...STRAT Case Study “The Walt Disney Company: Its Diversification Strategy in 2012 LELE SONG February 9, 2015 February 9, 2015 KEY ISSUES * Understand why a company’s resources and capabilities are central to its strategic approach: Diversification is Disney’s main strategy for constant growth. The company is broadly diversified, including five major segments. Disney attempted to capture synergies existing between its business units. * Strengthening a company’s market position by expansion: Disney aims to expand globally and exploit the business opportunities in the emerging market since the domestic market is about to be saturated. * Become aware of what the company should do to achieve operating excellence: Instead of letting technology throw threats at the company, Disney decides to embrace technology to enhance quality of products and improve customer experience. Disney’s success is highly dependent on technology. * Become aware of the strategic benefits and risks of expanding a company’s horizontal scope through mergers and acquisitions: Disney has a very clear acquisition strategy, and they have successfully acquired some valuable brands. Acquisition also benefits Disney for global expansion. ANALYSIS The Walt Disney Company (“Disney” or “the company”) was a broadly diversified median and entertainment company. In 2012 the company’s business units were organized into five divisions, which include media networks, parks and resorts, studio entertainment...
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...The Walt Disney Company is the world’s largest amusement park operator. It was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Taking on its current name Disney in 1986. Chapter 1: Case – Disney Theme Park Contents I. Case Background 1 II. Statement of the Problem 3 III. Alternatives 3 IV. Recommended Solution 3 V. Answers to the case questions 4 Question No. 1: 4 Question No. 2: 4 Question No. 3: 5 Question No. 4: 5 VI. Leanings 5 I. Case Background The Walt Disney Company is the world’s largest amusement park operator. It was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Taking on its current name Disney in 1986. And Disney has 5 theme parks outside the USA; there are Tokyo Disneyland (1983), Tokyo DisneySea (2001), Disneyland Paris (1992), Hong Kong Disneyland (2005) and Walt Disney Studios (2002). Disney is motivated to set up parks throughout the world to expand its sales of merchandise goods as well as attendance to their theme parks. After lunched Hong Kong Disneyland in 2005, Disney has signed a letter of intent to build another park in Shanghai China in 2008; The Park will attract different potential visitors in Shanghai. Overview Disney Theme Park - Points of Interest (Michael Sandberg's Data Visualization Blog) Getting people excited about their data one visual at a time * Walt Disney had infinite confidence in his new park and unapologetically...
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...Mo 30.09.2013 | Case study: MNE competitive advantages | CASES Grolsch: Growing Globally Pankaj Ghemawat, Jordan Mitchell ------------------------------------------------- Top of Form DESCRIPTION Grolsch reassesses its international strategy in light of the company's recent acquisition by SABMiller, the world's second-largest brewer. Grolsch was the 21st-largest global beer brand, sold 51.5 percent of its volume in international markets, and exported to 70 countries. However, its poor profitability in international markets--four countries alone accounting for two-thirds of foreign sales--and churn of markets and distribution partners raised concerns about the company's international strategy and execution. Grolsch's 60 years of history in foreign markets provides a rich backdrop to introduce a range of international strategy topics, including performance assessment, rationale for expansion, market selection, and choice of entry mode. Questions 1) Why did Grolsch globalize, and how well has it performed internationally? 2) What are the key elements and limitations of its emphasis on adaptation, in particular? 3) What changes would you suggest to Grolsch’s historical strategy? Mo 14.10.2013 | Case study: International alliance | UTV and Disney: A Strategic Alliance (A) Atanu Adhikari, Rama Deshmukh ------------------------------------------------- Top of Form DESCRIPTION The case describes the dilemma faced by the senior vice-president of business...
