Disney is the Largest Media and Entertainment Company In The World .The Walt Disney Company was founded on October 16, 1923 in Los Angeles, California by brothers Walter Elias Disney and Roy Disney. Walt Disney was the voice of Mickey Mouse for two decades. Walter Elias Disney was born in Chicago, Illinois on December 5, 1901.

The Walt Disney company have its headquarter in Burbank, California. the president and CEO of the company is Robert lger since 2005 and chairman is John E. Pepper, Jr.Walt Disney first motion picture in 1928 short titled "Steam boat International sales of Disney-branded products now out strip US sale Walt Disney won a total of 32 Oscar Awards- more than anyone else ever has!- during his 43 year career.

Walt arrived in California in the summer of 1923 with dreams and determination, but little else. On October 16, 1923, a New York distributor, M. J. Winkler, contracted to release the Alice Comedies, and this date became the formal beginning of The Walt Disney Company. Originally known as the Disney Brothers Cartoon Studio.

With his chief animator, Ub Iwerks, Walt designed a mouse whom Walt first wanted to name Mortimer, but his wife Lilly preferred Mickey. And so a star was born. November 18, 1928, Walt Disney soon produced another series -- the Silly Symphonies. a Silly Symphony and the first full-color cartoon, won the Academy Award for Best Cartoon for 1932, the first year that the Academy offered such a category. For the rest of that decade, a Disney cartoon won the Oscar every year.

WALT DISNEY MOTION PICTURES GROUP

Walt Disney Motion Pictures Group, Inc. is a corporation which develops scripts and oversees theatrical production for The Walt Disney Company's production companies was initiated in 1998 .

WALT DISNEY PARKS AND RESORTS

The Parks and Resorts division was founded in 1971 .The chairman of Walt Disney Parks and Resorts is Thomas O. Staggs . In 2009, the company's theme parks hosted approximately 119.1 million guests, making Disney Parks the worlds most visited theme park company ever.

DISNEY LAND RESORT Disney land was dedicated as a single park by Walt

Disney on July 17, 1955, and opened to the public on July 18, 1955 in Anaheim, California .It consist of two hotels, one new and one themed; and the Downtown Disney retail, dining and entertainment district.

Walt Disney died December 15, 1966 .Roy was determined to realize his brothers vision, and honored him by naming it Walt Disney World. It opened October 1, 1971 with a Disneyland-style theme park, hotels, campgrounds, golf courses, shopping villages and a monorail connecting them all.

MISSION AND VISION

Walt Disney Company's mission is to be one of the world's leading producers and providers of entertainment and information using an 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 projects in the world.

STRATEGY When Disney makes a movie today, the

company thinks beyond the motion picture to how the story can be leveraged into merchandise, experiences, and spin-offs. It's not just a film: it's a theme park ride, a chapter in a larger saga, an action figure, a musical on ice. Every new investment/ acquisition is strategically chosen and usually assists at least one of it’s its five market segments.

TIMES AND CONDITIONS CHANGE SO RAPIDLY THAT WE MUST KEEP OUR AIM CONSTANTLY FOCUSED ON THE FUTURE.

I do not like to repeat successes, I like to go on to other things.

ACQUISITIONS

2009 Marvel 2009 Disney joins Hulu venture 2011 Disney acquires 49% of seven tv 2012 Lucasfilm Ltd Disney has announced it’s intentions to

sell 23 of it’s 24 U.S based radio Disney stations.

WALT-DISNEY MEDIA

NETWORK

FINANCIAL BACKGROUND

Media Networks segment includes broadcast and cable television networks, television production operations, television distribution, domestic television stations and radio networks and stations

Total media network accounted for: 5 percent of the revenues in 2012 versus 2013 and 4 percent

in 2013 versus 2014. 3 percent change of segmented operating income (LOSS) in

2012 versus 2013 and 7 percent change in 2013 versus 2014.

