...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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...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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...This Disney Company: Corporate Business Strategies Analysis Jessica Hennessey and Jamie Gregar Viterbo University This Disney Company: Corporate Business Strategies Analysis Introduction/Background The Disney Company is an international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media (The Disney Company, n.d.). The Walt Disney Company, as known today, originated in 1923 with the creation of Disney Brothers Studio, founded by Walter and Roy Disney. The studio began creating animated films that would become the foundation of Disney (The Disney Company, n.d.). The Company expanded into its first theme park, Disneyland in Anaheim, CA, in 1955 and another in Orlando, FL, Disney World in 1971. In 1983 the company continued its market expansion with the launch of the Disney Channel and also internationally with both Tokyo Disney and Euro Disney (The Disney Company, n.d.). Continued company growth and market development occurred with Disney’s acquisition of the Miramax Film Company in 1993. Further market capture occurred with the purchase Capital Cities ABC in 1995; this allowed for Disney to have access to the cable networks of ABC and ESPN (Business Wire, 1995). Pixar was the next addition to the Disney empire with a 7.4 billion dollar purchase in 2006 followed by Marvel Entertainment in 2009 at 4 billion dollars and most recently Lucas Films in 2012...
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...Disney Ethics and Compliance Paper Throughout the years, Disney’s guests, audiences, consumers and shareholders have come to depend on quality, creativity, innovation, and integrity. Individuals trust Disney because of the commitment and the standards to which Disney holds. The organization is responsible for upholding excellence and integrity. This means acting responsibly in all its professional relationships, in a manner consistent with the high standards that is set for business conduct (Disney), n.d. There are many reasons the way ethics and the role Disney complies with codes within its organization. Ethics in Disney affects every area of the organization, not only the financial environment. Upholding legal standards of conduct, while mandatory for every cast member and employee, is not enough. Disney is responsible for maintaining ethical standards. These standards govern how to treat individuals that are in contact with Disney. These are standards of integrity, honesty, trust, respect, fair play, and teamwork, not to insult, degrade, and apply peer pressure to other employees for self-gratification (Disney, n.d.). Disney’s financial environment is characterized by its financial managers, supervisors, and bookkeepers. The role ethics need to be part of Disney’s finance team is to work with integrity and objectivity. Integrity is being honest, sincere and accurate in how the finances are reported. The bookkeepers must be impartial to Disney and avoid any conflict...
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...Annual Report Analysis | The Walt Disney Company (DIS) | | Introduction In order to make the right investment decision, one must analyze the company of their interests. It is not wise to invest money on a company that is not doing well within their industry. On the other hand, if companies want your investments they must provide accurate, substantial evidence to show that you will make the right investment if you invest in them. Therefore, publicly traded companies publish their financial statements in their annual reports which investors can analyze use to make an investment decision. The Walt Disney Company is an entertainment company that is well known worldwide. The company was founded in Burbank, California in 1923 and became a public traded company in the 1950’s. The Walt Disney Company reports earnings on a quarterly and annual basis with their fiscal year ending on the first business day in the month of October of ever year. The company recently released their “Fiscal Year 2011 Annual Financial Report and Shareholder Letter,” which provides the company’s financial statement. With the annual report provided by the company and the analysis techniques learned from this course and other supporting evidence to analyze the financial position of The Walt Disney Company and determine if in fact the company would be a good investment option. Auditors’ Opinion The Walt Disney Co. auditors are PricewaterhouseCoopers LLP, an independent registered public accounting...
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...The Walt Disney Company Financial Accounting Project Progress Report 2 8am M, W, Th Yuli Tang Wei Wang Tianda Xu Rui Zhang Profitability: In 2011, the profit margin of Walt Disney Company was 0.1176(11.76%). Due to the company’s huge net sales value, it shows a solid profit margin for a large company just as Walt Disney. In 2010, the profit margin was 0.1041(10.41%), which was 1.35% lower than 2011. The higher profits margin rate in 2011 indicates that the profit margin will increase in the future. Furthermore, the Walt Disney’s return on equity was 0.129(12.9%) in 2011, and the return on equity was 2.9% higher than the previous year, which showed that the Walt Disney keep steady profitability. Compared to its competitor DreamWorks Animation’s 0.123 profit margin, Walt Disney had lower profit margin that was 0.1041 (Appendix 2D). However, the ROE of DreamWorks Animation was 0.064(6.4%), which was much lower than Walt Disney (Appendix 1A&2A). Thus, Walt Disney made more profits than its competitor. The net income of Walt Disney in 2011 was $ 4,807,000,000, and it net sales was $40,893,000,000 (Appendix 1D). There are huge amount differences between net income and net sales. Because Walt Disney doesn’t have cost of good sold, the main reason is high cost and expense that was $ 33,112,000,000. In addition, income tax and interest expense were other factors determined the discrepancy. Liquidity and Capital Structure: As we know that a quick ratio can measure the...