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...Case Study 3: Hong Kong Disneyland November 26, 2013 1(A). Why was it important for Disney to work with the foreign governments where they want to open theme parks? While it may not always be a good idea for a business to work with foreign governments, it was the appropriate course for Disney to take. Certain aspects of the parks that were opened in Tokyo, Paris, and Hong Kong best evidence this. Tokyo, by every standard, is considered a success (Young & Liu, 2007). Its success led to the construction of a sister park, DisneySea. Regrettably, Disney opted to not take ownership of the park. By working with the government of Tokyo, Disney did not have to invest any capitol to open a park abroad. However, Disney forfeited exponentially higher profits for its equivalent in risk. Disney’s next venture, Disney Paris, was a collaboration with the French government. Similar to Disney Tokyo, it was important to work with the government for the purposes of immediate financial infusion. Unlike Tokyo’s government direct investment, the French government provided loans with interest rates (Young & Liu, 2007). The decision to work with the French government proved more important as construction costs went over by US$4 billion. This led to the French government restructuring Disney’s loan. It was crucial for Disney to work with the government of Hong Kong for several reasons. Like the previously mentioned Parks, Hong Kong helped financially. However, the scope...
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...Disney’s global expansion – An Asia Perspective Executive Summary Disney theme parks had a long history of aggressive market expansion, started first with their first Disneyland opened in Anaheim in July 1955, Disney World Florida 1971, Disney theme park in Tokyo in 1992, and Disneyland Paris in France (Tsai & Liu 2011). Since introduction of its first theme park, Disney has been attaining global profit through expanding their existing parks while entering the new territories. Their ventures into the new Asia market, HongKong, met great hurdles and challenges as there were gaps between Hong Kong Disneyland offer and the local customs that need to undergo urgent local adjustments in order to become accepted among the Chinese and Hong Kongers. Although major changes have addressed incompatibility issues which in turn provided Disney with high profits and competitive advantages, the park faced serious problems including the frequent overcrowded flow of customers, the lacks of creativity and innovation, or the overloaded staff. As HongKong Disneyland has proved fairly successful with increased park occupation and revenues from growth especially from mainland China sector (Matusitz 2011, Tsai & Liu 2011, Zhang 2007), an unexplored market segment in China or in particular the chosen Shanghai catched Disney’s full attention along with many favored factors such as supported environment with lower cost of labor and materials (PR 2011, Schmidt et al. 2007). The decision to expand the...
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...Case study Topic: Disney’s FROZEN as a global pop culture phenomenon FROZEN has been a global sensation with great reception by audiences around the world with its original song “Let It Go”. Let It Go was translated into many languages which captivated people around the globe of all ages . This move by Disney can be seen as a form of “media globalization” via the means of YouTube and theatrical releases on Television in different countries with different cultures and languages. The reception of the film can be seen as a “cultural process” or Cultural globalization which is the intensification and expansion of cultural flows across the globe . Academic Sources 1) Mollet, T. 2013. “With a smile and a song …”: Walt Disney and the birth of the American fairy tale.” Marvels & Tales 27 (1): 109-24. In this journal article, Mollet reviews on how Walt Disney’s production is now being seen as crucial to the construction of the modern American society through his contribution to the formation of a new United States nationalism . The author approaches the topic using cultural studies and textual analysis ofn Disney fairy tales to exemplify how they reflect the dominant (?) culture of America. Her research focuses on analysing Disney films such as “Snow White and The Seven Dwarfs”, “Three Little Pigs”, “Wizard of Oz” and how these films and their characters portray the unstable society and culture of America during the great depression and other different time periodslines. The...
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...Introduction This essay shall discuss what the Disney difference is and how it affects the company’s corporate, competitive and functional strategies. As Disney have plans on doing business in Russia, the discussion turns to the challenges they are likely to face and how the management team can best prepare themselves for such challenges by planning early. We will then be turning our attention to Hong Kong where Disney has announced its expansions plans of Hong Kong Disney Land. Lastly, the discussion takes to the how strategic management process is to be used to “keep the magic coming” in a given economic climate. 1a: Disney Difference Disney difference, to sum up, is the “experience”. Disney tries to achieve this experience by bringing happiness to its consumers. Vice President & General Manager of Disney Institute, Jeff James (2012) stated, "We create happiness by providing the finest in entertainment for people of all ages, everywhere." Disney implementation of this happiness factor can be seen in many ways. For example, Cinderella Castle, in Disney Theme Park allows the visitors to dine with Disney Princesses, immersing a storybook setting for breakfast, lunch and dinner. Thus instead of just having to watch/read the cartoon/story book, which could only allow one to be only exposed visually to the character, Cinderella, the Disney fan is now able to dine with her as well. This “imagination-comes-to-life” offering of Disney translates into happiness for the customers,...
