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Strategic Management Final Case Study Andrea Baril Ashley Cleary Sylvia LaBrie Marie-Michele Lachance

05/03/2012

Company Overview The Founder Growth Location Map Walt Disneys Division Existing Mission Proposed Mission and Vision SWOT Analysis External Audit CPM Positioning Map EFE Internal Audit Organizational Chart Financial Trends Balance Sheet Financial Ratios IFE

OverviewStrategic Plan SWOT Matrix Space Matrix IE Matrix Grand Strategy Matrix BCG Matrix Analysis QSPM Implementation Assumptions Projected Income Statement Projected Balance Sheet Projected Ratios Evaluation Stock Price Balance Scored Card Strategies Recommendations Objectives

Walt, after the Studio had won 4 Academy Awards

The founder

Walt Disney 1901-1966

Walt Disney was born on December 5, 1901 in Chicago During the fall of 1918, Walt Disney attempted to enlist for military service but he got rejected. He started a small company called Laugh-O-Grams, which eventually fell bankrupt. With his suitcase, and $20 Walt headed to Hollywood to start anew. After making a success of his "Alice Comedies," Walt became a recognized Hollywood figure. Disney took a deep interest in the establishment of California Institute of the Arts, a college-level professional school of all the creative and performing arts. Walt Disney passed away on December 15, 1966. Urban legend maintains his corpse would be frozen and stored beneath the Pirates of the Caribbean ride at Disneyland. . .

HistoryOctober 16, 1923: This date is considered the start of the Disney Company first known as

The Disney Brothers Studio.1928: First Mickey Mouse cartoon, and the first appearance by Minnie Mouse. 1932:

Flowers and Trees, first full-color cartoon and first Academy Awardwinner. 1939: The Disney Studio begins its move to Burbank, California. 1940: Walt Disney Productions issues its first stock.

Growth1955: Mickey Mouse Club debuts on television.

1971:Walt Disney World Resort opens with the Magic Kingdom and two hotels near Orlando, Florida. 1982: EPCOT Center opens at Walt-Disney World Resort . 1983: Tokyo Disneyland, the first international Disney theme park, opens in Japan.

1987:The first Disney Store opens, in Glendale, California.

Growth cont.1989: Disney-MGM Studios opens at Walt Disney World Resort. 1992: Disneyland Paris opens. 1995: Disney agrees to purchase 25 percent of the California Angels baseball team, Disney agrees to purchase Capital Cities/ABC for $19 billion. The Disney Channel begins operation in the UK. 1996: Disney Online launches Disney.com. Radio Disney, a live 24-hour music-intensive radio network, debuts. 1998: ESPN Magazine debuts, Disneys Animal Kingdom opens at Walt Disney World Resort, Disney Magic cruise ship departs on its inaugural cruise.

2009 Disney

purchased Marvel Entertainment Gave a $0.35 dividend per share Roy Disney died at age 79 He was a key person in Disneys animation legacy Received approval to build a theme park in Shanghai Released the movie Up

LOCATION MAPDisney Resorts: 1. California 2. Florida 3. Tokyo 4. Hong Kong 5. Paris

Walt Disney Divisions

Media Networks ESPN Disney/ABC Television Group ABC Entertainment Group ABC News ABC Owned Television Stations Group ABC Family Disney Channels Worldwide Hyperion Book s

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 Walt Disney Imagineering

Walt Disney Divisions Cont.

The Walt-Disney Studios Walt-Disney Studios Motion Pictures Marvel Studios Touchstone Pictures Disneynature Walt Disney Animation Studios Pixar Animation Studios Disney Music Groups Disney Theatrical Group

Disney Consumer Products Disney Licensing Disney Publishing Worldwide Disney Store Disney Interactive Media Group Disney Online Disney Games

Mission Statement

"The mission of The Walt Disney Company is to be one of the world's 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."

Proposed Vision

Walt Disney strives to be the worlds most famous entertainment company by creating an amazing experience for individual of all ages.

Proposed MissionOur Mission is to be one of the worlds leading producer and provider of entertainment and information, from parks to network media, and website for all ages. We seek to provide a great experience for our customers, as well as for our employees. By using our unique portfolio to differentiate our content, services and consumer products, we seek to develop the most creative, HISTORY innovative and profitable entertainment experiences, which would produce financial rewards to our shareholders. In everything we do, we try to contribute to our communities by giving them the best experience.

