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Walt Disney Company - 2009

Case Notes Prepared by: Dr. Mernoush Banton Case Author: Dr. Mernoush Banton A. Case Abstract Walt Disney Company !!!.disney."om# is "omprehensi$e business poli"y and strate%i" mana%ement "ase that in"ludes the "ompany&s 'is"al year-end (eptember 200) 'inan"ial statements* "ompetitor in'ormation and more. +he "ase time settin% is the year 2009. (u''i"ient internal and e,ternal data are pro$ided to enable students to e$aluate "urrent strate%ies and re"ommend a three-year strate%i" plan 'or the "ompany. -ead.uartered in /rlando* 0lorida* Walt Disney Company is traded on the Ne! 1or2 (to"2 3,"han%e under ti"2er symbol D4(. B.

Vision Statement proposed#

0aith'ul and "ommitted in brin%in% unparalleled entertainment e,perien"es to our "ustomers. C.

Mission Statement a"tual#


+o be one o' the !orld&s leadin% produ"ers and pro$iders o' entertainment and in'ormation. 5sin% our port'olio o' brands to di''erentiate our "ontent* ser$i"es and "onsumer produ"ts* !e see2 to de$elop the most "reati$e* inno$ati$e and pro'itable entertainment e,perien"es and related produ"ts in the !orld.

Mission Statement Proposed#


+o be one o' the !orld&s leadin% produ"ers and pro$iders o' entertainment and in'ormation* !e o''er $alue* .uality and en6oyment to our "ustomers throu%h hi%hly dedi"ated and trained employees 7* 2* 9#. 5sin% our port'olio o' brands to di''erentiate our "ontent* ser$i"es and "onsumer produ"ts* !e see2 to de$elop the most "reati$e* inno$ati$e and pro'itable entertainment e,perien"es and related produ"ts in the !orld 8* 9* :#. We are "ommitted to be so"ially responsible and to %i$e ba"2 to the "ommunity and so"iety !hene$er possible. ;* <* )# 7. 2. 8. 9. :. Customer Produ"ts or ser$i"es Mar2ets +e"hnolo%y Con"ern 'or sur$i$al* pro'itability* %ro!th

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;. <. ). 9.

Philosophy (el'-"on"ept Con"ern 'or publi" ima%e Con"ern 'or employees

D.

External Audit
Opportunities 7. >o!er labor "ost in o$erseas mar2et su"h as China 2. Many "onsumers are shi'tin% to 4nternet 'or tra$el boo2in%s 8. -i%h "apital in$estment "ausin% entry barrier to be di''i"ult 9. Due to hi%h entry barriers* substitution is limited in some business se%ments :. Due to !ea2 e"onomy and hi%h unemployment rate* "onsumers are loo2in% 'or less e,pensi$e !ays to be entertained ;. +e"hnolo%y has impro$ed and entertainment industry "an o''er ondemand audios and $ideos do!nload <. De$aluation o' dollar ma2es tra$el "osts less e,pensi$e 'or international tourists Threats 7. Wea2 e"onomy "ausin% drop in "onsumer disposable in"ome 2. More "ompanies ha$e announ"ed additional lay o''s* "ausin% in"rease in unemployment 8. Creati$e strate%i" partnership amon% "ompetitors 9. ?lobal !armin% and other !eather related issues :. 5n"ertainty amon% "onsumers and tra$elers due to !ea2 e"onomy ;. 0lu is spreadin% rapidly "ausin% "onsumers to be hesitant %oin% to publi" pla"es <. Creati$e dis"ounts o''ered by "ompetitors in entertainment and hospitality se%ments ). Complian"e !ith la!s and re%ulations in o$erseas mar2et 9. (e"urity threats su"h as terrorism 70. @alue o' Dollar in"reasin%* "ausin% less tourists "omin% to the 5.(.

