Walt Disney Company's objective is to be one of the world's leading producers and providers of entertainment and information, using its portfolio of brands to differentiate its content, services and consumer products. The Company's primary financial goals are to maximize earnings and cash flow, and to allocate capital profitably toward growth initiatives that will drive long-term shareholder value.
(http://disney.go.com/corporate/investors/index.html
*Organizational structure
Diseny has a tall (or vertical) organizational level with 13 hierarchical structures. This means that the CEO is at the top with levels of hierarchy beneath. Each sub-managerial level controls its own territory. The obverse to this is a flat (horizontal) structure.
*decision-making strategies
The matrix that Disney offers as template for its decision-making strategies are the following: safety, courtesy, show and efficiency. This guides all of its business decisions and serves as heuristic for making decisions (Freeman, 2001) According to Housely (2003) Disney's decision-makign strategy is heterogeneous, attempts to be inimitable, exhibits…...
mlaReferences
Disney Corporation http://disney.go.com/corporate/investors/index.html
parks, W. (2007) Associated Content. The magic of Disney's organizational concepts. http://www.associatedcontent.com/article/381660/the_magic_of_disneys_organizational_pg5.html?cat=3
Freeman, L. (2001)Freeman, 2001. Disney Exec Suggests Matrix For Decision-Making. Credit Union Journal
http://findarticles.com/p/articles/mi_km3607/is_200109/ai_n8617602/ .
Disney
Internal Memorandum
Michael Eisner, CEO
Case Overview
The purpose of this memo is to provide an outline of the case Walt Disney Company: The Entertainment King and the outline the alternatives that Disney has at its disposal. The best alternative for restoring ROE growth is to tap back into what made Disney great in the first place, which is creative ideas that are nurtured and brought to market.
The company has been suffering from a decline in ROE, which is currently below 10%. The rebound Disney experienced last year was almost entirely due to the success of Who Wants to be a Millionaire?, which has masked underlying weakness in the rest of our businesses. The company lost several key executives, creating a talent void. This in turn affected creative output, and the company began its slide at this point. The company's rebound in 2000 was aided by strong performance from its theme parks, indicating…...
Microeconomic Analysis: The Walt Disney Company
Why Walt Disney?
Just a mention of the name, "Walt Disney," stirs up images in the minds of nearly every individual in the western world. From movies to merchandise, theme parks to cruise lines, the Walt Disney Company has been able to create a distinct niche for itself in a variety of markets -- a feat that is certainly no easy task. Headquartered in Burbank, California, The Walt Disney Company is an American multinational media conglomerate, and is the largest media conglomerate in the world in terms of revenue (Siklos, 2009, 1). While, like many American corporations, the Walt Disney Company has had its low-points throughout the years, as well as having been hit by the lingering economic crisis, the fact remains that Walt Disney has consistently remained a company that has the ability to weather any storm. Since its inception as a company in 1923,…...
mlaReferences
Disney (2012). Company History. The Walt Disney Company. Web. Retrieved from:
[Accessed on 26 February 2012].http://corporate.disney.go.com/corporate/complete_history_1.html
Garcia, J. (2011 June 20). Disney pricing strategy: seeking more profits out of long-term visitors. The Orlando Sentinel. Web. Retrieved from: orlandosentinel.com/2011-06-20/travel/os-disney-ticket-prices-20110620_1_disney-pricing-strategy-ticket-prices-ticket-options [Accessed on 26 February 2012].http://articles.
Nakashima, R. (2009). Disney profits plunge; recession hurts theme parks. USA Today.
Investing in Walt Disney Company
Characteristics of its bonds
Apparently, Disney's bonds seem to be in an enticing situation. After a dip during the past years, Disney's bonds seem to be in great demand. In June of this year -- little less than 3 months ago - it offered a 3.75% banking 10-year paper with over $25mm. This was the hot-shot then, specially in a time when post-holiday trade was lax, and investors were eager to grab it leveraging the bond's cost by eight-cents per $1,000 face worth to 100.68 consequently dipping the concede to 3.66%. (Wilkinson, 2011).
einforcing the optimistic perspective is that earlier this month, Walt Disney sold five-, ten- and thirty-year bonds with the lowest coupons ever in a three-part $1.85bn U.S. debt offering each of which consisted of the equivalent of $750m in each of the notes. Disney seems to be doing well since Financial News (2011) reports that…...
mlaReferences
Financial News . (08/18/2011). Walt Disney sets low-coupon records with debt offer http://www.efinancialnews.com/story/2011-08-18/walt-disney-lowest-coupon
Grossman, T. & Livingstone, J.L (2009) The portable MBA in finance and accounting Wiley & Sons, USA.
