Disney Strategic Assessment
OVERVIEW
Walt Disney Company for eighty years has captured the attentions of millions of people around the world, offering family entertainment at theme parks, resorts, recreations, movies, TV shows, radio programming, and memorabilia (David, 2009). Today, Walt Disney possesses four main business segments: Disney Consumer products, Studio Entertainment, Parks and Resorts, and Media Networks. Each of Disney's business units increased profits apart from its interactive division, which was recently restructured (Garrahan, 2011). By combining Disney's long history with the commitment to quality, Disney Consumer Products has had a large and steady presence in the toy marketplace (Anonymous, 2010). Studio entertainment has been somewhat of a problem for Disney and has not increased revenues by great percentages. Parks and Resorts increased revenue by 29 percent in 2006 and media networks increased revenue by 43 percent. The Media Network segment brings in the most revenue and operating income (David, 2009). This segment and the Parks & Resorts segments are growing.
ANALYSIS & MATRIX
An Internal Factor Evaluation (IFE) Matrix summarizes and evaluates major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas (David, 2009). An IFE weighted score of 2.5 is the midpoint indicating that there is room for improvement in strategies, policies and procedures, therefore, Disney’s rating of 2.7 states overall that the company should formulate strategies to relate their strengths and weaknesses. Disney is doing well overall, there are some concerns with their weak points, but their strategies are being addressed. With increasing revenue yearly, their strategies have proven to be beneficial.
Weight - 0.0 (Not Important) – 1.00 (All Important)
Rating - 1 (Major Weakness), 2 (Minor Weakness), 3 (Minor Strength), 4 (Major Strength)
Strengths Weight Rating Weighted
Walt Disney Company for eighty years has captured the attentions of millions of people around the world, offering family entertainment at theme parks, resorts, recreations, movies, TV shows, radio programming, and memorabilia (David, 2009). Today, Walt Disney possesses four main business segments: Disney Consumer products, Studio Entertainment, Parks and Resorts, and Media Networks. Each of Disney's business units increased profits apart from its interactive division, which was recently restructured (Garrahan, 2011). By combining Disney's long history with the commitment to quality, Disney Consumer Products has had a large and steady presence in the toy marketplace (Anonymous, 2010). Studio entertainment has been somewhat of a problem for Disney and has not increased revenues by great percentages. Parks and Resorts increased revenue by 29 percent in 2006 and media networks increased revenue by 43 percent. The Media Network segment brings in the most revenue and operating income (David, 2009). This segment and the Parks & Resorts segments are growing.
ANALYSIS & MATRIX
An Internal Factor Evaluation (IFE) Matrix summarizes and evaluates major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas (David, 2009). An IFE weighted score of 2.5 is the midpoint indicating that there is room for improvement in strategies, policies and procedures, therefore, Disney’s rating of 2.7 states overall that the company should formulate strategies to relate their strengths and weaknesses. Disney is doing well overall, there are some concerns with their weak points, but their strategies are being addressed. With increasing revenue yearly, their strategies have proven to be beneficial.
Weight - 0.0 (Not Important) – 1.00 (All Important)
Rating - 1 (Major Weakness), 2 (Minor Weakness), 3 (Minor Strength), 4 (Major Strength)
Strengths Weight Rating Weighted
References: Anonymous, . The Magical World of Disney. (2010, January). Retail Merchandiser, 50(1), 132. Retrieved February 9, 2011, from ABI/INFORM Global. (Document ID: 1990462771). David, F.R. (2009). Strategic Management Concepts. Upper Saddle River, NJ. Pearson Education. Garrahan, M. (2011, February 9). Disney boosted by strong advertising. Financial Times,20. Retrieved February 9, 2011, from ABI/INFORM Global. (Document ID: 2261975011).