Philippine Christian University

Sampaloc 1, Dasmarinas City, Cavite 4114

Walt Disney Company - 2009

BSHM-1B

Prepared by:
Gatus, Andrea Nicole S.
Pardeño, Ashley Jake C.
Olaira, Cedric D.
Gonzales, John Daniel G.

Submitted to:
Ms. Mylene Arcullo
I. BACKGROUND

The purpose of this case study is to elaborate Walt Disney as one of the
world's leading creators of entertainment and distributors of information by analyzing
the company's history and operations. Its goal is to build the world's most imaginative,
ground-breaking, and financially successful entertainment experience as well as
products related to it. The purpose of this case study is to present the company's
revenue and operational income according to the various business divisions.

The idea of this case study was developed by Mernoush Banton on behalf of Walt
Disney Company and was arranged according to Strategic Management Concepts and
Cases.

The primary portion of this research demonstrates that the company's revenues and
income are expanding in each and every place of the planet. The Walt Disney
Company has been successful in attracting a large number of customers by marketing
a variety of products and services that are geared toward providing entertainment for
families. These include theme parks, resorts, recreations, movies, television shows,
radio programming, and memorabilia.

II. TIME CONTEXT

Third quarter of 2009

III. VIEWPOINT

CEO Officer and The Walt Disney Company’s Directors

IV. CENTRAL PROBLEM

Walt Disney reported a decrease of 26% in its net income, and not a single
division or area of the firm reported a rise. Movie Studio had the worst performance
of any division during the quarter, reporting an operating loss of $12 million on a
revenue drop of 12 percent. This was the division's worst performance. The sales of
Disney's DVDs came to a grinding halt. While the crisis grinds on and customers
spend money on what they need, Disney requires a strategic strategy for the future.
Shareholders do not desire a repeat of the third quarter. Disney needs assistance
developing a strategy plan to aid Disney's increasing sales.

V. OBJECTIVES

A. Must Objective - we have the suppliers purchasing power, Walt Disney

Company must objective is to give the people the entertainment and the
information they all needed. Using their high quality devices and advanced
 technology they assure to give affordable service. As this is the company's
must objective, consumers can guarantee reliable information and good
entertainment.

B. Want Objective - Walt Disney Company aims to be part of every people's

lives through inspiring them. They want to connect with them by giving
awareness and information they must need. They want to enlighten the world
my giving happy entertainment and informative truths.

VI. AREAS OF CONSIDERATIONS

Strengths

1. Large Cash Flow

2. Strong Negotiation Skills
3. High Brand Value
4. Proficient Team
5. Impressive Portfolio

Weaknesses

1. Negative Publicity
2. Vulnerable To Competitors
3. Poor Financial Planning
4. Sky-High Attrition Rate
5. Insufficient Product Demand Scaling

Opportunities

1. Strategic Acquisitions
2. Gear Up for Marketing
3. Global Expansion

Threats

1. Better Products & Technology

2. Isolation in America
3. High Expense Toll
4. Increase in Piracy

VII. ALTERNATIVE COURSE OF ACTIONS (ACA)

I. They should provide new characters, shows and their other form of
entertainment that is suitable for all ages not only for kids but also for
teenagers and the older ones. So that many people will still patronize the
Walt Disney Company even when they were a baby-no-more. The
 company should produce a modern version of other Disney princesses like
Snow White in Mirror, Mirror and Snow White in the Hunts Man so that
the adults can appreciate it and can also serve as a family bonding.

Advantage:

 The Walt Disney corporate strategy emphasizes on five specific

aspects including business excellence, guest satisfaction, financial
result, cast excellence and repeat business.

Disadvantages:

 The company’s business model proves to be unsustainable.

II. The company should organize an international contest for next big feature
of Walt Disney. The winning character and story will be released in
company’s anniversary. The contest is composed of two parts: A character
and a story. The winning entry will be launch at the company’s
anniversary and the winner will have a chance to play one of the main
characters.

Advantages:

 The company used the theme parks as part of their corporate

strategies which enabled them to market their products on a global
scale.

Disadvantage:

 Their employees lost confidence in the company as they felt as

though

III. Walt Disney Company should innovate new ideas that respond to the
changing preferences of its guest. The company should conduct a
compulsory survey to their walk-in guest that has choices of the Disney’s
new ideas to know whether it will be a hit or not. Those choices have
descriptions which will trigger everyone’s imagination.

Advantage:

 Along with other products such as film production, the company

was able to control much of the market share in the entertainment
world.

Disadvantage:
 The company was more focused on profit gain rather than their
welfare.

