...strategic planning and financial planning for Disney. The first section will cover Disney’s strategic planning initiative and identify a strategic initiative discussed in the organization’s annual report. This will be followed up with a description on how this initiative affects Disney’s financial planning. The next section will address how Disney’s initiative will affect the costs. The third section will discuss how Disney’s initiative will impact sales. The fourth section will describe the risks associated with the initiative and the financial impact that these risks have. This will be followed up with a conclusion. Strategic Planning Initiative for Disney Within many elements of strategic planning, the scope of a corporation such as Disney must be broken down into numerous factors, and the initiatives derived from those business components looked upon a step-by-step process to glean advantages from the wide array of contingencies. Team A has looked at an initiative from the Disney Annual Report for 2009, which is the strategy for handling foreign currency exchange risks. As with numerous large multi-national corporations both their future growth and expansion lie in the ability to do business in foreign markets. The management at Disney is astutely aware of this factor and has made inroads into these markets. The major drawback is financing these operations with local currencies and the foreign exchange rates, and as such Disney has modeled a hedging system to address these...
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...The Walt Disney Company & Comparison with the Time Warner Company Cafer C. Sengonul California Intercontinental University 2015 Abstract Walt Disney (The Walt Disney Company) and Warner Bros (Time Warner Company) are the two major entertainment company in the world. These two similar rival groups are competing in the same business areas. Both companies keep producing new products to stay in the business while they keep their classics fresh in their customers' minds too by using them in different areas. This case study analysis is about the the Walt Disney Company and how they are using different business areas to keep their brand and products fresh in minds of their customers. The purpose of the study is to give examples of Disney and Warner Bros’ marketing strategies to compete to stay in the business. Keywords: Walt Disney, Warner Bros, Entertainment companies Overview In this case study, I will compare Disney with the Warner Bros. I will give information about the brands in similar business segments they are both in and their competition in the entertainment industry. I will give examples of the new and classic products from different business segments for the both companies and how they are using them for years. The Walt Disney Company & Comparison with the Time Warner Company The Walt Disney Company is one of the most famous entertainment company in the world today. The company consists of five main segments. Those segments are Consumer Products...
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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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...Eisner, chairman and CEO of the Walt Disney Company, was sitting down with Frank Wells, president and chief operating officer, and Gary Wilson, executive vice president and chief financial officer, to discuss Disney's prospects for the new year. These men were still basking in the glow generated by another record revenue- and profit-breaking year in Disney's history. Disney's businesses were performing at an unprecedented level, and confidence was high. The problem facing the trio who had engineered Disney's turnaround was how to maintain Disney's explosive growth rate and its return-on-investment goal of increasing earnings per share by 20 percent over any five-year period to achieve a 20 percent annual return on equity. Paradoxically, the very success of their strategy, which had originated to protect an underperforming Disney from the rampages of corporate raiders and the threat of takeover, was causing the opposite problem: how to maintain the company's explosive growth in a business environment where attractive opportunities for expansion were becoming increasingly scarce. The men were reflecting on how to develop a five-year plan that would cement the strategy that had led to their present enviable situation and make the 1990s the "Disney Decade." This case is intended to be used as a basis for class discussion rather than as an illustration of either effective or ineffective handling of the situation. This case was prepared by Gareth R. Jones,Texas...
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...In this case analysis I will first show the requirements the company had for its financing. Then I will provide an analysis of the main pros and cons for Chase in connection with the deal. Lastly I will show how both affected the pricing as well as the execution of the deal. In order to build the new Disneyland in Hong Kong a new non-recourse entity, Hong Kong International Theme Parks Ltd (HKITP) was formed. While the owners supported the project with substantial amounts of equity (Disney and Government) as well as with subordinated debt (Government), Disney had significant requirements for the financing portion of the remaining needed amount. Disney was looking to receive bank financing for this new entity of HKD 2.3bn as a Delay Draw Term Loan (“DDTL”) plus HKD 1.0bn working capital line (“Revolving Credit Facility” or “RCL”). While they had learned from their most recent experience with Disneyland in Paris not to have a too aggressive capital structure in place, they nevertheless demanded significant flexibility with regard to the following terms and conditions: - 15 year tenor - delayed amortization structure which would start as late as 3 years after the opening of the park, i.e. 8 years after closing of the loan and 6 years after funding of the loan - allowed CAPEX for further expansion (instead of using FCF for amortization) - full underwriting of the deal by up to 3 Lead Arrangers - no subordination of management and royalties - main collateral for the...