CPM Competitive Pro ile Matrix


!alt Disne" Compan"
Critical Success &actors !ei'h t (atin ' !ei'hte d Score

C#S Corporation
(atin ' !ei'hte d Score

$e%s Corporation
(atin ' !ei'hted Score

Pri"e "ompetiti$eness ?lobal 3,pansion /r%aniAational (tru"ture 3mployee Morale +e"hnolo%y

0.0) 0.70 0.0; 0.0< 0.72

9 9 8 8 9

0.82 0.90 0.7) 0.27 0.9)

8 8 2 7 8

0.29 0.80 0.72 0.0< 0.8;

2 2 7 2 2

0.7; 0.20 0.0; 0.79 0.29

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Customer >oyalty Mar2et (hare Ad$ertisin% Produ"t Buality Produ"t 4ma%e 0inan"ial Position Total

0.72 0.09 0.70 0.0< 0.70 0.09 ).**

9 9 9 8 9 9

0.9) 0.8; 0.90 0.27 0.90 0.8; +.,*

2 2 8 2 8 8

0.29 0.7) 0.80 0.79 0.80 0.2< -..-

8 8 2 7 2 2

0.8; 0.2< 0.20 0.0< 0.20 0.7) -.*,

$ote to instructors/ The above CPM is concentrated on broadcastin' 0 entertainment se'ment or Disne" and its competitors. Students ma" conduct CPM anal"sis based on the hospitalit" or theme par1 se'ment o the compan".

External &actor Evaluation 2E&E3 Matrix

4e" External &actors


Opportunities
7. >o!er labor "ost in o$erseas mar2et su"h as China 2. Many "onsumers are shi'tin% to 4nternet 'or tra$el boo2in%s 8. -i%h "apital in$estment "ausin% entry barrier to be di''i"ult 9. Due to hi%h entry barriers* substitution is limited in some business se%ments :. Due to !ea2 e"onomy and hi%h unemployment rate* "onsumers are loo2in% 'or less e,pensi$e !ays to be entertained ;. +e"hnolo%y has impro$ed and entertainment industry "an o''er on-demand audios and $ideos do!nload <. De$aluation o' dollar ma2es tra$el "osts less e,pensi$e 'or international tourists

!ei'ht

(atin'

!ei'hted Score

0.0: 0.0< 0.0) 0.0; 0.0)

8 9 8 9 9

0.7: 0.2) 0.29 0.29 0.82

0.0)

0.82

0.0:

0.2

Threats
7. Wea2 e"onomy "ausin% drop in "onsumer disposable in"ome 2. More "ompanies ha$e announ"ed additional lay o''s* "ausin% in"rease in unemployment 8. Creati$e strate%i" partnership amon% "ompetitors 9. ?lobal !armin% and other !eather related issues
0.0< 0.09 0.08 0.0; 8 2 2 7 0.27 0.0) 0.0; 0.0;

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:. 5n"ertainty amon% "onsumers and tra$elers due to !ea2 e"onomy ;. 0lu is spreadin% rapidly "ausin% "onsumers to be hesitant %oin% to publi" pla"es <. Creati$e dis"ounts o''ered by "ompetitors in entertainment and hospitality se%ments ). Complian"e !ith la!s and re%ulations in o$erseas mar2et 9. (e"urity threats su"h as terrorism 70. @alue o' Dollar in"reasin%* "ausin% less tourists "omin% to the 5.(.

0.0< 0.08 0.0; 0.0; 0.0; 0.0: ).**

8 7 8 2 2 2

0.27 0.08 0.7) 0.72 0.72 0.7 -.5-

Total

E.

6nternal Audit
Stren'ths 7. 2. 8. 9. :. (tron% 'inan"ial position in re$enue and operatin% in"ome Brand is !ell 2no!n %lobally (tron% mana%ement team 3,"ellent trainin% pro%ram 'or employees Di$erse business units* ea"h ha$in% se$eral businesses and strate%i" allian"es ;. (ome produ"ts are sold %lobally <. Bein% able to stru"2 deals !ith other !ell 2no!n or%aniAations ). Well de$eloped and stron% te"hnolo%y !ithin the or%aniAation !ea1nesses 7. Di''i"ult to mana%e due to o!nin% too many business unites 2. De"rease in "ash* in"rease in a""ounts re"ei$able and in$entory 'rom 200< to 200) 8. 4n"rease in "orre"t liabilities 'rom 200< to 200) 9. >e%al issues due to a""idents in the theme par2s :. Multiple produ"ts 'rom $aries se%ments "ould "ause "annibaliAation o' e,istin% par2s and attra"tions ;. @iolation in intelle"tual property and li"ensin% results in lo!er royalties <. (tron% 'inan"ial in$estment is re.uired 'or most ne! and inno$ati$e produ"t "ate%ories ). -i%h in$estment re.uirement 'or mar2etin% and promotion

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&inancial (atio Anal"sis /"tober 2009#


7ro%th (ates 8 (ales Btr $s year a%o .tr# Net 4n"ome 1+D $s 1+D# Net 4n"ome Btr $s year a%o .tr# (ales :-1ear Annual A$%.# Net 4n"ome :-1ear Annual A$%.# Di$idends :-1ear Annual A$%.# Price (atios Current PC3 Datio PC3 Datio :-1ear -i%h PC3 Datio :-1ear >o! Pri"eC(ales Datio Pri"eCBoo2 @alue Pri"eCCash 0lo! Datio Pro it Mar'ins 8 ?ross Mar%in Pre-+a, Mar%in Net Pro'it Mar%in :1r ?ross Mar%in :-1ear A$%.# :1r Pre+a, Mar%in :-1ear A$%.# :1r Net Pro'it Mar%in :-1ear A$%.# &inancial Condition DebtC3.uity Datio Current Datio Bui"2 Datio 4nterest Co$era%e >e$era%e Datio Boo2 @alueC(hare
Adapted 'rom !!!.money"entral.msn."om

Disne" -;.90 -89.20 -2:.<0 ;.99 2<.09 NA Disne" 7;.9 NA NA 7.99 7.9< 70.20 Disne" 7:.; 7:.7 9.; 7;.8 7;.: 70.) Disne" 0.90 7.8 7.2 NA 7.) 7).):

6ndustr" -).:0 -).00 -8<.:0 ;.77 77.<2 9.8< 6ndustr" <.< 0.) 0.7 7.7< 7.2) 9.;0 6ndustr" 2).9 -77.9 -9.; 2).) 70.9 ;.) 6ndustr" 0.99 7.9 7.2 -).9 2.0 79.<8

S9P .** -9.20 -9.<0 -9.80 78.72 72.;0 77.:9 S9P .** 82.8 78.9 7.9 7.)9 9.29 72.90 S9P .** 8<.) 70.0 ;.) 8<.: 7;.9 77.9 S9P .** 7.92 7.: 7.2 2;.; :.8 27.22

Av' P0E 09C0) 09C0< 09C0; 79.20 7:.00 7;.90

Price0 Sales 7.;9 2.08 7.)<

Price0 #oo1 7.): 2.79 7.9)

$et Pro it Mar'in 283 77.< 78.2 9.)

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70C0: 09C09 09C08 09C02 09C07 09C00

22.20 27.00 2).90 88.90 2:9.;0 ;7.90 Debt0 E:uit" 0.9; 0.:0 0.98 0.99 0.:8 0.:< 0.;2 0.9: 0.89

7.:) 7.:2 7.:2 7.20 7.:8 8.78 (eturn on E:uit" 283 78.< 7:.2 70.9 9.9 9.0 :.; :.8 0.: 8.)

7.)2 7.<0 7.;) 7.29 7.;8 8.29 (eturn on Assets 283 <.7 <.< :.: 9.; 9.9 2.< 2.: 0.8 2.0

<.) <.; 9.9 9.9 0.9 9.< 6nterest Covera'e 70.9 70.9 <.: ;.8 :.9 8.9 8.0 2.9 9.9

09C0) 09C0< 09C0; 70C0: 09C09 09C08 09C02 09C07 09C00

#oo1 Value0 Share E7<.<8 E7:.;< E7:.92 E78.0; E78.0: E77.)2 E77.;7 E77.28 E77.;:

Adapted 'rom !!!.money"entral.msn."om

6nternal &actor Evaluation 26&E3 Matrix

4e" 6nternal &actors


Stren'ths
7. (tron% 'inan"ial position in re$enue and operatin% in"ome 2. Brand is !ell 2no!n %lobally 8. (tron% mana%ement team 9. 3,"ellent trainin% pro%ram 'or employees :. Di$erse business units* ea"h ha$in% se$eral businesses and strate%i" allian"es ;. (ome produ"ts are sold %lobally <. Bein% able to stru"2 deals !ith other !ell 2no!n or%aniAations

!ei'ht

(atin'

!ei'hted Score

0.0) 0.0: 0.0: 0.0) 0.09

9 8 9 8 9

0.82 0.7: 0.2 0.29 0.8;

0.0< 0.08

8 8

0.27 0.09

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). Well de$eloped and stron% te"hnolo%y !ithin the or%aniAation

0.09

0.8;

!ea1nesses
7. Di''i"ult to mana%e due to o!nin% too many business unites 2. De"rease in "ash* in"rease in a""ounts re"ei$able and in$entory 'rom 200< to 200) 8. 4n"rease in "orre"t liabilities 'rom 200< to 200) 9. >e%al issues due to a""idents in the theme par2s :. Multiple produ"ts 'rom $aries se%ments "ould "ause "annibaliAation o' e,istin% par2s and attra"tions ;. @iolation in intelle"tual property and li"ensin% results in lo!er royalties <. (tron% 'inan"ial in$estment is re.uired 'or most ne! and inno$ati$e produ"t "ate%ories ). -i%h in$estment re.uirement 'or mar2etin% and promotion
0.0: 0.0< 2 7 0.7 0.0<

0.0: 0.0: 0.0;

7 2 2

0.0: 0.7 0.72

0.0; 0.0:

7 7

0.0; 0.0:

0.0< ).**

0.79 -.;-

Total

&.

S!OT Strate'ies
Stren'ths !ea1nesses

7. (tron% 'inan"ial position in re$enue and operatin% in"ome 2. Brand is !ell 2no!n %lobally 8. (tron% mana%ement team 9. 3,"ellent trainin% pro%ram 'or employees :. Di$erse business units*

7. Di''i"ult to mana%e due to o!nin% too many business unites 2. De"rease in "ash* in"rease in a""ounts re"ei$able and in$entory 'rom 200< to 200) 8. 4n"rease in "orre"t liabilities 'rom 200< to 200)

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ea"h ha$in% se$eral businesses and strate%i" allian"es ;. (ome produ"ts are sold %lobally <. Bein% able to stru"2 deals !ith other !ell 2no!n or%aniAations ). Well de$eloped and stron% te"hnolo%y !ithin the or%aniAation

9. >e%al issues due to a""idents in the theme par2s :. Multiple produ"ts 'rom $aries se%ments "ould "ause "annibaliAation o' e,istin% par2s and attra"tions ;. @iolation in intelle"tual property and li"ensin% results in lo!er royalties <. (tron% 'inan"ial in$estment is re.uired 'or most ne! and inno$ati$e produ"t "ate%ories ). -i%h in$estment re.uirement 'or mar2etin% and promotion
!<O Strate'ies

Opportunities

S<O Strate'ies

7. >o!er labor "ost in o$erseas mar2et su"h as China 2. Many "onsumers are shi'tin% to 4nternet 'or tra$el boo2in%s 8. -i%h "apital in$estment "ausin% entry barrier to be di''i"ult 9. Due to hi%h entry barriers* substitution is limited in some business se%ments :. Due to !ea2 e"onomy and hi%h unemployment rate* "onsumers are loo2in% 'or less e,pensi$e !ays to be entertained ;. +e"hnolo%y has impro$ed and entertainment industry "an o''er on-demand

7. 3,pand entertainment 7. (ell o'' lo! re$enue se%ment to popular %eneratin% se%ments C "ountries !here they produ"ts to raise "ash ha$e stron% e"onomy and pay o'' debt W2* and ha$e positi$e ima%e W:* /:# 'or 5( produ"ts and 2. 4n"rease 'ran"hisin% and ser$i"es (7* (2* (:* li"ensin% to impro$e (;* /7* /9* /<# "ash 'lo! and in"ome 2. 4n"rease ad$ertisin% and W2* W8* W<* /9* /:# promotion to youn% 8. 4mpro$e se"urity %eneration "oupons implemented on and rebate "ards# produ"ts to redu"e C limit throu%h so"ial net!or2s intelle"tual property and su"h as +!itter and li"ensin% $iolations W;* 0a"eboo2 (7* (2* ()* /;# /2* /:* /;#

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audios and $ideos do!nload <. De$aluation o' dollar ma2es tra$el "osts less e,pensi$e 'or international tourists

Threats

S<T Strate'ies

!<T Strate'ies

7. Wea2 e"onomy "ausin% drop in "onsumer disposable in"ome 2. More "ompanies ha$e announ"ed additional lay o''s* "ausin% in"rease in unemployment 8. Creati$e strate%i" partnership amon% "ompetitors 9. ?lobal !armin% and other !eather related issues :. 5n"ertainty amon% "onsumers and tra$elers due to !ea2 e"onomy ;. 0lu is spreadin% rapidly "ausin% "onsumers to be hesitant %oin% to publi" pla"es <. Creati$e dis"ounts o''ered by "ompetitors in entertainment and hospitality se%ments ). Complian"e !ith la!s and re%ulations in o$erseas mar2et 9. (e"urity threats su"h as terrorism 70. @alue o' Dollar in"reasin%* "ausin% less tourists "omin% to the 5.(.

7. Ne%otiate !ith employees and union representati$e 'or pay "ut to eliminate layin% o'' sta'' and impro$e "ash 'lo!. 5se the sa$in%s and o''er better dis"ounts to "ustomers (8* (9* +7* +2* +:* +<# 2. 4mpro$e se"urity measure in theme par2s and hospitality lo"ations by usin% sur$eillan"e "ameras ()* +9#

7. Consolidate or reor%aniAe the or%aniAational stru"ture 'or additional "ost sa$in%s and to impro$e 'inan"ial per'orman"e W7* W2* W8* +7* +2* +70#

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7.

SPACE Matrix 0(
Conservative
< ; : 9 8 2 7

A''ressive

C(

4(
-< -; -: -9 -8 -2 -7 -7 -2 -8 -9 -: -; 7 2 8 9 : ; <

De ensive

-<

Competitive

3(

&inancial Stabilit" 2&S3 Deturn on 4n$estment >e$era%e >i.uidity Wor2in% Capital Cash 0lo! &inancial Stabilit" 2&S3 Avera'e

8 8 9 9 : +.,

Environmental Stabilit" 2ES3 5nemployment +e"hnolo%i"al Chan%es Pri"e 3lasti"ity o' Demand Competiti$e Pressure Barriers to 3ntry Environmental Stabilit" 2ES3 Avera'e

-: -: -9 -8 -7 <+.;

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Competitive Stabilit" 2CS3 Mar2et (hare Produ"t Buality Customer >oyalty Competition&s Capa"ity 5tiliAation +e"hnolo%i"al Fno!--o! Competitive Stabilit" 2CS3 Avera'e 1-a,is: 0( G 3( H 8.) G -8.;# H 0.2 I-a,is: C( G 4( H -8.;# G 9.2# H 0.;

-2 -2 -: -9 -: <+.;

6ndustr" Stabilit" 26S3 ?ro!th Potential 0inan"ial (tability 3ase o' Mar2et 3ntry Desour"e 5tiliAation Pro'it Potential 6ndustr" Stabilit" 26S3 Avera'e

9 8 : : 9 =.-

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>.

7rand Strate'" Matrix


(apid Mar1et 7ro%th Quadrant II Quadrant I

!ea1 Competitive Position

Stron' Competitive Position

Quadrant III

Slo% Mar1et 7ro%th

Quadrant IV

7. Mar2et de$elopment 2. Mar2et penetration 8. Produ"t de$elopment 9. 0or!ard inte%ration :. Ba"2!ard inte%ration ;. -oriAontal inte%ration <. Delated di$ersi'i"ation

6.

The 6nternal<External 26E3 Matrix


The 6&E Total !ei'hted Score (tron% 8.0 to 9.0 A$era%e 2.0 to 2.99 Wea2 7.0 to 7.99

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44

444

-i%h 8.0 to 8.99

4@

4@

@4

The E&E Total !ei'hted Score

!alt Disne" Compan"


Medium 2.0 to 2.99

@44

@444

4I

>o! 7.0 to 7.99

?.

@SPM
4n"rease ad$ertisin% and promotion to youn% %eneration "oupons and rebate "ards# throu%h so"ial net!or2s su"h as +!itter and 0a"eboo2 AS TAS 7 0.0:

4e" &actors Opportunities 7. >o!er labor "ost in o$erseas mar2et su"h

!ei'ht
0.0:

3,pand entertainment se%ment to popular "ountries !here they ha$e stron% e"onomy and ha$e positi$e ima%e 'or 5( produ"ts and ser$i"es AS TAS 9 0.2

