Strategic Analysis – The Walt Disney Company

Hello. I am working on a team project that requires us to conduct a strategic analysis on The Walt Disney Company. I am assigned to complete the section “STRATEGY EXECUTION.” I have attached the current IN PROGRESS assignment that my group is working on so that you have a better understanding of the project and requirements. Furthermore, I have attached the complete rubric/instruction manual for the project.

Strategic Project
OVERVIEW
OBJECTIVE: Conduct a thorough analysis of a company, including at least three
executive/management interviews, that becomes the basis for a strategic recommendation. Develop a
comprehensive plan to execute the strategy, including expected results, change initiatives and action
items, a phased timeline, and measurements to monitor and control results.
PURPOSE: Understand the complexities of issues executives and business owners, the diversity of
factors they need to consider, and the difficulty in knowing whether they have made the right decision
or are implementing it correctly.
COMPONENTS
Section
Evaluation Percentage
CONTENT
Executive Summary (2-page max)
5%
Company Introduction (2-page max)
5%
Strategic Plan (25-pages max)
•
Strategy Analysis
25%
•
Strategy Formulation
25%
• Strategy Execution
Overall Report, including
organization, grammar,
supporting documentation,
proper citation, and quality of
references and bibliography
25%
TOTAL
15%
100%
Team Grade: Percent Earned * Point Value of Assignment.
Note that individual grades will be affected by Peer Evaluations.
1. As indicated in the Course Schedule, post the Word document in Assessments > Strategic Project –
Report. Please use the following naming conventions: Team Name and Company Project Name.
2. Refer to the associated Grading and Rubric tables, on pages 2 and 12-15, respectively.
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Strategic Project
GRADING
Component
Assignment
Value
Exceeds
Expectations:
100% – 90%
Meets
Expectations:
89.99 – 80%
Below
Expectations:
79.99% – 70%
Did Not Meet
Expectations:
69.99% – 0%
Percent
Points
Points
Points
Points
Points
Executive
Summary
5%
15
15.0 – 13.5
13.49 – 12.0
11.99 – 10.5
10.49 – 0
Company
Introduction
5%
15
15.0 – 13.5
13.49 – 12.0
11.99 – 10.5
10.49 – 0
Strategy
Analysis
25%
75
75.0 – 67.5
67.49 – 60.0
59.99 -52.5
52.49 – 0
Strategy
Formulation
25%
75
75.0 – 67.5
67.49 – 60.0
59.99 -52.5
52.49 – 0
Strategy
Execution
25%
75
75.0 – 67.5
67.49 – 60.0
59.99 -52.5
52.49 – 0
Overall
Report
15%
45
45.0 – 40.5
40.49 – 36.0
35.99 – 31.5
31.49 – 0
100%
300
300 – 270
269.99 – 240.0
239.99 – 210.0
209.99 – 0
TOTAL
2
Strategic Project
REPORT OUTLINE
This Strategic Project will integrate the material you have learned in previous trimesters. It is very
important that you demonstrate what you have learned by referring to and referencing texts, articles, and
ideas that you have covered in the program. It is critical that you denote and differentiate between your
original ideas and the ideas of others.
TITLE PAGE
• Include the name of your company.
• Include your team members.
TABLE OF CONTENTS
• Please number all pages and provide titles (and locations) for all figures, exhibits, and appendices.
• The following sections must be included in your table of contents and your report along with page
numbers:
1. Executive Summary (no more than two pages)
2. Company Introduction (no more than two pages)
3. Strategic Plan (no more than 25 pages)
4. Appendices: Although most supporting material should be placed in the appendix,
material that clarifies or summarizes key information is appropriate in the body of the
report.
•
5. Bibliography – also include appropriate references in your paper.
You may use additional subsections under these major headings.
EXECUTIVE SUMMARY (no more than two pages)
This summary should provide an abridged summary of the entire paper, including expected results.
This is not an introduction. It is a document that should be able to stand-alone and be understood.
COMPANY INTRODUCTION (no more than two pages)
Introduce the company, its mission, and products/services, and provide necessary information to
orient the reader.
STRATEGIC PLAN (no more than 25 pages)
It is very important that you demonstrate the integration of your learning by referring to and referencing
texts, articles, and ideas that you have covered in the program. However, it is critical that you denote
and differentiate between your original ideas and the ideas of others.
1. STRATEGY ANALYSIS (approximately 7 to 10 pages): The analysis should be based on your
finance, marketing, economic, and quantitative methods coursework as well as the concepts
and models used in strategic management.
1.
External Analysis
•
Analysis of General Environment: Completely describe important trends in the general
environment and the effect they have or will have on the industry.
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Strategic Project
2.
•
Analysis of the Industry Environment: Discuss characteristics of the industry
environment. Research and data analysis is important. Do a thorough Five Forces
analysis of your industry.
•
Competitive Analysis: Summarize your competitors and your competitive analysis done
during the Marketing sessions, including a description of competitors and their current
strategies. Be sure to address both direct competitors and indirect ( substitute)
competitors. (Note that this analysis should flow from or can be incorporated into the
Five Forces Analysis in Competitive Rivalry. Strategic Groups maps can be a succinct way
to depict the competitive landscape.)
Internal Analysis:
•
Organizational Goals: Discuss your organization’s vision, values, mission, and strategic
objectives. They should have been identified in the Company Introduction but need to be
assessed in this section. Culture can be addressed as it relates to organizational values.
•
Corporate governance, stakeholder management, and culture: Assess the effectiveness
of corporate governance, including the Board of Directors, and of stakeholder
management, which can include organizational culture.
•
Value Chain: Present your work on the Value Chain. The reader should completely
understand your firm’s value chain, core competencies, and organizational capabilities.
•
Financial Analysis: The summary of the firm’s financial condition should include
ratio/trend analysis, cash flow and pro forma statements, as well as the Balanced
Scorecard (if the firm already uses it), with supporting material included in the paper’s
appendices. A comparison of the firm versus key competitor(s) and/or the industry is
required.
•
Resource Based View and VRIN. Identify the firm’s key resources, both tangible and
intangible (including human, social, and intellectual capital, as well as value chain
competencies). Discuss competitive advantages (if any), as assessed using the VRIN
framework. Discuss potential niches to be exploited as well as financial data and cultural
data.
2. STRATEGY FORMULATION (approximately 5 to 7 pages).This section transitions from
analysis to strategic formulation. Please make the transition clear.
1.
Integration of Analysis: Use the SWOT framework to summarize and integrate your findings
from the external and internal analysis. This is not a list of all findings – include only those
items that are most relevant. It is important to draw conclusions from your analysis and answer
the question “So what?”
2.
Critical Success Factors: Identify the factors that are critical to the future success of the firm – not
necessarily what the firm is doing today.
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Strategic Project
When developing CSFs, ask yourself:
• Why is this a critical issue or opportunity? You can use the “5-whys” to get at the
root of your idea.
