Disney’s Fiscal 2015 Results

...

According to the case study Walt Disney Company operates using four different strategic business unit organizational strategies. Strategic business unit is a strategy when corporation starts to provide different products and need to follow different strategies. The four Strategic business units strategy are as follow 1. Disney Consumer Products, 2. Studio Entertainment, 3. Parks and Resort, 4. Media Networks and Broadcasting.

Mission Statement

According Walt-Disney Company’s website, their mission statement is "To be one of the world's leading producers and provides of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative innovative and profitable entertainment experiences and related products in the world."

Long Term Goal

Long-term goal is what the company wants to achieve in the future. Disney's long-term goal would be to change the theme of the parks from the masses to more concentrated perspective. This will allow Disney to have more one to one park rather than in having all theme in the same park. They are also thinking to expand resorts as well as Disney branded retail and dining districts in cities and beach resorts. This will help Disney to expand in other cities as well and they can attract much more customers. But before doing all this they have a major challenge of avoiding cannibalization of existing parks and attractions. So their long term goal would be overcoming this problem and having the Disney brand expanding. Disney's is also trying to enter sports market in which it believed its entry would increase the total value of the markets. Disney identified that sports (sporting complexes, sports teams, sports on television) represented a market where it could benefit because of the inherent cross-dependencies between sports events, hotel stays, TV broadcasting, and merchandising.

Implementation & Evaluation of strategies/objectives

Disney follows four different strategies:

1. Disney Consumer Products

2. Studio Entertainment

3. Parks and Resort

4. Media Networks and Broadcasting.

Disney continued its good cost-control efforts in the film industry, of which the company's profit margins remained well. As the company grew aggressively in the home video market, it ran the risk of cannibalizing itself at the box office. In hindsight, Disney could have put some measures in place to ensure that it captured maximum market share without putting itself at risk.

Evaluation and Control

The recommendations regarding the implementation, evaluation and control of the proposed strategies will be narrowed down to two main strategies. The first one, would focus on cultural aspects regarding the services and the products provided by Disney. The second one will focus on the size of the company and the future implications of an eventual growth. The first strategy proposal refers to the cultural aspects surrounding Disney’s operation points and to the lack of racial diversity in its movie products. Since it is a global business operating in many different countries on more continents, it could be a good strategic measure to focus on the non- Caucasian races at this point and develop animated products with more protagonists belonging to this target group. This also could cover the internal threat of having to come up constantly with new creative ideas. By exploring the Asian world for example, with its legends and myths, the producers could discover stories appealing to the culture of those countries and to the American and European ones. As far as implementing costs are concerned, this should not prove to be very great. The top and middle management of the countries in question could delegate the forming of a team specially focused on this task to perform research on the national culture’s folklore. Since this would be a distinct team, no procedures would be needed affecting the rest of the company. The performance can be measured by the results of the research, focused on both quantity and quality. With regards to the second recommended strategy, it is vital for Disney to keep constant track of the implications of its size: operational costs, human resource management and marketing costs. The decision of keeping their current profitable size should be taken by the top management in collaboration with the board of directors. This plan would be financially feasible because it would not imply meaningful implementation costs and no new procedures are required. Furthermore, no new measurement procedures are required, since this plan would not imply considerable changes, other than maintaining the company at its current size and focusing on operational, human resources and marketing performance, which excel at the current size

In conclusion The Walt-Disney Company is never satisfied. They are always growing, building, expanding and improving. With their existing theme parks, they continuously work to add in new attractions and shows. They update old outdated rides, as well as refurbish and modernize long-standing favorites. In addition to improving their existing theme parks and building new theme parks in new marketplaces, as noted above, Disney is constantly creating new products to sell. The best Disney products are their movies. Disney studios are always working to create new motion pictures. Constantly making and releasing movies to the marketplace brings in consistent profits for Disney.

Works Cited

McGrath, Maggie. "The Frozen Effect Persists: Disney Revenue Grows 7% In Fiscal 2015." Forbes. Forbes Magazine, 05 Nov. 2015. Web. 29 Nov. 2016.

Palmeri, Chris. "Disney Profit Tops Estimates." Bloomberg.com. Bloomberg, 06 Nov. 2015. Web. 29 Nov. 2016.

Shirley Pelts | Nov 6, 2015 3:40 Pm EST. "Assessing Disney’s Business Segment Performance in Fiscal 2015." Assessing Disney's Business Segment Performance in Fiscal 2015 - Market Realist. The Market Realist, 06 Nov. 2015. Web. 29 Nov. 2016.

"The Walt Disney Company Reports Record Quarterly Earnings for the First Quarter of Fiscal 2016." The Walt Disney Company Reports Record Quarterly Earnings for the First Quarter of Fiscal 2016 | Business Wire. Business Wire, Inc., 09 Feb. 2016. Web. 29 Nov. 2016.

@WaltDisneyCo.