Question

As a consultant to Walt Disney Company’s management, you have been asked to prepare an assessment of the company’s diversification/acquisition strategy over the past 30 years, beginning with Michael Eisner’s term as CEO in 1984, and continuing to its present business line-up in 2012. Do the present business units exhibit good strategic fit? Should the present portfolio be kept or should it be adjusted? Your report should include suggestions to improve the company’s financial and operating performance.

Answer 1

The Company is biggest media and entertainment conglomerates, with operations covering four key businesses:

• Media Networks,
• Studio Entertainment,
• Parks and Resorts, C
• onsumer Products.

• Media Networks: Media network of the company has two categories,

• Broadcasting
• Cable Networks.

Broadcasting units of the company has ABC Television Network. If we talk about the cable network the it includes the ESPN-branded cable networks, , Disney Channel International, Disney Channel, stakes in Toon Disney and Soap Net.

• Studio Entertainment: The Studio Entertainment of Walt Disney produces various movies, television programs, animation programs, live stage plays, musical recordings and. It likewise participates in the showy, home video and TV dispersion of Disney's film and TV library. It incorporates flags, for example, Walt Disney Pictures, Touchstone, Buena Vista, and Miramax.

• Parks and Resorts: They are the most well known on the planet, including the Walt Disney World resort in Florida (#1 stop in US, 15.4 million guests for every year), the Disneyland Park and two inns in California, and the Disney Cruise line worked out of Port Canaveral, Florida. The fragment additionally produces sovereignties and additionally administration expenses on incomes from Tokyo Disneyland (16.5 million individuals for every year) and Disneyland Paris.

• Consumer Products: it licenses the organization's characters to buyer makers, retailers, and distributers all through the world. The organization additionally works in coordinate retail utilizing The Disney Stores, and delivers books and magazines in the US and Europe. The organization additionally delivers sound and PC programming items, film, video and PC programming items for the instructive commercial center.

2- Walt Disney Company's portfolio incorporates media (alluring), stops and resorts (appealing), studio (neither appealing nor un appealing), customer items (ugly) and intelligent media (appealing). In general the businesses spoke to in Disney's portfolio are alluring.

There is a decent vital fit inside the Disney portfolio. There is a fitting mixing of almost every specialty unit inside the portfolio to boost income and rivalry. The Studio Entertainment unit shares significant Motion Picture characters with the Consumer Products unit to pitch items to enthusiasts of those pictures, and also to the Interactive Media to advance and offer computer games encompassing the plots and topics in those motion pictures. The Studio Entertainment unit likewise mixes into the Parks and Resorts unit with the improvement of themed stops and terrains committed to films and characters from Media Networks. This is best found in the improvement of Cars Land in the World of Color Park at Disney California Adventure. This stop was made as an option for Disney Land, to ease swarmed conditions there. The arrangement didn't work so well until the point when Cars Land opened. This Land is fixated on the Motion picture Cars. Participation has expanded at the recreation center.