Disney Analysis

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EXECUTIVE SUMMARY Growth in the theme park industry is a challenge in today's market. Theme parks will not grow if they don't diversify their resources. The Walt Disney Corporation is a nation wide multi-varied entertainment company which is a household name to millions of people throughout North America. Michael Eisner who is Disney's chairman and chief executive officer knows that his company will have to diversify in order to meet his targeted growth rate of 20%. Eisner wants to follow one of Walt Disney's famous quotes which is "We cannot hit a homerun with the bases loaded every time we go to the plate. We also know the only way we can even get to first base is by constantly going to bat and continuing to swing" In order for Disney to meet this 20% target Eisner knows he will need to look at new industries and overseas expansion to be successful. Since the Walt Disney Company is reaching a saturation point in domestic markets the corporation has recruited several notable executives and officers to fill its key management positions. Out of these positions only one of the ten corporate officers and three of the four group executives are Disney veterans. Eisner is hoping that with some new blood the company may generate new ideas to meet its corporate objectives which are: 1) to sustain Disney as the world's premier entertainment company; 2) to maximize shareholder wealth through a target annual growth rate of 20 percent and a 20 percent or greater return on stockholders equity; 3) to maintain the basic integrity of the Disney name and consumer franchise; and 4) to accomplish the above while preserving basic Disney values in terms of quality, fairness, creativity, entrepreneurialism, and teamwork. If the objectives are accomplished Eisner feels that Walt Disney can continue the process of being the number one leader in the field of family and entertainment. Their mission is to be the worlds leading producer and provider of family entertainment and Eisner is steadily directed and loyal in his commitment to providing quality family entertainment. I. Evaluation of Objectives and Current Strategy The Walt Disney Corporation total net income for 1987 is $445 million. The company has been able to make the right decisions the past several years as its net income has almost doubled the last three years. Walt Disney's philosophy of providing family entertainment which focused on children, youths and adults has put Disney ahead of the competition.

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