2010 AND 2011

affiliate fees increased by six percent (6%) 14 percent increase in cable networks and 6 percent in

broadcasting 13 percent increase was due switching price levels between studio

entertainment and media networks decrease in costs and expenses by 208 million dollars in 2011 due

to the absence of FIFA World cup operating income to increase by an impressive 20%

2011 AND 2012

  Affiliate fees increased by six percent (6%)  Increase in revenue from cable networks of 263 million and a

decrease in broadcasting of 162 million  Operating expenses increased to by 231 million production also decreased by 128 million due to the absence

of Oprah Winfrey show

2013 AND 2014 

total revenues form media networks increased by four percent (4% - form 20,356 to 21,152)

Affiliate Fees which increased by six percent (6%)

revenues increased by 75 Million due to “the inclusion of revenues from Maker Studios, Lucas film SVOD sales

  Equity from investments increased by 114 million

operating expenses decreased by five percent (5%), and selling, general, administrative and other expenses also increase

DISNEY MEDIA NETWORKS INCOME STATEMENT

  Year Ended  2014 2013 2012 2011 2010(in millions) % Increase Better/WorseRevenues              Affiliate Fees 6% 7% 6% 9% 9%   Advertising 1% 3% 1% 8% 7%   Other 3% 2% 4% 13% 8%total renvenues 4% 5% 4% 9% 6%Operating expenses 5% -7% -2% -5% -4%

Selling, general, administrative and other 5% -4% -1% -8% -2%

Depreciation and amortization   3% -9% -7% -8%

Equity in the income of investees 15% 18% 7% 33% -23%Operating Income 7% 3% 8% 20% 8%

TOTAL REVENUES FOR MEDIA NETWORK TREND ANALYSIS

WALT-DISNEY PARKS AND

RESORTS

FINANCIAL BACKGROUND

Walt Disney World Resort in Florida, the Disneyland Resort in California, Aulani, and Disney Resort & Spa in Hawaii, the Disney Vacation Club, the Disney Cruise Line and Adventures by Disney.

It owns 51% in Disneyland Paris, 48% in Hong Kong Disneyland Resort and 43% in Shanghai Disney Resort

2010 AND 2011 2010 increased by 1 percent(from 94 million to 10.8 million) Operating income during this period was listed at 1,318 million  2011 increases in domestic and international parks and resources totaling 10 percent 3 percent of the international revenue decrease in value of of the US dollars

against the Euro Disney sold property at Disneyland Paris temporary closed the Tokyo Disney resort location due to an earthquake in

Japan in March 2011 New hotel was also opened in Hawaii on August 2011.

2012, 2013, AND 2014

The introduction of Cars Land at the California Disney adventures Resort reflected the 2011 impact from the earthquake and tsunami

in Japan the launch of Disney Fantasy in March 2012 and the opening of

Disney’s Art of Animation Resort in May 2012 more guest in Hong Kong Disneyland resort offset by a decrease

in the nightly stays in Disneyland Paris increasing by 5 percent in guest spending 1 percent increase in foreign currency as the US dollar continues

to decrease. Disneyland Paris also continues to decrease in volume.

PARKS AND RESORTS INCOME STATEMENT

  Year Ended  2014 2013 2012 2011 2010(in millions) % Increase Better/WorseRevenues              Domestic 8% 10% 11% 11%     International 3% 4% 3% 6% 6%total renvenues 7% 9% 10% 10% 1%Operating expenses -7% -8% -7% -9% -2%

Selling, general, administrative and other 5% -6% -9% -12% -3%

Depreciation and amortization 7% -10% -7% -2% 1%

Operating Income 20% 17% 23% 18% -7%

TOTAL REVENUES TREND ANALYSIS

PARKS AND RESORT V.S MEDIA NETWORKS

2014 2013 2012 2011 2010Media Networks

total renvenues 4% 5% 4% 9% 6%

Parks and Resortstotal renvenues 7% 9% 10% 10% 1%

STUDIO ENTERTAINMENT

DISNEY FILM STUDIOS

Pixar Animation Studio Marvel Entertainment Disney Animated Studio Touchstone Lucasfilm

REVENUE

Total Revenues from Studio Entertainment is 7.278 billion dollars

BOX OFFICEHighest-grossing films of 2014

Rank Title Studio Worldwide gross

1 Transformers: Age of Extinction

Paramount Pictures

$1,104,039,076

2 The Hobbit: The Battle of the Five Armies

Warner Bros. / New Line Cinema / MGM

$956,019,788

3 Guardians of the Galaxy

Marvel Studios $774,176,600

4 Maleficent Walt Disney Pictures

$758,410,378

5 The Hunger Games: Mockingjay – Part 1

Lionsgate Films $755,356,711

6 X-Men: Days of Future Past

20th Century Fox

$748,121,534

7 Captain America: The Winter Soldier

Marvel Studios $714,766,572

8 The Amazing Spider-Man 2

Columbia Pictures

$708,982,323

9 Dawn of the Planet of the Apes

20th Century Fox $708,835,589

10 InterstellarParamount Pictures / Warner Bros.

$675,020,017

MAGIC TOUCH Disney Frozen accounts for 1.274 billion

dollar at the box office. Budget of 150 million dollars Grossing 1.124 billion dollars

DISNEY BOX OFFICE Notable Box Office Numbers Pixar: Planes gross of 189.3 million dollars Pixar: Monsters University gross of 543.6

million dollars Marvel: Captain America 2 gross of 544.8 Marvel: Thor: The Dark World gross of 474.8

million dollars

THE CONSUMER PRODUCTSSector

The Consumer Products sector is the 4th profitable segment of The Walt Disney Company. It handles the merchandise licensing, publishing and the retail of all of the property that the company creates, designs and develops.

Merchandise Licensing

The Company licenses a wide mixture of products that include everything that consumers use from apparel, home goods, and food to toys, electronics and health and beauty goods.

It licenses characters from all its company properties such as its films and television shows for use on third-party products and earn revenue from the royalties on these products; revenue is from either a fixed percentage of the wholesale cost or from the retail selling price.

Merchandise Licensing

Publishing

The Company’s publishing business called Disney Publishing Worldwide creates, licenses, publish, and also distributes children books, magazines and learning products in all forms of communication and within multiple countries and languages. Disney Publishing Worldwide also operates, develop and delivers Disney English, which offers an English language program to Chinese youth across 9 cites of China.

Publishing

In addition, Disney’s 2nd publishing business called Marvel Publishing also creates and publishes comic books and graphic novel collections of comic books in both print and digital forms. Marvel Publishing also licenses the rights to translate these comic books in mostly European and Latin American countries.

Retail

As for the Disney retail stores, the company markets all of its Lucas films, Disney and Marvel-themed products within its stores and through internet sites.

The Walt Disney Company currently owns and operates over 328 retail stores with 64 percent of them located all across North America.

Lets Talk Money!

Through these 3 divisions, the consumer products segment earns revenues from sales of its merchandise in both retail stores and online sites, the wholesale profits from publishing all its books and magazines, licensing it characters, and from earning usage fees from its English learning centers.

Operating income for the consumer products segment increases by the millions annually. Based on a trend analysis of the last 5 years using the company’s 10-k filings, its revenues has increased by over double the percentage since 2009. A big element that produced most of this segment’s profits is its licensing and publishing; it increased astonishingly by 60 percent since 2009. And even though licensing and publishing accounts for most of the revenue, the company’s retail and other sources of revenue has played a big factor as well with an increase of 72% since 2009.

CONSUMER PRODUCTS

Operating results for the Consumer Products segment are as follows:

% of Change Better/ Worse(-) 2009 vs.