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...MF 820: Management of Financial Institutions Hong Kong Disneyland Finance Ron Shell Jiang Jiang Zhaojie Wang On August 10th 1999, Disney awarded the sole mandate to Chase Manhattan Bank for the Hong Kong Disneyland financing of HK $3.3 Billion. We believe this decision was beneficial for both parties. For Chase, the rewards included underwriting fee, interest payments, being a part of a big loan-financing project in Asia and developing networks and relationships with Asian governments and companies. This outweighed the risks of underwriting risk, credit risk and long-term collateral risk. In addition, we believe it was the correct decision to initially bid to lose and then change this approach once there was concrete support from the HK government. From Disney’s perspective, despite Chase’s standard commitment letter leaving them slightly vulnerable, choosing Chase as sole mandate made the most sense. Due to the unique nature of the loan (extreme long term, Disney’s desire to use operating cash flow for expansion and the principal collateral being non-existent for first 2 years), it made sense for Disney to choose a company that has a strong relationship with and one that was extremely flexible on the structuring of the loan. Finally, we believe the most suitable syndication strategy is to be Chase as the sole mandate with a two-stage syndication process and sub-underwriting (exhibit 8a) Chase Manhattan Bank made a smart initial decision by attempting to bid to lose. This...
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...The Walt Disney Company and Pixar Inc. To Acquire or Not to Acquire? Andrii Alekseienko Corporate Strategy Case Study 18 September, 2015 The Walt Disney Company and Pixar Inc. To Acquire or Not to Acquire? To answer the main question of the case, we must think of the main problems that it faces. We need to find the solution for Bob Iger. What to do with Disney: to make some improvements in the existed company to compete better with Pixar, or to make a deal with another studio? Or should he work more with Pixar, or maybe just buy the whole company? To answer this questions, I will use two tools: better-off test and ownership test. At first, Disney and Pixar can just stay at the same place, and make some reorganization in the company. But in this case, it’s gonna be hard, because this option requires a big amount of time and finance. Restructuring the company can take place to improve the system of enterprise management, changing economic and financial policies, operations, marketing systems, marketing and human resource management in order to improve the company. It’s a possible, but definitely not the best option. Of course, the acquisition between Disney and Pixar have some advantages for Disney, but it’s not so good for Pixar, because their technology is unique, and different to the other players on the market. Because of company’s corporate culture and the talents of their employees. If we talk about famous animated films and unique solutions, both in technology...
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...Disney set up a system that has worked in the United States and Tokyo. This system sets forth a set of guidelines that requires all Disney “cast members” to act as one unit and provide the standard of excellent guest service one has come to expect from Disney. Some of the different aspects of this service standard include: • Dress Code: A standard that does not include brightly colored socks, what type of undergarments are appropriate, and their “costume” to be worn appropriately. • Grooming Standards: No facial hair, no outlandish hair styles, clean fingernails, and proper grooming at all times. • Treating others as they were treating you. Sounds like a “golden rule” as of sorts. But Walt Disney had a vision that when you stepped across the gate, you were entering a land where dreams come true, and worries were left behind. By applying this “golden rule” to all guests, it appears that he was intending to have everyone leave happy and want to come return. However, I believe that the system that worked in the U.S. may not have been received well with their European counterparts. It is a widely known stigma that Europeans are not the nicest population in the world. With that, I believe that Disney had a more difficult changing their innate apprehension to buying into the Disney way of doing things. Going along with that, without the proper managers that can sell that ideal to the new employees of Euro Disney, it posed a problem with the delivery of such a service...
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...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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...CASE I - MARKETING SPOTLIGHT- NIKE 1. Nike one the top listed shoe company in the current world begun their business in 1962. The company focused on high-quality running shoes designed especially for the athletes. The key factor for Nike was that they have been able to create strong brand preferences among the customers. Nike created their brand image into consumers mind by using celebrity. The company’s commitments to designing innovative footwear for serious athletes help it build a cult following among American consumers. They run their marketing by using top athletes in their advertisement all over America and found that it put a huge influence to the consumer mind. Nike found that product and brand choices of consumers are hugely influenced by the preferences and behavior of their beloved celebrities. So the company signed an upcoming popular runner named Steve Prefontaine for their advertisement in 1973 and Prefontaine’s irreverent attitude matched Nike’s spirit. At the end the thought of using professional athletes in their advertising campaign proved both efficient and effective. Another important reason for Nike’s success was that they read the consumers mind perfectly. Nike does not sell “Nike air max” shoes, it sold a way of life, which is key to its success. This flag is the incentive for the people, and the philosophy behind the energy and determination, is that everyone concerned, whether you are not athletes. Nike uses a motivational type of language to inspire...
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...Trial Assignment Name Institution Date Trial Assignment PART 1 Disney organization is the world’s best entertainment organization owing to several factors. This organization affects the lives of most Americans and people around the world through their films, theme parks and resorts. The company has been a key player in the film industry through its animations and other children’s films, this level of growth and identity comes with great wealth and financial strength to an organization like Walt Disney (Silverman, 2008). The financial security at Disney originates from several factors that the management considers as the pillars of driving the organization to higher levels of competition. Walt Disney uses several business standards that cover ethics and compliance to maintain a competitive spirit within the growing business of entertainment. This essay will explore the role of ethics and compliance in Disney’s financial environment. Ethics and compliance at Disney has helped in improving the general outlook of the business in three main areas. The firs area is employee appreciation. Most workers at the organization work with passion and enthusiasm because of the level of transparency and trust within the organization. The company incorporates trust by availing to each staff member a copy of the Standards of Business Conducts handbook to enable their role and relationship within the organization. They stress on this by taking online training and learning on ways of...