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as China 2. Many "onsumers are shi'tin% to 4nternet 'or tra$el boo2in%s 8. -i%h "apital in$estment "ausin% entry barrier to be di''i"ult 9. Due to hi%h entry barriers* substitution is limited in some business se%ments :. Due to !ea2 e"onomy and hi%h unemployment rate* "onsumers are loo2in% 'or less e,pensi$e !ays to be entertained ;. +e"hnolo%y has impro$ed and entertainment industry "an o''er ondemand audios and $ideos do!nload <. De$aluation o' dollar ma2es tra$el "osts less e,pensi$e 'or international tourists Threats 7. Wea2 e"onomy "ausin% drop in "onsumer disposable in"ome 2. More "ompanies ha$e announ"ed additional lay o''s* "ausin% in"rease in unemployment 8. Creati$e strate%i" partnership amon% "ompetitors 9. ?lobal !armin% and other !eather related issues :. 5n"ertainty amon% "onsumers and tra$elers due to !ea2 e"onomy ;. 0lu is spreadin% rapidly "ausin% "onsumers to be hesitant %oin% to publi" pla"es <. Creati$e dis"ounts o''ered by "ompetitors in entertainment and hospitality se%ments ). Complian"e !ith la!s and re%ulations in o$erseas mar2et 9. (e"urity threats su"h as terrorism 70. @alue o' Dollar in"reasin%* "ausin% less tourists "omin% to the 5.(. TOTAA Stren'ths 7. (tron% 'inan"ial position in re$enue and operatin% in"ome 2. Brand is !ell 2no!n %lobally 8. (tron% mana%ement team 9. 3,"ellent trainin% pro%ram 'or employees :. Di$erse business units* ea"h ha$in% se$eral businesses and strate%i" allian"es ;. (ome produ"ts are sold %lobally

0.0< 0.0) 0.0; 0.0)

------8

------0.29

------7

------0.0)

0.0)

2 9

0.7; 0.2

9 7

0.82 0.0:

0.0:

0.0< 0.09

7 9 --------8 ----7

0.0< 0.7; --------0.7) ----0.0: ).-;

2 7 --------7 ----9

0.79 0.09 --------0.0; ----0.2 *.5=

0.08 0.0; 0.0< 0.08

0.0; 0.0; 0.0; 0.0:

).**
0.0) 0.0: 0.0: 0.0) 0.09 0.0<

9 -----------

0.82 -----------

8 -----------

0.29 -----------

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<. Bein% able to stru"2 deals !ith other !ell


2no!n or%aniAations

0.08 0.09

8 7

0.09 0.09

2 9

0.0; 0.8;

). Well de$eloped and stron% te"hnolo%y


!ithin the or%aniAation !ea1nesses 7. Di''i"ult to mana%e due to o!nin% too many business unites 2. De"rease in "ash* in"rease in a""ounts re"ei$able and in$entory 'rom 200< to 200) 8. 4n"rease in "orre"t liabilities 'rom 200< to 200) 9. >e%al issues due to a""idents in the theme par2s :. Multiple produ"ts 'rom $aries se%ments "ould "ause "annibaliAation o' e,istin% par2s and attra"tions ;. @iolation in intelle"tual property and li"ensin% results in lo!er royalties <. (tron% 'inan"ial in$estment is re.uired 'or most ne! and inno$ati$e produ"t "ate%ories ). -i%h in$estment re.uirement 'or mar2etin% and promotion SB#TOTAA SBM TOTAA ATT(ACT6VE$ESS SCO(E

0.0: 0.0<

7 ----------7 8

0.0: ----------0.0: 0.27 *.,) -.*C

8 ----------9 7

0.7: ----------0.2 0.0< ).*, -.*-

0.0: 0.0: 0.0;

0.0; 0.0:

0.0<

).**

4.

(ecommendations

3,pand into more 3uropean or (. Ameri"an "ountries !here the e"onomy is stron%er* the ?DP is %ro!th* unemployment is stable and disposable in"ome is on the rise. Most 3uropean and (. Ameri"an "ountries ha$e 'a$orable per"eption to!ard Ameri"an businesses and are ea%er to buy 5( produ"ts or use the ser$i"es. (tru"2 a deal !ith lo"al %o$ernment 'or ta, bene'its 'or hirin% more lo"als.

A.

EPS0E#6T Anal"sis
E Amount Needed: E900 million (to"2 Pri"e: E82.0< +a, Date: 8;.07J 4nterest Date: 9.:J A$era%e# K (hares /utstandin%: 7.9 Billion
Common Stoc1 &inancin' Recession Normal Boom Debt &inancin' Normal

Recession

Boom

Copyri%ht = 2077 Pearson 3du"ation* 4n". publishin% as Prenti"e -all.

