School of Business and Governance

In partial fulfilment of the requirements in Strategic Management (Mgt 426)

Theory: Global/ International Issues

Case: Walt Disney Co.

Submitted by: Group 6

1. URBIZTONDO, Karl Angelo2. LABASANO, Rosel Joy

3. KABIGTING, April Rose

Submitted to:

Mr. Antonio A. Emberda

Mgt 426/ 5:55-7:25P TTh/ BSAT4C/ T301

January 27, 2015

OUTLINE

Vision, Mission, Objectives, and Strategies

Organization’s External Opportunities and Threats

Competitive Profile Matrix (CPM)

External Factor Evaluation (EFE) Matrix

Organization’s Internal Strengths and Weaknesses

Internal Factor Evaluation (IFE) Matrix

Strength- Weakness- Opportunities- Threats (SWOT) Matrix

Strategic Position and Action Evaluation (SPAcE) Matrix

Boston Consulting Group (BCG) Matrix

Internal- External (IE) Matrix

Grand Strategy Matrix

Quantitative Strategy Planning Matrix (QSPM)

Recommendation

VISION, MISSION, OBJECTIVES, AND STRATEGIES

Vision

There is no official Vision for Walt Disney.

Mission

"The mission of The Walt Disney Company is to be one of the world's leading producers and

providers 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."

Proposed Vision

To be the world’s most famous entertainment company by creating an amazing experience for

individuals of all ages.

EXTERNAL OPPORTUNITIES AND THREATS

Opportunities

1. Growth of cable and satellite operators

2. New innovations and developments in technology

3. Changes in technology and consumer consumption

4. Increasing media networks/ broadcasting market share

5. Room to develop the market in emergent countries

Threats

1. High competition for audiences with other networks, TV stations, and other media

2. Inflation and recession

3. Government regulations and taxes

4. Protection of intellectual properties

5. Non-stable profitability because of unstable demand

COMPETITIVE PROFILE MATRIX (CPM)

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

EXTERNAL FACTOR EVALUATION Weight Rating Score

Opportunities

1. Growth of cable and satellite operators 0.10 2 0.20

2. New innovations and developments in technology 0.10 3 0.30

3. Changes in technology and consumer consumption 0.10 3 0.30

4. Increasing media networks/ broadcasting market share 0.05 2 0.10

5. Room to develop the market in emergent countries 0.20 3 0.60

Threats

1. High competition for audiences with other networks, TV

stations, and other media 0.15 4 0.60

2. Inflation and recession 0.05 2 0.10

3. Government regulations and taxes 0.05 1 0.05

4. Protection of intellectual properties 0.10 3 0.30

5. Non-stable profitability because of unstable demand 0.10 3 0.30

TOTAL 1.00 2.85

ORGANIZATION’S INTERNAL STRENGTHS AND WEAKNESSES

INTERNAL FACTOR EVALUATION

Strengths

1. Highest revenue generating theme park

2. Vast presence in media

3. Diversified business: 5 business segments

4. Responsive to markets

5. High brand recognition

Weaknesses

1. Limited target audience

2. High Research and Development cost

3. High operating costs

4. Has set their standards too high

5. High risks on large investments

INTERNAL FACTOR EVALUATION (IFE) MATRIX

INTERNAL FACTOR EVALUATION

Strengths

1. Highest revenue generating theme park 0.05 3 0.15

2. Vast presence in media 0.15 4 0.60

3. Diversified business: 5 business segments 0.10 4 0.40

4. Responsive to markets 0.10 2 0.20

5. High brand recognition 0.15 4 0.60

Weaknesses

1. Limited target audience 0.10 2 0.20

2. High Research and Development cost 0.15 4 0.60

3. High operating costs 0.05 2 0.10

4. Has set their standards too high 0.05 2 0.10

5. High risks on large investments 0.10 4 0.40

TOTAL 1.00 3.35

STRENGTH- WEAKNESS- OPPORTUNITIES- THREATS (SWOT) MATRIX

STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX

BOSTON CONSULTING GROUP (BCG) MATRIX

INTERNAL- EXTERNAL (IE) MATRIX

GRAND STRATEGY MATRIX

Quadrant I

1. Market development2. Market penetration3. Product development4. Forward integration5. Backward integration6. Horizontal integration7. Related diversification

MATRIX ANALYSIS

Alternative Strategies IE BCG SPACE Grand TotalForward Integration x x x 3Backward Integration x x x 3Horizontal Integration x x x 3Market Penetration x x x x 4Market Development x x x x 4Product Development x x x x 4Related Diversification x x 2Unrelated Diversification x 1Retrenchment -Divestiture x 1Liquidation -

QUANTITATIVE STRATEGY PLANNING MATRIX (QSPM)

Expansion or move to

untapped areas

Acquire more networks that

may target other audiences

other than children and to

have larger market share

EXTERNAL FACTOR EVALUATION Weight AS TS AS TS

Opportunities

1. Growth of cable and satellite operators 0.10 - 3 0.32. New innovations and developments in technology

0.10 - -

3. Changes in technology and consumer consumption

0.10 - 3 0.3

4. Increasing media networks/ broadcasting market share

0.05 - 3 0.15

5. Room to develop the market in emergent countries

0.20 4 0.8 -

Threats

1. High competition for audiences with other networks, tv stations, and othe media

0.15 - 2 0.3

2. Inflation and recession 0.05 - -3. Government regulations and taxes 0.05 2 0.1 -4. Protection of intellectual properties 0.10 - -5. Non-stable profitability because of unstable demand

0.10 - -

TOTAL 1.00

Expansion or move to

untapped areas

Acquire more networks that targets other

audiences other than children and to have

larger market share

INTERNAL FACTOR EVALUATION Weight AS TS AS TS

Strengths

1. Highest revenue generating theme park 0.05 - -2. Vast presence in media 0.15 - -3. Diversified business: 5 business segments 0.10 - -4. Responsive to markets 0.10 3 0.3 4 0.45. High brand recognition 0.15 - -

Weaknesses

1. Limited target audience 0.10 - 4 0.42. High Research and Development cost 0.15 2 0.3 -3. High operating costs 0.05 - 2 0.14. Has set their standards too high 0.05 - -5. High risks on large investments 0.10 2 0.2 -

TOTAL 1.00 1.7 1.95

RECOMMENDATION

Basing on the result of the matrices, we recommend Walt Disney Co. to focus on market development, market penetration, and product development. Also, as a result of our SWOT Matrix, we came up with the following strategies:

Expansion or move to untapped areas.

Acquire more networks that targets other audiences other than children and to have larger market share.