A strategy to enable Disney to grow the business and increase profits by 2021
Background: ‘Keep managing the magic’ Walt Disney Company
Magic happens at the happiest place on earth. At least that’s what the people at the Walt Disney Company (Disney) work hard to make us believe. CEO Bob Iger and his top management team are working hard to conjure up their own magic; that is, to find the best way to strategically position the company.
When Bob Iger was named CEO in 2005, analysts believed that the brand had become dated. There was some sense that Disney’s target audience was young and that its products couldn’t possibly be of interest to older kids. Since Bob Iger’s appointment, the economy has slowed and there has been an impact on global consumer spending that impacted on the business.
The mission of The Walt Disney Company is: to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.(MISSION STATEMENT)
‘As audiences left the premiere of the new Star Wars film, “The Force Awakens”, in Los Angeles on December 14th, its last image still alive in their imaginations, it became obvious that the hit of the year had arrived
If “The Force Awakens” evokes the past, but on a grander canvas, Bob Iger, has also set about remaking an original formula on a more ambitious scale. An intricate flow chart drawn in 1957 (pictured) elegantly lays out the company’s strategy, with films at the centre surrounded by theme parks, merchandise, music, publishing and television. Each piece of the business provides content and leads to sales for the others. Putting films back at the heart of the business is a reboot of the Disney family’s original scheme to dominate the entertainment industry by using content to appeal to a bigger, global audience.
In remodelling itself to prioritise content over the means to distribute it, Disney has become the envy of the industry. Profits have more than doubled over the past five years, to $8.4 billion, and Disney’s share price has risen nearly fivefold in a little over a decade, easily beating its rivals.
What has set apart Disney is its determination to put storytelling at the heart of its business, and its ability to get its hands on new characters capable of bringing fans back again and again
New franchises have joined the world’s most formidable licensing and entertainment empire, one that encompasses toy shops, video games, theme parks, cruises, comics, music, television and feature films. Disney is commercialising childhood through lots of channels—and making the companies it bought, as well as itself, far more valuable in the process
No competitor, however, rivals Disney’s scale. The only media rival that comes close to matching its breadth is Comcast, which acquired NBC Universal, including Universal Studios and its theme-park business, in 2011. And none is anywhere near Disney when it comes to selling spin-off products. It is the world’s number-one licenser of merchandise by far, with $45 billion in sales in 2014, more than seven times as much as its closest competitor in Hollywood, Warner Bros.
Disney also has a well-developed global retail network, and has been promoting Star Wars at its theme parks in Paris, Tokyo and Hong Kong. In 2016 Disney is opening a new theme park in Shanghai, the first of what might eventually be two in mainland China
Mr Iger is due to step down in 2018. Can he stuff more into the toy box before he goes? Mr Iger keeps a list of firms Disney might be interested in buying. They are all leading international brands that would fit with Disney well.
www.economist.comAccessed 01.04.2016
www.telegraph.co.uk 29.03.2016
Aerial view of Disney Shanghai – due to open in June 2016
‘Star Wars – The Force Awakens’ The Times Published at 12:01AM, February 10 2016
TASK 1
REPORT ON THE STRATEGY RECOMMENDATIONS FOR WALT DISNEY CORPORATION(50% of overall marks for this assignment)
Report Brief
You are working for Walt Disney Corp (Disney) and have been asked by their Senior Management to write a report that outlines a strategy that will enable the company
‘to grow the business and increase profits over the coming five years.’
Your report should NOT EXCEED 1,250 words
REPORT FORMAT
Title Page:
Project Title: A strategy to enable Disney to grow the business and increase profits by 2021.
Submission date: 12:00pm Friday 10th June 2016
Authors: Include your names and INTO student numbers)
Executive Summary (max 125 words: not part of the word count)
Guidance: the purpose of the executive summary is to enable the readers of the report to appreciate quickly your conclusions and key recommendations.
Table of contents: lists headings and subheadings (not part of the word count)
The main body of the report to comprise the following sections:
• INTRODUCTION to the Company
• INTERNAL ANALYSIS: STRENGTHS & WEAKNESSES
• EXTERNAL ANALYSIS:
Use of STEEPLE OR Porter’s 5 Forces
• RECOMMENDED STRATEGY:
Recommended strategy with your reasons/justification for the strategy.
• EVALUATION OF THE STRATEGY:
Include critical analysis of the strategy
• REFERENCE LIST/BIBLIOGRAPHY(not included in word count)
• APPENDICES (not included in word count)
Include copy of Progress Report
Include Appendices – clearly labelled
Plagiarism and Collusion:
The Team Leader (or other designated member of the team) is required to ensure an electronic copy of the report is submitted via Turnitin (See ELE for guidance).
The assignment must be the work of your team. When using information and ideas from sources [textbook, other books/articles, websites], you should paraphrase and summarise using your own words. Make sure you understand the notes on plagiarism and collusion below.
Plagiarism is defined as:
Representing as your own the words or ideas of other people, whether published or not. In the university context it may take the form of, for example, copying chunks of a textbook, web page or lecture materials into an assignment without acknowledging the source, or…..
Copying another student’s work and passing it off as your own.
Always acknowledge direct quotes or the ideas of other writers by naming and referencing your source.
Do not permit your work to be copied by others.
Internet plagiarism is dealt with in the same way as plagiarism from printed sources; search engines make it fairly easy to detect. The use of essay bank material for assessment purposes is not permitted under any circumstances. Any case of cheating and/or plagiarism will be dealt with according to University procedures. See http://www.ex.ac.uk/admin/academic/tls/tqa/plag1.htm
Collusion is the representation of another’s work or ideas as one’s own without appropriate acknowledgement or referencing, where the owner of the work knows of the situation and bothwork towards the deceit of a third party [while in plagiarism the owner of the work does not knowingly allow the use of his or her work]. Collusion is also dealt with under the University procedures.
