Due to the large scale of Disney and the multiple departments and
branches, robo-analyst would be helpful as it would allow for the
interpretation between the different branches. The difficult
interaction within large companies is being able to compare different
companies as their products and services are different. “For a human
analyst to make the appropriate balance sheet or income statement
adjustments to facilitate apples-to-apples comparisons across firms,
she had to attentively read hundreds of pages of filings for multiple
firms and multiple years and accurately collect all the data (Wang,
2021).”
The ability for Disney to properly compare their theme parks to their
digital and entertainment sector creates opportunities to allocate
resource to increase future revenues. If a sector is performing under
what another is, the company can increase spend within the more
profitable one. Due to the ability to better compare financial
information, the industry will be able to make better choices on how
to manage their capital. With the increases of efficiency within the
market, the whole market will grow.
References:
Wang, C. (2021). New Constructs: Disrupting Fundamental Analysis
with Robo-Analysts, 9(118). Retrieved July 20, 2022, from
https://services.hbsp.harvard.edu/lti/links/content-launch.