• How is your firm doing relative to its competitors on the CSFs?
• Is this what would keep the CEO up at night?
Try to limit the number of CSFs to two or three. Remember that you have to assess
whether each alternative addresses every CSF.
3.
Strategic Alternatives: Summarize and analyze the key, mutually exclusive, strategic alternatives
for your organization.
•
When developing your three strategic alternatives, remember that you are defining
•
Although not all of the following may be applicable for your firm, consider
the following:
o Stage in the life cycle: how does this affect your strategic choices?
o Corporate-level strategies
 Are you planning to diversify? Is it related or unrelated diversification?
 Provide specifics—are you using economies of scope, market power,
portfolio management, etc.?
 What are the means (strategic alliances, M&A, internal development, etc.)?
o Business-level strategies: is this differentiation, low cost leadership, or a focus
strategy?
o Functional-level strategies: what functional strategies (R&D, marketing, HR, IT,
etc.) are key to support your corporate- and/or business-level strategies?
o Entrepreneurial strategies for innovation: will you be pioneering, adapting, or
imitating someone else?
o Foreign expansion strategies: will you use the global, international, multidomestic, or transnational strategy?
Clearly define each alternative—what are you going to do in terms of products, markets,
geographies? Specify these details in the alternative description. If you have a stability
(“stay the course”) strategy, you still have to define what that means the firm will do in the
future. Alternatives must be plausible and doable
For each alternative, analyze the relative costs/benefits (quantified as much as possible),
risks/rewards (including expected business results), and impact on corporate culture and
mission, as well as ethical and societal consequences.
•
•
4.
several directions the firm can take, but, at this time, you can invest your resources in only
one of them.
Recommendations: Summarize your goals, objectives, and strategic choices. Make clear
recommendations; do not restate alternatives. Explain why you chose the option you chose. Be
sure your recommendations can be implemented, based on your understanding of the
organization.
3. STRATEGY IMPLEMENTATION (approximately 6 to 8 pages): This section transitions from
strategy formulation to execution. Please make the transition clear.
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Strategic Project
1.
Change Initiatives: Given the conclusions drawn from the external analysis about the key
forces driving success in this industry, and the conclusions about how your firm is doing
relative to its competitors on the critical success factors, develop high-level Change
Initiatives.
2.
Action Items: During the internal analysis, you identified competencies/strengths and
issues/weaknesses based on the firm’s current activities and resources. Build upon what they
already do well, should do differently, or should start doing.
• Even if the organization is successful, there is always room for improvement; as a
consultant, what you would recommend they do to implement the selected strategy?
• If you think an area is fine as is, then state what they do, why it is fine, and how it
will help achieve the strategy.
• What changes will need to be made in the following areas?
 Will the current organizational goals (vision, mission, etc.) and culture support the
recommended strategy?
 Will today’s corporate governance and stakeholder management be sufficient for the
future?
 What resource changes will need to be made? Will any new skills need to be acquired
or developed? Do current resources need to be retrained, reduced, or eliminated?
 What control systems and incentive structures will need to be changed or introduced?
How will buy-in among the key stakeholders be obtained?
 What is your recommended organization structure? Consider both traditional and
“boundaryless” forms.
 What processes and/or systems need to be added, changed or eliminated? Think about
the value chain – strengths, weaknesses, missing activities.
• STAY THE COURSE STRATEGY: If this is the strategy you selected, you still need to
determine changes that must be made for implementation, as discussed.
3.
Implementation Plan: Develop a phased plan to implement these changes. Your plan
should include the key action items identified, responsible parties (departments, roles, etc.),
and a phased timeline with milestones, metrics, and contingency plans. Additionally, indicate
which phases/activities are sequential and which can overlap.
4.
Metrics for Success: Create a balanced scorecard – a feedback loop – to monitor, evaluate
and control key measures. Although you can include metrics for the firm in general, make
sure you identify measures that assess whether your actions result in the desired changes
and support the new strategy. Make sure the metrics are SMART.
4. APPENDICES: Include supporting material you wish to be considered, including tables, charts,
graphs, etc.
•
•
•
Make sure you include the names and positions of everyone interviewed.
Appendices may deviate from type, margin and double spacing specifications.
All material in the appendix should be referenced in the main body of the text.
5. BIBLIOGRAPHY: Develop a complete list of references from reputable sources.
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Strategic Project
OVERALL APPEARANCE OF REPORT
Your report should be between 20 and 25 pages, plus exhibits and appendices. Please use 12 point type,
1-inch margins, and double spacing between lines. Be brief! The length of your report may vary
substantially depending on the writing style, the presentation style, and the amount of detail. Graphics
are an important ingredient in reducing the length of your reports while making them interesting and
understandable. Use short sentences. It is acceptable to use incomplete sentences, such as bullet type
points, assuming that they make sense to the reader – an intelligent non-expert.
Be careful about spelling and grammar. This report will be reviewed as if it were presented in final form,
to executive management. Use members of the team to type and proof read the report.
Make sure to
• Number all pages (including appendices, if possible), and
• Provide titles for all figures, exhibits, and appendices.
7
Strategic Project Assignment Matrix
The intention of this matrix is to provide additional detail for sections of the report; it is not all-inclusive.
SECTION
External Analysis
1. Discuss factors in the
general environment
2. Conduct industry analysis
using most appropriate
tool.
RELATED
CHAPTERS
RELATED
KEY CONCEPTS
Chapter 2
•
Environmental Analysis
Chapter 2
•
•
•
Porter’s Five Forces
Strategic Groups
Value Net
3. Summarize external
analysis
COMMENTS
•
•
Must discuss Porter’s Five Forces
Make sure you analyze market /
competition when discussing
rivals
What are the key opportunities and threats based on your analysis? Why?
Internal Analysis
1. Review organizational
goals
2. Discuss effectiveness of
stakeholder management
and corporate governance
Chapter 1
•
•
•
Vision, mission, values
Strategic non-financial objectives
Strategic financial objectives
Chapter 9
•
Culture
Chapter 1
•
•
Stakeholder management
Board of Directors
Chapter 9
•
•
Board of Directors
Culture
Chapter 11
•
Leadership
7
Strategic Project Assignment Matrix
SECTION
3. Discuss competencies
and competitive
advantage (including
human, social &
intellectual capital)
4. Conduct financial
analysis (financial ratios
& trends)
Chapter 3
•
•
Value chain
Resource based view & VRIN
Chapter 4
•
•
•
Human capital
Social capital
Intellectual capital
•
•
Financial ratio analysis
o Short-term solvency (or liquidity)
o Long-term solvency measures
o Asset management (or turnover)
o Profitability
o Market value
Trend analysis (for firm and
industry/competition)
Balanced Scorecard
•
Balanced Scorecard
Chapter 3
•
Chapter 9
5. Summarizes internal
analysis
RELATED
KEY CONCEPTS
RELATED
CHAPTERS
COMMENTS
•
•
Must discuss value chain.
Does the firm effectively leverage
their assets?
•
•
Must include ratio and trend analyses.
Does the firm currently use the balanced
scorecard?
What are the key competencies/strengths and issues/weaknesses based on your analysis? Why?
Strategy Formulation
1. Integration of Analysis
•
•
•
•
What are the critical threats and opportunities in external environment (from external analysis)?
Why must the company address these opportunities and threats?
What are the weaknesses and strengths, including core/distinctive competencies (from the internal
analysis)?
How can specific strengths and weaknesses be leveraged to address the opportunities and threats?
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Strategic Project Assignment Matrix
2. Identify critical success
factors (CSFs)
3. Present and evaluate
alternatives, which must
be plausible.
RELATED
KEY CONCEPTS
What are the CSFs the company must address based on the synthesis?
Why must these CSFs be addressed?
RELATED
CHAPTERS
SECTION
•
•
Life cycle
Business-level strategy
Chapter 5
•
•
Chapter 6
Corporate-level strategy
Embedded in multiple
chapters, including 3, 5,
and 6.
Relates to the value
Functional-level strategies
(including concepts from prior
coursework)
chain and competencies
4. Recommend best
alternative(s)
(If the alternative you select
is the current strategy,
defend it.)
Chapter 7
Foreign expansion strategy
Chapter 8
Entrepreneurial strategy
Chapter 12
Innovation and corporate
entrepreneurship
•
•
COMMENTS
How do corporate, business, and functional
strategies link together?
How do these strategies link with the
vision, mission, and values?
What are the most important consequences
of each alternative, including
relative costs, benefits, and risks?
What are the impacts of the alternatives
on corporate mission, culture, and
existing strategies?
What are the expected business results?
Why is this alternative the best solution to address the CSFs?
How/does the recommendation change corporate, business, and functional strategies?
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Strategic Project Assignment Matrix
SECTION
RELATED
KEY CONCEPTS
RELATED
CHAPTERS
COMMENTS
Strategy Implementation: If applicable, explain why changes are not necessary in an area.
1. Determine changes to
vision, mission, goals,
and culture.
2. Specify changes to
stakeholder management
and corporate
governance
3. Specify changes to
people/skills
4. Specify changes to
organizational structure
Chapter 1
•
•
•
Vision, mission, values
Strategic non-financial objectives
Strategic financial objectives
Chapter 9
•
Culture
Chapter 1
•
•
Stakeholder management
Board of Directors
Chapter 9
•
•
Board of Directors
Culture
Chapter 11
•
Leadership
Chapter 4
•
Attracting, developing, retaining people
Chapter 10
•
•
Traditional forms of organization design
Boundary-less forms of organization design
•
Managing innovation and corporate
entrepreneurship
Chapter 12
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Strategic Project Assignment Matrix
SECTION
RELATED CHAPTERS
5. Specify changes to
reward & control
systems (including
mechanisms to create an
ethical and learning
organization)
6. Changes to
systems/processes,
including information
technology (IT)
7. Develop plan to
implementation
recommendation
Chapter 9
• Strategic control, including boundaries,
culture, and rewards
• Culture
Chapter 11
•
•
Ethical organizations
Learning organizations
•
•
Value chain
Managing innovation, corporate
entrepreneurship, and real options analysis
Chapter 3
Chapter 12
•
•
RELATED
KEY CONCEPTS
COMMENTS
What steps are required to implement your recommendation? Who is responsible?
Think about phases for your plan and develop a prioritized sequence of implementation activities (based
on the changes identified in the prior items). Include contingency plans and feedback loops.
•
8. Metrics for success
Chapter 3
•
Balanced Scorecard
Chapter 9
•
Balanced Scorecard
Must include balanced scorecard
(SMART objectives) with
measurement criteria to
determine whether your changes
are successful.
11
STRATEGIC PROJECT RUBRIC
GRADING CRITERIA
Executive Summary
•
Summarize report
•
Provide logical
recommendations
•
Identify expected
results
Company Introduction
•
Describes the
company, its mission,
and products/services
•
Provide necessary
information to orient
the reader
Overall Report
•
Organize report
•
Use correct
mechanics
•
Provide supporting
documentation
and/or data in
appendices
EXCEEDS EXPECTATIONS
Succinctly summarizes report; provides clear
and logical recommendations with robust
and specific details, including key action
items, goals, timeline, responsibilities, and
measures. Defines and quantifies expected
business results.
Describes the company; provides details
about its values and mission, and its product
and services. Highlights important facts
about the company relevant to the issues(s)
facing it in clear and concise manner.
Provides sufficient information that audience
will understand and be interested in the
analysis.
Is very well organized; has clear and vivid
main ideas. Uses effective, smooth
sequencing. Displays consistent facility with
language; uses a variety of sentence
structures. Displays
sophisticated/precise/clever word choice.
Presents appropriate documentation, and
pertinent financial analysis results.
Documentation/data is clearly organized
and relevant; demonstrates creativity and
extends the analysis by comparisons and
projections. Documentation is referenced
and easy to find. Pages are numbered and
in logical order. Research is thorough and
includes multiple quality sources, which are
properly cited.
MEETS EXPECTATIONS
BELOW EXPECTATIONS
Summarizes report; provides clear and
logical recommendations with specific
details, including action items and
timeline. Identifies expected business
results, some of which are quantified.
Discusses report which is lacks some
specific details; provides unclear
and or/ illogical recommendations.
Discusses some generic expected
results.
Describes the company; provides some
details about its values and missions
and/or its products and services. Provides
brief overview of company describing
what it does, the key players, and the
industry in which it operates. Information is
sufficient so audiences can understand
the analysis, but it is concise.
Describes the company at a high
level. Provides background
information, including both relevant
and irrelevant facts. Introduction is
not concise.
Is organized; clearly states main ideas with
only minor problems in cohesiveness. Uses
appropriate sequencing of ideas. Displays
facility with language; uses a variety of
sentence structures and displays
competence with most structures.
Displays good word choice with
occasional minor errors in grammar.
Provides documentation and pertinent
financial analysis that supports conclusions
in the report. Documentation/data is
clearly organized and relevant, and
usually referenced, but not always easy to
find. Pages are numbered and in logical
order. Research is thorough and includes
quality sources, which are properly cited.
Displays some apparent structure.
Occasionally lacks coherent
sequence of thoughts. Lacks variety;
may have some problems with
complex structures. Displays
occasional errors in grammar,
mechanics, word choice, but
meaning is not obscured. Limited
supporting documentation and/or
financial analysis. Supporting
information lacks clarity and/or
relevance. Documentation is not
referenced in the body of the
report. Pages are not numbered or
not in logical order. Research is
limited and/or includes questionable
sources.
