Walt Disney Value Chain Analysis
Megan Beabout
MGMT4009- Online
7 April 2013
Value Chain Analysis By conducting a value chain analysis for Walt Disney Company, I will be able to accurately show the “parts of its operations that create value, and those that don’t” (Hitt, Ireland, and Hoskisson, 87). The value chain is segmented into two categories: support functions and value chain activities. Support functions include finance, human resources, and management information systems which “support the work being done to produce, sell, distribute, and service the products [Walt Disney] is creating” (Hitt, Ireland, and Hoskisson, 87). Value chain activities include supply chain management, operations, distribution, marketing, and follow-up services, which Walt Disney “completes in order to produce products and then sell, distribute, and service them” (Hitt, Ireland, and Hoskisson, 87). After a value chain analysis is completed, strengths and weaknesses of Walt Disney’s internal business structure will be exposed and analyzed for visibility. I. Support Functions a. Finance i. Walt Disney has exceptional financial capital through revenues of their products and service. Their net income was reported as $1,382,000,000 on December 29, 2012 (The Walt Disney Company Financial Report). ii. Research and development is in constant work to develop effective and profitable means for producing and distributing its products. iii. Walt Disney is a unique and important customer for their suppliers. They hold high bargaining power and create mutually beneficial relationships. b. Human Resources iv. Walt Disney hires the most experienced, creative, and talented staff to produce unique, high-quality products. v. Teamwork and communication are key and highly enforced in all divisions to create synergy between business segments. vi. Training programs for all employees are well developed and sustained. vii. Walt Disney offers many
MGMT4009- Online
7 April 2013
Value Chain Analysis By conducting a value chain analysis for Walt Disney Company, I will be able to accurately show the “parts of its operations that create value, and those that don’t” (Hitt, Ireland, and Hoskisson, 87). The value chain is segmented into two categories: support functions and value chain activities. Support functions include finance, human resources, and management information systems which “support the work being done to produce, sell, distribute, and service the products [Walt Disney] is creating” (Hitt, Ireland, and Hoskisson, 87). Value chain activities include supply chain management, operations, distribution, marketing, and follow-up services, which Walt Disney “completes in order to produce products and then sell, distribute, and service them” (Hitt, Ireland, and Hoskisson, 87). After a value chain analysis is completed, strengths and weaknesses of Walt Disney’s internal business structure will be exposed and analyzed for visibility. I. Support Functions a. Finance i. Walt Disney has exceptional financial capital through revenues of their products and service. Their net income was reported as $1,382,000,000 on December 29, 2012 (The Walt Disney Company Financial Report). ii. Research and development is in constant work to develop effective and profitable means for producing and distributing its products. iii. Walt Disney is a unique and important customer for their suppliers. They hold high bargaining power and create mutually beneficial relationships. b. Human Resources iv. Walt Disney hires the most experienced, creative, and talented staff to produce unique, high-quality products. v. Teamwork and communication are key and highly enforced in all divisions to create synergy between business segments. vi. Training programs for all employees are well developed and sustained. vii. Walt Disney offers many
Cited: Hitt, Michael, R. Duane Ireland, and Robert Hoskisson. 10. Mason: South-Western, 2013. 87. Print. “The Walt Disney Company Reports First Quarter Earnings For Fiscal 2013.” The Walt Disney Company, 5 February 2013. Web. 7 Apr 2013. <http://thewaltdisneycompany.com/sites/default/files/reports/q1-fy13-earnings.pdf>. “About Disney: Suppliers.” The Walt Disney Company. Web. 7 Apr 2013. <http://thewaltdisneycompany.com/about-disney/disney-business-services/suppliers>. “Disney Business Portfolio: SWOT Analysis.” Virginia 's Community Colleges. Google Sites. Web. 7 Apr 2013. <https://sites.google.com/a/email.vccs.edu/disney-business-portfolio/swot-analysis>.