...Walt Disney Company (DIS) Stock Analysis Research Analysis Recommendation Paper Prepared for: Thomas Scholz- Applied Portfolio Management Instructor Prepared by: Team Active-Alpha: Jacob Danowski Maureen Jossart Justin Ziaja Summary Our recommendation for a buy and hold security that will continue to show growth and capital gains is The Walt Disney Company, commonly known as Disney. Disney operates in the Consumer Services sector and the Diversified Entertainment Industry. Their stock is classified as a Large Classic Growth security. Key fundamental and summary financial data will be presented later in our report. We believe that this is a recommended buy due to Disney’s continuing growth of revenue year after year, the expansion of divisions within different business sectors resulting in one of the most important attributes of a corporation in diversification, and the continuation of their business model of aggressive acquisitions to always sustain growth within the company. Company Description Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney. At first it was known as the Disney Brothers Cartoon Studio which established into them being the industry leader in animation. Following the success of this branch in their company they expanded into live action film production, television and theme parks. The early success within the domestic market opened growth potential by expanding operations globally into the European and Asian...
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...Business Analysis Part III Glennyce J Nelson MGT-521 June 29, 2012 Dr. Olivia Herriford Business Analysis Part III For part III of the Business Analysis project, a review of the strategic initiatives taken by The Walt Disney Company relative to organizational and operational adaptations to the changing markets. An explanation of how recent economic trends are influencing the company, strategies Disney has used or could use for adapting to the changing markets. In addition, tactics Disney has implemented or could implement to achieve their strategic goals, the role human resources management plays in helping them achieve the goals, and would I be willing to invest in this company as a mutual fund manager. How Recent Economic Trends Are Influencing Disney. Even though the economy has been in a recession for the past couple years The Walt Disney Company has been doing well and shown continued growth. The company continues to show signs of being a healthy company as indicated by their continued increase in their net income Nelson (2012) “Disney’s income for 2011 and 2010 was $4,807 and $3,963 respectively, which represents a 21.30% increase.” (p. 4). In addition, the company had a net income of $3,307 in 2009, which represents a 19.84% increase for 2010. As shown in Figure A, Disney has shown growth in all areas of its financial statements during the past three years. Over all the company has not been significantly effected by the current economic downtrun and has...
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...Week 8 Financial Analysis of The Walt Disney Company Executive Summary The following report provides an analysis of the current and prospective profitability, and financial stability of The Walt Disney Company (Dis). The Walt Disney Company, together with its subsidiaries, “is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive” (The Walt Disney Company Annual Report, 2013). The report will additionally examine three areas of financial strength; liquidity, leverage debt to equity ratio, and sustainable growth as well as summary descriptions of each business segment in order to fully understand the company’s profitability in the short and long run. Organizational Overview The Walt Disney Company was founded in 1922, and has become a world leader in family entertainment. Disney is operating on a multinational level under the direction of CEO, Robert A. Iger. The Company and its affiliated companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. Each division under The Walt Disney Company’s umbrella provides distinct products and services and caters to diverse market segments. All divisions, however, are united in their creative and imaginative efforts to “reach hundreds of millions of people worldwide and...
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...The Walt Disney Company (most commonly known as Disney) is one of the largest media and entertainment corporations in the world. Founded on October 16, 1923 by brothers Walt and Roy Disney as a small animation studio, today it is one of the largest Hollywood studios and also owns eleven theme parks, two water parks and several television networks, including the American Broadcasting Company (ABC). Disney's corporate headquarters and primary production facilities are located at the Walt Disney Studios in Burbank, California, USA. For more than eight decades, the name Walt Disney has been preeminent in the field of family entertainment. From humble beginnings as a cartoon studio in the 1920s to today's global corporation, The Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across America and around the world CURRENT MISSION, GOALS, & STRATEGY: The 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 toward growth initiatives that will drive long-term shareholder value. The mission is product-oriented, which means that company focuses on what products to sell and services to offer rather than on how to satisfy customer needs. INTERNAL ANALYSIS: See...
