Karachi University

Case study: Walt Disney case

study
STRATEGIC MANAGEMENT

Submitted to: Dr Shameel zubairi

Submitted by: Muhammad Ibrahim

Muhammad Usman Qadri
Maryam Urf Maira
Rafia khan
Shahwar najeeb

INTRODUCTION:
Walt Disney Company is a diversified international company with
operations in four business segments: Media Networks, Parks and
Resorts, Studio Entertainment and Consumer Products. They employ
over 150,000 people in over 40 countries and had revenues of
approximately $40.89 billion in 2011.

Company Mission Statement:

“To be the world’s leading producers and providers of amusement and
information. Using our portfolio of brands to differentiate our content,
services and consumer products, we track for to develop the most
creative, innovative and profitable entertainment experiences and related
products in the world.

FINANCIAL FACT:
S# fact Major impact
scale
1 Walt Disney world in Orlando. Florida which lost M5 Neg
92.3 million, will own 43 percent and 1.9 billion
investment.
2 20 percent increase in net income 2010 and April M1 positv
2,2011 revenue increase 8 percent to 19.793 billion
3 Media network segments bring is the most revenue M2 positv
and operating income(Park and resort segments)
4 74 % and 72% from revenue and operating income M3 Neg
respectively(from USA/CANADA business)
5 Majority of revenue from fees charged to cable, M5 positv
satellite and telecommunication.

S# fact Major impact

scale
6 in revenue in Disney’s Cable Network reported a 9 M4 Positv
percent increase 2010
7 Parks and resort revenue increased 7 percent to 2.6 M6 Positv
billion
8 July 2010 Disney sold the majority of the asset of their M7 Neg
Miramax Film Corp for 663 million
9 Food cost increased dramatically in 2010/2011 M8 Neg
10 24 billion increase in good will M10 Positv
11 Disney revenue 2010 drive Media Network (45%) M11 Positv
Park and resort (28%), studio entertainment (18 %|)
12 Park and resort (28%) Studio Entertainment (18%), M12 Positv
Consumer product (7%) and interactive media (2%)

MARKETING FACT:
S# fact Major Impact
scale
1 The company faces very intense competition, M1 Neg
Especially from NBC Universal and Paramount
Pictures
2 More current Disney initiative include working with M5 Positv
Apple to promote iPad 2 and iTunes.
3 Disney’s ESPN recently signed a 20 year agreement M3 Positv
with UT
4 In 2011,ESPN offered the NBA finals in 3-D,for first M7 Positv
time ever
5 Advertising dollars are major source of income M6 Positv

MARKETING FACT:
S# fact Major impact
scale
6 Disney is the largest worldwide licensor of character- M2 Positv
based merchandise and producer/distributer of
children’s film related product.
7 In more than 25 new and remodels Disney Store M5 Positv
locations 2011,
8 Plan to transform all of the 350 Disney Store M8 Positv
locations around the world
9 New competitors like Netflix, Dish Network and M9 Neg
Amazon .com

10 DPW publishes children’s books and magazine in M10 Positv

multiple countries and languages.

11 Disney has 109 million subscriber to its Disney M4 Positv

channel

HR FACTS:

S# fact Major impact

scale
1 In June 2011, lay off 5% of the employees or more M1 Neg
than 200 people at its film division to reduce costs at
the Studio Entertainment Segments.

OPERATIONAL FACTS:
S# fact Major impact
scale
1 New theme park in Chinghai M2 POSITV
2 The park and Resorts segment of Disney is growing, M1 POSITV
having recently added 481 units to its resort
3 Disney studio entertainment theatrical distribution M3 NEG
Business due to sluggish problem

CONCLUSION:
The main appeal of any approach is the exception that it will enhance
organizational performance. That is especially true of strategic management.
Through involvement is strategic-management activates manager and employees
achieved a better understanding of an organizations priorities and operation.