DID NOT MEET EXPECTATIONS
Discusses report, which is
missing key elements; provides
ambiguous recommendations
and illogical justification. Does
not identify business results.
Introduces the company, but
focuses on irrelevant
information. Introduction takes
up too much time during
presentation.
Displays no apparent structure.
Lacks coherent sequence of
thoughts. Confuses meaning
due to persistent language use,
errors in sentences,
grammatical construction,
mechanics, or word
choice/idiom usage. Omits
supporting documentation and
financial analysis. Pages are not
numbered and not in logical
order. Research is limited and
relies on questionable sources
STRATEGIC PROJECT RUBRIC
GRADING CRITERIA
EXCEEDS EXPECTATIONS
MEETS EXPECTATIONS
BELOW EXPECTATIONS
DID NOT MEET EXPECTATIONS
Strategy Analysis: External
ASSESS using relevant tools
• General environment
• Industry, including
market/competition
Summarize findings
Comprehensively analyzes the general
environment, industry, and
market/competition, correctly using most
relevant tools.
Identifies key factors and how they will
affect the organization.
Provides compelling argument that supports
position.
Analyzes the general environment,
industry, and market/competition, using
relevant tools (trend analysis, Porter Five
Forces, strategic groups) that are
correctly applied with one or two
exceptions.
Identifies important factors and discusses
how they will affect the organization.
Analyzes some aspects of the
general environment, industry, and
market/competition, using some
tools but with several mistakes.
Identifies some important factors
affecting the organization.
Conducts limited analysis of the
external environment.
Does not use appropriate tools.
Fails to differentiate between
important and unimportant
factors.
Strategy Analysis: Internal
ASSESS using relevant tools
• Organizational goals
(vision, mission, values,
strategic objectives)
• Corporate governance,
stakeholder
management, culture
• Financial ratios/trends vs.
competition/industry
• Competencies and org.
capabilities (including
human, social and
intellectual capital), using
Value Chain and RBV
• Competitive advantage,
based on VRIN analysis
Summarize findings
Comprehensively analyzes the internal
environment using most relevant tools.
Assesses viability of current organizational
goals, corporate governance, stakeholder
management, and culture.
Analyzes financial state, makes conclusions,
and discusses implications.
Identifies and assesses important
issues/weaknesses and strengths; identifies
core competencies and organizational
capabilities; discusses how and why they are
important to the organization’s mission and
strategies.
Assesses competitive advantage (using VRIN).
Succinctly assesses how well the company is
positioned.
Analyzes the internal environment, using
relevant tools (Value Chain, Resource
Based View) that are correctly applied
with one or two exceptions.
Discusses current organizational goals,
corporate governance, stakeholder
management, and culture.
Analyzes financial state (ratios and trends
versus competitors) and makes
conclusions.
Identifies important strengths, weaknesses,
and core competencies; discusses why
they are important; discusses relationship
between competencies and strategic
direction.
Summarizes findings to identify important
factors and discusses how they will affect
the organization.
Analyzes some aspects of the
internal environment, using some
tools but with several mistakes.
Identifies some aspects of current
organizational goals, corporate
governance, stakeholder
management, and culture.
Analyzes financial state, but no
clear conclusions reached.
Identifies strengths, weaknesses, and
some competencies.
Summarizes findings and identifies
some important factors.
Conducts limited analysis of the
internal environment.
Does not use appropriate tools.
Does not discuss Discusses
current organizational goals,
corporate governance,
stakeholder management, and
culture.
Performs minimal financial
analysis.
Identifies some strengths and
weaknesses, but fails to identify
competencies.
Does not summarize findings or
just restates them.
Strategy Formulation
• Integrate opportunities,
threats,
strengths/competencies,
and weaknesses/issues
• Identify critical success
factors (CSFs)
• Present and evaluate
three strategic
alternatives
• Recommend best
alternative (If the
alternative you select is
the current strategy,
defend it.)
Derives prioritized conclusions from analysis.
Clearly identifies the most relevant CSFs
synthesized from the analysis.
Presents three mutually exclusive strategic
alternatives that address the CSFs;
alternatives identify strategic direction and
key strategies (corporate, foreign market,
entrepreneurial, business, and functional)
that link with vision, mission, and each other.
Discusses most important consequences of
each alternative, including costs/benefits
(detailed quantification), risks, constraints,
key stakeholders affected, and CSF impact;
arguments are logical and compelling.
Recommends best alternative, provides
compelling argument, describes how it will
solve the problem, and discusses expected
business results.
Derives relevant conclusions from analysis.
Identifies several (no more than 3 to 4)
CSFs derived from the analysis.
Presents three alternatives, some of which
are mutually exclusive and address the
CSFs; alternatives identify strategic
direction and relevant strategies
(corporate, foreign market,
entrepreneurial, business, and functional)
that link with vision and mission.
Identifies consequences of each
alternative, including some costs/benefits
(high-level quantification), and risks;
arguments are feasible and logical.
Recommends one alternative; discusses
why selected and how it addresses CSFs;
discussion is logical.
Derives some conclusions from
analysis.
Identifies at least one CSF derived
from the analysis.
Presents two alternatives that
partially address the CSFs;
alternatives discuss strategic
direction and some strategies
(corporate, foreign market,
entrepreneurial, business, and
functional), but do not link vision,
mission, and strategies.
Identifies some consequences but
few supporting arguments.
Recommends one alternative, and
discusses why alternative was
selected. Discussion is logical but
often tangential.
Does not draw conclusions from
analysis.
Does not identify CSFs that are
derived from analysis.
Presents at least one alternative
that does not address the CSFs
or is implausible; is unclear
about strategic direction and
strategies (corporate, business,
functional, etc.); no discussion
of vision, mission, and strategies
or relationship among them.
Few supporting
arguments/consequences.
Recommendation is not one of
the alternatives or is not logical.
Strategy Execution
• Develop change
initiatives
• Determine specific
actions in
o Organizational goals
(vision, mission, values,
strategic objectives)
o Corporate
governance,
stakeholder
management, culture
o People/skills
o Organizational
structure
o Rewards and controls,
including budget and
ROI
o Processes, activities, IS,
including mechanisms
to create/maintain an
ethical and learning
organization
(If no change is needed
in any area, state why.)
• Develop phased
implementation plan
• Create metrics to monitor
and control (Balanced
Scoreboard)
STRATEGIC PROJECT RUBRIC
Clearly identifies the most relevant change
initiative(s) to execute the strategic
recommendation.
Identifies specific actions needed to
implement recommendations effectively in
all areas; discusses impact on firm direction
and performance, including detailed
budget and ROI.
Develops sequence of steps, feasibility,
timeframes, affected groups, responsibilities,
resources needed, contingency plans, and
feedback loops; also discusses which
activities and phases are sequential and
which can overlap.
Identifies appropriate and relevant
mechanisms, including SMART objectives, to
monitor, evaluate, and control key
indications of success.
Identifies several (no more than 3) change
initiatives to execute the strategic
recommendation.
Identifies change initiatives (at least
one) that are unclear or unrelated
to strategic recommendation.
Identifies several actions (some specific,
some general) needed to implement
recommendations in most areas; includes
impact on firm direction and/or
performance, including high-level budget.
Identifies some general actions
needed for implementation in
several areas; some actions are
vague and/or unrelated to
recommendation.
Identifies steps required to implement
recommendation, including feasibility,
timing, responsibilities, and some
contingency plans.
Has minimal or unclear plan of
action.
Identifies specifics mechanisms (including
Balanced Scorecard) and some SMART
objectives to monitor, evaluate, and
control key indicators of success.
Discusses some mechanisms but
minimal SMART objectives to
monitor, evaluate, or control
indicators of success.
Does not identify any change
initiatives that are related to the
strategic recommendation.
Provides minimal discussion of
actions needed for effective
implementation in a few areas;
actions are vague or unrelated
to recommendation.
Fails to develop plan or
develops cursory plan.
Provides limited discussion of
mechanisms and no SMART
objectives to monitor, evaluate,
or control indicators of success.
STRATEGIC PROJECT – THE WALT DISNEY COMPANY
Executive Summary
Overview of Findings (Deb WIP )
The key insights and conclusions we derived from our research and analysis resulted in findings:
● Disney’s revenue steadily increases year-to-year, especially in the Entertainment and
Experiences segments. Although threw was a decline in G&A, we see profitability
declining due to an increase in marketing costs at theme parks and resorts. ( Annual
Report )
● We also find a declining liquidity ratio compared to its top competitors. This could
indicate challenges they may be facing in generating cash flow. However, their leverage
ratios are declining showing they are relying on less debt for business operations. ( )
● Disney needs to seek out opportunities for growth to increase cash flow and profitability.
We find an opportunity to expand globally to gain more market share since 80% of
Disney’s revenue comes from the US and only 20% from Asia and Europe. (
)
● There is an opportunity for growth in the movies and entertainment sector since the index
rose 31% in 2023 and it’s expected to continue to grow over the next 3 years. (
)
● There is an opportunity for growth in the VOD market. Per Statista, at the end of the 1st
qtr of 2024, Disney had 11% of the Subscription Video-on-demand market share, while
Amazon and Netflix held over 43%. ( )
● We see a huge opportunity for growth in the global streaming market since consumers are
spending over three hours every day streaming digital media and the market is currently
valued at $544 billion and is expected to reach over $1 trillion by 2027 (Forbes ).
● However, the competition is becoming very fierce with Netflix is leading the market in
US and Canada with 270 million subscribers (Exhibit H), with their yearly growth of
13%, mostly coming from Asian Pacific region compared to their other markets. ( 20 ).
● Disney is showing a strong market share in the Asia Pacific, but there is an opportunity
for Disney to gain more market share in Europe, the Middle East, Africa, and the US to
maximize revenue. They can also do this by acquiring competitors or forming strategic
alliances. To increase revenue and enhance its distribution capabilities.
● The costs of video streaming varies by platform with Hulu being the highest followed by
Netflix and Disney. Disney customers are sensitive to price increases and they are most
likely to drop Disney+ if subscription prices increase (Forbes).
Mission/Vision/Values
Disney continues to remain true to its mission and values today. With a mission, “to entertain,
inform, and inspire people around the globe through the power of storytelling by empowering
creativity and innovative technologies, diversity, and sustainability”(Williams). Our core values
are optimism, innovation, decency, quality, community, and storytelling with a vision is to be one
the the world’s leading producers and providers of entertainment and information (Williams).
We have positioned the company for a new era of growth and are committed to changes to stay
true to our mission. We recently implemented a restructuring plan that will return creativity to the
center of the company, increase accountability, improve results, and ensure the quality of our
content and experiences to save $5.5 billion in costs and make its streaming business the top
priority and put the company’s streaming business on a path to sustained growth and profitability
(Bruce).
Future Impact of Proposed Strategy
Our proposed strategies outlined in this report will complement our existing strategic
restructuring and direction to support our goals for global expansion, content diversity and
enhanced user and customer experiences to help drive future growth through strategic
partnerships and acquisitions along with investing in talent and R&D to optimize operations
ensuring Disney remains a worldwide brand and maintains a competitive advantage, especially
in the streaming business.
Company Analysis
Business Description
Disney is one of the largest and most well-known entertainment companies in the world with
over 89 billion in revenue with their stock trading at 102 per share as of fiscal year-ending 2023.
Disney employs approximately 225 thousand people and has a strong HR management team with
the objective to attract, retain, and develop the highest quality talent and reward and support
employees’ growth opportunities along with designing programs to develop talent to prepare
them for leadership opportunities.
The company was previously organized into the entertainment line of business, which
encompasses the company’s non-sports-focused global film, television, and direct-to-consumer
video streaming. Another is Parks and Experiences which includes theme parks, resorts and
cruise lines, and vacation clubs, but with their new restructuring, the company will now be
organized into three core segments that will improve the profitability and success of the
company. They are Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
“The leaders of each of the business segments will now have full operational and financial
control for creative development, marketing, technology, sales, and distribution, making them
accountable for driving business efficiencies globally” (Bruce). We believe this will improve the
creativity and development of the company.
Historical Context / Milestones
Disney has achieved many milestones since its inception and plans to continue this growth long
into the future with their new restructuring strategy (Exhibit A (Daydreamer.com). Some of the
milestones that Disney has achieved over the years include the creation of the character Mickey
Mouse in 1928 with Walt Disney who was the voice of Mickey Mouse until 1947. The character
became very popular and helped Disney Brothers Cartoon Studio become successful all over the
world (Sylvester ). In 1937 Disney released their first full feature-length animated film called
Snow White and the Seven Dwarfs. The film was a success and brought in over $8 million in
sales at the box office. In 1955 the first theme amusement park by Disneyland opened in
Anaheim California. He wanted to create a place where families could come together. In 1971
they opened a second park, Walt Disney World in Orlando, Florida. Both parks were instantly
successful. In 2006 Walt Disney acquired Pixar Animation Studios. In 2009 they acquired
Marvel Entertainment which gave Disney access to live-action films. In 2012, we acquired
Lucasfilms which gave us access to a library of film and television properties. In 2019 Disney
launched Disney+, its streaming service a subscription service with now over 60 million
subscribers. Today, Disney’s brand recognition is one of its strongest assets and we plan to
continue to make Disney a household name around the world. From 1930 to 2020, Disney
produced 433 movies. They now own ABC, ESPN, Touchstone Pictures, Marvel, Lucas Film,
the History Channel, Lifetime, Pixar, Hollywood Records, 21st Century Fox Entertainment,
National Geographic, Vice Media, and Core Publishing.