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...SWOT Analysis One of the best ways to performs the company’s current situation is performing its SWOT analysis, which bring us a better understand of the internal and external environments, and also help us analyze the potential opportunities and risks regarding the products and services that the company offer and provide. SWOT ANALYSIS Weaknesses - Limit target public; - High Costs of operation; - No guarantee of success; Strengths - Strong brand and image; - High Quality products and services; - Strong cable network; Threats - Intense competition; - Weak economy; - Piracy; - Difficult to find and afford creative labor; - Management Style; Opportunities - New attractions; - Park plus Hotel packages; - Expansion to international market; Strengths: Is undeniable that Disney is a strong brand, it can be recognized in most parts of the globe, and also can be linked with high quality products and services, family, vacations, happiness, fantasy, Mickey Mouse, etc. Disney built its powerful brand over the years, what is an attractive to other companies from various segments interested in borrow its magic. Disney has to carefully choose which companies will be associated with its name without losing its identity. This is a potential way to increase revenues to the company. Cable and media network are considered other strength of the company, which was responsible for the total of $ 9,615 million in revenues in the end of 2000 fiscal year, which was 37.85%...
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...Walt Disney Case Analysis Corporate Strategy The Disney brand is extremely well known, but most may not realize how diversified the company actually is. The company is made up of media networks, theme parks and resorts, studio entertainment, consumer products, and interactive media. Walt Disney Company’s corporate strategy involves three aspects; creating high-quality family content, exploiting technological innovations to make entertainment experiences more memorable, and internal expansion. Disney wants the whole family to be involved. Much of their success is due to targeting not just children, but the entire family. The movies and shows they release are done with family in mind. Theme parks and resorts, Disney Cruises, live performances and interactive media are all aimed at creating high quality family content. Disney acquired Pixar, Marvel, and Playdom in order to satisfy their second corporate strategy. The acquisition of Marvel and Pixar was intended to enhance Disney’s animation abilities to make experiences more memorable. Playdom gave the company new online gaming capacities that Disney hoped would help to improve its struggling interactive media division. UTV was acquired to facilitate its international expansion efforts. Disney’s international expansion strategy mainly focused on opportunities in emerging overseas markets. As of 2012 The Disney Channel was available in more than 100 countries and reached 75 percent of viewers in China and Russia. This was...
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...DISNEY CASE PREPARED BY RYAN MENZIES September 29, 2013 FOR OL 421 STRATEGIC MANAGEMENT AND POLICY INTRODUCTION: The Walt Disney Corporation was founded on October 16, 1923 by brothers Walt and Roy Disney. They were primarily an animation studio before expanding their operations to include other ventures. The company became publicly traded on May 6, 1991 on the Dow Jones Industrial Average. The company has come under some criticism for its productions, which are mainly targeted towards children, for having overt sexual references hidden among them. Other accusations made toward the company include human rights violations for its various employees that manufacture millions of the products the company sells in its stores and theme parks. Despite some of these negative occurrences, the company brought in over $42 billion in revenue in 2012 and also employs almost 200,000 people. CURRENT MISSION, GOALS, AND STRATEGY: Walt Disney Corporation has one of the most diverse venture portfolio of any company today. They own production studios, theme parks, television networks, radio stations, retail establishments and other things in all corners of the globe. The company maintains what can be considered as “modest” goals for themselves, which is to continue the Disney brand around the world, with a strong emphasis on the Asian market, which is not as strong as the company would like. EXTERNAL ANALYSIS: See attached EFEM Disney is a moderate company externally...
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...Disney Case Analysis 3. What sort of company did Eisner inherit? Provide a brief summary of the company at the time Eisner took over (discuss each of its business lines in 1-2 sentences that highlight the most important issues). Eisner inherited a family entertainment company that began as a nonhierarchical organization where no one had titles and everyone was on a first name basis. Walt’s theory was that you didn’t need a title because you knew if you were important. Disney’s philosophy was to create universal timeless family entertainment and believed in the importance of family life maintaining its adherence to the Disney formula for family recreation. The company believed and always aimed to provide an experience that the families would be able to participate in and take joy in together and always with a commitment to excellent in all facets of the business. When Eisner took over the company’s financial performance had deteriorated. Disney was incurring heavy costs trying to complete projects on time i.e. EPCOT center and Euro Disney and the Disney Channel. He viewed “managing creativity” as Disney’s most distinctive corporate skill and pursued with the development of synergy through vertical integration. With this philosophy, Eisner inspired and managed Disney. Disney mushroomed with Eisner’s extreme corporate vision which he targeted at an annual revenue growth target and return on stockholders’...