Investopedia: Why do companies issue 100-year bonds?
www.investopedia.com/ask/answers/06/100yearbond.asp
The objective of this tight control is to ensure that the illusion of the Magic Kingdom is maintained -- it is destructive to the customer experience for a young child to see a man in a Donald Duck suit smoking a cigarette or going to the bathroom.
Disney's other businesses are also subject to tight controls. The company relies on both specific job descriptions and on training as part of the control system. Such control requires strong centralization and a significant level of managerial input over all aspects of the business. Thus Disney's internal processes are designed by management and enforcement of best practices is strict. The result is a seamless experience where customers can suspend their disbelief and enter a magic world.
The alt Disney Studios also takes a highly-controlled approach, even though its core businesses are creative. Disney focuses on market research to help guide its creative processes, so…...
mlaWorks Cited:
The Walt Disney Company. (2012). Company overview. Walt Disney Company. Retrieved November 17, 2012 from http://thewaltdisneycompany.com/about-disney
Walt Disney Company 2011 Form 10-K. Retrieved November 17, 2012 from http://thewaltdisneycompany.com/sites/default/files/reports/fy11-form-10k.pdf
Disney is positioned to continue as a profitable entity for the foreseeable future. Its businesses are strong, financials good and the company has a stable model. Disney could be involved in M&a activity, but as the largest company in the industry and having financial strength there is low likelihood that Disney will be purchased.
Memo. Founded in 1923, the alt Disney Company is a diversified entertainment company. Its businesses are mature, enjoying mainly organic growth. Revenues are stable, even through the economic downturn, although profits have slumped slightly. Disney is the industry leader and is the largest firm in the industry by all measures. It competes mainly in theme parks, television, movies and music.
Disney has strong financial ratios, marked by a low debt level, good liquidity and healthy margins. The company's returns are better than the industry average. Because of its solid financial position, Disney has few major threats --…...
mlaWorks Cited:
Federal Reserve Bank of New York. (2010). Federal funds data. Federal Reserve Bank of New York. Retrieved April 30, 2010 from http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm
BEA. (2010). Gross domestic product: Fourth quarter 2009. Bureau of Economic Analysis. Retrieved April 30, 2010 from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
Hernandez, J. (2010). U.S. inflation report gives Fed breathing room. New York Times. Retrieved April 30, 2010 from http://www.nytimes.com/2010/02/20/business/economy/20econ.html?adxnnl=1&adxnnlx=1272618054-ellf4Oepfl12/+t71Oy+7g
MSN Moneycentral: Walt Disney Co. (2010). Retrieved April 30, 2010 from http://moneycentral.msn.com/companyreport?Symbol=DIS
Walt Disney Company
When Walt Disney returned from work with the ed Cross during World War One, his brother got him a job at a Kansas City art studio, and he started to experiment with animation. He and his partner made a deal with a local movie theater to run their cartoons, and the popularity of these allowed Disney to create his own studio. After losing the rights to many characters, Disney pursued the Mickey Mouse character and the third Mickey Mouse film, Steamboat Mickey, was an instant success. Many of the famous friends were created shortly thereafter. The company's first feature was Snow White and the Seven Dwarves in 1937, and it was an incredible hit, allowing the studio to produce a string of other now-classic films (Biography.com, 2017).
The company expanded into television and by 1955 it had opened a theme park. Disney has since evolved into an integrated entertainment…...
mlaReferences
2016 Disney Annual Report. Retrieved April 27, 2017 from https://ditm-twdc-us.storage.googleapis.com/2016-Annual-Report.pdf
Biography.com (2017) Walt Disney. Biography.com. Retrieved April 27, 2017 from http://www.biography.com/people/walt-disney-9275533
Interbrand (2016) Global 100 Brands. Interbrand Retrieved April 27, 2017 from http://interbrand.com/best-brands/best-global-brands/2016/ranking/
Le, V. (2015) The world's largest media companies of 2015. Forbes. Retrieved April 27, 2017 from https://www.forbes.com/sites/vannale/2015/05/22/the-worlds-largest-media-companies-of-2015/#7a805f714161
Since this control stems from the highest chain of command, a company's policies and procedures are usually directed by this authority (Droege, n.d.). Eisner took various actions in efforts to revive the company such as changing the organizational structure, hiring new management, controlling movie budgets and adopting a new company name.