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...------------------------------------------------- ------------------------------------------------- BFP110 Professional Development 1 - ------------------------------------------------- Critical Thinking and Problem Solving ------------------------------------------------- ------------------------------------------------- Assessment 3A: Case Study Project Report ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Where in the World is Disney? ------------------------------------------------- ------------------------------------------------- Project Team Members: ------------------------------------------------- ------------------------------------------------- Melike Yoldas: 3809324 ------------------------------------------------- Matthew Rawnsley ------------------------------------------------- Alex Baird : 3912569 ------------------------------------------------- Rhianon Damas : 3798429 ------------------------------------------------- Tom O’Dea : 3925731 ------------------------------------------------- Poh Yueng Zhen ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ...
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...BUS 250 WEEK 1 CASE STUDY A BRAWL IN MICKEYS BACKYARD A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-1-case-study-a-brawl-in-mickeys-backyard Visit Our website: http://hwsoloutions.com/ Product Description BUS 250 Week 1 Case Study A Brawl in Mickeys Backyard, A Brawl in Mickey’s Backyard According to our text, ultimately, a company’s decision can have a negative impact on many. Not only can the decision of a company affect the company as an individual, but in turn it can also alter the lives of many others, including members of the immediate society, customers, suppliers, employees, stockholders, creditors, and business partners (Lawrence & Weber, 2011). How can a highly profitable business return thanks to its stakeholders without jeopardizing potential revenue, reputation, vision, and customer satisfaction? SunCal and Disney had a difficult challenge to try to overcome in order to settle the dipute over the available land located outside of Disney’s compound. Both companies presented their arguments on who should prevail, SunCal, who wanted to purchase the land in order to develop housing at an affordable rate for residence and locals, or Disney, who owns land across from the proposed building site, which may be utilzed in the future for expansion, but who also finds the thought of an apratment building so close to the complex a eye soar for the customers who experience the magic of Disney. The dispute was heard by the Chamber of Commerce...
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...Case Study #1 – The Walt Disney Company: The Entertainment King Disney has been successful for so long as it successfully created characters and stories that captured the imagination of children and adults alike, and were designed to be timeless and long-lived assets that were protected through copyrights. Throughout its history, management has largely been able to instill and maintain its brand identity and commitment to being family friendly and positive. All of Disney’s brands and businesses created natural synergies through cross-promotion and cross-selling they created synergy. Michael Eisner rejuvenated Disney by initiating several new approaches. The first was to institute a target of 20% return on equity and revenue growth each year. Second, he committed himself to building the Disney brand while still remaining true to its cultural roots. Third, he chose to revitalize Disney’s core business of TV and movie production and bring the Disney brand of family entertainment into the modern age and prove once again Disney could deliver quality content (Golden Girls, Live with Regis & Kathy Lee) Eisner, along with Katzenberg, increased net income in the first 4 years by figuring out ways to maximize profits from existing businesses in the US. One way was the advent of the “financial box” which forced the creative talent to stay within budget when producing a movie or TV show through pursuing undervalued writers and acting talent. Another was the investment in the...
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...The Walt Disney Company Assignment 1: Assignment 1: Strategic Management And Strategic Competitiveness Professor: BUS 499: Business Administration Capstone April 20th, 2014 The Walt Disney Company The Walt Disney Company started in October 16, 1926. It was at the time known as The Disney Brothers Studio. It was established by Roy and Walt Disney. The company rapidly began to expand and introduced the world to Mickey and Minnie Mouse. They are the image of the Disney Company. During the 1940’s Disney issued its first stock, this made it growth as a company. The Disney Company expanded to the world of television and written entertainment with the opening of a theme park. Disneyland was opened on July 17, 1955. Walt dream was to open different theme parks in a big area. He chose Florida because of the nice weather; the inexpensive land; and the interstate 4. Unfortunate, Walt Disney, died on December 15, 1966. Despite the loss of Walt, Disney Company continued to grow. And in October of 1971, Walt Disney World Resort opened in Orlando, Florida. (Disney History) Globalization and technology changes have impacted The Walt Disney Company in positive way. According to Strategic Management, “globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital and knowledge across country borders.” ( Hitt, Ireland & Hoskisson, 2013). Globalization also increases the amount...