3B4+ 4nterest 3B+ +a,es 3A+ K (hares 3P(

E)*9:0*000*000 0 )*9:0*000*000 8*092*000*000 :*90)*000*000 7*972*9<2*<7; -.,+

E70*000*000*000 0 70*000*000*000 8*;00*000*000 ;*900*000*000 7*972*9<2*<7; +.+.

E72*000*000*000 0 72*000*000*000 9*820*000*000 <*;)0*000*000 7*972*9<2*<7; =.*-

E)*9:0*000*000 79*000*000 )*987*000*000 8*08:*7;0*000 :*89:*)90*000 7*900*000*000 -.,=

E70*000*000*000 79*000*000 9*9)7*000*000 8*:98*7;0*000 ;*8)<*)90*000 7*900*000*000 +.+;

E72*000*000*000 79*000*000 77*9)7*000*000 9*878*7;0*000 <*;;<*)90*000 7*900*000*000 =.*=

3B4+ 4nterest 3B+ +a,es 3A+ K (hares 3P(

C* Percent Stoc1 < +* Percent Debt Recession Normal Boom E)*9:0*000*000 E70*000*000*000 E72*000*000*000 7:*200*000 7:*200*000 7:*200*000 )*989*)00*000 9*9)9*)00*000 77*9)9*)00*000 8*08;*:2)*000 8*:99*:2)*000 9*879*:2)*000 :*89)*2<2*000 ;*890*2<2*000 <*;<0*2<2*000 7*90)*<80*907 7*90)*<80*907 7*90)*<80*907 -.,+ +.+. =.*-

C* Percent Debt < +* Percent Stoc1 Recession Normal Boom E)*9:0*000*000 E70*000*000*000 E72*000*000*000 8*)00*000 8*)00*000 8*)00*000 )*99;*200*000 9*99;*200*000 77*99;*200*000 8*090*;82*000 8*:9)*;82*000 9*87)*;82*000 :*90:*:;)*000 ;*89<*:;)*000 <*;<<*:;)*000 7*908*<97*)7: 7*908*<97*)7: 7*908*<97*)7: -.,= +.+; =.*+

M.

Epilo'ue

As part o' its on%oin% e''ort to promote healthy li'estyles and nutrition 'or 2ids and 'amilies* Disney today announ"ed that it !ill de$elop a pro%ram in "ollaboration !ith 0irst >ady Mi"helle /bama supportin% L>etMs Mo$e*L her ne!ly announ"ed "ampai%n to "reate a healthier %eneration. Disney !ill "reate a series o' P(As 'eaturin% the 0irst >ady and leadin% Disney Channel stars to inspire healthier eatin% habits* physi"al a"ti$ity and more. +he messa%es !ill be 'eatured a"ross DisneyMs 2id and 'amily tar%eted media plat'orms* in"ludin% Disney Channel* Disney ID* Dadio Disney* and Disney."om and !ill be%in airin% later this year. L-a$in% been at the 'ore'ront o' ma2in% healthier li'estyle "hoi"es appealin% to 2ids and 'amilies* Disney is deli%hted to !or2 !ith the 0irst >ady to promote e,er"ise* nutrition and healthy li$in%*L said Dobert A. 4%er* president and C3/* +he Walt Disney Company. Disney."om# Ad$an"in% its strate%y o' deli$erin% %reat branded "ontent to people around the !orld* Dobert A. 4%er* President and Chie' 3,e"uti$e /''i"er o' +he Walt Disney Company announ"ed that Disney has "ompleted its a".uisition o' reno!ned "hara"ter 'ran"hise "ompany* Mar$el 3ntertainment 4n". LWeMre thrilled to !el"ome to the Disney 'amily the talented team at Mar$el*L said 4%er. LWe belie$e the "reati$e and business potential o' this "ombination is substantial and "an help us %ro! both our top and bottom line* leadin% to a si%ni'i"ant in"rease in lon%-term shareholder $alue.L 5nder the terms o' the a%reement and based on the "losin% pri"e o' Disney on +hursday* De"ember 87* Mar$el shareholders !ill re"ei$e a total o' E80 a share in "ash plus appro,imately 0.<9:2 Disney shares 'or ea"h Mar$el share they o!n. Mar$elMs assets in"lude a library o' o$er :*000 "hara"ters 'eatured in a $ariety o' media o$er <0 years and businesses* in"ludin% li"ensin%* mo$ie produ"tion and publishin%. Disney."om#
Copyri%ht = 2077 Pearson 3du"ation* 4n". publishin% as Prenti"e -all.

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