Quality Controls:
This control mechanism not only depicts the extent of the suitable product but also influences the final product provided to customers. In Walt Disney Company, this control mechanism is evident in the company's decision to enter into film production after the failure of its initial cartoon business. The focus of the film production business is to maintain wholesome entertainment for the family.
Functions of these Control Mechanisms:
The major similarity between these four types of control mechanisms is that they have a significant effect on planning and organization of the company. These four control mechanisms are also used in the…...
mlaReferences:
Droege, S.B. (n.d.). Management Control. Retrieved October 19, 2010, from http://www.referenceforbusiness.com/management/Log-Mar/Management-Control.html
Housley, S. (2003). Case Analysis of the Walt Disney Company: The Magic of Disney. Retrieved from Haas School of Business -- University of California website: http://faculty.haas.berkeley.edu/meghan/299/Case_analysis_Disney4.pdf
For example, both jobs could have employee of the month programs with special perks, like free lunches, special parking spots, longer break periods and other small luxuries that allow the employee to valued and valuable. Moreover, once the individuals in these positions have at least three years of time with the company, they'll become eligible for more enticing intrinsic benefits, such as decision-making power and the ability to choose specific assignments. While these types of compensation don't have the same allure as financial ones do, they do have the appeal of giving each employee power, more autonomy and a higher degree of ability in enjoying one's job.
For instance, neither job position will receive a commission, but both will receive performance-based bonuses. For example, the security manager will receive a bonus of 10% of his monthly salary based on keep a low or steadily declining rate of crime. The facility…...
mlaReferences
Bohlander, G.W. Snell, S. (2007) Managing Human Resources. Mason: Thomson Learning
Fundamentals of HR Management. Chapter 11: Establishing Rewards and Pay Plans p. 284-310
Walt Disney Company CSR
The Company
Walt Disney Company began as a small cartoon studio in 1923, produced its first sound-synchronized short five years later, its first full-color cartoon short in 1932 for which it received an Academy Award, and from there the Company catapulted to greatness with hits such as Snow White, Dumbo and Pinocchio. Disney expanded into live-action production, television, theme parks, and global productions over the decades with Walt Disney World among its major attractions, even as it grew the Disney Channel, merged with AC (in 1996), purchased Pixar in 2006, acquired Marvel Entertainment in 2009 and LucasFilms in 2012 (rebooting the Star Wars franchise).[footnoteRef:1] It appeals to a broad-based audience from young children to older generations, with cross-cultural demographic appeal as well. The vision of the company is to be a "leading diversified international family entertainment and media enterprise," consisting of media networks, parks, resorts, studios, roadway shows,…...
mlaBibliography
Brown, J. Nuttall R. Beyond corporate social responsibility: Integrated external engagement, 2013.
Business Review (2013) The Walt Disney Company -- A leader. Web. Accessed
5 Jun 2016 from http://www.businessreviewusa.com/leadership/3827/The-Walt-Disney-Company-A-Leader-In-Corporate-Social-Responsibility
Freeman E. R. A Stakeholder Theory of Modern Corporation." In L.
Walt Disney's Marketing Mix/Strategies
Product and Service Strategy
The products offered by Walt Disney are much more tangible and services. These products have offered Walt Disney high awareness among many customers in the market. The products are designed to meet the specific needs and preferences of the customers in the diverse market. Walt Disney has gone ahead to customize all of its products under certain characteristics of the company. These characteristics help to differentiate and demarcate its products from those of other brands in the market (Deodhar, 2013).
Pricing Strategy
Prices of goods and services offered by Walt Disney are not low. Nonetheless, when one makes a comparison of the prices of products and services of Walt Disney and those of other competitor brands, he or she will realize that the prices are fair, with consideration of the quality and quantity of the products produced by Walt Disney. Pricing is a strategy that is…...
mlaReferences
Deodhar, S. Y. (2013). Why I Am Paying More: Price Theory and Market Structure Made Simple. University Press,
Hubbard, R G, and Anthony P. O. (2006). Microeconomics. Upper Saddle River, NJ: Pearson/Prentice Hall, 2006. Print.
McDaniel, C., D, Joseph F. H, and Charles L. (2014). Marketing 8. Harvard .University Press,
Salinger, Bob, & Len Testa. (2011). The Unofficial Guide to Walt Disney World 2011. New York: New York Press
Walt Disney
Indicate the type of debt Disney offers to the public for sale and discuss the various approaches Disney incorporated to ensure successful marketability of these securities
The type of debt that Disney offers to the public for sale include the company's debt securities, in one or more sequences, which might be senior debt securities or subordinated debt securities. In each of the aforementioned debt securities, it can consist of notes or other unsecured proofs of indebtedness. Another kind of debt offered to the public is the shares of the company's preferred stock. This stock might be issued to the public in the form of depositary proceeds, signifying a portion of a share of preferred stock. There is also the offer of the shares of Disney's common stock. There are also the offerings of warrants to buy any of the other securities that may be sold under the company's prospectus as…...
mlaReferences
Disney Company. (2007). Prospectus Supplement.