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...the world’s largest public company based on a composite ranking. Being one of Disney’s top 10 relationship banks, Chase was the third largest bank in the United States with more than $400 billion of assets and $175 billion of loans in 1999, and was a leader in the field of syndicated finance. In 1999, Chase was the lead arranger for 34% of total syndicated loans by dollar volume in the world’s largest market, the United States, compared to 21% for the next largest competitor.6 In the U.S. market for loans greater than $1 billion, its dominance was even more pronounced: it led 47.5% of the deals, three times more than its nearest competitor. Years of leading performance in the field of syndicated finance has led JPMorgan Chase a world’s well-known expertise in arranging large volume syndicated loans and thus significantly improved its returns as an underwriter, and its credit exposure as a lender, which reflect its high criteria of service. In addition to the great reputation, Chase has established relationships with many of the world’s famous companies and groups, which will bring it lots of business opportunities. It had over 400 professionals in its Global Syndicated Finance Group with offices in New York, London, Hong Kong, Tokyo, and Sydney. Each office had structuring and distribution teams. These abundant professional resources have been the solid foundation to sufficiently support Chase’s commissions all over the world. In its 30-person Hong Kong office, Matt...
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...which was deemed more important people or money. SunCal and Disney put themselves into a challenging situation in trying to settle a dispute over land that was available near Disney’s park in Anaheim, California. SunCal wanted to build affordable housing for the local populace. The Disney Corporation also wanted the same land so that it may utilize it in case of future expansion; Disney also claimed that the housing would be an eyesore that would diminish the magic of the Disney experience. This dispute was fought in the public but eventually would be decided by The Chamber of Commerce of Anaheim, California. The market and non-market shareholders in this dispute are both equally important. For Disney the expansion would add jobs and much needed revenue to the local economy as well as stop what it thought would be an eyesore. On the other Disney, a company that makes billions of dollars every year bringing the innocence and magic of the Disney experience, has to take into account that if the dispute is deemed mean spirited or immoral it could have a devastating effect on the finances of the company. For SunCal it was fighting for affordable housing for area residents many of whom were Disney employees. Many of the employees have to travel long distance because there was no affordable housing closer to the park. It would seem that collaboration would have benefitted both parties in this disagreement. Disney says any new residences in the neighborhood would threaten the...
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...Disney Theme Park to India Abstract: This report is aim to analyze profitable adventure of The Walt Disney Company to set up Disneyland theme park in India. As one of main emerging markets in Asia, India might be the next destination for The Walt Disney Company to target on. Therefore, this report uses a series of marketing tools to demonstrate the macro-environment and micro-environment in India, such as PESTEL, SWOT, Porter’s Five Forces Model and Self Referencing Criteria. Based on this analysis, the current situation of India shows an attractive prospect to Disney in terms of economic and technological development, the diversification of culture, and the acceptance of Disney products and services. Introduction: India with its rich and various cultural heritages is now on one of the top industrialized nations in the world. India being the seventh largest country in the world with the coverage area of 32,87,263 sq.km (Indian government, 2010 a). India is divided into 27 states and 7 union territories (Indian government, 2010 b). According to WHO (2011), the total population of India was 1,151,751,000 approximately. The Walt Disney Company was founded in 1923 by Walt Disney and the first Disney theme park was opened in California in the year 1955, ever since Disney theme park has expanded to encompass Disney Cruise Line, eight Disney Vacation Club reports, Adventures by Disney, and four more resort locations. This report will analyze the profitable venture of The Walt...
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...Walt Disney World Company is an international media and entertainment conglomerate. Disney has integrated itself within global culture as a premiere theme park and resort service. Its high quality of standards, unsurpassed customer service, and originality make it like nowhere else in the world. The Walt Disney World Company manages 5 theme park and resorts around the world. Having two based in North America, and with the other 3 based in Europe and Asia. Having been ranked in the top 100 public companies in the world according (Forbes.com, 2014) Disney is seen as having anything but financial difficulty. That however is not the case for one of its prestigious theme parks. Since opening in 1992, Euro Disney, or currently recognized as Disneyland Paris, has become one of the largest tourist attractions in all of Europe. Though touted as one, if not the happiest places on earth, financially it is not much but a mirage. Euro Disney has not turned a profit since 2008, and has already had to be bailed out on 3 other occasions over its 2 decade existence. To many investors, this does not surprise them that it is happening a fourth time. Euro Disney has followed the same cycle that all products go through. This is known as the International Product Life Cycle Theory. Much like the regular product life cycle, the international theory adds on three stages, new product, maturing product and standardized product. In 1992, Euro Disney would have been going through the new product stage...
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