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Walt Disney: Investor Communications Strategy

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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 stock price. Disney also wanted to maintain credibility with its investor base by delivering consistent messages about important company objectives and strategies.
Q2. What is your opinion of management’s capability and credibility, given the information in the case and exhibits?
A2. Being an important part of the overall investor communication strategy, and not only, it is important for

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