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Strategy Management – Disney:
Company Name: Disney
Task 1:
Mission: Mission gives a direction to the company and states the purpose, aims and ways of doing business. The mission of the Disney Company is to make people content and give them satisfaction and happiness.
Vision: A vision is a big picture of what your organization wants to achieve in the future. Disney wants to be one of the world’s best provider and producer of information, entertainment and amusement.
Objectives: Objectives are exact targets that are important to attain goals. Objectives are point by point proclamations of quantitatively or subjectively measurable results the plan wants to finish. To accomplish the goal, Disney sets targets like continue potable water consumption, declining net emissions and much more (The Walt Disney company, 2015).
Goals: Goals are defined as an expected or desired result of a planning course. In general, these are the guiding principles to achieve end results. To give the best entertainment to people around the world while remaining environmentally sound and using resources prudently is the goal of Disney.
Core Competencies: Core competencies refer to major strengths or competitive advantages of a company and such capacities that are impossible or difficult to imitate. Technology and out-of-the-box imagination are the core competencies of Disney.
Knowing its core competencies and long-term and short-term goals, Disney sets its strategies to expand business in domestic markets as well as in international markets.
The Key Factors That Needed To Be Considered In The Strategic Planning Stage:
Strategic planning refers to the set of aims or objectives of an organization and the ways to achieve organizational goal. There are few major factors that needed to be considered throughout the strategic planning of Disney, in which three key factors are:
Economic Conditions: Changing economic conditions vary the consumer spending on entertainment, park visits or media utilization. During the poor economic period, Disney makes more profits in international markets rather than the United States.
Market Conditions (Competition): Being a market leader, Disney gives a tough competition to other companies. However, the market is intensely occupied with a greater number of rivals. Disney has got the advantage of diversification where it owns huge market shares in diverse industries.
Technology: Entertainment and media requires the modification of technology, which makes this factor an important one for Disney. Disney made special efforts in technological advancements particularly after the acquisition of Pixar.
Planning Techniques:
SPACE: It is a tool to analyze a company’s current position and determine strategies to operate effectively in the industry. The SPACE matrix of Disney reflects that company lies in aggressive stage owing to definite Industry Strength (IS) and Financial Strength (FS). To make the fullest of this stage, the proposed strategies for Disney are market development, product development, market penetration, horizontal and vertical integration
BCG Matrix:
BCG matrix reflects the market growth rate relative to market share of a particular company. BCG matrix of Disney shows that the Disney’s media network operations lie in a Star grid whereas; business related to parks and resorts and studio entertainment lie in Cash Cow grid. This matrix also shows that the consumer products segment of Disney exhibits low growth and market share. This segment has a growth prospect but need to spend more thoroughly at the cost of extreme competition. Conversely, its local business functions are in mature stage therefore needs to be managed properly to make higher profits.
Task 2:
SWOT Analysis:
It is a strategic planning method that evaluates company’s strengths, weaknesses, opportunities and threats to measure business and develop a plan for future growth (Kotler, 2009). SWOT analysis is carried out to analyze the current internal environment of Wal-Mart Inc., which is given below:
A SWOT Analysis
Strengths
• Wide operation scale with diversification
• Strong theme park business
• Strategic Acquisitions
• Excellent Free Cash Flow and financial stability
• Successful cable networks of Disney particularly the ESPN sports channels
Weaknesses
• Uneven Box Office Receipts
• Interactive Losses due to failure of its social network games and other video game sales.
• Yielding Broadcast division
• Large portion of revenues rely on domestic market
Opportunities
• Market expansion in China, Russia and India and high demand in Asian markets
• Increasing acceptability rate of amusement theme parks
• Opening parks and resorts in Shanghai in 2015
• Technological development and digital dissemination of movie downloads through Itunes
• Expand product folio by diversifying product lines Threats
• Growing competition in programming and channels
• Rising confrontations from domestic societies
• Decreasing cable fees
• Costly Sports Rights leads to high programming cost
PESTEL Analysis:
“PESTLE” stands for “Political, Economic, Social, Technological, Legal and Environmental” and provides an outlook of environment from numerous directions that impact your marketing process (wordpress, 20–).
Political:
Disney Company is greatly regulated by the Federal Communications commission. “Who Wants To Be A Millionaire?” May 2004 and Cursing in children’s films January 2012 are the lawsuits undertaken by the company. Disney highly acts in accordance with International Laws and also have set punishment policy for piracy that is lobbying for S.978.
Economic:
The fading economic conditions of U.S. have increases the opportunities for Disney to expand business successfully in international markets. The declining U.S. dollar against Euro enhances consumer spending worldwide. Moreover, company tends to increase vacation hours if employees increase their work hours. Disney is declared as horizontally integrated and highly diversified company.
Social: Disney is a firm supporter of family values and represents the entrepreneurial spirit which has denoted around 198 million to charity. However, the company has been indicted of taking benefit from the manufacturers of undeveloped countries.
Technological: The technology has been advanced after the acquisition of Pixar in 2006 which led to CGI Cartoons. Disney has increased the use of interactive games particularly parks and cruise. Moreover, RFID technology is intensively being used all over the world. Around 61% of 3D screens have been set internationally.
Environmental: Disney is stated as the eco-friendly company which has denoted 1.47 million approximately to Wildlife. Also company shows greater concern to environmental health, various ecosystems, etc.
Legal: During expansion in international markets, company has rigorously undertaken the regulations like taxation policies, labour laws and other competitive strategies. Disney has effectively modifies its business strategies to operate according to the regulations of home country.
Significance Of Stakeholder Analysis:
Stakeholder: A stakeholder is any person or a party that has a concern in a company or a specific project. The most common stakeholders in a company are its employees..
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