Magic KingdomEssay Preview: Magic KingdomReport this essayOrganizational BehaviourFinal Exam – Magic KingdomPrepared by Mr.BrooksMagic KingdomAbout Walt DisneyThe Walt Disney Company was founded in 1923 and is one of the largest media and entertainment corporations in the world. The Disney Corporation is dedicated to bringing animated movies (e.g. Sleeping Beauty) into peoples homes with the main objective of putting a smile on everyones face. Though both the information age and technology trends will reshape Disneys business model, both will never reshape Disneys impact on our lives.
Disney has been known to create cutting edge animations and products for decades. Disney was the first to create animated movies in sound as well as in 3D. The company also creates cutting edge consumer products such as computer games, the Dream Desk PC, and even a Disney mobile family plan. Walt Disney loved animation and valued perfection more than profit.
Walt Disney is a diversified worldwide entertainment company. It has operations in four business segments: media networks, studio entertainment, parks and resorts and consumer products.
In media networks, the company operates the ABC Television Network and 10 owned-television stations and the ABC Radio Networks and 71 owned-radio stations. Primary cable/satellite programming services, which operate through consolidated subsidiary companies, are the ESPN-branded networks, Disney Channel, International Disney Channel, SOAPnet, Toon Disney, ABC Family Channel and JETIX channels in Europe and Latin America. Other programming services that operate through joint ventures include A&E Television Networks, Lifetime Entertainment Services and E! Entertainment Television. In addition, the company operates ABC, ESPN and Disney-branded Internet Website businesses.
In the parks and resorts segment, the company owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. Outside US, The company also had a presence in Japan, where it earns royalties on revenues generated by the Tokyo Disneyland Resort, and owned 41% equity investment in Euro Disney, Paris. In addition, The company also manages and has a 43% equity interest in Hong Kong Disneyland.
In the studio entertainment segment, the company produces and acquires live action and animated motion pictures for worldwide distribution to the theatrical, home entertainment and television markets. The company distributes these products through its own distribution and marketing companies in the US and foreign markets primarily under the Walt Disney Pictures, Touchstone Pictures, Miramax and Dimension banners. The company also produces stage plays and musical recordings.
In the consumer products segment, the company licenses the name Walt Disney, as well as the companys characters, and visual and literary properties, to various manufacturers, retailers, show promoters and publishers throughout the world. The company also engages in direct retail distribution principally through the Disney Stores. The company produces books and magazines for the general public, computer software products for the entertainment market, as well as film, video and computer software products for the educational marketplace. The companys direct marketing business operates the Disney Catalog, which markets Disney-themed merchandise through the direct mail channel. Catalog offerings include merchandise developed exclusively for the Disney Catalog and DisneyDirect.com, which is an Internet shopping site, as well as other internal Disney businesses and Disney licensees
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Disney-related revenues are up 15% from a year ago, and there were 689,620 U.S. digital business accounts, or $19.6 billion, for the quarter ended December 31, 2011, compared with a year earlier of $14.0 billion for 2012. The Company’s net profit was up 10% to $4.5 billion or $4.2 billion compared with a year earlier of $3.7 billion for 2012.
During the fourth quarter ended December 31, 2011, the Company recorded additional net sales for this quarter up to $1.7 billion; a 5% increase from the fourth quarter of 2012. On a quarterly basis, the Company recorded sales of $1.6 billion.
In the consumer product segment, the company licenses the name “The Prince Of Aladdin,” the Disney Company’s “Adventures in Wonderland,” the Disney Logo, the Disney Family, a new series of products for youth entertainment, as well as “Elegance,” a live-action musical entertainment company for youth, and a children’s movie company. The company does not own the intellectual property rights to such intellectual property rights, and, therefore, the Company’s interest in the Disney trademarks does not extend to the development of trademarks based on the trademarks of other Disney companies or the Disney trademarks. However, in the event of the possibility that the “Adventures in Wonderland” name does not license the assets of the Company that it owns rights to, the Intellectual Property Trust of the Government of Great Britain and other jurisdictions around the world will be the subject of a U.K. Intellectual Property Protection Order (ITO) by the Court of Arbitration for Sport (CAS) in London. It is expected that this order will result in a ban on ownership of the trademarks and other intellectual property rights of the Company and the Intellectual Property Trust’s trademarks in the United Kingdom that are covered by that judgment in the E.S., where the issue as to the royalty for “Adventures in the Wonderland” on Disney’s intellectual property in question can be resolved.
The Company reported the fiscal quarter ending December 31, 2009, with a loss of $9.3 billion. In 2012, the Company reported operating loss of $13.0 billion, and as a result of the lower level of sales that occurred in 2012, the Company reported a loss equal to the Company’s prior reported loss of $9.2 billion in the years ended December 31, 2012 and 2013. Because of the Company’s lack of a separate EBITDA basis on the goodwill of the Company, any increase in revenues, but especially the decline in goodwill in the fourth quarter ended December 31, 2011, were materially offset by the gains that have been offset in the Company’s other operating segments.
General and Administrative
As of December 31, 2012, the Company’s General Accounting Standards Board (GABS), which is comprised of five Federal, State, and local officers and directors, made all material decisions regarding the financial results of the Company under applicable GABS guidance for the years ended December 31, 2012 and 2011. The Company is currently evaluating opportunities to improve General Catalyst Group’s financial, operating and management performance.
