...Olin Business School Washington University S-02-001 Published: 2002 Revised: 2009 Disney Corporate Strategy (A) Barbarians at the Magic Kingdom’s Gate* Introduction The next big takeover fight – and it would be a beauty – may involve Walt Disney Productions. By the time you get this issue, Disney’s defense strategy may already be unfolding. But it will produce no quick victory for Disney even if a white knight comes along, and even if the principle attacker, Saul Steinberg, can be bought off. One by one, Hollywood’s great studios have been plucked by the smart out-of-town moneymen. Paramount by the late Charles Bluhdorn. Twentieth Century-Fox by Marvin Davis and Marc Rich. MGMUnited Artists by Kirk Kerkorian. Columbia by Coca-Cola. Now, it may be Disney’s turn. But Disney will not go quietly. - Forbes, June 4, 1984 Ron Miller, Disney Productions’ CEO reflected on the remarkable events of the past several months. Disney, the symbol of wholesome family entertainment, had become the target of a hostile takeover attempt by a well-known raider, Saul Steinberg. Steinberg now owned 12% of the firm and was threatening to acquire more. While Miller had orchestrated several defensive maneuvers, Steinberg had now announced a public tender offer to purchase 49% of the equity at a price that was a 45% premium over where the stock had been prior to the raid. To fund this purchase, Steinberg was promising to sell the film library and certain real estate assets to outside investors...
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...Walt Disney: Investor Communications Strategy Q1. In your opinion, what are the most critical elements of Disney’s overall investor communications strategy? Do you believe Disney is successful in each of these elements? A1. One of the most important elements of Disney’s investor communications strategy was dividing the shareholder base into three different groups, namely: buy side, sell side, and retail investors. This tactic allows a specific approach to different kinds of investors that is tailored accordingly. They are successful in this element of the strategy as they have identified their priority group: Disney considered its most important investor audience to be those shareholders whose investment time horizon matched the company’s long-term operational and financial time horizon. In addition to this, Disney’s management believed it was important that the company maintain credibility with the investment community. This also makes up a very important element that will play a vital role for their corporate strategy, creating something that is high in quality and of enduring content, as this is quality control, shielding the company from future tension with the shareholders. In order to position Disney’s strategy and management team credibly, the company provided specific examples and illustrations around its performance. They have successfully handled a cagey situation with the analysts concerning the Disney amusement park and them thinking it was weighing on the company’s...
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...Date THE WALT DISNEY COMPANY Introduction The Walt Disney Company is one of the leading entertainment companies in the world as it occupies the tenth spot in the list of the leading brands in the world. Incorporated in California more that eighty years ago, the conglomerate enjoys a worldwide presence as it has managed to expand its operations to virtually every corner of the world. To achieve this, the company saw it necessary to not only to focus on the United States market, but also exploit all the other markets around the world as well as diversifying its operations to cover a wider range of entertainment products and services. As of December 2015, the Walt Disney company had spread its tentacles to three continents where Disney amusement parks and stores have been observed have been set up in the united kingdom, United States, Spain, Italy, as well as Portugal (Bohas, 2014). Licensed shops have also been set in operation in almost every county around the globe. This paper focuses on the strategies that the Walt Disney Company has adopted to thrive in the industry as well as how the company manages to thrive in the international market. Complementary strategic moves Strategic alliances The company has partnered with other players in or outside the industry not only for the purpose of diversifying its operations but also to strengthen its competitive advantage in the entertainment industry. In December 2015, it was announced that the Walt Disney company was to form...
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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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...1. Chase’s International Strategy and Objectives As the largest bank in the United States by assets and market capitalization, JPMorgan Chase is a major provider of financial services with assets of $2 trillion and according to Forbes magazine is 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...
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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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...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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...transition from that of a traditional product centric organization, to building a more personal based relationship in becoming more customer centiric. The team implemented additional ideas in putting forth the voice of the customer project in considering conducting tests of utilizing direct mail opt-in strategies. Many organizations have dismissed direct mail altogether as too expensive, too slow, too outdated or all of the above. Such opt-in information can be used effectively in expanding our VOC Channel mix if it is utilized correctly. (Roman, 2011). With the amount of data we will be collecting through the Walmart rewards program, we should be able to access a database full of leads in conducting research to compare the results from doing a combined direct mail and email campaign, a direct mail-only campaign, and an email-only campaign (Kopecky, 2013). Provided below is such an example and break down results of tests that can be calculated. With Walmart’s growth internationally this form of opt-in VOC research can be beneficial for focusing on strategic planning and relationship marketing in culturally diverse countries. When conducting such opt-in strategies, Walmart must be made aware of the...