Hoovers Inc. "The Walt Disney Company." Retrieved 27 November 2015 from: http://premium.hoovers.com/subscribe/co/overview.xhtml?ID=ffffrrjfysytjjfykj
Walt Disney Company. (2010). Form 10 Q. Retrieved 27 November 2015 from:https://thewaltdisneycompany.com/sites/default/files/reports/q1-fy10-form-10q.pdf
Organization Management
The Walt Disney
The Walt Disney Company
The Walt Disney Company
An organization is any social entity that has a well-designed structure to coordinate its functions, and the organization has to have a specific goal. Most organizations hardly work internally alone, but rather involve the external environments. Some organizations are profit oriented, like the business organizations, while others are non-profit making (Daft et al. 2010). In this context, a contemporary focus is overlooked towards the Walt Disney Company, a profound firm dealing with mass media and affiliated industrial operations.
Brief Company Profile
Walt Disney Company was founded in 1923, and has always kept the reputation in providing quality and extremely creative products, which consumers have loved ever since. The organization specializes in providing quality entertainment, services of media communication, broadcasting, television programs and live performances. The company, which is located in California (United States), exemplifies exponential characteristics that the right management and organization controls.…...
mlaReferences
Barry, L. (2009) Think Like an Iconoclast: The Principles Of Walt Disney's Success: Rotman Magazine, Pg 108-110.
Daft, R.L., Murphy, J. & Willmott, H. (2010) organization Theory and Design: New York, Cengage Learning EMEA.
Forester, M. (2002) Table-Talk Perspective: Chain Store Age, 10870601, Vol.78, Issue 11.
Gershon, R.A. (1996) The Transnational Media Corporation: Global Messages and Free market Competition: New York, Routledge.
Business Ethics
Business proposal
Walt Disney is the largest entertainment company in the industry all over the world. Throughout the years the company ahs become a leader in the source of entertainment.an in-depth look at the company's financial processes [provides an insight of how the company became known, respected and loved by many people all over the world. Disney is a familiar household name due to the its lasting impact not only in American society but all over the world .from 1920's Walt-Disney has left an impact to people throughout the world for its entertainment which includes films, theme parks as well as resorts (Disney, 2013). Being a leading entertainment company in the world is an indication that the financial performance of Walt Disney has been secure since its inception. Everyone in the world enjoys entertainment and Walt Disney has natured and organization that provides entertainment to people just as they want…...
mlaReferences
Disney. (2013). Business and Ethics Standards. Retrieved September 25, 2013 from http://thewaltdisneycompany.com/about-disney /business-ethics
Disney. (2013). Code of Business Conduct and Ethics for Directors. Retrieved September 25, 2013 from http://thewaltdisneycompany.com/content/code-business-conduct-and-ethics-directors
The Walt Disney Company. (2010).Standards of Business Conduct. Retrieved September 25, 2013 from http://corporate.disney.go.com/corporate/conduct_standards2
alt Disney including: a history leader- page applying leadership traits-: inspiration, goal setting, praise recognition, training/coaching, problem solving, planning,
alt Disney: Leadership style
alt Disney was a creative man who built an empire around his vision. Love or hate his product, he created a distinct, family-focused 'Disney style' of entertainment. Before alt Disney, cartoons were regarded as largely derivative forms of entertainment, as a warm-up to the feature film. Disney placed cartoons front and center of the American entertainment experience during a time when movies were one of the central ways in which Americans came together to enjoy a commonly-enjoyed fantasy. He later parlayed this success into television, and even into theme parks which brought the cartoon experience to life. Disney was able to create his cutting-edge vision through near obsessive control of his product and tunnel-vision focus upon his goals. He was a transformative leader, inspiring his subordinates with his…...
mlaWorks Cited
Cherry, Kendra. "Transactional leadership." About.com. 2012. [30 Nov 2012]
http://psychology.about.com/od/leadership/f/transactional-leadership.htm
Krasniewicz, Louise. Walt Disney: A Biography. Greenwood, 2010
Straker, David. "Transformational leadership." Changing Minds. 2012.
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