TASK 2
TEAM PRESENTATION ON THE REPORT (50% of overall marks for this assignment
Prepare maximum of20 minute team presentation (teams will be informed when 2 minutes remain, and stopped when they reach 20 minutes).
Each member should contribute equally to the presentation
The presentation should summarise the most important aspects presented in your report (Do not omit important points and do not add new materials to the presentation).
You should prepare your presentation using Microsoft PowerPoint. You may, if you wish, use other applications to prepare your presentation, but it MUST be delivered in powerpoint.
At the end of your presentation, you will be asked two questions:
• One question will link to the content of your research
• One question that will ask your group to reflect on how you have worked as a team, you should think about ‘what worked well’ and ‘what you have learnt from the team work experience’
PROGRESS REPORT Walt Disney Company (Disney): Report and Presentation
Submit to class teacher by 12:00pm Tuesday 7th June 2016
Class teacher email: K.Glide@exeter.ac.uk or A.R.McIlwraith@exeter.ac.uk
Name of Team: ……………………………………………………………………………………………..
Name of Team Leader:……………………………………………………………………..
REPORT: Work to date. Please complete the grid below
Meetings Yes/No Details (note any group members who were absent)
We have had team meetings
We have gathered articles and information
We have identified relevant theories to consider
Every person knows his/her task
Every person has made a contribution
We email/phone each other about progress
We have an agreed schedule for future meetings
PRESENTATION: Complete the grid below.
For each team member, state which part of the presentation that person will present. Each person must present
Section Family Name Other
Introduction*
Internal Analysis*
External analysis
Recommended strategy
Evaluation of strategy and reflection
*Combine these two sections for groups of 4
CHECK LIST – have you completed all of the following?
Checked and included (YES)
Submitted Progress Report (paper copy) to your class teacher by email by 12:00pm 7th June 2016
Include assignment front sheet
Team lead (or other designated person in the team) emailed K.Glide@exeter.ac.ukwith a copy of your reportby 12:00pm 22nd June 2016
Electronic copy
Team lead (or other designated person in the team) submitted report through Turnitin (ELE)by 12:00pm 22nd June 2016
Paper copy
Team lead (or other designated person in the team) submit one paper copy of report with power point slides attached at start of presentation (print power point slides 6 slides to each page)
Include assignment front sheet clearly indicating the order of team presenting by 12:00pm 22nd June 2016 to INTO Main Reception
Ready for presentations22nd OR23rd June 2016(date/times to be confirmed)
Knowledge and Understanding
0-6 (Very poor – Fail)
Level 1 Largely inaccurate or irrelevant material. Little or no evidence of factual and conceptual understanding of the subject, or of reading/research.
7-11 (Poor –fail)
Level 2 Shows an insufficient level of factual and conceptual understanding of the subject. Little or no evidence of reading/research beyond a partial reproduction of information gained through class contact.
12-16 (PASS)
Level 3
(Pass) Threshold level. Has developed a basic level of factual and conceptual understanding of the subject. Reading/research is limited to that gained through class contact.
At the upper level of this level: Has developed a sound understanding of the subject appropriate to this level. There is evidence of wider reading which goes beyond that gained from tutor contact.
17-21
(Good pass)
Level 4 Has developed a broad factual and conceptual understanding of the subject relative to the level through extensive reading.
22-25
(Excellent pass)
Level 5 Has developed an exceptionally broad factual and conceptual understanding of the subject relative to the level through extensive reading
Cognitive/Intellectual Skills
(e.g. analysis and synthesis; logic
and argument; analytical reflection; organisation and communication of ideas and evidence)
0-6 (Very poor – fail)
Level 1 No evidence of analysis. Unsubstantiated opinions.
7-11 (Poor – fail)
Level 2 Work is entirely or almost entirely descriptive, showing little or no evidence of analysis. Has accepted information uncritically. Unsubstantiated opinions usually present.
12-16
(Pass)
Level 3 At the lower end of this level:There is some evidence of analysis and evaluation but work is mainly descriptive with an uncritical acceptance of information, and unsubstantiated opinions may be evident. Lack of logical development of an argument.
At the upper end of this level: Intelligent attempt at analysing and evaluating information. Well argued with appropriate amount of evidence, substantiated opinions are given.
17-21
(Good pass)
Level 4 Has analysed and evaluated information using defined techniques & principles. Can collate and categorise ideas and information and can select what is relevant to support analysis and evaluation and develop a coherent argument, appropriate to the level of development. Has developed an early critical approach to information.
22-25
(Excellent pass) Has an exceptional ability to analyse and evaluate information. Able to collate, categorise ideas and information with fluency and insight. Capable of developing and sustaining a coherent argument that is exceptional for this level of development. Has developed a critical approach to information.
REPORT FRONT SHEET Date submitted
Foundation Pathway: Economics, Finance and Management [FEFM]
Module: INT0005: Introduction to Management
Assessment Title: Walt Disney Company (Disney) Report
Maximum Mark: 50 Maximum word count: 1250 ACTUAL WORD COUNT:
Mail-out date: 27th May 2016Hand-in time/date: 12:00pm 22nd June 2016
Team Name: DO NOT WRITE IN THIS SECTION
Family name Other name INTO Number Exam Markers: 1. 2.
Introduction and Internal analysis (25)
External Analysis (25)
Strategy (25)
Evaluation (25)
Format (5)
TOTAL (105)
1st Marker Comments
Mark (50)
AGREED MARK (50)
External Examiner Observations: