The Walt Disney

Company
(NYSE:DIS)
A Business Case Study

Company Overview

ABOUT DISNEY

The Walt Disney Company (NYSE: DIS) Founded

on October 16, 1923 as Disney Bros. Studios

By brothers Walter Elias Disney (1901-1966) and

Roy O Disney (1893-1971)

Incorporated in 1938 as Walt Disney Productions

Current Financial Position

Overall success due to success

of four business segments

Disney has four business segments Media

Networks, Parks and Resorts, Studio
Entertainment, Consumer Products, and
Interactive Media that were created to
support and enhance its original business
model as a studio producing animated shorts
and full-length features.
Each piece contributes to the Disney empire
by forging new and additional paths to market
that together ensure Disney fulfills its mission.

Performance and revenues

The financial market crisis and resulting

economic downturn of 2008 had an effect
on Disney in fiscal year 2009, but the
company has since started to recover and is
doing so at a pace greater than those of
other companies listed in the S&P 500 or
the S&P Media Index.
Disneys revenues increased by 5%
between 2009 and 2010 to $38.1 billion.

Key financial indicators

Disneys gross profit as a percentage of

revenue decreased from 19.6% in 2008 to
15.7% in 2009, before increasing to 17.4% in
2010.
Disneys operating profit decreased by 24%
from 2008 to 2009, then increased by 17% to
$6.6 billion in 2010.
Disneys net income fell from $4.4 billion in
2008 to $3.3 billion in 2009, then increased to
$4 billion in 2010.

Profit margins

Disneys net profit margin decreased from 11.7%

in 2008 to 9.1% in 2009, then increased to 10.4%
in 2010.
Disneys operating profit margin followed the same
pattern, decreasing from 19.6% in 2008 to 14.4%
in 2009, before increasing to 17.0% in 2010.
This means Disney is slowly regaining the amount
of money it keeps for every dollar of sales before
interest and taxes, from just over 14 cents per
dollar in 2009 to 17 cents per dollar in 2010.

Disneys Corporate
Structure
Disney

Consumer
Products
Disney Hard Lines
Disney Soft Lines
Disney Toys
Disney Press
Disney Publishing
Worldwide
Disney Store

The

Walt-Disney Studios
Walt-Disney Pictures
Miramax Films
Buena Vista Home
Entertainment
Disney Records
Buena Vista Records
Hollywood Records
Touchstone Pictures
Pixar Animation Studios
Disney Theatrical Group

Disneys Corporate
Structure

Media Networks
ESPN
Disney/ABC
Television Group
ABC Owned
Television
Stations Group
Internet Group
ABC Radio

Park and Resorts

Disney Land Resorts
Walt Disney World
Resort
Tokyo Disney Resort
Disneyland Paris
Hong Kong
Disneyland
Disney Cruise Line
Disney Vacation Club

Consumer Product
Merchandise
Books

and Magazines
Buena Vista Games
Disney shopping.com
Foods and Beverages
Fine art
Apparel
Toys

Financial Review of C.P

In

2008 revenues increased 26 percent

$2.9 billion
Operating income increased 14 percent
to $718 million.

Competitor
Warner
Fox
Sony
Marvel

brother