growth rate is 4.2% +5

due to product differentiation Advertisment,Broadcast

network Sales & Revenues etc

• Profit potential

(in 2007 Net profit was 13.19%) +4

• Financial stability

due to market cap.etc +5

• Complete control of industry due to high rating +3

• Low cost techniques to capture market +4

• Advance technology +4

• Entrance Barrier +2

Total of Industry Analysis 27

Page 51: Final Presentation Disney

Conclusion…

CA Avg is -19.00 / 9 = -2.11

IA Avg is +27.00 / 7 = +3.86

FAS Avg is +38 / 10 = 3.80

ES Avg is -27 / 9 = -03

Directional vector co-ordinates

X-Axis = 3.86 + (-2.11) = +1.75

Y-Axis = 3.80 + (-3.0) = +0.8

Page 52: Final Presentation Disney

52

SPACE MatrixFS

+6

+1

+5+4+3

+2

-6

-5

-4

-3

-2

-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

ES

CA IS

Conservative Aggressive

Defensive Competitive

((1.75 , 0.8 1.75 , 0.8 ))

Page 53: Final Presentation Disney

Product Positioning Matrix

Page 54: Final Presentation Disney

Walt Disney

Time Warner

Newscorporation

High variety of product and services

low variety of product and services

High brand loyalty

Low brand loyalty

Page 55: Final Presentation Disney

The Walt Disney Company

Source: The Walt Disney Company Annual Report

Walt DisneyWalt DisneyAttractionsAttractionsWalt DisneyWalt DisneyAttractionsAttractions

MotionMotionPicturesPicturesMotionMotion

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Page 56: Final Presentation Disney

CEO: Robert Iger

Director: John Chen

Director: Susan Arnold

Director: Steve Jobs

Director: Robert Matschullat

Director: Judith Estrin

Director: Monica Lozano

Director: John Bryson

Director: Sheryl Sandberg

Director: Aylwin Lewis

Chairman of the Board: John Pepper

Director: Fred Langhammer

Director: Orin Smith

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