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<ul><li> 1. Strategic Management Final Case StudyAndrea BarilAshley ClearySylvia LaBrieMarie-Michele Lachance05/03/2012</li></ul><p> 2. Company Overview Overview The Founder Growth Location MapStrategic Plan Walt Disneys Division SWOT Matrix Space MatrixExisting Mission IE Matrix Grand Strategy MatrixProposed Mission and Vision BCG Matrix AnalysisSWOT Analysis QSPMExternal AuditImplementation CPM Assumptions Positioning Map Projected Income Statement EFE Projected Balance Sheet Projected RatiosInternal Audit Organizational ChartEvaluation Financial Trends Stock Price Balance Sheet Balance Scored Card Financial Ratios Strategies IFE Recommendations Objectives 3. Walt, after the Studio The founder had won 4 Academy AwardsWalt 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 befrozen and stored beneath the Pirates of theCaribbean ride at Disneyland. . . 4. HistoryOctober 16, 1923:This date is considered the start of the Disney Company first known asThe 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. 5. Growth1955:Mickey Mouse Club debuts on television.1971:Walt Disney World Resort opens with the Magic Kingdom and two hotels nearOrlando, 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. 6. 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 baseballteam, Disney agrees to purchase Capital Cities/ABC for $19 billion. TheDisney 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 DisneyWorld Resort, Disney Magic cruise ship departs on its inaugural cruise. 7. 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 animationlegacy Received approval to build a theme park inShanghai Released the movie Up 8. LOCATION MAP Disney Resorts:1. California2. Florida3. Tokyo 4. Hong Kong 5. Paris 9. Walt Disney Divisions Media NetworksPark and Resorts ESPN Disney Land Resorts Disney/ABC Television Walt Disney World ResortGroup Tokyo Disney Resort ABC Entertainment Group Disneyland Paris ABC News Hong Kong Disneyland ABC Owned Television Disney Cruise LineStations Group Disney Vacation Club ABC Family Adventures by Disney Disney Channels Walt Disney ImagineeringWorldwide Hyperion Book s 10. Walt Disney Divisions Cont.The Walt-Disney Studios Disney Consumer Products Walt-Disney Studios Disney LicensingMotion Pictures Disney Publishing Marvel StudiosWorldwide Touchstone Pictures Disney Store Disneynature Walt Disney Animation Disney Interactive MediaStudios Group Pixar Animation Studios Disney Music Groups Disney Online Disney Theatrical Group Disney Games 11. Mission Statement"The mission of The Walt Disney Company isto be one of the worlds leading producersand providers of entertainment andinformation. Using our portfolio of brands todifferentiate our content, services andconsumer products, we seek to develop themost creative, innovative and profitableentertainment experiences and relatedproducts in the world." 12. Proposed VisionWalt Disney strives to be the worldsmost famous entertainmentcompany by creating an amazingexperience for individual of all ages. 13. Proposed MissionOur Mission is to be one of the worlds leading producerand provider of entertainment and information, fromparks to network media, and website for all ages. Weseek to provide a great experience for our customers, aswell as for our employees. By using our unique portfolio todifferentiate our content, services and consumerproducts, we seek to develop the most creative,HISTORYinnovative and profitable entertainment experiences,which would produce financial rewards to ourshareholders. In everything we do, we try to contribute toour communities by giving them the best experience. 14. SWOTAnalysis 15. Strengths One of the most recognizable entertainment company in theworld 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 togenerate more profits from different industry such as MediaNetworks and Broadcasting, Park and Resorts, StudioEntertainment and Disney Consumer Products Disney is the largest worldwide licensor of character-basedmerchandise and producer of childrens film-related productsbased on retail sales 16. Weaknesses Disney sends a corrupted influence to children Jasmine was in a forbidden relationship with Aladdin Snow White lived alone with 7 men Pinocchio was a liar Robin Hood was a thief Tarzan walked without clothes on A stranger kissed sleeping beauty and she married him Cinderella lied and sneaked out at night to attend a party Coyote runs off cliffs and blows himself up 17. Weaknesses Studio Entertainment and Disney Consumer Products divisionshave 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 reduceefficiency and lead to a lack of strategic focus High cost of entertainment production High employee turnover Poor working conditions in factories Walt Disneys Park and Resorts are not easily accessible whichleads people to associate Disney World with a costly trip 18. Opportunities Opportunity to renovate attractions in Park and Resorts Divisiondue to increase in profit Growth from cable and satellite operators creating even morepotential 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 theincrease in guest spending, theme park attendance, and hoteloccupancy Target new costumers group 19. Threats Lasting economic recession leading to slow growth rate High unemployment rate Park and Resorts Divisions success is unpredictable because ofexchange rate fluctuations; travel industry trends; amount ofavailable leisure time; oil and transportation prices; andweather patterns and seasonality. Changes in technology leads customers to stream onlineinstead of buying DVD. Online streaming makes Disney vulnerable to piracy andviolation of its intellectual property. Retail distribution business are influenced by seasonal consumerpurchasing behavior and by the timing and performance ofanimated theatrical release Increase in labor cost which will have a noticed impact in Walt-Disney expenses due to their large amount of employee. 20. External Audit 21. CPMMedia Network SegmentCritical Success factors Weights RatingWeighted Score Rating Weighted Score Rating Weighted Score 0.0 to 1.0 1 to 41 to 41 to 40 0 0Advertising 0.12 40.48 40.48 20.24Market Share0.11 30.33 40.44 20.22Company Image 0.12 40.48 30.36 30.36Financial Position0.11 40.44 40.44 30.33Management0.09 30.27 30.27 30.27Global Expansion0.12 40.48 40.48 40.48Consumer Loyalty0.12 40.48 40.48 30.36Production Capacity 0.12 30.36 30.36 20.24Technology0.09 30.27 40.36 30.27Totals 13.593.672.77 22. Positioning MapMedia Network Segment 23. Positioning MapPark and Resorts Segment 24. EFE 25. Internal AuditDisneyland will never be completed. It will continue to growas long as there is imagination left in the world. - Walt Disney 26. Organizational ChartTheme Parks &amp; ResortsInternationalABC Television GroupCo-Head InteractiveCo-Head Interactive &amp; PlaydonHuman ResourcesMotion Picture DistributionCommunicationCEO Stategy and Business DevelopmentGovernment RelationsDisney Consumer ProductsESPN &amp; ABC SportsESPN &amp; Disney Media NetworksCFOLegal and SecretaryCIDSecurity 27. Financial Trends BookPrice/ Price/ Net Profit Value/ Debt/Return on Return onInterestAvg P/E SalesBook Margin (%) ShareEquity Equity (%) Assets (%) Coverage01-Oct-0912.9 1.41 1.479.1 $18.550.38 9.85.29.601-Sep-0814.2 1.69 1.8511.7$17.730.4613.77.1 10.401-Sep-07 152.03 2.1913.2$15.670.5 15.27.7 10.401-Sep-0616.9 1.87 1.989.8 $15.420.4310.45.57.501-Oct-0522.2 1.58 1.827.8 $13.060.49 9.44.66.301-Sep-04 211.521.77.6 $13.050.539 4.45.901-Sep-0328.4 1.52 1.684.9 $11.820.57 5.62.73.401-Sep-0233.41.2 1.294.9 $11.610.62 5.32.53 28. Income Statement(in Millions, except per share data) 2009Revenues $36,149.00Costs and expenses$(30,452.00)Restrucuring and impairment charges $(492.00)Other income (expense)$342.00Net interest expense$(466.00)Equity in the income of investees $577.00Income from continuing operations before income taxes and minority interests$5,658.00Income taxs$(2,049.00)Minority interests$(302.00)Income from continuing operations $3,307.00Discontinued operations, net of tax-Net income$3,307.00Diluted earnings per share: Earnings per share, continuing operations$1.76 Earnings per share, discontinued operations Earnings per share $1.76Basic earnings per share Earnings per share, continuing operations$1.78 Earnings per share, discontinued operations Earnings per share $1.78Weighted average number of common and common equivalent shares outstanding: Diluted$1,875.00 Basic$1,856.00 29. Balance Sheet 30. Balance SheetCont. 