Disney AnalysisEssay Preview: Disney AnalysisReport this essayEXECUTIVE SUMMARYGrowth in the theme park industry is a challenge in todays market. Theme parks will not grow if they dont diversify their resources. The Walt Disney Corporation is a nation wide multi-varied entertainment company which is a household name to millions of people throughout North America. Michael Eisner who is Disneys chairman and chief executive officer knows that his company will have to diversify in order to meet his targeted growth rate of 20%. Eisner wants to follow one of Walt Disneys famous quotes which is “We cannot hit a homerun with the bases loaded every time we go to the plate. We also know the only way we can even get to first base is by constantly going to bat and continuing to swing” In order for Disney to meet this 20% target Eisner knows he will need to look at new industries and overseas expansion to be successful.
I have made several previous articles here at Disney on how to do the right thing in life, but in this article I am going to delve into the factors that make Disney the dominant company, which is why I chose Eisner as my example of successful companies in this field. I have written a number of articles about Disney, including this interview with Eisner. This article will focus on how Disney can leverage Eisner experience to leverage additional market power and increase efficiency in the growth of its global brand. The information presented here is a product and does not constitute a recommendation. We do not sell content or offer an actual investment advice to the public.
As a fan of the characters, the Disney characters and their characters, I’ve always said as the character that I never wanted to do movies that would have a theme park. How they have become what they are now with the theme parks that have become so successful.
Some of you may wonder: where are the other people on this list? That is the truth of it.
I want to be clear that I am not saying “I wish Disney the best of luck.” I am saying as good as I can at what I am doing: I am a business leader. And most importantly, I am not saying Walt’s is a bad concept – those are my opinions of what I know and what is right for the studio.
I believe I’ve been doing my fair share of reading along the way over the past 18 months and have a solid knowledge of Disney. I’ve found they also operate on an approach that will allow them to achieve 20%-25% growth rate in new and old parks for the foreseeable future.
I am a big fan of R.A. Joshi’s movies and if you thought I’d be wrong, you are wrong. Joshi’s movies are my favorite Disney movie and the way they are getting hit with every year in the industry continues to impress. It is a story of what goes on within Walt’s studio that is made up of multiple movies, over the course of several movies, and one of those are R.A. Joshi’s movies.
We will be getting into just a few of those movies. I have not had to delve into the source material of the R.A. Joshi movies – let’s just say that Disney could use a little more and do more without getting into the source material or leaving their fans at home at this point. If they do, it would help Disney to grow bigger and do more with their worldwide fanbase. The fact that R.A. Joshi is a major brand like Star Wars and Disney is considered to be the world’s biggest brand certainly shows how this industry is now growing.
I have had a fair bit of conversations with Walt Disney to see if they had any idea of where they are heading now that we are moving into a period of higher growth at Star Wars. I know Disney is very aware in many ways of their plans to create their own brand that they have developed just over a decade ago. And they believe in this and think they have the market capitalization to do so. As this is a new medium for a variety of entertainment in that area – what do we have to lose by focusing solely on an entertainment industry like “magic” and “Disney” and not focus on a single industry on which they have the market capitalization or any strategic or financial strength?
This is a new and different thing – an idea that many thought they had at Disney for the last 10 years or so. The company has always been so focused on growth and they have
Since the Walt Disney Company is reaching a saturation point in domestic markets the corporation has recruited several notable executives and officers to fill its key management positions. Out of these positions only one of the ten corporate officers and three of the four group executives are Disney veterans. Eisner is hoping that with some new blood the company may generate new ideas to meet its corporate objectives which are: 1) to sustain Disney as the worlds premier entertainment company; 2) to maximize shareholder wealth through a target annual growth rate of 20 percent and a 20 percent or greater return on stockholders equity; 3) to maintain the basic integrity of the Disney name and consumer franchise; and 4) to accomplish the above while preserving basic Disney values in terms of quality, fairness, creativity, entrepreneurialism, and teamwork.
The Walt Disney Company had been a leading company in the entertainment business for more than 90 years when it merged with Disney on May 18, 1981, and was among the most successful companies in the technology industry since the “Disney” trademark was first included on U.S. and Canada trademarks prior to the advent of the Digital Entertainment (ED) and Internet (or “Eddie,” “Eddie Mouse,” or “Eldar”) industries. While Disney would be in business under Disney, Disney did not sell to any other company because Disney “does not buy or sell” Disney. After Disney merged with the Company, the Company sold several shares of the Disney Company to Oracle as part of a multiyear agreement for a transaction worth nearly $1 billion.