SWOT Analysis

Strengths

One of the most recognizable entertainment company in the world Strong advertising Wide and unique portfolio Innovative entertainment business Strong customer service Strong Media Networks and Broadcasting division Disney owns a variety of companies, which allows them to generate more profits from different industry such as Media Networks and Broadcasting, Park and Resorts, Studio Entertainment and Disney Consumer Products Disney is the largest worldwide licensor of character-based merchandise and producer of childrens film-related products based on retail sales

Weaknesses

Disney sends a corrupted influence to childrenJasmine was in a forbidden relationship with Aladdin Snow White lived alone with 7 men

Pinocchio was a liarRobin Hood was a thief Tarzan walked without clothes on

A stranger kissed sleeping beauty and she married himCinderella lied and sneaked out at night to attend a party Coyote runs off cliffs and blows himself up

Weaknesses

Studio Entertainment and Disney Consumer Products divisions have been experiencing declining revenue for the last 3 years

Disney as a narrow target market Disney as such a diversify product range that it can reduce efficiency and lead to a lack of strategic focus

High cost of entertainment production High employee turnover

Poor working conditions in factoriesWalt Disneys Park and Resorts are not easily accessible which leads people to associate Disney World with a costly trip

Opportunities

Opportunity to renovate attractions in Park and Resorts Division due to increase in profit

Growth from cable and satellite operators creating even more potential for Disney to make money with their network

Prospect to build more theme park and resorts worldwide Openings in other areas of the travel business Opportunity to invest in building theme parks to satisfy the increase in guest spending, theme park attendance, and hotel occupancy

Target new costumers group

Threats

Lasting economic recession leading to slow growth rate High unemployment rate Park and Resorts Divisions success is unpredictable because of exchange rate fluctuations; travel industry trends; amount of available leisure time; oil and transportation prices; and weather patterns and seasonality. Changes in technology leads customers to stream online instead of buying DVD. Online streaming makes Disney vulnerable to piracy and violation of its intellectual property. Retail distribution business are influenced by seasonal consumer purchasing behavior and by the timing and performance of animated theatrical release Increase in labor cost which will have a noticed impact in WaltDisney expenses due to their large amount of employee.

External Audit

CPMMedia Network SegmentCritical Success factors Weights Rating 0.0 to 1.0 1 to 4 Weighted Score Rating 1 to 4 0 Advertising 0.12 4 0.48 4 Weighted Score Rating 1 to 4 0 0.48 2 Weighted Score

0 0.24

Market ShareCompany Image Financial Position Management Global Expansion Consumer Loyalty Production Capacity Technology Totals

0.110.12 0.11 0.09 0.12 0.12 0.12 0.09 1

34 4 3 4 4 3 3

0.330.48 0.44 0.27 0.48 0.48 0.36 0.27 3.59

43 4 3 4 4 3 4

0.440.36 0.44 0.27 0.48 0.48 0.36 0.36 3.67

23 3 3 4 3 2 3

0.220.36 0.33 0.27 0.48 0.36 0.24 0.27 2.77

Positioning MapMedia Network Segment

Positioning MapPark and Resorts Segment

EFE

Internal AuditDisneyland will never be completed. It will continue to grow as long as there is imagination left in the world. - Walt Disney

Organizational ChartTheme Parks & Resorts International ABC Television Group Co-Head Interactive Co-Head Interactive & Playdon Human Resources Motion Picture Distribution Communication Stategy and Business Development Government Relations Disney Consumer Products ESPN & ABC Sports ESPN & Disney Media Networks CFO Legal and Secretary CID Security

CEO

Financial TrendsBook Value/ Share

Avg P/E

Price/ Sales

Price/ Book

Net Profit Margin (%)

Debt/ Equity

Return on Return on Equity (%) Assets (%)

Interest Coverage

01-Oct-09

12.9

1.41

1.47

9.1

$18.55

0.38

9.8

5.2

9.6

01-Sep-08

14.2

1.69

1.85

11.7

$17.73

0.46

13.7

7.1

10.4

01-Sep-07

15

2.03

2.19

13.2

$15.67

0.5

15.2