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...help a business run more efficiently. There are different ways an organization can divide its power, abilities, responsibilities, and roles. The way they choose to organize is called "organizational structure." It is important to know about organizational structure, especially if you are, or planning to become a manager. Knowing the way your company operates will help in planning and in delegating responsibilities. Even if you are not a manager, it is vital to know your own job responsibilities, and know who you are supposed to report to. "As the tasks of organizations become increasingly complex, the organization inevitably must be subdivided—that is, departmentalized —into smaller units or departments" (pg287). Functional Organization In a functional organization, "departments are specialized and grouped according to business functions and the skills they require: production, marketing, human resources, research and development, finance, accounting, and so forth" (pg287). You can find this structure in both large and small organizations. There are several advantages to having people with similar skill sets grouped together. For example, more efficient equipment can be purchased, and the employees may develop a shared concern for their job performance. Communication is easier; terminology is generally the same within a small group...
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...Sara Odette Battikh Walt Disney Company Report COMM 387 – Spring 2011 Walt Disney Company Report Note that all information and graphs below are obtained from the websites sited on the reference sheet at the end of the paper. “Creativity continues to be the essence of Disney, even as our businesses expand across borders and media platforms, it is the foundation for almost everything we do, the source of our strength and our success, and the fuel that will power us into the future” - Robert Iger, President and CEO - When we hear the word Disney, what is the first think that comes up in our minds? Most people think about Disney and relate it to magical, exciting and large attractions parks and hotels, and the famous Mickey Mouse. However, they missed to see how big and influential this organization really is. Walt Disney Company is one of the World largest communications organizations. Everyone knows Disney! It is everywhere in our lives, from TV, radio and movies, to parks, clothing, accessories and toys. Owning diverse media markets, Disney has build a tradition of culture and niche by efficiently managing its markets and products, allocating them among different cultures, age groups and preferences. In this report I will be analyzing some of the major managerial decisions within the Company, its influences over the market and the way it has established across the years in our culture. We are now about to discover all the financial numbers, facts, operational...
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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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...Financial Report on Walt Disney Company Financial Report on Walt Disney Company Introduction Walt Disney Company Walt Disney has been selected for analysizng the financial position for this assignements. The Walt Disney Company is regarded as the second largest and most utilzied entertainment and media companies after (TMC) Time Warner Company. The company was established on 16th October, 1923 by Roy Disney and Walt Disney. Throughout the years, it has emerged as one of the largest Hollywood studios and the American Broadcasting Company. The corporate headquarters of Walt Disney is in California. The company primary involves in the service manufacturing industry, books, computer games, animation and entertainment studios and network etc. The Walt Disney and its subsidiaries have been loyal and committed towards the company and its success. Walt Disney has a rich legacy of creative content and story telling that is exceptional. (Walt Disney,2012) The word Disney is a renowned word in the media business industry. It is known for the provision of entertainment to adults and young alike. It comprises of an international theme park and a huge animation studio for production. The Walt Disney dominates the entertainment industry. The Walt Disney Company is a diverse international company in the field of entertainment. It is a media enterprise and comprises of five primary business segments (SBU’s). These include entertainment studies, interactive...
