Walt Disney Company

Experiential Exercise 3A

Developing an EFE Matrix for Walt Disney Company Purpose This exercise will give you practise developing an EFE Matrix. An EFE Matrix summarizes the results of an external audit. This is an important tool widely used by strategist.

EFE Matrix for Walt Disney Company Key External Weighted Factors Score

Weight

Rating

Opportunities 1. Spend 1.1bil in 2008-20011 2008-20011 to revitaliz revitalizee the Disney Disney California California 0.06 Adventure in Anaheim,California. 2. Disney and Citadel announced an agreement to merge with 0.09 ABC radio business. 3. Disney opened Grand Floridian Beach and Carribean Beach 0.06 0.12 Resorts that include three new gated attractions. 4. Park Parkss and Reso Resort rtss divi divisi sion on incr increa ease sed d 10% 10% in 2006 2006 to 9.9 9.9 bill billio ion n 0.09 0.09 0.27 Due to domestic and internationals resorts. 5. Buena Vista Vista Games has reach a sales growth growth to an increase increase of 0.07 14%. 6. Disney ney’s 50 50th anniversary celebration at its parks and resorts 0.07 0.28 increased attendance and hotel occupancy.

4

0.24

3

0.27

2 3

3

0.21

4

Threats 1. Time Warner is a major rival to Disney Company This This indu indust stry ry is domi domina nate ted d by congl conglom omer erat ates es Wa Walt lt Disn Disney ey , Time Warner Inc., New York Times, News Corp., and Corporation. Disney also compete with satellite providers such as Direct TV Disney competes with other advertising media such as  Newspapers, Billboards, Internet and magazine. Disney’s theme park and resorts really depends on travel trends Seasons and also the security to travel 6. Competitors are consolidating and spending aggressively To promote new hit movies and TV shows.

Total 2.79

0 .1 0 0.08 0.08

4 2

0.40 0.16 0.16 CBS

0.06 0.08

2 3

0.12 0.24

0.08

3

0.24

0.08

3

0.24

1.00

Experiential Exercise 3D Developing a Competitive Profile Matrix for Walt Disney Company Purpose Monitoring competitors’ performance and strategies is a key aspect of an external audi. This exercise is designed to give you practise evaluating the competitive position of organization in a given industry and assimilating that information in the form of Competitive Profile Matrix.

Competitive Profile Matrix Walt Disney

Time Warner

News

Corporation

Critical Success Factors Rating Score

Weight

Advertising

2

0.20

Product Quality

0.10

Rating

0.4 3

Score

4 0.3

Rating

0.8 3

3 0.3

0.6 4

0.4

Price Competitiveness 0.05

2

0.1

3

0.45

2

0.1

Management

3

0.3

4

0.4

3

0.3

0.10

Score

Financial Position

0.10

4

0.4

3

0.3

4

0.4

Customer Loyalty

0.15

3

0.45

2

0.3

3

0.45

Global Expansion

0.20

3

0.6

4

0.8

3

0.6

Market Share

Total

0.10

1.00 3.15

2

0.2

3

2.75

0.3

3

0.3

3.65

Internal Factor Evaluation Matrix for Walt Disney Company

IFE Matrix for Walt Disney Company Key Internal Factors Weighted

Weight

Rating Score

Strengths 1. Disney owns ABC Television Network 2. Disney’s net revenue climbed 5.2% to 35.5 billion 3. Walt Disney company operates using a strategic  business unit(SBU) 4. Disney WABC-TV ranked as the 1st in television market ranking In Ney York. 5. Disney unveiled Disney Xtreme Digital which competes against Myspace. 6. Parks and Resorts division increased 10% in 2006 to 9.9 billion Due to domestic and internationals resorts.

0.08 0.10 0.08

2 4 4

0.16 0.4 0.32

0.10

3

0.3

0.09

2

0.18

0.10

3

0.3

1. Disney revenues from Studio Entertainment and Consumer product 0.08 segment decreased by 1% 2. Hong Kong Disneyland has been struggling because the company 0.08 Might have to persuade lenders to refinance the debt. 3. Disney has lost the competitiveness on consumers products to 0.12  Nickelodeon as they had launch SpongeBob and it’s a hit. 4. Disney has smaller industry segments in the broadcasting industry 0.09 As news corp. operates in eight industry segments. 5. The theme park and resorts business experiences fluctuations 0.08 from the seasonal Nature of vacation travel and local entertainment excursions.

2

0.16

3

0.24

4

0.28

Weaknesses

Total 2.93

1.00

3 4

0.27 0.32

Strategic Management BBM 303 Individual Assignment

Name

ID

Mohd Yusfaizan B. Mohd Pilus

KI080365

Lecturer: Mdm Kamarjeet Kaur