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... Disney Corporation: It all started with a mouse Case taken from The International Business Environment, second edition (Palgrave, 2006), by Janet Morrison Walt Disney, the founder of the Walt Disney Company in 1923, is famously quoted as saying to his successors in the company: ‘I only hope that we never lose sight of one thing – that it all started with a mouse.’ The business was started by Walt Disney and his brother, who rented a small studio to produce animated films, introducing its most famous character, Mickey Mouse, in 1928. It was in animated films that the studio excelled, and on which its reputation and brand are based. The company has grown into a $28‐billion‐a‐year media and entertainment empire, consisting of film studios, theme parks and resorts, a television network and consumer products divisions. Much of this development has taken place under the leadership of Michael Eisner, who took over as chief executive in 1984. He is credited with the huge expansion of the theme parks and resorts. However, from the late 1990s, the company’s performance took a downturn (see figure). New competitors in the theme park business, combined with the downturn in tourism following the World Trade Center attacks of 11 September 2001, affected theme park attendance. Wavering consumer confidence has affected the consumer products division, which needs new characters beyond Mickey Mouse – now in his seventies – to reinvigorate the Disney brand. The loss‐making television network...
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...PLANNING Learning Objectives – module 2 At the end of the session the student should be able to understand the decision making process, the various types of decision making and the planning process in an organisation. They are also expected to comprehend the outcomes of a planning process like vision, mission, objectives & strategy. The module has 4 sessions Topics – Module 2 (4 sessions) Decision making Types of planning The planning process/ framework Strategic planning in an organisation Outcomes of planning process Hierarchy of strategy MBO – Peter Drucker Decision Making ‘the process of identifying & selecting a course of action to solve a problem / take advantage of an opportunity’ Problem – the discrepancy between ideal & actual situation ‘Problem – something that that endangers the organisations ability to reach its objective Opportunity – some thing that offers a chance to exceed objectives’ Peter F Drucker Problem finding process Deviation from the past experience Deviation from set plan Other people Performance of competitors intuition Problem finding - errors False association of events False expectation False self perception & social image Other factors Threshold of problem recognition Setting priorities Selecting the right ones – leave the easy ones Allow self solutions Types of DM STRUCTURED Made under established situation i.e. definable, predictable & analysable Called programmed DM Routine problems Application of rules/ procedures/...
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...companies (e.g. Time Warner, Disney, Vivendi) and their diversification strategies Amazon’s tablet business Shangri-La Hotels: strategy for regional growth Cemex: strategy for globalization P&G and Unilever in China (or India) Walls icecream’s (owned by Unilever) growth in Asia Nestle’s growth in emerging markets Globalization strategy of Whirlpool Whirlpool and GE’s strategies in appliances in Asia Walmart’s globalization; experiences in Latin America, Asia, Europe Carrefour: successes and failures in globalization Mittal’s growth in steel industry; industry consolidation AES growing in electricity generation industry; globalization; industry restructuring Consolidation in the electric utility industry in the US Consolidation in the aluminum industry Consolidation in the automotive industry: Fiat+Chrysler, Daimler + Chrysler, Renault + Nissan Alliances in the international airline industry New airlines in Europe, such as Ryanair, Easy Jet, Go, Virgin Express Lenovo (China) in PC and Internet Haier (China) in appliances Ebay’s acquisition of Skype Chipotle’s growth: past, present and future Disney’s acquisition of Lucasfilm Inditex and fast fashion industry Paypal and mobile payment industry Schneider Electric’s acquisition of Invensys Online instant video industry Growth and decline of Blackberry Globalization of McDonald’s Intel and vertical integration Microsoft’s acquisition of Nokia Uniqlo Big tobacco, growth strategy for Reynolds American Green...
