DISNEY (COHESION CASE 2008) WALT DISNEY COMPANY -2007 The Walt Disney Company was founded in 1922

and is one of the leading companies in family entertainment business. It operates using a strategic business unit (SBU) type of organizational structure. Disney is huge, well-known and well managed diversified corporation.

1. Experiential Exercise 1A (Step 2) The external opportunities and threats facing Disney Company are listed below: Opportunity facing Disney Company 1. Growing rate of consumer demand for amusement park 2. Demographic changes increase in aging population 3. Digital technology 4. Positive government attitude 5. Expanding into foreign markets 6. Acquisition of firms
7. Strategic alliances

Threats facing Disney Company 1. Saturated Market 2. Foreign competition 3. Fierce competition in the local market

4. Usage of internet by all ages

5. High risk of copyright infringement 6. Low consumer disposal income 7. High operational cost

2. Experiential Exercise 3A EFE Matrix for Walt Disney Company

K E ey xterna F ctors l a Opportunities 1 Growingrate of consumer demand for amusement park 2 Demographic changes increase in agingpopulation 3 Digital technology 4 Positive government attitude 5 Expandinginto foreign markets 6 Acquisition of firms 7 strategic alliances

Weig ht R ting a

Weig hted S ore c

0.1 0.05 0.12 0.03 0.1 0.05 0.05

4.0 3.5 4.5 3.0 3.5 4.0 3.0

0.40 0.18 0.54 0.09 0.35 0.20 0.15

T hrea ts 8 Saturated Market 9 Foreign competition 10 Fierce competition in the local market 11 Usage of internet by all ages 12 High risk of copyright infringement 13 Low consumer disposal income 14 High operational cost T l S ores ota c 0.1 0.04 0.1 0.05 0.03 0.12 0.06 1 .0 4.0 1.2 4.0 3.5 1.1 4.2 3.0 0.40 0.05 0.40 0.18 0.03 0.50 0.18 3 5 .6

3. Experiential Exercise 3D

Competitive Profile Matrix for Walt Disney Company

D NY IS E T EW R E IM A N R W hted eig W hted eig R ting a R ting a S ore c S ore c 2 0 .2 3 0 .3 3 0 .3 4 0 .4 3 0 .6 4 0 .8 3 0 .3 2 0 .2 3 0 .3 3 0 .3 4 0 .8 4 0 .8 4 0 .8 3 0 .6 3 .1 3 .4 N W C R O A IO E S OP RT N W hted eig R ting a S ore c 2 0 .2 2 0 .2 3 0 .6 2 0 .2 3 0 .3 2 0 .4 2 0 .4 2 .3

C aS c ritic l uc ess Fa tors c Ma rket S re ha Fina ia Position nc l E xperienc e Advertising L ow-C S teg ost tra y R esourc es Innova tion T ta o l

W ht eig 0 .1 0 .1 0 .2 0 .1 0 .1 0 .2 0 .2 1

4. Experiential Exercise 4A

5. Experiential Exercise 4B Step. 2

IFE Matrix for Walt Disney Company

In e n l F c r t r a a to s S e gh tr n t s 1R esourc es 2E xperienc in the B e usiness 3L ow-c stra y ost teg 4S tronga well known bra na e nd nd m 5S trongfina ia c nc l ondition 6S ervic a produc innova e nd t tionc pa ity a c 7 E onom of sc le c y a W ig t e h 0 3 .1 0 0 .1 0 5 .0 0 5 .0 0 7 .0 0 5 .0 0 5 .0 Rt g a in 4 .0 5 .0 3 .0 4 .5 4 .0 3 .5 4 .0 W ig te e h d So e cr 0 2 .5 0 0 .5 0 5 .1 0 3 .2 0 8 .2 0 8 .1 0 0 .2

w a n se ek es s 8 L rg workforc a e e 9 Frequent c ng in topm na em ha e a g ent 1 H h overhea expenses 0 ig d

0 .2 0 .1 0 .2

5 .0 2 .5 3 .0

1 .0 0 .3 0 .6

T t lSo e oa c r s

1 .0

3 0 .9

Step 3 Disney Corporation has the following Strengths and Weaknesses

Strengths 1. Resources 2. Experience in the Business 3. Low-cost strategy 4. Strong and well known brand name 5. Strong financial condition 6. Service and product innovation capacity 7. Economies of scale

Weaknesses 1. Large work force 2. Frequent change in top management 3. High overhead expenses Strategies to allow Walt Disney to capitalize on its major Strengths. Experience in the Bussiness: Training sections together with seminars to be organized occasionally by experienced staff for knowledge to be transferred to new and existing staff. Consider utilizing your own resources as well by having the employee who has the sharpest skill set in a particular area lead a company-wide workshop on how they developed and best employed that strength. A well documented handbook or manual to be prepared and kept for references for information not to be lost with the retirement of some experienced staff.

Strong and Well Known Brand Name: To continue to create innovative products and packages that would continue to attract its target market. For instance, to go into different directions to expand their already broad product portfolio whilst maintaining quality. Strong Financial Condition: Must take advantage of their financial positions to expand into other areas where there is ready market by merging or buying out some other companies. Service and Product Innovation Capacity: Research and identify needs of clients at particular seasons. For instance, during the political season most politicians often advertise on the media networks and print media. There is more buying and selling of Disneys products during the Yuletide Incentive awards to be given out to staff that come out with innovative ideas. This would encourage staff to get involved in the process of the company.

Strategies to allow Walt Disney to capitalize on its major Weakness. Large Work Force: Improve on technological advancement to help reduce the work force and also to save cost in the long run. Have a web site mainly for communication among staff to reduce the possibilities for miscommunication since most staff members would have access to check for valid information on the web portal. Frequent Change in Top Management: Clear job specifications must be given to top management for them to know their job roles and what is expected of them. Surveys should be conducted to find out why people at top management are leaving the company. High Overhead Expenses: