DISNEY (COHESION CASE 2008)

WALT DISNEY COMPANY -2007

The Walt Disney Company was founded in 1922 and is one of the leading
companies in family entertainment business. It operates using a strategic business
unit (SBU) type of organizational structure. Disney is huge, well-known and well
managed diversified corporation.

Experiential Exercise 1A (Step 2)

The external opportunities and threats facing Disney Company are listed below:
Opportunity facing Disney Company
Growing rate of consumer demand for amusement park
Demographic changes increase in aging population
Digital technology
Positive government attitude
Expanding into foreign markets
Acquisition of firms
Strategic alliances

Threats facing Disney Company

Saturated Market
Foreign competition
Fierce competition in the local market
Usage of internet by all ages
High risk of copyright infringement
Low consumer disposal income
High operational cost

Experiential Exercise 3A
EFE Matrix for Walt Disney Company

KeyExternal Factors

Weight Rating

Weighted
Score

Opportunities
1 Growingrate of consumer demand
for amusement park
2 Demographic changes increase in
agingpopulation

0.1

4.0

0.40

0.05

3.5

0.18

3 Digital technology
4 Positive government attitude
5 Expandinginto foreign markets
6 Acquisition of firms
7 strategic alliances

0.12
0.03
0.1
0.05
0.05

4.5
3.0
3.5
4.0
3.0

0.54
0.09
0.35
0.20
0.15

0.1

4.0

0.40

9 Foreign competition
10 Fierce competition in the local
market

0.04

1.2

0.05

0.1

4.0

0.40

11 Usage of internet by all ages

0.05

3.5

0.18

12 High risk of copyright infringement

13 Low consumer disposal income
14 High operational cost

0.03
0.12
0.06

1.1
4.2
3.0

0.03
0.50
0.18

Threats
8 Saturated Market

Total Scores

1.0

3.65

Experiential Exercise 3D
Competitive Profile Matrix for Walt Disney Company

Critical Success
Factors
Market Share
Financial Position
Experience
Advertising
Low-Cost Strategy
Resources
Innovation
Total

Weight
0.1
0.1
0.2
0.1
0.1
0.2
0.2
1

DISNEY
TIMEWARNER
Weighted
Weighted
Rating
Rating
Score
Score
2
0.2
3
0.3
3
0.3
4
0.4
3
0.6
4
0.8
3
0.3
2
0.2
3
0.3
3
0.3
4
0.8
4
0.8
4
0.8
3
0.6
3.1
3.4

Experiential Exercise 4A

NEWSCORPORATION
Weighted
Rating
Score
2
0.2
2
0.2
3
0.6
2
0.2
3
0.3
2
0.4
2
0.4
2.3

Experiential Exercise 4B
Step. 2
IFE Matrix for Walt Disney Company

Internal Factors

Weight

Rating

Weighted
Score

Strengths
1 Resources
2 Experience in the Business

0.13
0.10

4.0
5.0

0.52
0.50

3 Low-cost strategy
4 Strongand well known brand name
5 Strongfinancial condition
6 Service and product innovationcapacity
7 Economyof scale

0.05
0.05
0.07
0.05
0.05

3.0
4.5
4.0
3.5
4.0

0.15
0.23
0.28
0.18
0.20

weaknesses
8 Large workforce

0.2

5.0

1.0

9 Frequent change in topmanagement

0.1

2.5

0.3

0.2

3.0

0.6

10 High overheadexpenses

Total Scores

1.0

3.90

Step 3
Disney Corporation has the following Strengths and Weaknesses
Strengths
Resources
Experience in the Business

Low-cost strategy
Strong and well known brand name
Strong financial condition
Service and product innovation capacity
Economies of scale

Weaknesses
Large work force
Frequent change in top management
High overhead expenses
Strategies to allow Walt Disney to capitalize on its major Strengths.
Experience in the Bussiness: Training sections together with seminars to be
organized occasionally by experienced staff for knowledge to be transferred to new
and existing staff. Consider utilizing your own resources as well by having the
employee who has the sharpest skill set in a particular area lead a company-wide
workshop on how they developed and best employed that strength.
A well documented handbook or manual to be prepared and kept for references for
information not to be lost with the retirement of some experienced staff.
Strong and Well Known Brand Name: To continue to create innovative products
and packages that would continue to attract its target market. For instance, to go
into different directions to expand their already broad product portfolio whilst
maintaining quality.
Strong Financial Condition: Must take advantage of their financial positions to
expand into other areas where there is ready market by merging or buying out
some other companies.
Service and Product Innovation Capacity: Research and identify needs of
clients at particular seasons. For instance, during the political season most
politicians often advertise on the media networks and print media.
There is more buying and selling of Disneys products during the Yuletide
Incentive awards to be given out to staff that come out with innovative ideas. This
would encourage staff to get involved in the process of the company.

Strategies to allow Walt Disney to capitalize on its major Weakness.

Large Work Force: Improve on technological advancement to help reduce the
work force and also to save cost in the long run.
Have a web site mainly for communication among staff to reduce the possibilities
for miscommunication since most staff members would have access to check for
valid information on the web portal.
Frequent Change in Top Management: Clear job specifications must be given to
top management for them to know their job roles and what is expected of them.
Surveys should be conducted to find out why people at top management are
leaving the company.
High Overhead Expenses: