Essays24.com - Term Papers and Free Essays
Search

Disney Case Study

Essay by   •  January 4, 2011  •  1,247 Words (5 Pages)  •  1,602 Views

Essay Preview: Disney Case Study

Report this essay
Page 1 of 5

TO: Michael Eisner, Disney's chairman and chief executive officer

FROM:

DATE: 23 March 2008

SUBJECT: Disney Case Analysis

EXECUTIVE SUMMARY

The Walt Disney Company’s ability to compete in a range of industries (film and televiÐ'¬sion production, theme parks, and consumer products) and excel in all of them is staggering. You continued the vision of the man whose dream was to offer a family friendly theme park that did not just focus on children and expanded that beyond I dare say even Walt Disney’s wildest imagination. You have continually met your stated goal of 20 percent annual growth in earnings per share each year without violating the culture, traditions, or image of the company.

.

With that said, I did find a few areas you may already be aware of; however, I wanted to bring them to your attention to ensure no impediments existed that could affect your stated business objectives.

1. Disney must follow through on the renovation at their Disney Hotel.

2. Disney must create a long range plan that specifies how they will populate the Orlando acreage.

I. The Company's CURRENT Objectives and Current Strategy: Disney’s current objectives are 20 percent growth per year and a strong balance sheet and cash flow. Disney is looking at identifying and experimenting with opportunities for future exÐ'¬pansion. Their strategy is aimed at continuing growth in the core businesses and expanding internal developÐ'¬ment and acquisition into new areas.

II. The Company's CURRENT Strengths and Weaknesses:

Strengths: Disney does theme parks like no one else and that fact has made them the number one destination resort. Each member of their staff is viewed as part of the cast and strict rules are in place to make sure they always offer an excellent experience for people attending the park. They are also the world’s largest children's record producer and publications licensor. Total sales of records were over $10 million a year, and magazine readership was over $1 bilÐ'¬lion. Disney also had more character license agreements than any other company in the world with over 3,000 worldwide licensees covering over 14,000 products in 50 countries. Major licensees in 1987 included Lotus (Disney watches), Hasbro (plush toys), and Gold Bond Ice Cream (Disney frozen treats). They also are innovators and visionaries. Their expertise and wide ranging coverage in the studio business is phenomenal. They more than tripled their film industry market share from 1985 to 1987. The additional of Touchstone pictures (more adult based pictures with minimal sex/violence) was a factor.

Weaknesses: The expansion of their Orlando acreage appears to be lacking. Only 15 percent of the 43 miles had been utilized. Control of Disney hotel property (controlled by the Wrather Group) had put a black mark on Disney because guests viewed them as at fault for not reinvesting in the hotel.

III. The Company's CURRENT Environmental Opportunities and Threats:

Opportunities: Disney has great opportunities to expand the Disney experience in Orlando. The fact that they have only built on 15 percent of the land they own means expansion is possible by adding new attractions/new experiences, adding more hotels and creating a resort type experience making golf, tennis and other recreational activities available for young and old alike. Disney themed restaurants are an unexplored area that could yield significant profit. Radio is an untapped opportunity that could offer a place to promote Disney product offerings, new music and theme park events. Disney could partner with other companies and sell them advertising space on their radio programs to create even more revenue.

Threats: While the restriction on the number of visitors allowed in the park was lifted, the long term effect could prove troublesome. More guests not only means more revenue, it also means longer wait times for attractions, rest rooms, eating establishments and could affect those who feel they are currently getting their moneys worth. Opening up Pleasure Island could potentially affect the family friendly nature of Disney. While it will be an “adults only” place, if drinking is allowed the potential for problems grows exponentially.

IV. Stakeholder Analysis:

a. Government agencies: Local zoning commissions would have to be engaged to deal with adding infrastructure within the Orlando area. Licenses to distribute alcohol would also have to be acquired in order for the prospective night clubs to serve alcohol.

...

...

Download as:   txt (7.8 Kb)   pdf (109.2 Kb)   docx (12.1 Kb)  
Continue for 4 more pages »
Only available on Essays24.com
Citation Generator

(2011, 01). Disney Case Study. Essays24.com. Retrieved 01, 2011, from https://www.essays24.com/essay/Disney-Case-Study/28566.html

"Disney Case Study" Essays24.com. 01 2011. 2011. 01 2011 <https://www.essays24.com/essay/Disney-Case-Study/28566.html>.

"Disney Case Study." Essays24.com. Essays24.com, 01 2011. Web. 01 2011. <https://www.essays24.com/essay/Disney-Case-Study/28566.html>.

"Disney Case Study." Essays24.com. 01, 2011. Accessed 01, 2011. https://www.essays24.com/essay/Disney-Case-Study/28566.html.