The Walt Disney Company

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Internal Analysis

SWOT Analysis
This SWOT assessment of Disney illuminates the critical concerns that
shareholders and administration must consider when analyzing the
corporation. For instance, capabilities sufficient to capitalize on
opportunities in the telecommunication services industry indicate the
possibility of succeeding strategic expansion. Internal elements, such as
the company's abilities and shortcomings, must be balanced against
external factors, such as opportunities and risks in its multinational
businesses. The Walt Disney Company must have the courage to face
the negative consequences of the sector's threats and vulnerabilities. As
a result, this SWOT analysis provides a framework for analyzing such
business concerns.

Strengths

Diversified services. The majority of business in the entertainment


industry specialize in a single niche for example, Netflix focuses
exclusively on streaming platforms. By contrast, Disney offers various
goods and services through its numerous business areas, including
studio entertainment, news channels, direct-to-consumer and resorts,
adventures, and merchandise Disney is committed to meeting all
client’s requirements, irrespective of age. They can spend their time
indoors with Disney must subscription services or outside at movie
theaters or Disneyland amusement parks (Trainer, 2022)
Greater brand value. The trademark and emblem of Disney are instantly
identifiable as films and termed made publicly are often marked with
the "b" to indicate that they are from the Walt (Viney Studios,
Corporation, or Production According to Trainers (2022) publication of
the world's most valuable branda, Disney was ranked sights and its
business worth to predicted to be $60.2 billion Through this capability,
the firm establishes a reputation as a respectable, family-oriented
corporation that caters to all consumers.

Weaknesses
Racism allegations. Disney faced criticism after it was revealed that
Barbara Fedida, a prominent supervisor at Disney's ABC News, had a
record of making prejudiced remarks and participating in other
blatantly racist and unethical conduct (Staff, 2020). The outpouring of
criticism and outrage addressed at Disney caused the firm to put the
implicated executive on administrative leave while investigating their
conduct. With rising protests opposing racism, the presence of racist
executives is a massive flaw (Staff, 2020).
Limited innovation. The limitation of inventiveness is related to Disney's
company tactics. The corporation innovates by continuously improving
its products. However, the institution's activities are constrained by a
lack of technological advancement in utilizing the latest tools. For
instance, Disneyland theme attractions incorporate emerging
innovations that are responsive rather than offensive (Causer, 2019).
The Walt Disney Company's conventional competitiveness approach
and concentrated growth plans place a premium on item quality and
distinctiveness, with a lesser emphasis on quick digitalization.
Opportunities

Disney online streaming offering (Disney+). Disney is currently working


on a direct-to- consumer (DTC) subscription called Disney+ that will
include all Disney, Pixar, Marvel, and Star Wars films (Sherman & Subin,
2021). With its huge selection of movies and television shows, the
service may potentially compete with Netflix. Moreover, Disney's basic
regular membership is $6.99 per month, contrasted to Netflix's $8.99
monthly (Sherman & Subin, 2021). In general, this is beneficial to
customers because Disney will have more alternatives, and rivalry may
result in lower costs.
• Tactical acquisitions. Disney has made several acquisitions and
partnerships, including Marvel, Pixar, and Fox, which have allowed the
firm to grow and capitalize on possibilities in various industries and
niches within the entertainment world. Disney has the potential to
make other significant purchases in the future, catalyzing its expansion.

Threats
Competition. Competition continues to be the greatest danger to the
Walt Disney Company Competitiveness is particularly pronounced in the
multinational mass film Industries. For instance, ambitious businesses
compete by offering filme akin to those produced by Disney's Marvel
Studios
Technological innovations. Disney is not an innovation or software
company and thus cannot create capabilities tailored to its needs. And
technology advances, watching entertaining content has become widely
available via smartphones, which Disney does not have. For example,
advancements in technology in interactive order fulfillment in the
recreation and mainstream media industries keep shifting profits away
from enterprises that provide digital news communications and
networks.

VRIO
Analysis The VRIO framework is a critical technique used to review and
evaluate a firm's resources and determine its tactical advantage and
effectiveness. The strategic tool assists the enterprise in identifying
long-term market capabilities (aia et al, 2020). Thus, this is
accomplished by assessing the corporation's internal capabilities and
resources, thereby the business in identifying its areas of expertise and
thus enabling the corporation to develop a viable long-term
comparative benefit. The VRIO analysis assesses resources and
competencies based on the following criteria explored in greater detail
below.

Valuable
Valuable capabilities assist Disney in capitalizing on possible
opportunities and mitigating challenges from both the micro and macro
environments. These capabilities enable a business to extend, progress
and develop. The firm's supply chain is a valuable asset, and as such, it
enables the company to reach an ever-increasing number of clients.
Thus, this results in an increase in revenue for the corporation.
Additionally, it ensures that promotional activities result in sales by
making the products readily available. Furthermore, Disney has spent
much in acquiring the most renowned companies in the entertainment
sector. Mendelson (2020) addresses the importance of Disney's
Lucasfilms, Marvel, and Pixar purchases. According to Mendelson
(2020), Disney's profitability. Increased by 404% since 2006, when Pixar
was acquired; and in 2018, Disney accounted for 38% of all box office
sales (Mendelson, 2020), Disney's acquisition of these brands has
resulted in the company gaining the leading customer base in the
entertainment industry