Exhibit A
Date
Milestone
1928
Mickey Mouse Character Created
1937
Released First Feature-length animated film Snow White and Seven
Dwarfs
1955
1971
First Theme Amusement Park Opened – Disneyland in Anaheim,
California
Walt Disney World Amusement Park Opened – Orlando, Florida
2006
Acquired Pixar
2009
Acquired Marvel Entertainment
2012
Acquired Lucas Films
Financial Performance (Deb WIP)
Disney’s total revenues for fiscal 2023 include products and services. Total revenue increased
7% from 2022 to $88.9 billion as seen in Exhibit B from the 2023 Annual Report. Gross margin
is up 4% from 2022 to $29 million while Net Income declined slightly to $3.3 billion from $3.5
billion. It is projected that by 2028, Disney will have $142 billion in revenue at the end of the
year, up 38% with a net profit of $9.5 billion, up from $3 billion.
The service revenue category includes entertainment and experiences brings in the most revenue
which encompasses media networks, parks, resorts, cruise lines, films, tv shows, streaming
services, and subscriptions. The Direct to Consumer brought in the most revenue in the
Entertainment segment while Theme Parks brought in the most revenue in the Experiences
segment. For the fiscal year ending 2023 total revenue in services, increased 7%, or $5.4 billion,
to $79.6 billion. As stated on the annual report, this was due to the Theme Parks and Resorts
growth, higher subscription revenue, and increased theatrical distribution revenue.
The product revenue category which is much smaller, consists of merchandise, home
entertainment and consumer products licensing which brought in $9.3 billion in revenue for
2023, which was an increase of 10%, or $0.8 billion, compared to 2022. This was due mainly to
the growth in theme parks and resorts along with higher sales volumes of merchandise, food, and
beverages at the theme parks and resorts.
Cost of services for fiscal 2023 increased 9%, or $4.2 billion, to $59 billion, due to higher
programming and production costs, inflation, and increased volumes at theme parks and resorts
along with higher technology and distribution costs, representing a gross margin of 32%. It is
expected to up to 94 billion, however, the gross margin will remain the same.
Cash and cash equivalents on Exhibit B show an increase from $15.9 billion to over $25 billion
at the end of 2028 with total assets growing to $216 billion by 2028. Both current and long-term
assets show consistent growth and reach $40 billion by 2028 reflecting Disney’s expanding
operations and investment. Although the current and long-term liabilities are increasing
indicating growing financial obligations, with a steady increase in stockholders’ equity shows a
positive performance, they are efficient in their operations by managing expenses well and
making sound investments; overall they are good financial health.
If we look at the cash flow statement in Exhibit B, we can calculate the free cash flow as shown
below. You will see that for 2023, the cash flow from operations was $9.8 billion, and capital
expenditures were $4.9 billion, leaving their free cash flow at $4.8 billion. For 2022, free cash
flow was only $1.1 billion and $1.98 billion for 2021 and is trending upward. This represents a
% change of over 70% from 2022 to 2023 and Disney has been generating more cash than they
are using which shows they in good financial health.
Free Cash Flow
($ Millions)
2023
Cash Flow
from Operations
$9,866
Capital
Expenditures
$4,969
Free
Cash Flow
$4,897
2022
$6,002
$4,943
$1,059
2021
$5,566
$3,578
$1,988
Forecasted Free Cash Flow (WIP)
Exhibit B
Forecasted Financials
Source: team financials / Disney 2023 Annual Report
In Exhibit C below, it shows the key financial ratios for Disney and its top competitors. Disney
shows a slight improvement in their ability to cover their short-term assets, while Comcast and
Sony show a significantly lower current ratio indicating potential liquidy concerns. If we look at
the cash flow ratio, all companies show a declining trend suggesting potential challenges in
generating sufficient cash flow. Disney’s debt ratio decreased slightly while its competitors
showed higher ratios indicating reliance on debt. Disney’s D/E ratio decreased indicating a
reduction of leverage, Comcast and Sony have a higher leverage. Disney’s equity ratio improved
slightly, but much higher than their competitors.
Disney’s efficiency ratios showed mixed results with their day’s inventory increasing showing
slow-moving inventory. Although they improved on their asset turnover and showed a
significant improvement in the DSO and DPO. Disney’s profit margins remained stable with
their ROA showing a slight decline while the ROA remained stable.
Overall, Disney displays stable yet slightly declining liquidity and profitability ratios. Efficiency
ratios are mixed trends. Comcast and Sony show liquidity concerns with potential operational
inefficiencies despite improved profitability ratios.
Exhibit C
Key Financial Ratios
Source: Disney’s Annual Report 2023
Disney’s competition consists of several companies within each business segment as shown on
Exhibit F. Universal Pictures, owned by Comcast, are a major rival and compete against each
other in several of the business segments. Disney brings in the most revenue from their
Entertainment segment as shown in Exhibit D & E, which consists of, linear networks, direct-toconsumer business, content sales and licensing, Disney+, Hotstar, and Hulu. They compete
against Sony Pictures and Comcast with Sony bringing in $1.3 billion and Comcast $9.5 billion.
In the streaming services,
Disney competes against the
large players that have been
in the market for a longer
time, Netflix with 30 billion
in revenue and 20% of the
US market, and Amazon
Prime with 469 billion in
revenue with 19% of the US
Market.. Disney+ was late to
the market and launched in
2019 with 15% of the US
Market with plans to focus
its efforts on expanding its
streaming services to
capture market share.
What makes a good
streaming service is mainly
cost and ease of use. The
majority of consumers
stream sports, music and
entertainment. Per Forbes,
Disney customers are price
sensitive and are expected
to cancel their streaming
services if the price is
increased.
Exhibit F shows that in the Theme Parks/ Experiences segment, Six Flags and Universal Studios
are their main competitors with $1.5 million and $5 billion in revenue, respectively, with Disney
still leading the pack. Disney continues to be a strong brand leader and has set itself apart from
its competitors with its strong brand identity, innovation, and diversification strategies.
Exhibit D
Revenue by Business Segments
($ millions)
2023
2022
Entertainment $40,635
$39,569
45%
Sports
$17,111
$17,270
19%
Experiences
$31,152
$26,906
Total Revenues
% total
%chg
2.6%
-0.9%
36%
13.7%
$88,898
$82,722
100%
5.9%
Services
Products
2023
$79,562
$9,336
2022
$74,200
$8,522
% total
89%
11%
% chng
6.7%
8.7%
Total Revenues
$88,898
$82,722
100%
6.9%
Exhibit E
Revenue by Category
($ millions)
*Disney Annual Report 2023, Products consist of merchandise, home entertainment, and product
licensing within each segment.