31. Selected Financial Ratios20092008Liquidity RatiosCurrent Ratio 1.33 1.01Quick Ratio 1.19 0.91Leverage RatiosDebt-to-Total Assets Ratio 11Debt-to-equity Ratio1.12 1.93Long-term debt-to-equity Ratio 0.1 0.12Times-Interest-earned Ratio-12.14 -14.13Activity RatiosInventory Turns 28.44 33.67Fixed Assets Turnover 1.11 1.2Total Assets Turnover 0.57 0.61Profitability RatiosGross Profit margins1.84 1.8Operating Profit Margin 0.16 0.2Net Profit Margin 0.09 0.12Return on Total Assets0.05 0.07Return on Stockholders equity 0.06 0.14 Earning per share1.78 2.34Price-earnings Ratio15.31 12.61Growth Rations (yearly) Sales -4.48% 7.66%Net Income -25.30%-5.55% 32. IFE 33. Strategic FormulationI do not like to repeat successes, I like togo on to other things. Walt Disney 34. SWOT Matrix 35. Space MatrixResults 36. Strategies:Space MatrixMarket DevelopmentMarket PenetrationProduct DevelopmentForward IntegrationBackward IntegrationHorizontal IntegrationRelated DiversificationUnrelated Diversification 37. IE MatrixTotal IFE ScoreStrong 3-4Average 2-2.99Weak 1-1.99Media Networks High 3-4 Studio EntertainmentTotal EFE Medium Consumer ProductsScore2-2.99 Parks and ResortsLow 1- 1.99 Interactive media 38. Strategies:Grand Strategy MatrixMarket DevelopmentMarket PenetrationProduct DevelopmentForward IntegrationBackward IntegrationHorizontal IntegrationRelated DiversificationUnrelated Diversification 39. BCG 40. Matrix Analysis 41. QSPM Matrix 42. QSPM Cont. 43. ImplementationDisneyland will never be completed. It willcontinue to grow as long as there is imaginationleft in the world. Walt DisneyPixar is the most technically advanced creativecompany; Apple is the most creatively advancedtechnical company. Steve Jobs 2005-02-21 44. Assumptions Eliminate10 billion out of the borrowingsfrom the retained earnings Finance 1 billion to buy a land in order toopen indoor resort in New York in the nextthree years. Invest 10 million for advertisement Spend 1 billion in each of the five existingPark for renovation and new attractions. = Total of 5 billionTotal Investment of 19.01 billion 45. Projected IncomeStatement 46. Projected Balance SheetAssets 47. Project BalanceLiabilitiesSheet 48. Project Financial RatiosLiquidity RatiosCurrent Ratio 1.33 0.51Quick Ratio 1.19 0.46Leverage RatiosDebt-to-Total Assets Ratio 1 0.86Debt-to-equity Ratio1.12 1.84Long-term debt-to-equity Ratio 0.1 0.26Times-Interest-earned Ratio-12.14 -12.14Activity RatiosInventory Turns 28.44 40.39Fixed Assets Turnover 1.11 1.11Total Assets Turnover 0.57 0.62Profitability RatiosGross Profit margins1.84 1.84Operating Profit Margin 0.16 0.16Net Profit Margin 0.09 0.09Return on Total Assets0.05 0.06Return on Stockholders equity 0.060.012 Earning per share1.78 1.72Price-earnings Ratio15.31 14.27Growth Rations (yearly) Sales -4.48% 0.00%Net Income -25.30%0.00% 49. EvaluationYoure dead if you aim only forkids. Adults are only kids grownup, anyway.Walt Disney 50. Stock Price Graph 51. Balanced Score CardArea of ObjectivesMeasure of TargetTime Expectations Primary ResponsibilityCustomers1. Costumer satisfactionCustomer Survey YearlyHuman Resources &amp;Webinar CEORepresentatives1. Employee Conditions Employee SatisfactionBiannuallyCEO 2. Career OpportunityLower employee turnover BiannuallyCEO Community / SociallyResponsible 1. Eco-Friendly CompanyMaintain clean environment in YearlyCEO resortsMarketing DepartmentIncrease presence of recycling in resorts Limit food, paper and water wasteLimit land destruction2. Ethical CompanyIncrease in donations and YearlyCEOpresence of charitable events Marketing Department Operations/Processes 1.Innovation Number of new products in eachYearlyCEOsegment Marketing DepartmentNumber of renovated products ineach segment2. Brand expansion/ AccessibilityNumbers of new resorts built YearlyCEOFinancial 1. Reduce cost of production Decrease in cost of Parks, ResortsYearlyCFOand other property 2. Increase profitability Increase Sales Quarterly CFOReduce Expenses 52. Strategies Use product development to renovate andbuild new attractions in order to attract anolder target market. Use market development to build a newtheme park which will be more accessible tothe North East area. 53. RecommendationsIn the next three years Walt Disney should.. Build an indoor theme Park and Resort in NewYork. Improve advertising to promoteentertainment which target a more matureaudience. Remove the Interactive Media Segment. Remodel and build new attractions in everyPark and Resorts to stay appealing to ourcustomers. 54. ObjectivesIn the next year Walt Disney should Improve advertising to promote entertainment Removethe Interactive Media Segment Buy a land in New York City 55. Questions 56. Sour...</p>