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...| The Walt Disney Company Financial Document | Analysis &Forecast | | | 2011-11-1 | Executive Summary From the analysis and calculations in the report, we forecast that in the future, Walt Disney will face more fierce competition from their rivals, like Universal, Fox; There is a lack of new impressive cartoon imagines besides these classic ones; Acquisition of Pixar in 2009 still needs the reality to check. In conclusion, our suggestion for investors is to short their stock | The Walt Disney Company Financial Document The Walt Disney Company (NYSE: DIS) (commonly referred to as Disney) is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The company is best known for the products of its film studio, the Walt Disney Motion Pictures Group, and it is one of the largest and best-known studios in Hollywood today. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. The company has been a component of the Dow Jones Industrial...
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...Prepared for: Professor Jessie Richards Prepared by: Alli Hock Date: April 18, 2012 2 Table Of Contents EXECUTIVE SUMMARY……………………………………………………………3 INTRODUCTION……………………………………………………………….…….3 BACKGROUND…………………………………………………..……………….....4 Biography………………………………………….…………………….4 Beginning Of Disney Bros. Studios...…………………………………..5 Development Of Management Style……………..……………….........5 The Dreamer………………………………………………………………....5 The Realist……………………………………………………………….…..5 The Spoiler…………………………………………………………………...6 ANALYSIS………………………………………………….……………….….…….6 Original Company Values………….…………………………………..6 Hiring The Best For The Job……………………………………………...6 Talent Within The Organization….…………………………………….…6 Exceeding Customer Expectations…..………………………………..…7 The Interview Process…………….…………………………………...7 Internship Program………………..…………………………………...7 Attitude…………………………..……………………………………..…. 8 Drawbacks to Selection Standards….……………………………..…...8 Employee Training Process…...………………………………….…...8 Figure 1-1. A Balanced Approach to Employment..……………..…….8 Disney Training Programs…………………………………….....…….9 Attention To Detail…………………………………………………...……9 Training Program Downside…………………………………..………….9 Figure 1-2. Disney Manhole Cover………………………………10 Creating Employee Environment……………………………….……..10 Being Involved At All Levels……………………………...…….……..11 Effects Of Management Focus…………………………..……..………..11 Ensuring Job Significance…………..…………………………………11 Figure 1-3. Ensuring Job Significance…………………………………12 ...
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...The Walt Disney Co. FINA 4200.002 Nick Camp Nick Meyer Muddasir Sultan Theme: The Walt Disney Co. is an enigma in these rough economic times for the sole purpose that they show minimal signs of slowing down. Mickey Mouse has his hands dipped into everything and from an investor’s standpoint that’s a good thing because that equals diversification, and in turn, diversification lowers risk. The Disney Company operates in several areas of the media and entertainment industry. They have recently acquired Pixar, which consistently provides box office record sales with their animated films. Along media entertainment lines, Disney also operates dominant media channels ABC and ESPN. These are two channels that carry with them a strong loyal following. Sports have always been America’s past time and it’s unlikely to see them ever declining or the viewership that goes along with it. People have always poured capital into sports and will continue to for many centuries to come. Aside from Disney’s ventures, investors focus and confidence should be in the trademark of Disney. Characters such as Mickey Mouse and Buzz Light-year are icons that will never be lost in the pages of time. Kids and adults alike will always want to participate in the next big thing the company has to offer and these kinds of expectations will always lead to Disney having a stable stock price and even unstable in the positive manner because the growth potential is limitless for...
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...Ebenezer Amare Disney Case Disney is a highly diversified company which operates in a wide range of industries such as theme parks and resorts, consumer products, television networks, and the film industry. These constituent businesses have invaded many different economies and often generate their income via disparate business models. With such diverse operations, Disney is less affected by changes in external environment than its competitors are. In order to achieve such a wide-reaching enterprise, Disney often utilized vertical integration. Many consumer products like books, magazines, videotapes, computer software, and so on were sold in Disney stores. Disney’s buyout of ABC in 1996 also illustrates their vertical integration strategy. This enables Disney to broadcast its own productions on its own TV network. Perhaps Disney’s most important strategic resource is the strength of its brand reputation. Much of its strategy originated with its founder’s intended strategy of creating a creative outlet for wholesome family entertainment which was mostly upheld by his successors. The Walt Disney brand has been known for more than 90 years in the US and is also widely recognized worldwide, due to a combination of the Disney Channel, international Disney Park resorts and movies from Walt Disney studios. To this day, it is still seen as the primary source for wholesome family entertainment and was also the 13th most valuable brand in the world in 2012 at a value of $27.4 billion...
