...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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...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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...| 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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...A. BACKGROUND ANALYSIS 1. Provide a brief description of your company: nature of operations, size (in market capitalization and net income), and which industry it is in. Also list the names of several competitors (at least 3) of your company. In www.finance.yahoo.com, you can find a limited list of your company’s competitors by inputting the ticker symbol or the name of your company and hitting “get quotes”. Then look at the vertical menu on the left part of your screen. Under the COMPANY menu, click on COMPETITORS. If you don’t get at least 3 competitors from Yahoo, you need to find another source. “The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments, these five segments include: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The Media Networks segment operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels Worldwide, ABC Family, and SOAPnet, as well as UTV/Bindass. This segment owns eight domestic television stations. The Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation club properties; a retail, dining, and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water...
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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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...An Analysis of The Walt Disney Company 1 An Analysis of The Walt Disney Company Kendall Forward TELE 3310 October 29, 2013 An Analysis of The Walt Disney Company Overview & History 2 The Walt Disney Company is a leading American diversified multinational entertainment and mass media conglomerate, headquartered in Burbank California. Founded on October 16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the company struggled through years of unsuccessful creations but turned around after the debut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger, Disney is one of the largest entertainment corporations in the world with approximately 166,000 employees and annual revenues approaching the $45 billion mark (Walt Disney). For eight decades, Walt Disney has entertained people around the world with its theme parks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before diversifying into live-action film production, television and travel, the company established itself as a leader in the American animation industry. The company went public in 1940 and was reincorporated under its current name in 1986 and expanded operations and also started divisions focused on theatre, radio, music, publishing and online media (Cohesion Case). Mission Statement The mission of The Walt Disney Company is to be one of the world's...
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...Business Analysis of Walt Disney Company MGT/521 April 30, 2012 Business Analysis of Walt Disney Company In the era of the 21st century, when globalization has expanded drastically and rooted its success across the globe, the task of the managers in the company is getting challenging and competitive day by day. Firms have grown rapidly and the job of the fund manager has also increased to take advantageous decisions for their corporations. As a mutual fund manager, this paper will discuss the SWOT analysis of Walt Disney Company. SWOT analysis is a key component of a business analysis. It identifies a company’s internal strengths and weaknesses, and external opportunities and threats in order to obtain knowledge about the organization and whether or not the company is a worthy investment. “By conducting a SWOT analysis, an organization may improve its effectiveness through strengthening its current status, grabbing opportunities, and reducing weaknesses, and protecting business from threats” (Hitt, Ireland, & Hoskisson, 2009, p. vii). The Walt Disney Company is an American multinational diversified mass media company headquartered in Walt Disney Studios, Burbank, California, United States. It 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...
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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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...Case Summary The Walt Disney Company had successfully grown internationally by diversifying its entertainment empire. From its humble beginnings as a cartoon business starring one character, its business expanded to feature films – animated and live-action, film distribution, network and cable television, theme parks, retail stores, merchandising, publishing, and Broadway. After years of growth however, the company recently experienced sub-par performance and slower growth. Strategic Issue This deterioration in performance was preceded by Disney’s ambitious acquisition of CapCities/ABC, which made Disney the largest entertainment company in the U.S. Given its size and recent financial downturn, what opportunities exist for the company to achieve CEO Michael Eisner’s goal of 20% annual growth? Factors Contributing to Problem - With the purchase of ABC, Disney vertically integrated into a mature and highly competitive television industry. The merger also posed synergy challenges due to the immense size of both organizations and the difficulty in eliminating overlap across businesses and processes. - The ABC merger also presented culture clashes between the two organizations. In an attempt to achieve synergies across the company, Disney’s corporate culture became increasingly competitive and cost-driven, leading to an exodus of many high-level executives. - Rising costs in television programming, especially sports, hurting profitability. ESPN, for example, paid...
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...An Analysis of Gender Roles in Disney Princess Films Jasmit Singh 213749361 Traditional and Popular Culture – 1900 9.0 Susan Niazi – Tutorial 6 Whether it’s the colours they wear, the activities they engage in or how they behave, men and women are known to play different roles in society. These established gender roles “are not innate or natural but a product of society”. Children, adolescents and adults all learn gender roles through the environment they’re surrendered by. One of the many huge influencers that help shape gender roles is media. Although “there has been a lot of change over the years in terms of what is considered appropriate societal roles for men and women, this change is not reflected in contemporary film”. The ideology of mainstream media continues to focus on the males being the heads of society, which in result, shows an unequal representation of the females. From an early age, media puts an image into young minds, informing them how males and females should think, act, behave and appear. In many television shows and films, one can easily see the distinct difference between the role of a male and a female. Often films are enforcing stereotypical gender roles where the male is seen to holds more importance in society than the female. Amongst many film producing companies, Walt Disney Pictures for decades have been enforcing stereotypical gender roles in their princess films. Though it may not be outright obvious, Disney productions play a huge role...