2012

Year Ended

(in millions)29-Sep-12 1-Oct-11 2-Oct-10 3-Oct-09

Revenue

 Licensing and publishing $2,056  $1,933  $1,725  $1,584  30%

 Retail and other 1196 1116 953 841 42%

Total revenues 3252 3049 2678 2425 34%

Operating expenses -1514 -1452 -1236 -1182 -28%

Selling, general, administrative and other -686 -676 -687 -597 -15%

Depreciation and amortization -115 -105 -78 -39 95%

Operating Income/Loss(-) 937 816 677 607 54%

CONSUMER PRODUCTS

Operating results for the Consumer Products segment are as follows:

% of Change Better/ Worse(-) 2013 vs. 2014

Year Ended

(in millions) 27-Sep-14 28-Sep-13

Revenue

 Licensing and publishing $2,538  $2,254  13%

 Retail and other 1447 1301 11%

Total revenues 3985 3555 12%

Operating expenses -1683 -1566 -7%

Selling, general, administrative and other -778 -731 -6%

Depreciation and amortization -168 -146 -15%

Operating Income/Loss(-) 1356 1112 22%

Expenses for the consumer product segment has also increased over the past 5 years. Due to many acquisitions of new Disney retail stores and the purchase of Marvel, more expenses to operate, promote and sell were required. In analysis of the last 5 years, operating expenses has increased by 42% since 2009. Also, selling, general, administrative and other expenses have increased by 30% since 2009. In addition, due to all the company’s plant and equipment in this segment depreciation and amortization have been dramatically increased by over 4 times the percentage since 2009. Reasons for the expenses is explained by The Walt Disney Company below from its 10k filings since 2009.

THE INTERACTIVE Sector

The interactive media sector is the 5th and the lowest profitable segment of the company. This sector produces mobile, console and virtual world games and is responsible for the designing and web management for all the company’s businesses; it also licenses the content for games and mobile devices and develops branded online services. Some of the games developed and published by The Company include, Disney Infinity which is a console game released in 2014, Marvel Avengers Alliance which is a mobile device game accessible on all smartphones, social networking websites and tablets, and Disney’s Club Penguin which is a virtual world game. The interactive media sector earns it revenue from sales of the games to retailers and distributors; it gains revenue from micro transactions within the virtual games and from subscription fees; it earns revenue from licensing content to third-party game publishers and mobile phone providers and also from online advertising and sponsorships.

Within this interactive media segment, profits were at a loss for about 4 fiscal years until 2014 fiscal year primarily due to the company accumulating more expenses than what it was earning. This segment loss the most profit during 2010 to 2011 by 30 percent due to the acquisition costs of Playdom, a social networking game, for the year as stated in the cost and expenses section of this sector. Although this occurred, total revenue for the past 5 years since 2009 has increased by 82 percent due the impressive performance of Disney Infinity 1.0 in the 2014 fiscal year.

INTERACTIVE MEDIA

Operating results for the Interactive segment are as follows:

% of Change Better/ Worse(-) 2009 vs.

2012

Year Ended

(in millions)29-Sep-12 1-Oct-11 2-Oct-10 3-Oct-09

Revenue

   Game sales and subscriptions $613  $768  $563  $565  9%

   Advertising and other 232 214 198 147 58%

Total revenues 845 982 761 712 19%

Operating expenses -583 -675 -581 -623 7%

Selling, general, administrative and other -429 -561 -371 -336 -28%

Depreciation and amortization -49 -54 -43 -50 2%

Operating Income/Loss(-) -216 -308 -234 -292 35%

INTERACTIVE MEDIA

Operating results for the Interactive segment are as follows:

% of Change Better/ Worse(-) 2013 vs. 2014

Year Ended

(in millions) 27-Sep-14 28-Sep-13

Revenue

   Games*  $1,056  $812  30%

   Other Content 243 252 -4%

Total revenues 1299 1064 22%

Operating expenses -700 -658 -6%

Selling, general, administrative and other -400 -449 -2%

Depreciation and amortization -23 -44 48%

Operating Income/Loss(-) 116 -87 nm

*Certain reclassifications have been made to the revenue amounts presented for fiscal 2013 to conform  to the fiscal 2014 presentation. 