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...SWOT ANALYSIS * STRENGTH * Strong diversification * Well established divisions, such as media network, parks and resorts, studio entertainment, consumer product and interactive media. * Brand recognition, have strong image in their animation film through worldwide. Customer loyalty to their product is high. * Largest worldwide licensor of own cartoon character based merchandise. * Increasing trends in overall revenues and profits, after acquired different companies such as Pixar, Marvel, and UTV they able to increase their profits and revenue annually from this acquired strategy. * WEAKNESSES * Interactive Media- overall unprofitable. * High cost of operations including high sunk costs, research and development costs and costs of entertainment production. * Studio entertainment typically incurred losses because of production costs and the cost of extensive advertising campaign, specifically decline in DVD sales. * Parks and resorts success unpredictable depending on the travel trends, leisure time and seasonal. * OPPORTUNITIES * International expansion and look for potential market such as India and Russia. * Growth through further acquisition, increased in acquisition to enhance the resources and capabilities of its core animation skills and characters. * Increased media Networks, the company recently has acquired a media network (UTV) as a platform for them to enter India and Russia as those countries are using UTV...
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...Steinberg Walt Disney Productions should repurchase Saul Steinberg’s shares. The management for Walt Disney has lost their focus over the course of the last few years, prior to June, 1984. After the death of Walt Disney in 1966, the company has found it hard to replace his leadership and the ability to make sound decisions. Business Strategy In the past, Walt Disney Productions’ business strategy has been focused on their theme parks and motion pictures. This strategy propelled Disney to become the most well-known company in the world and it was very profitable. Recently, Disney’s strategy has been real estate development and trying to gain a foothold in the cable programming services. They have not been entirely focused on increasing their revenues from the very aspects of the company that made them successful. Up until 1983, the attendance at their theme parks has been generally flat and has not created a substantial return. The opening of the EPCOT Center helped boost attendance for the first 3 quarters of 1983, but the last quarter saw attendance drop 8% and another 19% for the first quarter of 1984 (see Exhibit 1). The reverse is true for the motion picture segment. This segment has increased revenue every year until 1983 when it decreased 18% from the previous year (see Exhibit 2). The management has not been focused on the business strategy that Mr. Walt Disney created for his company. I believe that the EPCOT center has cost Disney too much money and...
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... Walt Disney Company Financial Analysis Managerial Finance BUSA 302 Dr. Frederick Wolf May 24, 2007 Completed By: Shanna Baumgarten Michaela Baylous Laura Buckner Kari Gurtel Table of Contents: • Executive Summary . . . 3 • Background . . . 3 • Financial Statement Analysis . . . 5 o Balance Sheet . . . 5 o Income Statement . . . 8 o Cash Flow Statement . . . 9 • Ratio Analysis . . . 10 o Liquidity . . . 10 o Profitability . . . 12 o Activity . . . 12 o Leverage . . . 14 o Valuation . . . 15 • Sales Forecast . . . 15 o Projected Sales . . . 15 o Forecast Earnings . . . 17 o Pro Forma Statement . . . 17 o Sustainable Growth . . . 18 • Risk Assessment . . . 19 o Economic Conditions . . .20 o Changes in Consumer Demand & Preferences . . . 20 o Changes in Regulation . . . 21 o Intellectual Property Rights . . . 21 o Employee Costs . . . 21 o Pixar . . . 22 o Interest Rates . . . 22 o Foreign Exchange Rates . . . 22 o Restrictions on Trade . . . 23 o Taxes . . . 23 • Financial Restructuring . . . 23 • Recommendations to Management . . . 23 • References . . . 26 • Appendix . . . 27 Executive Summary: The Walt Disney Company Financial Analysis details the finances at The Walt Disney Company...
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