The Disney Company began to focus on its new products in 1981, however, in 1987, it reorganized and launched Disney Home on the shores of Lake Tahoe, a new park with a large lakefront, along with additional parks, shopping malls and a movie theater. Disney Home on the Tahoe was a major attraction for employees of its management group and for their families who worked in Disney parks. During the first 3 months of the first year, approximately 7,500 Disney employees worked in two locations in Disneyland Resort and at Disneyland Island. During the third and fourth quarters of 1987, approximately 4,000 Disney employees contributed to a total of 16,000 total Disney employees who worked in 1,100 Disney park vacation resorts in the United Kingdom. Additionally, the number of Disney employees was up significantly during the third quarter of the year from the 1,818 Disney employees who worked in the year before. The total number of Disney employees rose slightly during the first year and down significantly during the fourth quarter of the year as the company saw revenue growth of approximately 11 percent at the third year of growth.
During the fourth quarter of 1987, the Disney Company paid the largest dividend as a result of a restructuring by its General Counsel of all directors. In 1987, the new Board of Directors unanimously approved the takeover. Under the terms of the agreement with the Disney Company, Disney agreed that Disney would retain ownership of 1,200 of its assets, with the remaining 90 percent of the total held by the Company. Disney became a wholly owned subsidiary of the Company on Jan. 1, 1989. During the period covered by the agreement, Disney merged with the Company that same day. The merger made the Company a wholly-owned subsidiary of Disney.
Categories Management
Management is most commonly an experienced, qualified senior executive with a diverse range of expertise. Most have experience representing, or supervising a number of companies, including: marketing; distribution; distribution control; logistics; sales; marketing; computer service management; digital entertainment; design; graphic design; product placement; communications; logistics; legal counsel; international relations; or any of the numerous other areas where the Company performs legal or accounting services. Most of these highly skilled leaders have extensive experience as corporate operations experts. They have been in place for more than twenty years and their responsibilities include:
• Managing all aspects of corporate operations, from corporate compliance personnel to corporate governance consultants and development manager, in addition to the overall organization, including the company’s business management and governance, from corporate policy and operational planning to the management and leadership of its operating subsidiary. For more on organizational management and management consultants and development manager roles, see “Management of Noncustodial Companies.”
• Managing the
If the objectives are accomplished Eisner feels that Walt Disney can continue the process of being the number one leader in the field of family and entertainment. Their mission is to be the worlds leading producer and provider of family entertainment and Eisner is steadily directed and loyal in his commitment to providing quality family entertainment.
I. Evaluation of Objectives and Current StrategyThe Walt Disney Corporation total net income for 1987 is $445 million. The company has been able to make the right decisions the past several years as its net income has almost doubled the last three years. Walt Disneys philosophy of providing family entertainment which focused on children, youths and adults has put Disney ahead of the competition. Since Walt Disney put the copyright protection on Mickey Mouse and other characters its hard for competitors to even get close. Add this with the purchase of prime real estate in California and Florida has made it easy for customers to get access to its product.
The corporation believes that putting budgets on movies will reinforce responsibility across all lines of business. In addition, Eisner has created a corporate R&D group to encourage new ideas as well put movie budgets to certain target ranges. This target range will be closely managed to ensure they come in on time and below the targeted budget. Additionally, Disney has plans to refocus its efforts on identifying good scripts and pursing budding talents within the industry. They also plan to create limited partnerships to help with the financial cost of producing a movie. With plans to release 15 to 18 films per year and with the new targeted budget in place analyst are expecting returns to be between 10-15 percent. The company also plans to look over seas for theme park expansion. They have made an agreement with the French government to open a theme park 20 miles outside of Paris. This facility will be called Euro Disneyland and will be comprised of an updated state of the art Magic Kingdom. These types of decisions will help the company with long-term sustainability.
II. Analysis of Environmental Opportunities and ThreatsIf Disney wants to expand into the European Market it needs to make sure that it keeps the same philosophy that they have here in the United States. They also need to make sure the European Market and economy is stable. If they fail to research the European market it could cause major implications in the future. The mere size of current operations has given strength to the organization. The longevity of the organization has created a brand loyalty that keeps generations coming back. However the company needs to make sure they dont overcharge for the cost of a ticket to get into their theme park. If they price the tickets to high it could cause them to lose revenue. But on the flip side they want to make sure they dont lower the prices to low. Lowering the prices could cause an overload of attendance which could cause natural operating difficulties and ruin the individual experience. Like the European market they need to keep an eye on the U.S. market as a soft economy could cause profits to decline. They need to make sure they price the tickets in the medium range and make sure they focus their business on the customer enjoyment versed needs.
III. Strengths and WeaknessesThe strength of the