Rare
Rare natural abilities are inherited and cultivated by only a few
companies in the sector. contributing to Disney's strategic advantage.
The institution's employees are a resource and highly trained and
competent, which is not true of other organizations" staff The improved
salary and workplace culture guarantee that these workers retain with
the company Moreover, Cary's copyrights are a scarce resource, as they
are not readily accessible and are not held by opponents. As a result,
Disney can use them without compromising on performance

Inimitable

These unmatched capabilities contribute to a firm's competitive edge


and long-term viability. Rival players will find it difficult and costly to
replicate these competencies and resources. Disney's monetary
resources are prohibitively expensive to replicate, given they were
amassed over time through sustained revenues. To accrue these
economic means. newcomers and adversaries would need similar
revenues for an extended period. Additionally, Disney's distribution
network is extremely challenging for competitors to replicate, given the
business built it progressively over the years. Opponents would need to
invest heavily to replicate a similar supply chain.

Organization

These assets were designed only for Disney and cannot be used by
other industry participants. They are non-replaceable and so cannot be
used by enterprises other than Disney, allowing the corporation to
capitalize on prospects and efficiently utilize capabilities for company
success. Disney has considerable financial resilience in conjunction with
its brand reputation, enabling the firm to explore product innovation
and options and examine inspective acquisitions and mergers for
competitiveness. Financial power has also benefited the company by
focusing on brand advancements and consistency of quality across the
various countries in which it operates. Additionally, technology
improvements and integration are critical resources for establishing a
strategic edge at Disney, as they enable the company to retain
effectiveness and efficiency throughout its numerous industry activities.
The technical progress and integration enable the organization to
manage worldwide operations efficiently, which is critical for
maintaining good supply chain administration.

Financial Analysis
The financial analysis assesses the effectiveness and viability of firms,
enterprises, expenditures, and other operational functions. Economic
evaluation usually is done to determine whether an organization is
sustainable, competent, liquid, or attractive enough to justify capital
investments. Furthermore, it is used to assess economic trends,
determine fiscal situations, develop long-term corporate objectives, and
uncover investment opportunities in firms. Therefore, this is
accomplished by combining financial numerical information. A financial
analyst will conduct a detailed examination of the companies' annual
reports, including the cash flow statement, income statement, and cash
position. In this section, the report provides a critical assessment at
Disney's finances.
STRATEGY EVALUATION, MONITORING AND CONTROL OF THE
WALT DISNEY COMPANY

Strategy Evaluation of the Walt Disney Company Ensuring that a


company as large as the Walt Disney Company evaluates and
implements proper strategies that will allow them to reach their goals
and fulfil their mission statement can be extremely difficult. By
observing and revising internal and external factors, the company is able
to modify and adapt to any changes presented in order to still achieve
success. “External opportunities and threats and internal strengths and
weaknesses that represent the bases of current strategies should
continually be monitored for change” (David & David, 2017, p. 291).
This paper will discuss revisions to the IFE and EFE as well as some
activities that will improve the success of the company.

The Walt Disney Company. McDonald's Corporation and a group of


organizations working to improve working conditions in company
supply chains, have carried out a multi-year collaborative project
designed to promote sustained compliance with labor standards
mandated by corporate codes of conduct for manufacturers. For many
years, McDonald's and Disney have maintained strict codes of conduct
for their licensees and manufacturers. These codes address a range of
key labor rights issues including the prohibition of forced and child labor
and the setting of requirements in such areas as health and safety,
working hours, compensation, and compliance with applicable laws. In
addition, both companies report that they have been active in
undertaking educational, monitoring, and remediation efforts to
promote compliance with these codes at the factories where their
products are sourced throughout the world. The project was launched
as part of an ongoing effort to strengthen the effectiveness of these
labor standards by drawing on the interest and expertise of interested
investor organizations and jointly exploring means of promoting
"sustained compliance with labor codes The project sought to foster the
creation and testing of internal systems within factories in order to
promote such compliance over time, including enhanced training and
education for management, supervisors, and workers, and potential
positive compliance incentives. The project also sought methods of
encouraging remediation in facilities that demonstrate significant
compliance issues, in order to minimize circumstances in which factory
termination is the only business alternative

The Walt Disney Company Introduction Organizations use control


mechanisms to help regulate guidelines and procedures which
contribute toward effectively achieving organizational goals. The Walt
Disney Company is a well known entertainment organization that has
become tremendously successful both nationally and internationally
over the past 70 years or so partly through successful implementation
of control mechanisms throughout every aspect of the organization.

Management Audit Controls Overseeing The Walt Disney Organization


is a major responsibility for Disney's Board of Directors.
Responsibilities are extensive, including the overseeing of the
company's systems of internal control, including compliance of
financial reports, implementing policy and procedures, along with
adhering to the applicable laws. According to the Disney (2007)… The
Committee shall have responsibility for overseeing that management
has implemented an effective system of internal control to promote the
reliability of financial and operating information and compliance,
including those related to risk management, ethics and conflicts of
interest. The Committee plans periodical evaluations to discuss with
management any audit findings, including management
recommendations for improvement in a particular area in order to
promote internal control. Having an effective internal control is
extremely important in any organization, especially The Walt Disney
Organization, because of the magnitude of its organization. Internal
control of management audits are designed to provide reasonable
assurance that goals are being achieved in all organizational areas,
including effectiveness and efficiencies of operations, reliable and
accurate financial reporting, and that all laws are in compliance.

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