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Companys Overview
Since its founding in 1923, The Walt Disney Company and its affiliated companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products.
Dreams Come True." The segment traces its roots to 1952, when Walt Disney formed what is today known as Walt Disney Imagineering to build Disneyland Park in Anaheim, California. Since then, Parks and Resorts has grown to encompass the world-class Disney Cruise Line, eight Disney Vacation Club resorts (with more than 100,000 members), Adventures by Disney (immersive Disney-guided travel around the world), and five resort locations (encompassing 11 theme parks, including some owned or co-owned by independent entities) on three continents: Disneyland Resort, Anaheim, California Walt Disney World Resort, Lake Buena Vista, Florida Tokyo Disney Resort, Urayasu, Chiba Disneyland Resort Paris, Marne La Valle, France Hong Kong Disneyland, Penny's Bay, Lantau Island Wherever the Guest experience takes place - in our parks, on the high seas, on a guided tour of exotic locales, through our vacation ownership program -- we remain dedicated to the promise that our Cast members turn the ordinary into the extraordinary. Making dreams come true every day is central to our global growth strategy.
Media Networks
Media Networks comprise a vast array of broadcast, cable, radio, publishing and Internet businesses. Key areas include: Disney-ABC Television Group, ESPN Inc., Walt Disney Internet Group, ABC owned television stations, and a supporting headquarters group. Marketing, research, sales and communications functions also exist within the segment. The Disney-ABC Television Group is home to all of Disney's worldwide entertainment and news television properties. The Group includes the ABC Television Network (including ABC Daytime, ABC Entertainment Group and ABC News divisions); the Disney Channels Worldwide global kids' TV business, ABC Family and SOAP net; as well as television distribution divisions Disney-ABC Domestic Television and Disney-ABC ESPN Television. The Disney-ABC Television Group also manages the Radio Disney Network, general interest and non-fiction book imprint Hyperion, as well the Company's equity interest in A&E Television Networks. ESPN, Inc., The Worldwide Leader in Sports, is the leading multinational, multimedia sports entertainment company featuring the broadest portfolio of multimedia sports assets with over 50 business entities. Sports media assets include ESPN on ABC, six domestic cable television networks (ESPN, launched in 1979; ESPN2; ESPN Classic; ESPNEWS; ESPN Deportes; ESPNU), ESPN HD and ESPN2 HD (high-definition simulcast services of ESPN and ESPN2, respectively), ESPN Regional Television, ESPN International (31 international networks and syndication), ESPN Radio, ESPN.com, ESPN The Magazine, ESPN Enterprises, ESPN Zones (sports-themed restaurants licensed by ESPN), and other growing new businesses including ESPN360.com (Broadband), ESPN Mobile Properties (wireless), ESPN On Demand, ESPN Interactive and ESPN PPV. Based in Bristol, Ct., ESPN is 80 percent owned by ABC, Inc., which is an indirect subsidiary of The Walt Disney Company. The Hearst Corporation holds a 20 percent interest in ESPN.
No. 1 Community-Family & Parenting Web site and an industry-leading suite of online virtual worlds for kids and families.
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Since this is an integrated website, which includes references to The Walt Disney Company and/or its affiliated entities, "Disney" or the "Company" means, as appropriate, either The Walt Disney Company and/or one or more of its affiliated companies.
Agenda
Background of the Walt Disney Company and Strategic Sourcing Disney Supply Chain Context Sample Activities across Business Segments 1. Parks and Resorts 2. Studio Operations VHS and DVD 3. Consumer Products The Disney Store, DisneyStore.com, Catalog North American Supply Chain Assessment and Initiatives Additional Improvement
Media Networks ABC Television Network ABC Radio Networks ESPN Disney Channel Disney Channel Worldwide Soap Net Toon Disney Joint ventures A&E Television Networks, Lifetime Entertainment Services, The History Channel, E!Entertainment Television ESPN, ABC, Disney, and family branded Internet Web sites Studio Entertainment Buena Vista Home Entertainment (BVHE) Domestic and International Buena Vista Music Group Buena Vista Television
Walt Disney Theatrical Movie banners: Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax, and Dimension Parks and Resorts $ 7.0 billion Walt Disney World Resort (WDW) four theme parks, two water parks, 25 hotels Disney Cruise Line Disneyland Resort two theme parks, four resort hotels Disney Regional Entertainment Tokyo Disneyland Resort (royalties arrangement with Oriental Land Company) Disneyland Resort Paris (royalties arrangement with Euro Disney) Walt Disney Imagineering Mighty Ducks Anaheim Angels Consumer Products $ 2.6 billion The Disney Stores (TDS) Disney Store Catalog Disney Store Online Disney Interactive Disney Publishing Worldwide Baby Einstein
Most supply chain activities are managed independently Many contracts are negotiated and managed separately Internal warehousing is underutilized, while significant external warehouses and 3PL activities are utilized
The North American distribution network is primarily domestic, but sources of supply extend internationally
The European market has multinational supply chains for TDS, BVHE, and Disneyland Paris
Major BU initiatives
Studio Operations Business Unit Example Video and DVD Supply Chain Characteristics
Single core manufacturing partner, and multiple distribution partners in North America and Europe 14,000+ distribution points in North America and 30,000 in Europe 100+ million units of production per year New releases drive sales and are focused on street date Hit title sales exceed 10 million units for a single release Multiple Point of Purchase (POP) displays are shipped for in-store displays Thousands of catalog SKUs are active for distribution and sale Shifting product demand from VHS to DVD Industry average of 20-25% returns
Major BU initiatives
Sales forecasting improvement Inventory reduction Distribution optimization Enhanced supplier partnerships Next generation technologies: video-on-demand and digital cinema
Main drivers:
Improve customer service Reduce administration on a Pan-European basis Achieve physical supply chain efficiencies Reduce exceptions Reduce cost
Structural impact:
Reduction in suppliers from seven to one Same supplier for manufacturing and distribution Single SAP SOP system Ability to move to consolidated billing and administration in the future
Home office provide import and customs support for all North American business units except Walt Disney World and Walt Disney Imagineering Major BU initiatives
Distribution optimization through shared assets
Migration to demand-based replenishment Store conversion new layouts and new formats Supply chain visibility inbound and outbound
Strategic Sourcing/Supply Chain Improvement Roadmap will be followed to ensure a robust solution is developed
A common process and metrics terminology will be communicated; training and education will be important parts of the improvement process
Logistics providers will be reevaluated to determine their ability to support Disneys supply chain vision at a competitive cost