The principal change was to reclassify game-related revenue from our Japan mobile business from Other content to Games.

INCOME STATEMENTFiscal year is October-September. All values USD millions. 2010 2011 2012 2013 2014

 Sales/Revenue 38.06B

40.89B

42.28B

45.04B

48.81B

Sales Growth - 7.44% 3.39% 6.54% 8.37% Cost of Goods Sold (COGS) incl. D&A

31.44B

33.14B

33.23B

27.23B

28.71B

COGS excluding D&A 29.73B 31.3B 31.24

B25.03

B26.42

BDepreciation & Amortization Expense 1.71B 1.84B 1.99B 2.19B 2.29B

Depreciation 1.6B 1.66B 1.78B 1.96B 2.06BAmortization of Intangibles 111M 182M 203M 235M 224M

COGS Growth - 5.40% 0.29%-

18.07%

5.44%

 Gross Income 6.62B 7.76B 9.05B 17.82B

20.11B

Gross Income Growth - 17.10%

16.63%

96.92%

12.85%

Gross Profit Margin - - - - 41.19%

PROFITABILITY RATIOS Gross profit margins of 45.88%

Operating profit margin of 23.64%

Net profit margin of 16.4%

Net return on total assets of 9.51%

Return on stockholder equity of 17.8%

Return on invested capital of 12.6%

ASSETSFiscal year is October-September. All values USD millions. 2010 2011 2012 2013 2014

5-year trend

 Cash & Short Term Investments 2.72B 3.19B 3.39B 3.93B 3.42BCash Only 2.72B 3.19B 3.39B 3.93B 3.42BShort-Term Investments - - - - -

 Total Accounts Receivable 5.78B 6.18B 6.54B 6.97B 7.82BAccounts Receivables, Net 5.45B 5.95B 6.31B 6.69B 7.43B

Accounts Receivables, Gross 5.78B 6.21B 6.47B 6.85B 7.58B

Bad Debt/Doubtful Accounts (326M)

(261M)

(161M)

(155M)

(154M)

Other Receivables 330M 235M 227M 273M 394MInventories 1.44B 1.6B 1.54B 1.49B 1.57B

Finished Goods 0 0 0 0 0Work in Progress 0 0 0 0 0Raw Materials 0 0 0 0 0Progress Payments & Other 1.44B 1.6B 1.54B 1.49B 1.57B

Other Current Assets 1.6B 2.12B 1.57B 1.72B 2.36BMiscellaneous Current Assets 1.15B 1.67B 1.1B 1.28B 1.93B

Total Current Assets 11.55B

13.08B

13.03B

14.11B

15.18B

LIABILITIES2010 2011 2012 2013 2014 5-year trend

ST Debt & Current Portion LT Debt 2.35B 3.06B 3.61B 1.51B 2.16BShort Term Debt 0 0 0 0 0

Current Portion of Long Term Debt 2.35B 3.06B 3.61B 1.51B 2.16B

 Accounts Payable 4.41B 4.55B 4.62B 4.9B 5.37BIncome Tax Payable - - - - -Other Current Liabilities 4.24B 4.49B 4.58B 5.29B 5.76B

Dividends Payable - - - - -Accrued Payroll 1.48B 1.47B 1.52B 1.63B 1.77B

Miscellaneous Current Liabilities 2.75B 3.02B 3.06B 3.67B 3.99B

 Total Current Liabilities 11B 12.09B 12.81B 11.7B 13.29BLong-Term Debt 10.35B 11.21B 10.98B 12.78B 12.68B

Long-Term Debt excl. Capitalized Leases 10.13B 10.92B 10.7B 12.78B 12.68B

Non-Convertible Debt 10.13B 10.92B 10.7B 12.78B 12.68BConvertible Debt 0 0 0 0 0

Capitalized Lease Obligations 224M 288M 284M - -Provision for Risks & Charges 3.38B 4.22B 4.83B 2.09B 3.48BDeferred Taxes 2.63B 2.87B 2.25B 4.05B 4.1B