Exhibit G
Revenue by Geographic Market
2023
America
$71,205
Europe
$9,533
Asia
$6,137
Total Revenue
*Statia.com
2022
$68,218
$8,680
$5,824
%total
80%
11%
7%
4%
9%
5%
$84,744
100%
5%
$88,898
Exhibit H
Streaming Service Market Share
2024
( Millions)
Netflix
Regions
Subscribers
US, Canada
83
Europe, Middle East, Africa
91
Latin America, Mexico
48
Asia-Pacific
48
Total
%chg
Disney
%total
31%
34%
18%
18%
270
38
12
36
68
subscribers
25%
8%
23%
44%
154
*Netflix showing 13% growth year over year in video streaming
Statia.com
Revenue by Category
($ millions)
2023
2022
% total % chng
Entertainment
Linear Networks
Direct To Consumer
Content Sales/Licensing
Total
$11,701
$19,886
$9,048
$40,635
$12,828
$17,975
$8,766
$39,569
29% -10%
49% 10%
22% 3%
100% 3%
Experiences
Theme Parks
$10,423
$8,602
32%
17%
%total
Resorts
Merchandise/Parks
Merchandise/retail
Parks Licensing
Total
Sports ESPN
Affiliate Fees
Advertising
Subscription
Total
$7,949
$7,712
$4,358
$2,107
$32,549
$10590
$3920
$2601
$17,111
$6,410
$6,579
$4,609
$1,855
$28,055
$10796
$4370
$2104
$17,270
33%
12%
8%
53%
24% 19%
24% 15%
13% -6%
6%
12%
100% 14%
-2%
-11%
19%
-1%
Exhibit F
Competitors – Experience & Entertainment Segments
Experiences
Theme Parks
Disneyworld
Disneyland
Universal Studios
Six Flags
Entertainment
Film & TV
Disney
HBO Max
Amazon Prime
Warner Bros
Comcast/Universal
Sony Pictures
Paramount Pictures
Entertainment
Streaming Services
Disney + & Hulu
Netflix
Amazon Prime
Paramount +
Strategy Analysis
External Environment Analysis
Industry Overview
Disney overall has a huge footprint in entertainment. From the information provided
earlier that encompasses film, television and video streaming. There is also a branch with
theme parks, cruises and hotels. There is also the products line which includes many
goods and services that tie in with their IP across film and animation. Disney has made
themselves a household name with their extensive target marketing and need for making
“magic” happen.
With solid footholds in those sections of industry, they are not immune to change and not
immune to full closure. Disney which was once known as the powerhouse in traditional
2D animation had to do a complete pivot in 2009 after The Princess And The Frog when
the labor and time constraints did not make sense financially with the animation industry.
Other studios such as DreamWorks were moving forward with 3D movies and were able
to push out higher quality and higher frequency of content versus the plan Disney was on.
With the theme, hotel and cruise arm of Disney, the pandemic had shown weakness in
that model. It could not sustain with massive hotels and ship fleets. The Starcruiser hotel
in Florida had closed down on September 30th, 2023 after a year and 3 months of
operations. It could not sustain such a niche placement and being priced outside of a price
point many could consume.
Streaming and feature releases at Disney has been pivoting recently with much of their
content not being enjoyed and missing the mark in screenings and reviews. This has
caused Disney to scale back productions, consolidate shows and look to raise prices for
their services while offering less content in the process.
Porter’s Five Forces
Competitive Rivalry
With competitive rivalry, Disney has rivalries in all of its sectors. For theme parks, the
big one would be Universal Studios, which has the same formula as Disney. Themed
experiences across the globe. Disney also has rivalries with cruise lines, such Carnival.
They have options that are family friendly to try to focus on that demographic. A rivalry
with their product line would be Mattel, which creates toys to appeal to boys and girls
alike.
Threat of Substitutes
With Disney streaming, they are also in line with many other companies and studios that
offer steaming content. Though Disney has a focus on much of their content, other
streaming providers such as Netflix, HBO and Amazon. There are also substitutes for
their hotels, where instead of staying on property many families will opt to stay around
the area of the Orlando and Anaheim locations by substituting a chain hotel instead of a
Disney owned property.
Bargaining power of Suppliers
Disney has a vast suppliers they can choose from, but much of their merchandise and
tangible items have a bit of quality attached to them. If an item purchased in the parks
breaks it can be exchanged for a new one. Though they have a full gamut of higher end
products to some that are on the lower side, so Disney can pick vendors to supply based
on budget, volume and other factors needed for their products.
Bargaining power of Customers
Disney has the upper hand with bargaining power of consumers because if a consumer
will find a way to purchase many of the products and experiences. The prices of their
streaming services continually rise as well as the prices of their theme park admissions
and hotel accommodations. They can continue to raise prices because they are known to
supply a quality experience, so if a certain segment of consumers are priced out there is
another that will pick up that section with rollover pricing into their section. Disney
offers iconic characters and iconic “magic”, so customers will gladly pay that premium.
Threat of New Entrants to the Industry
This would be a very low threat in that Disney has an established name, brand and level
of quality. Any new entrant would have to play catchup for 100 years to build that type
of customer loyalty and recognition. Outside of Apple, not many companies can come in
with enough capital and recognizable IP to even dent what Disney has from a business
standpoint.
PESTEL Analysis
Political Analysis
Disney has been in the political spotlight with Florida Governor Ron DeSantis. Disney
had self-governing status which displeased the Florida Governor, so he had wanted to
legally end their special status. This received pushback from many as Disney is the single
largest employer in Florida The issue was resolved when both parties reached an
agreement. This does show that Disney is not immune to political backlash and attention,
even if they operate regularly like their other operations.
Economic Analysis
Since Disney has multiple locations across the world and operates globally, they are also
subject to the state of currencies and economic adjustments. Having locations of theme
parks and hotels in North America, Asia and Europe, they are tied to currency
dependencies in those continents. If economies are hit hard in those areas which affect
workers, they can also affect tourists as headcount may falter or be unsustainable at those
rates.
Sociocultural Analysis
With being on multiple continents, Disney has to be mindful of the sociocultural aspects
that are intertwined with their operations and also those that come from other countries to
visit. Modest areas in Asia may have more restrictions towards cast member behavior
from visibility of tattoos to hairstyles and this would also fall into visitors adhering to
these standards as well. Some families and visitors may find other attractions offensive,
or not have an understanding of Disney stories that may have been translated differently
into their native language. The Disney experience is becoming more reliant on
technology, and many of those who are not technology savvy will find that as a barrier
which would cause them to avoid that experience or not enjoy it.
Technological Analysis
Disney is leveraging technology heavily in all of their ventures. From their streaming
platform, making the playbacks as efficient as possible, to their wearable technology in
the parks they are trying to capture the consumers attention and interest. Their theme
parks have technology that has since dated and are still held in high regard, but they have
new rides and attractions that take advantage of new magnet technology, new animation
techniques and new ways to immerse guests in the stories and worlds they have crafted
over the decades.
