15 Aug Business Policy and Strategy- Bus 410
The final case will focus on Disney Corporation found on page 354 in your book. For most of the questions you will need to search for additional information beyond what your textbook has. I am looking for justified, detailed answers showing you know how to apply these principles.
[10 points] After reading the case, (a) articulate what Disney’s strategy was in 2018. Reviewing additional resource sources, (b) what is the current strategy in 2021? (c) How has the strategy changed over these three years? (d) What has stayed the same? (e) for the strategy in 2018, evaluate this strategy against each of the three tests of a winning strategy as found on page 10 of your textbook. Please clearly articulate answers to parts a, b, c, d, and e in separate paragraphs for clarity.
[30 points] Evaluate Disney’s strategy using the six steps listed in your book on pages 162-163. For each of the steps I ask about, I am looking for detailed answers that will require your use of sources of information well beyond what is presented in the book. You are evaluating Disney in 2018 so don’t consider COVID impacts. The four business units are Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products and Interactive Media. Complete these steps in separate distinct sections:
(a) Evaluate industry attractiveness and calculate an industry attractiveness score for each of Disney’s business units using a minimum of five of the measures listed on page 163.
(b) Evaluate each business unit’s competitive strength using a minimum of four factors listed on pages 165-166
(c) Draw a nine-cell matrix similar to the one on page 168 after completing tasks (a) and (b).
(d) Evaluate how much value Disney has when looking at the interconnection of its business units. This can be a qualitative answer…no need to quantify it. This is step 3 on page 169.
(e) Articulate strategic moves (if appropriate) you would recommend for Disney similar to step 6 on page 173. Again, think where Disney was in 2018 when formulating your answer.
[10 points] What is your assessment of Disney’s financial and operating performance? Evaluate the following by using the provided Valueline report.
(a) Read the supplied Valueline report. In general, is Disney doing well financially? Support your answer with quantifiable data (you pick the measures you want to talk about but look at trend over multiple years).
(b) What is the current ratio in 2019? Was Disney in a good position using this financial metric in 2019?
(c) What is the current ratio in 2020? Was Disney in a good position using this financial metric in 2020 as compared to 2019?
(d) Calculate/list the earning per share for 2018, 2019, and 2020. Why do you think 2020 was so different compared to the other years?
[20 points] Evaluate Disney’s theme park business in Orlando, Florida using a Porter’s Five Force analysis to determine the profitability of the theme park industry in that geographic area. Make this evaluation at a time before COVID came along. Articulate as follows:
(a) Buyers’ bargaining power for those who might attend Disney’s theme parks. Is the competitive force for this dimension high, medium, or low? Why?
(b) Substitute product availability. Is the competitive force for this dimension high, medium, or low? Why?
(c) Supplier bargaining power (for our evaluation think of those who provide food to Disney for use in their theme park restaurants). Is the competitive force for this dimension high, medium, or low? Why?
(d) Threat of new entrants into the theme park market in this geographic area. Is the competitive force for this dimension high, medium, or low? Why?
(e) Rivalry of other them park attraction providers in the area. Is the competitive force for this dimension high, medium, or low? Why?
(f) Add up the low, medium, and highs from the answers above. Does your evaluation suggest that the competitive forces are such that the theme park industry can make a good profit in the Orlando area? Why or why not?
You must say high, medium, or low competitive force for answers (a) through (e) to receive full credit.
[10 points] With respect to Disney’s Theme Park and Resorts business units, articulate which of the five generic competitive strategies found on page 89 that Disney’s is using for this segment. Justify your answer.
[10 points] Disney recently rolled out a subscription streaming service called Disney Plus. Which of the seven foundations and basis for a competitive attack was Disney employing (there may be more than one)? Justify your answers. Comment on your thoughts as to the merit of this strategic offensive in the long run.
[10 points] Corporate Social Responsibility was discussed in chapter 9. Name ten things that Disney can do/or is doing to lessen its theme parks’ impact on the environment and support of the local community. Do you feel like Disney has been successful on the social and environmental aspects of the Triple Bottom Line (page 189)?