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...Disney Case Study 1) What does Disney do best to connect with its core consumers? It can be seen from the text that by the 1970s Disney concentrated on customers comprising of children, families and adults. From 1980s, it adopted strategy to reach older audience. Now its market consists of all ages, cultures. Today, it is one of the leading diversified international entertainment company which comprises of five segments: The Walt Disney Studios, Parks and Resorts, Disney Consumer Products, Media Networks a d Interactive Media. This diversification provides sufficient chances for all kinds of customers to select services. Besides, they used emerging technologies to connect with customers. This help customers to be served more conveniently and entertainingly. Disney core value, as committed by its CEO in saying Disney’s greatest challenge today is to keep a 90-year-old brand relevant and current to its core audience while staying true to its heritage and core brand values. 2) What are the risks and benefits of expanding the Disney brand in new ways? It is Disney policy to always seeking for exploring and expanding its markets. Its expansion strategy is applied not only for development in new countries besides United State but also new products and services as well. They themselves invest in foreign countries or take acquisition in the areas such as theme parks, movies, … This helps the company to bring more revenues and profits. Besides, working in entertainment areas...
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...Unit III Assignment Disney Case Study - Advanced Marketing What does Disney do best to connect with its core consumers? The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. Disney products include television programs, books, magazines, musical recordings and movies. Disney’s CEO Bob Iger explained, “As a brand that people seek out and trust, it opens doors to new platforms and markets, and hence to new consumers. When you deal with a company that has a great legacy, you deal with decisions and conflicts that arise from the clash of heritage versus innovation versus relevance. I’m a big believer in respect for heritage, but I’m also a big believer in the need to innovate and the need to balance that respect for heritage with a need to be relevant.” Walt Disney recognized that brand loyalty begins with an authentic relationship and it believes that it costs much less to retain a customer than to find a new one. Walt determined that treating people visiting Disney’s parks not as just another paying customer, but as “guests in our own home.” He knew that if their guests understood and believed that everyone in the organization cared about them and their business, they would be loyal to Disney forever and that philosophy continues to this day. Whether...
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...formulaire ------------------------------------------------- Haut du formulaire Bas du formulaire * Home Page » * Business and Management Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (a) In: Business and Management Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (a) Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A) Q1. How should Chase have bid in the first round competition to lead the HK$3.3 billion Disneyland financing? 1.Three ways to approach this deal 1) bid to win, 2) bid to lose and3) no bid. Chase chose to bid to lose on the first round, but just enough to make it to the short list. Also, since Chase is one of Disney's relationship banks, Chase would not want to ruin this relationship by not bidding on their project. If Chase wanted to lead the competition from the first round, they should have made a bid that was more aggressive and aimed to win. This bid would have been closer to the desires of Disney, making them more appealing and increasing their probabilities of leading the financing. However, they chose to bid to lose, with just enough terms to get into the second round to "protect their reputation", but not to lead. The deal started to become more attractive with the possibility of Disney awarding a sole lead arranger mandate and with the increased potential for a successful syndication. At this point, after Chase made it through the first...
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...Hong Kong Disney: the good and the bad Introduction:Disney Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, travel, and theme parks (The Walt Disney Company, 2012). Disney went on to construct theme parks in California, Florida, Tokyo, Paris, and Hong Kong. Today Disney is the largest media conglomerate of the world and their theme parks alone generate almost $13 billion reported in 2012 in annual gross revenues (The Walt Disney Company, 2012). The Disney parks in the United States had been very successful and that is why Disney expanded into Tokyo. This was a wonderful idea, because Asian love fantasy and Disney is all about fantasy; moreover Asians were excited about the Disney Park. Disney Tokyo was constructed and opened with much success; however, Disney did not own the Tokyo location and they only received royalties from that location, but they soon realized the possibilities that could come with expansion. Disney decided to spread their wings again since Tokyo had been very successful, but they chose the wrong location for the next undertaking; Disney Paris. Who in their right mind would choose Paris as a site for a huge American themed park? Parisians hate Americans, this is a very well known fact. They hate us when we visit their city and they hate the way we live, so...
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