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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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...2010 Michael Joe Ethics and Compliance Paper Ethics and compliance play a significant role in an organizations financial environment. The ethical and compliance standards set in a company lay the foundation of how a company will do business with internal and external customers. Walt Disney Company is a well-known name around the world. A big company like Walt Disney set procedures that will ensure ethical behavior, and follow rules and, regulations that are set for them. PriceWaterHouseCoopers LLP is a public accounting firm that confirmed that Walt Disney Company’s financial statements were fairly done and proved that Walt Disney’s internal control was effective on financial reports (The Walt Disney Company, 2012). According to "U.S. Department of The Treasury" (n.d.), “The U.S. financial markets consist of many separate markets for diverse products offered on a range of trading platforms and exchanges.uyuyuhyuhuhuukhkuh” Taking out a loan for a car or home automatically makes a person part of a financial market. There are three principal groups of players that interact; they are borrowers, savers (investors), and financial institutions. Borrowers are those who need money to finance their purchases, such as businesses that need money tjhujhijikhnjhjhumjhjh o make investments, or individuals who need money to purchase a car. Savers (investors), are those who have money to devote, these individuals save money for a variety of reasons. Financial institutions are what...
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...geographic), matrix, and network (chapter 8, p. 302)”.Each form has advantages and all organizational structures are developed to enable the organization to accomplish its work and succeed as a business. This paper will cover the structure of the organization that Walt Disney uses. I will compare and contrast the structure that Walt Disney uses with two different organizational structures. Then I will evaluate how organizational functions influence and determine the organizational structure. Last I will explain how organizational design helps determine which structure best suits Walt Disney’s organizational needs. Walt Disney is considered one of the top companies in the world. They have survived for over 80 years and have done so by evolving with the future. According to the textbook Bateman & Snell (2011), “core competence is the capability—knowledge, expertise, skill—that underlies a company’s ability to be a leader in providing a range of specific goods or services” (chapter 9, p.310). Walt Disney definitely is a company that has core competence and the structure used today is a Matrix. The Walt Disney company consists of four main umbrella categories; The Walt Disney Studios, Resorts and Parks, Disney Consumer Products, and finally Media Networks (Danielski, 2009). The matrix structure allows the benefits of vertical and horizontal structures to exist in one organization. A vertical structure, which is a direct line of the...
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...SHANGHAI DISNEY: MILESTONE JOINT VENTURE Rita Lemoine Southern New Hampshire University Abstract This paper examines the significant collaborative efforts of both a U.S. multi-national corporation, The Walt Disney Company and its foreign socialistic counterpart, the Shanghai Shendi Group, Ltd. negotiation of an Equity International Joint Venture agreement. The paper will disclose the joint venture agreement, the financial structure, and funding arrangements for the construction of the Shanghai Disney Resort. Then a SWOT analysis will demonstrate the strengths, weaknesses, opportunities, and threats that could affect The Disney Company’s operations in China according to current economic, political, and legal policies regarding foreign joint ventures. Finally, an assessment of the cultural differences between the two companies in the form of managerial and leadership styles that could hinder the success of this joint venture. Keywords: Equity International Joint Venture, SWOT analysis, Cultural Dimensions SUMMARY OF THE WALT DISNEY COMPANY The Walt Disney Company, the leading producer of family entertainment for the past nine decades, beginning in October 16, 1923 when Walter Elias Disney “signed a contract with M.J. Winkler to produce” a series of cartoons, the early stages of The Disney Brothers Studios, founded by Walter Elias and Roy O. Disney. (Retrieved from “http://thewaltdisneycompany.com/about-disney/disney-history/1920-01-01--1929-12-31”). The...
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...planning” determines where Disney would be headed business wise in the next few years or more and what initiatives Disney will use to get there. Strategic planning is just one of the different steps to be performed in achieving a solid plan. As Disney encounters different issues such as the current state of the economy or positive opportunities, planners must come to careful and smart conclusions. Planners for Disney should always include the current financial state of the company, during the planning process. There are a few key steps pertaining to the financial aspect of strategic planning: developing financial goals, alternative courses of action, evaluating risk, implementing a financial action plan, and reevaluating your plan. During the planning process, at some point, senior planners will need to identify or update the strategic philosophy. This process can be accomplished by updating the mission, the vision, and the core values statement to be aligned with the strategic plan. “Some deft observer of the laws of physics as well as economics once said that the two most powerful forces in the world are gravity and the time value of money, (http://www.finance.cch.com/text/c10s10d020.asp).” Time Value of Money is a beginning block for financial planning, and Disney must have a genuine understanding of this process in order to achieve financial security throughout this strategic initiative. The Time Value Concept or TVM, opens up doors for Disney to magnify their goals in...
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