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... Walt Disney is Pepsi cola is the front-runner in an extremely successful customer goods industry, such as beverages and snacks. These types of goods are lucrative and provide positive cash flow. To sustain their success, Pepsi cola anticipates decreasing the budget cost of bottling and distribution. The company plans are to acquire several bottling plants in the vicinity of the consumer market to reduce the distributing and manufacturing cost. Similarlyby employing the SAP ERPsoftware, Pepsi cola anticipates the manufacturing and distribution procedures can be standardized. The inventory management system better perform surveillance of the raw material inventory and improve accuracy of stock levels of goods allowing them to meet the need of the market. By implementing this strategy, the cost of manufacturing and distribution will be reducedand Pepsi cola will improve the profitability in the short and long-term beverage market. One initiative Pepsi cola identified in their annual report where to implement growth in the future. The United Statesand other developed countries are not expanding fast enough to accomplish their projected financial performance. Competition appears to be the major factor alongside health awareness and demanding economic circumstances. Because of these financial burdens Pepsi cola must take exploits to make certain the beverage business ensures financial growth. The initiative strategies is basedon induction of new products...
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...Does IT Matter? An essay presented to the Department of Information Systems University of Cape Town in partial fulfilment of the requirements for the course on Information Systems Honours (INF 414W) by ( March 200x Declaration 1. I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s own. 2. I have used the APA Convention for citation and referencing. Each contribution to, and quotation in, this essay from the works of other people has been attributed, and has been cited and referenced. 3. This essay is my own work. 4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work Signature …………………….. Date ….../….../…...… Full name of student: A Table of contents 1. Introduction………………………………………………………………………1 2. Resources: what makes them strategic?.....................................................1 1. Characteristics of Strategic Resources………………………..…………2 3. Strategic value of Information Technology………………………….………..2 4. The evolution of the IT function in business………………………………...4 5. Using IT to gain Sustainable Competitive advantage………...……………7 6. Conclusion……………………………………………………………………….8 7. Bibliography………….………………………………………………………….9 ...
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...….8-9 Current Financial Situation….10 Historical Results……………….11-13 Macroenvironment……………..14 SWOT……………………………..15 Objectives & Issues……………...16 Financial Objectives Marketing Objectives Critical Issues Marketing Strategy Target Markets…………………17-18 Positioning……………………...19 Marketing Mix………………….20 Marketing Research…………..21 Creative Strategy………………..22 Creative Brief Overall MC Strategy………….….23 PR Strategies & Tactics…..….…24-27 Schedule…………………………..28 Budget……………………………..29 Measurement & Evaluation…...30 Conclusion………………………..30 Works Cited………………………31-32 Executive Summary As an international brand, TOMS is looking to gain a strong foothold with new and existing customers by targeting men and women 18-24 years old, as well as 25-34 years old, specifically in the United States. Through this plan, TOMS will actively move forward to define a thriving market within which the brand can prosper. With extensive primary and secondary research, TOMS will accurately define and target challenges that they face. With this information, new objectives will be proposed for the TOMS brand that will define and reflect the market trends, which will in turn resonate with the target audience. TOMS will reach the target audience through various promotional and public relations strategies and tactics. With this campaign, TOMS hopes to speak to their audience and let them know… It's more than just buying a pair of shoes. It's a lifestyle. TOMS Shoes Strategic Plan | May 10, 2011 | Page 2 Situation...
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...When a firm creates, formulates, and implements a strategy that adds value and competitive advantage that is a strategic business plan. A strategic business plan is the layout or outline that specifies how a firm is going to reach their plans or goals over a certain period of time. The plan can be very specific or very broad. It can focus on one part of the business, as well as a whole focusing on all functions within a company. This plan is important to an organization’s long-term success because it gives the company a direction or purpose in which to set goals and carry them out. A strategic business plan assists a company in providing products and services in a more efficient and effective manner. Without a strategic business plan a firm will have a difficult time maximizing the potential of its resources. New opportunities and key resources for growth or improvement will be limited or perhaps even missed. A strategic plan is important to both small and large businesses. I believe that for any company, no matter the size, it is equally important to have a strategic business plan in place. This will assist in understanding customer needs and be able to adapt to constant changes and new trends taking place within the company. With a successful strategic plan, a company has a great opportunity for becoming very successful. Innovation plays a key role in developing a company that has potential for growth and success. Innovation provides the company with ways to maintain a competitive...
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