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Running head: STRATEGIC PLANNING WALT DISNEY 1
STRATEGIC PLANNING WALT DISNEY 2
Strategic Planning Walt Disney
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Strategic Planning Walt Disney
Portfolio of Walt Disney
Walt Disney portfolio possesses a good strategic fit. Through its media network, Walt Disney is able to extend their studio entertainment unit’s products life cycle: assisting it to promote all the rest of the unit’s products. The media Network unit’s cost is shared to only one brand (Walt Disney) through an aspect of marketing and advertisement. The movie and animation staff/teams carry out their tasks through an aspect of sharing experience and technic when it comes to the composition of special scenes in the production of movies and animation. Walt Disney hires individuals through a clear and thorough selection process. It inquires the best talents from many organizations to enable see it acquire the best skills in the market. The employees are shared across the department depending on their skills and talent.
The company has employed some strategies that defend and protects it in the media landscape in a consistent manner. It inculcates the organization’s values into its cast members, and ensures rigorous selection and socialization status in the working area. Through its quality management culture, Walt Disney is able to focus on improving the creation of the customer satisfaction and value, which enables it to remain relevant in the market as compared to its competitors. Since its creation in 1923, Disney has become one of the largest influencing companies in the world (Hovav & D'Arcy, 2003). The company has focused on building a diversified functional international platform of clients in the global markets. This has been through the acquisition of a company such as Maker Studios that enables the creation of online content. This has enabled Walt Disney to generate more income that is shared across all its networks and departments; to influence to run efficiently and effectively.
Walt Disney Financial Assessment and Operating Performance 2010-2011
Walt Disney mainly focuses on successful financial performance. The company ensures that it becomes one of the leading providers and producers in the entertainment and information market. This is through the usage of its brands’ portfolio to create a differentiated status of its services, content and consumer products. Walt Disney has primarily set financial goals to maximize cash flow and earnings. It also enables them to develop approaches that enable them to allocate capital towards initiatives focused for company’s growth leading to a long term value in shareholders. Between 2010 and 2011, the company made a profit margin of 11.33% and 12.86% respectively, which was a major improvement. According to the profit margin of revenue percentage, it is evident that the operation expenses were able to yield a profit in the period between 2010 and 2011 (Watts, 2013). The higher ration has a better status, and the company should maintain this trend.
The measure of the return of /investments assets between the 2010 and 2011 was 6.23% and 7.29% respectively. A good high number shows improvement. Through analysis of the financial period, it is evident that Disney has a high capability of generating revenue made from the investments made in the assets of the company. The return of equity between 2010 and 2011 was 10.96% and 13.33% respectively. This shows the measurement of the profit of every earned dollar in equity. The trend is improving, and Disney world is good in terms of its earnings on the capital investment. Its various portfolio have also proven to become the income generating platform for the company. The company has continued to make enough out of its entertainment and information portfolio, investments, hotels and parks.
Financial Strength of Walt Disney
As compared to its various competitors in the market, Walt Disney possesses a good strategic financial model that influences it to make good decisions when it comes to investing in its assets and operations. The different portfolio in the company generates a major platform for improvement of revenues and consistent flow of cash in the company. Walt Disney has also made acquisition in a number of other major companies in the world that enable it to remain healthy in terms of its financial status (Griffin, 2010). The aspect of offering good entertainment products and services to its clients, Walt Disney continues to attract a huge number of clientele that influences it to gain a good market status as compared to its competitors: enabling it to generate more profit in relation to its investments.
References
Griffin, S. (2010). Thomas Leitch, Film Adaptation and Its Discontents: From Gone with the Wind to The Passion of Christ. Modern Philology, 108(2), E142-E144.
Hovav, A., & D'Arcy, J. (2003). The Impact Of Denial‐Of‐Service Attack Announcements On The Market Value Of Firms. Risk Management and Insurance Review, 6(2), 97-121.
Watts, S. (2013). The Magic Kingdom: Walt Disney and The American Way Of Life. University Of Missouri Press, 6-9.