Deferred Taxes - Credit 2.63B 2.87B 2.25B 4.05B 4.1BDeferred Taxes - Debit 0 0 0 0 0

Other Liabilities 2.5B 2.28B 2.07B 2.47B 2.46B

Other Liabilities (excl. Deferred Income) 2.26B 2.05B 1.85B 2.47B 2.46B

Deferred Income 244M 233M 220M - - Total Liabilities 29.86B 32.67B 32.94B 33.09B 36.01B

LIQUIDITY RATIOS

Current ratio of 114.17%

Working Capital of 1.884 billion

LEVERAGE RATIOS

Debt to equity of 50.57%

Long-term debt to equity of 41.41%

SWOT ANALYSIS

Strengths:Brand reputation

Disney has its well known brand name and reputed status around the world. The

products of the Disney have been perceived positively by the people because of its brand reputation. Has own Walt Disney studios (second largest media conglomerate in terms of revenue)

Disney has its own studios which includes Disney's motion picture studios, music labels,

theatrical production company, and distribution companies.

Diversified businessDisney has variety of its productions and

extensions of its production units around the world. For example, it has The Walt Disney Studios, Disney Consumer Products and Interactive Media, Walt Disney Parks and Resorts, Disney Media Networks, Marvel Entertainment etc. Loyal customers

Disney has its millions of loyal customers that it achieved through strong relationship and

by providing them maximum satisfaction from its products.

Top managementDisney has experienced, well-trained,

enthusiastic and motivated top work force.Strong financial position

Disney financially stands strong in the competitive market and is able to continue its company sustainably.

High qualityDisney is able to win people's positive attitude towards it through consistent quality productions.

 Strong advertising

Disney has its strong advertising strategy through which it is penetrating into the markets, reaching to its potential customers, and is gaining its popularity over rivals.

Weaknesses:Decline of Cinemas

People are going less to the cinemas due to the release of home theaters and increasing ticket prices.

 Changing viewership trends

The habits of people viewing the movies have changed with the introduction of new technologies. People are engaged in watching movies on their smart

phones, ipads, laptops etc.

Lack of Access to Web viewership platformsInaccessibility of people to the web

viewership platforms puts the company away from the potential customers and cannot achieve the maximum benefits from the markets. High operating cost

The operating cost of Disney is high in maintaining the consistent quality production.

frequent change in top managementThe frequent changes in top management make the management difficult to drive

the company at the same speed as before competing with the rivals. Opportunities:Disney music channel

Growing popularity of Disney music channel increases the scope and opportunity of Disney.

Disney school of management and trainingDisney school of management and training institute conducts workshops,

seminars, presentations and special programs for professionals enhancing their managerial skills. Online websites

Now, the accessibility of online websites helps to promote its business and reach to more customers throughout the world.

Advancement in technologyTechnological advancement and

introduction of the new techniques and equipment are increasing efficiency of work and reducing operating costs. Demographic changes

The change in demography such as migration of population into an area adds opportunity to a company to foster its business.

Threats:Changing animation trends

Change in animation trends and technologies might change the taste of customers and they might shift their old habits to the new one. Strong competition

The increasing competition in the market and entry of the new entrants might

increase the possibility of losing the business.

Increasing piracyIssue of copy rights, and increasing piracy threats the company to lose its

business. Change in customers preferences and behaviors

People's preference and behavior change with time and it is hard to predict

whether a company would be preferred by the customers for long time or not.

Economic (recession/inflation/unemployment) condition

Unfavorable economic condition inside and outside the country would affect the

company. The recession, inflation and increasing unemployment rate have direct impact to the company. Increasing salaries and labor costs

The increasing salaries and labor cost in the markets make the operation costs high and reduce the company's overall income.

SUGGESTION Introduce More Parks Re-acquire Marvel Character from Sony Partnership with other animation

studios Madhouse