VIII. RECOMMENDATION
 The recommendation that I choose is the 3rd ACA, the most recommended
alternative course of action is to innovative new ideas that respond to the changing
preferences of its guest. The company should conduct a compulsory survey to their
walk-in guests that have choices of the Disney’s new ideas to know whether it will be
hit or not. Those choices have descriptions which will trigger everyone’s imagination.
Although the remaining alternative course of actions are also applicable, we find it
more effective to use because it seems like its consumers find the company’s products
and services repetitive and boring.

IX. PLANS OF ACTION

The Walt Disney Company’s Intensive Strategies for Growth

Chart 1: Environmental Goals and Fiscal Year 2009 Progress

Goal Fiscal Year 2009

1. Zero net direct greenhouse gas
emissions
Medium Term Target(s) Footprint Update
• Direct GHG emissions decreased 3.5%
from 2008 to 2009 (See Chart 2).
• To reach 2012 target, invested in carbon
offset projects to protect forests in
the Amazon, Democratic Republic of
Congo and the United States, as well
as other emissions reduction projects in
China and the United States.

Progress
• Completed greenhouse gas (GHG)
inventories for all company-owned
facilities
for 2007, 2008 and 2009.
• Conducted pilot study to measure
emissions from television and film
productions.
• Converted trains and the steamboat at
Disneyland to biodiesel fuel made
from recycled cooking oil.
2. Reduce indirect greenhouse
gases from electricity
consumption
Medium Term Target(s) Footprint Update
• For electricity consumption: by 2013, • Electricity consumption decreased 1.2%
Disney from 2008 to 2009 (See Chart 3).
seeks to reduce electricity consumption • Electricity consumption decreased 2.6%
by 10% from baseline year 2006 to 2009
compared to 2006 baseline in existing (See Chart 3).
assets
• Disney will develop a plan to Progress
aggressively • Completed electricity and indirect GHG
pursue renewable sources of electricity inventories for all company-owned
to facilities for 2007, 2008 and 2009.
reduce emissions from electricity • Implemented new approaches to energy
consumption conservation such as thermostat
set points in theme parks and resorts, and
CFL and LED lighting conversions
throughout the company’s business
operations.
3. Zero Waste
Medium Term Target(s) Footprint Update
• By 2013, decrease solid waste to landfill • Solid waste to landfill for theme parks
to and resorts decreased by 20,816 tons
50% of 2006 baseline level (“2006 from 2008 to 2009. In 2009, waste sent
baseline to landfill was 44% of the total waste
level” means total waste generated in generated in 2006 (See Chart 4).
2006)
• By 2013, increase percentage of Progress
purchases • Completed waste inventories for theme
that include post-consumer recycled parks and resorts operations for
material 2008 and 2009.
• Began development of waste
inventories of non-park operations.
• Implemented enhanced waste reduction
programs such as increased
recycling programs and composting, and
recycling of construction materials.
• Addressed consumer shopping bag
usage through adoption of bags made
of 100 percent post-consumer recycled
plastic at domestic theme parks
and resorts.
4. Net positive income on
ecosystem
Medium Term Target(s) Progress
• By 2010, develop and implement an • Began development of integrated
integrated approach to design, process for ecosystems assessment and
engineering sustainable design for new construction
and habitat protection for all new projects.
construction projects • Increased funds distributed by Disney
• Increase the level of support from the Worldwide Conservation Fund,
Disney including:
Worldwide Conservation Fund each year – $1.5 million to support 67 projects
for focused on conserving ecosystems
the next five years in 33 countries, and
– $3.0 million to support the planting of
more than three million trees in
 Brazil’s Atlantic Rainforest in support of
Disney nature’s release of the film
EARTH and the distribution of special
Disney Store Earth Day tote bags.
5. Minimize water use
Progress
• Formed internal working group to
develop targets for water use.
6. Minimize product footprint
Progress
• Formed internal working group to
develop targets for product footprint.
7. Inform, empower and activate
employees, business partners
and consumers to take positive
action for the environment
Progress
• Expanded programs to inspire
environmental stewardship in youth,
including:
– Launched Disney’s Friends for Change:
Project Green, a program to help
kids help the planet that has resulted in
more than 1 million pledges of
specific environmental actions, and
– Nationwide expansion of Disney’s
Planet Challenge, an environmental
learning competition for 4th-6th graders,
to all 50 states in the U.S.
• Continued to embed environmental
content in movies and television
programs
garnering four Environmental Media
Association Awards.
• Launched final two phases of The
Green Standard, the company’s
environmental guidelines for employees.
• Held inaugural virtual environmental
summit with participation by more than
450 senior leaders and employees.