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...Disney Case Write-Up Notes Problem: Walt Disney and its joint venture partner, Hong Kong gov’t. are struggling with Hong Kong park less successful than plan. Attendance lower than expected for three years since opening. Must come up with a plan to turn things around, with or without increased capital investment. Context to problem includes Disney’s mixed results with parks outside US (Paris and Tokyo) and importance of HK park given Disney’s plan for a park in Shanghai. Analysis: Need to look at reasons behind poor performance in order to come up with a plan. Could organize the problems several ways (look at planning vs. tactical problems or 5 C’s, 4 P’s, etc.). Issues include: * Small size * Site problems (environmental issues, too short an evaluation period) * Mismatch between product and target market (local and Mainland visitors * Seasonality issues * Pricing issues * Neglected importance of travel agents * Poor PR * Decision-making power primarily with American expats * Employee relations issues * Underestimated ability of Ocean Park to compete effectively * Poor environmental policies (fireworks) * Opened when not really ready * Poor capacity planning * Culturally tone-deaf * Poor employee relations Should look at what fixes would require capital investment and what could be done with current funds Should discuss issues of standardization and adaptation. What aspects of the Disney experience should...
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...Theme Park Development Costs: Initial Investment Cost Per First Year Attendee – A Historic Benchmarking Study Kelly T. Kaak Rosen College of Hospitality Management University of Central Florida ABSTRACT There is an industry “rule of thumb” that when planning for the construction of a theme park, developers should anticipate investing $100 per expected first-year guest. In other words, if the goal is to attract a million paying guests per year, the total investment needs to equal $100,000,000. This ratio is quite common in the literature, but it has never been investigated formally. This study collected the initial investment costs of 52 parks built in the United States, converted that investment into modern dollars, and then divided that dollar cost by the first-year attendance figures. The overall mean or average among the subject parks was $109.61 invested per first-year guest. This figure is very close to the industry “rule of thumb” of investing $100 in construction costs for every desired first-year guest Keywords: theme park, development costs, attendance INTRODUCTION There is an industry “rule of thumb” that when planning for the construction of a theme park, developers should anticipate investing $100 per expected first-year guest. In other words, if the goal is to attract a million paying guests per year, the total investment needs to equal $100 million. This ratio is quite common in the literature, but it has never been investigated formally. This information...
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...Running Head: Financial Analysis Financial Analysis of Walt Disney Company Brittany ACC205 Professor 17 June 2013 Throughout this paper you as my reader are going to learn about my company, what they are all about including any type of competition they may be facing. You are also going to view the financial analysis of Walt Disney Co. which will include a horizontal analysis from three consecutive years, along with a ratio analysis which will be going over the current ratio, quick ratio and the cash to current liabilities ratio from a two year-period. First off let’s discuss what a horizontal analysis is before examining the analysis of Walt Disney Co. According to our text, “a horizontal analysis can be used to compare data from within two or more periods, side by side. In other words, it is intended to show the change in certain accounts from two separate accounting periods”(Walther, 2012). A horizontal analysis is good for investors, so they can look at the companies financial standing and see how they are doing when it comes to their income, and whether or not they are worth investing into as a company. This sort of analysis is very vital when it comes to investors, it should not be the answer to their decision on whether or not they should invest in a company, but it should give them some insight as to who well a company is doing financially. When it comes to Walt Disney Co, we are going to get some background information...
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...The Walt Disney Company: Business Environments Daniel A. Parra Lozano Lynn University The Walt Disney Company: Business Environments The success of organizations within their specific market niches and competitive environments is based on a myriad of factors, both internal and external. The detailed overview and analysis of these factors exists within the general business environments of the organization. In order to maintain a leading competitive advantage, managers on every level must actively assess these environments and markets, while making the most appropriate decisions that will allow the organization to sustain leverage when faced with high environmental dynamism and/or complexities. The Walt Disney Company has clearly proven to withstand the test of time, through dedicated market analysis and environmental scanning. Internal Environment From the company motto, corporate credo, mission and visions statements, to the overall culture and climate of an organization, the internal environment defines the intramural business atmosphere of the entity. The Walt Disney Company’s strong internal environment and clear strategic intent makes Disney an evident leader in its industry. The Walt Disney Company also basks in unparallel name recognition, experienced upper management, and a conglomerate diversification of goods, products, and services offered. Developing strategic management based on a company’s core competencies, makes for a constant, yet not necessarily evolving...
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