In its last financial year, the Corporation’s General Accounting Standards Board established new General Accounting Standards (GAAS) standards effective August 22, 2016 effective after December 31, 2012 that were promulgated on August 22, 2016 by the Department of Treasury as part of its guidance to the Department of the Treasury in this year’s Report on Form 10-K. The new General Accounting Standards (GAAS) requirements are intended to eliminate gaps
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Disney-related revenues are up 15% from a year ago, and there were 689,620 U.S. digital business accounts, or $19.6 billion, for the quarter ended December 31, 2011, compared with a year earlier of $14.0 billion for 2012. The Company’s net profit was up 10% to $4.5 billion or $4.2 billion compared with a year earlier of $3.7 billion for 2012.
During the fourth quarter ended December 31, 2011, the Company recorded additional net sales for this quarter up to $1.7 billion; a 5% increase from the fourth quarter of 2012. On a quarterly basis, the Company recorded sales of $1.6 billion.
In the consumer product segment, the company licenses the name “The Prince Of Aladdin,” the Disney Company’s “Adventures in Wonderland,” the Disney Logo, the Disney Family, a new series of products for youth entertainment, as well as “Elegance,” a live-action musical entertainment company for youth, and a children’s movie company. The company does not own the intellectual property rights to such intellectual property rights, and, therefore, the Company’s interest in the Disney trademarks does not extend to the development of trademarks based on the trademarks of other Disney companies or the Disney trademarks. However, in the event of the possibility that the “Adventures in Wonderland” name does not license the assets of the Company that it owns rights to, the Intellectual Property Trust of the Government of Great Britain and other jurisdictions around the world will be the subject of a U.K. Intellectual Property Protection Order (ITO) by the Court of Arbitration for Sport (CAS) in London. It is expected that this order will result in a ban on ownership of the trademarks and other intellectual property rights of the Company and the Intellectual Property Trust’s trademarks in the United Kingdom that are covered by that judgment in the E.S., where the issue as to the royalty for “Adventures in the Wonderland” on Disney’s intellectual property in question can be resolved.
The Company reported the fiscal quarter ending December 31, 2009, with a loss of $9.3 billion. In 2012, the Company reported operating loss of $13.0 billion, and as a result of the lower level of sales that occurred in 2012, the Company reported a loss equal to the Company’s prior reported loss of $9.2 billion in the years ended December 31, 2012 and 2013. Because of the Company’s lack of a separate EBITDA basis on the goodwill of the Company, any increase in revenues, but especially the decline in goodwill in the fourth quarter ended December 31, 2011, were materially offset by the gains that have been offset in the Company’s other operating segments.
General and Administrative
As of December 31, 2012, the Company’s General Accounting Standards Board (GABS), which is comprised of five Federal, State, and local officers and directors, made all material decisions regarding the financial results of the Company under applicable GABS guidance for the years ended December 31, 2012 and 2011. The Company is currently evaluating opportunities to improve General Catalyst Group’s financial, operating and management performance.
In its last financial year, the Corporation’s General Accounting Standards Board established new General Accounting Standards (GAAS) standards effective August 22, 2016 effective after December 31, 2012 that were promulgated on August 22, 2016 by the Department of Treasury as part of its guidance to the Department of the Treasury in this year’s Report on Form 10-K. The new General Accounting Standards (GAAS) requirements are intended to eliminate gaps
QuestionsWhy do you think that the Disney organization, once a highly successful and growing organization became stagnant after the death of its founder Walt Disney? Describe as many reasons as possible.
Answer:The company became stagnant is because of the following factors:Very large work force – In 1991, the company has 58,000 employees. This fact represents possible communications problems, and a high bureaucracy level within the corporation. By diversifying into more businesses and niches, the companys work force will grow even larger, and the organizational structure has to be able to support an expansion of the work-force.
High overhead expenses – Large overhead costs are usually direct effects of a large work-force and a large number of fixed assets.Corporate-level strategy – Disneys corporate level strategy is based on a horizontal and decentralized and informal management approach. Ideas are born from within the departments and are worked-up throughout the relatively low hierarchy, where the final decisions are made. The management focuses on group creativity and in team-work. A large emphasis is placed on employee participation, especially on the most talented employees. Furthermore, the company is frequently refreshing its top management with new executives. “Top-flight” managers from the entertainment and the financial business bring with them new ideas and concepts which can be applied in the Disney Company. There is however a significant increase in expense attached to luring the very best to join the company. This increase in expense is directly related to special perk-packages, higher bonuses and escalated salaries that are offered to the top-executives.
Frequent change in top-management – The fact that the company very frequently changes its corporate officers makes the corporate structure even more complicated. There are many positive things that accompany changes, but change is also associated with resistance, and large expenses.
Over saturated markets – As the supply of services and products in the entertainment industry is starting to saturate the markets, competition will be more intense, and only the most powerful companies will be able to survive. Disney has leveraged this risk to a certain extent as it has diversified and globalize its operations, but still, the company is in the service/entertainment business. Some of its operations, such as the Network-television division may not be able to handle the pressure from the Cable-giants such as Turner Broadcasting Systems (TBS).
Politics and economic aspects from a global perspective – World politics and the state of the global economies are related to the market capacity. In 1991, the sales revenue of Disney