Environmental Analysis
Disney creates enormous amounts of waste and has a huge carbon footprint, especially at
the theme parks. They have ways they try to offset with recycling water, using recycled
materials in their products and utensils but ultimately dealing with the general public, it’s
a very ambitious challenge to set any goals of carbon neutrality. There is only so much
that can be done when massive Disney cruise ships are setting sail all year to offset the
amount of impact that even one of those ventures is having on the environment.
Legal Analysis
When a company has as much invested in it with IP such as Disney, that is at the
forefront of what needs to be protected by them. Recently, the Steamboat Willie version
of Mickey Mouse entered public domain on January 1st 2024. Disney is also very
aggressive towards piracy and protecting unauthorized usage of its image or brand. The
product side is flooded with many bootleg and unlicensed versions of their goods and
Disney retaliates with legal in kind. Recently it has banned and filed suit against
individuals trying to replicate their disney ears and sell as their own on the Disney
properties.
Internal Environment Analysis
i. Human capital management (Vera)
ii. SWOT Analysis (Vera)
iii. Resource-Based View (RBV) (Vera)
Include: resource-based view, including the VRIN to assess competitive advantage, the balanced
scorecard.
Value Chain Analysis
Disney’s value chain strategy consists of various activities that range from content
creation to distribution. Their primary activities inclue their inbound logistics which is
their content acquisitions, developing new content through their studios and their material
and resources for theme parks, and merchandise. Operations is another primary activity
that adds value by producing movies, tv, and content through their studios along with the
management and operations of theme parks and cruise line operations. They have strong
distribution channels with their outbound logistics capabilities which include the theaters,
tv networks, streaming services, and home entertainment. Their marketing and sales are
also their primary activities since they heavily invest in marketing to build and maintain
their brand image. This also includes Disney’s sales strategies where they promote
tickets sales to theme parks, subscriptions, and licensing. Lastly, a primary activity that
adds value to the company is their customer services. Disney provides an extensive
customer service across all their operations, parks, resorts, and its platforms.
The support activities that add value to their company are their infrastructure which
includes their strong management, who are in charge of the strategic direction and
planning, along with their finance and accounting teams, which manages the finances to
support the business operations and growth. They also have a strong HR management
team who hires and trains top creative talent to support their strategic goals. They
provide continuous training programs to employees to enhance their skills and
performance. Another support activity is their R&D and digital platforms. They invest
heavily in research and developing digital platforms. Lastly, they have strong longstanding relationships with suppliers who provide their material and technology.
Primary Activities that add value:
Inbound Logistics – content Acquisitions, content development
Operations – movie production, TV, content, management of Parks and Cruise Lines
Outbound Logistics – efficient distribution:
Movie Theaters, TV Networks, Streaming Services, Home Entertainment
Marketing/Sales – branding, Promotion of tickets for Parks, Subscriptions, Licensing
Service – extension customer support across parks, resorts, and platform
Support Activities that add value:
Firm Infrastructure – strong management, strategic planning, finance and accounting
HR Management – skilled employees, hiring and training top talent, retention programs
R&D – developing and maintaining digital platforms
Procurement – strong relationship with suppliers, sustainable sources
Core Competencies (Duane to finish)
Disney’s core competencies span across various aspects of their operations. They include
brand management, creativity, marketing, quality theme parks, technology, acquisitions,
and customer-engaging experiences.
Human Capital
SWOT
{Text & image}
Balanced Scorecard
{Text & image}
Strategy Formulation (Rachael) – Strategy formulation is deciding what the organization needs to be. And then with
strategy execution, we’re deciding how to get there, which means, what do we need to change? What do we need to do differently
to make our “to be” strategy actualized? it’s so important that we really make sure that we integrate what we see happening in
the internal and external environments to come up with critical success factors that will really drive our alternatives and that we
thoroughly assess our recommendations as we talked about using the prioritization model and thinking through high-level costs
and benefits
a. Vision and mission statement
b. Strategic alternatives
c. Evaluation of alternatives
d. Recommendation strategy
Strategy Execution (Devin) (need to complete financial projection)
e. Implementation Plan
f. Change Management
g. Expected Outcome
h. Performance metrics / KPIs
Conclusion (Vera)
i. Summary strategic insights
j. Future outlook
Appendices (TEAM)
Appendix 1: Interview Questionnaire
1.
Gus Robles, Manager, Strategy and Corporate Development
Focus on overall strategic direction, company vision, and long-term goals.
●
Is the returning CEO committed to positioning this company for a new era of growth?
●
Do you see any issue (internally or externally) with the new strategic direction?
●
How do you feel about the company being organized into three core, collaborative
business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and
Products with the leaders of each business segment being in full operational control and
financial responsibility for creative development, marketing, technology, sales, and
distribution, and will be accountable for driving business efficiencies globally.
●
Do you see any area in the Value Chain that can be improved or needs more efficiency?
●
Does the shared-services organization support both Disney Entertainment and ESPN?
Has it facilitated company-wide efficiencies and created a more cost-effective,
coordinated, and streamlined approach to operations?
●
Are you finding it more difficult to compete with companies like Comcast, Amazon,
Apple, and Google as the competitive landscape becomes more complex? How do you
plan to stay ahead of the competition?
2.
Darryl Abney, Technology Officer
Insights into product innovation, R&D priorities, and technology advancements.
●
Has the new strategy returned creativity to the center of the company?
●
Do you feel the creativity at Disney has declined?
●
What recent technological advancements have significantly impacted Disney’s products
and services?
●
How does Disney prioritize its R&D efforts to stay ahead in the industry?
●
Can you provide an example of how technology has transformed Disney’s operations or
customer experiences?
●
What are the biggest technological challenges Disney faces today, and how is the
company addressing them?
3.
Michael Aarsvold, Director, Marketing and Consumer Engagement
Discuss market positioning, branding strategies, and customer engagement.
●
Has the new strategy increased accountability, improved results, and ensured the quality
of content and experiences?
●
How does Disney position itself in the global market to differentiate its brand from
competitors?
●
What core elements are central to Disney’s branding strategy?
●
How does Disney engage with its customers to maintain a strong relationship?
●
How is Disney utilizing digital and social media platforms to reach its audience?
●
What insights have been gained from recent market research efforts, and how have these
insights influenced Disney’s marketing strategies?
Appendix 2
{Team Financials|
References
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2. https://panmore.com/walt-disney-company-mission-statement-vision-statement-analysis
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5. https://thewaltdisneycompany.com/the-walt-disney-company-announces-strategicrestructuring-restoring-accountability-to-creative-businesses-2/
6. https://panmore.com/walt-disney-company-mission-statement-vision-statement-analysis
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15. https://www.statista.com/statistics/1095372/disney-plus-number-of-subscribersus/#:~:text=Disney%2B%20exceeded%20target&text=Less%20than%20two%20years%
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