Running Head: ANALYSIS OF WALT DISNEY COMPANY 1
Managerial Analysis of the Walt Disney Company
Texas A&M International University
MGT 3310 – Principles of Management
Abstract
ANALYSIS OF WALT DISNEY COMPANY 2
Walt Disney initiated on October 16, 1923, as the Disney Brothers Cartoon Studio.
Established itself in the animation industry and developed into the global mass media
corporation it is today. This report furnishes an extensive analysis of The Walt Disney
Company management and outlines a critique, including both external and internal
environments. Recommendations and conclusions for the future of the Walt Disney
Management system will be compiled based on the research.
Key Words: Walt, Disney, Management, analysis, critique
The Walt Disney Company Today
ANALYSIS OF WALT DISNEY COMPANY 3
The current mission of the Walt Disney Company is to be one of the world’s
leading producers and providers of entertainment and information. Using our portfolio of
brands to differentiate our content, services, and consumer products, we seek to develop
the most creative, innovative, and profitable entertainment experiences and related
products in the world.
Corporate Governance
Board of Directors: Eleven members with the CEO on the board
Top Management includes: Ten members and CEO – Robert A. Inger – Also Chairman
of the board
SWOT External
Capitalize on Opportunities: Emergent countries, Growing consumer markets, and
expansion of online presence. Minimize Threats: The reduction of competitor cable fees.
Increasing costs of sports rights and the creation of competitors in sport media
SWOT Internal
Strengths: Brand reputation, excellent strategic acquisitions, ESPN’s cable dominance,
and financial power
Weaknesses: Expensive box office failures and broadcasting segment underperforms
Recommendations
Use the global brand image to move into the World market like China and continue to
support ESPN sports rights and other cable media. Focus more on producing established
big-budget films such as the Star Wars saga and acquire more network presence such as
ABC and ESPN. Foster an online presence by acquisition.
Company History and Background
ANALYSIS OF WALT DISNEY COMPANY 4
The Walt Disney Company (commonly known as Disney) was initially founded
on October 16, 1923, as The Disney Brothers Cartoon Studio, by Roy and Walt Disney.
The initial Disney Brothers Cartoon Studio became an established leader within the
animation industry before expanding into the multifaceted and international mass media
corporation that it is today. The company took on its current official name in 1986 and is
now the most extensive media conglomerate in the world regarding total revenue. In
collaboration with its 142 subsidiaries, Disney owns and operates: broadcast and cable
television networks, publishing, merchandising, theatre divisions, a music division, and
14 amusement parks worldwide. Disney has been a constituent of the Dow Jones
Industrial Average since 1991 and headquartered in Burbank, California. Disney is traded
on the New York Stock Exchange and listed as DIS.
Current Situation- Past Corporate Performances Index
Over the past five years, Disney has shown a slight growth in net income and
revenue as well as maintaining a stable net profit percentage. Illustrated
on the financial revenue and profit overview:
ANALYSIS OF WALT DISNEY COMPANY 5
5 Years of Financial Revenue
Profit Margin Overview
Source: Google Finance NYSE DIS 2019
Disney has a PE ratio of 21.22 % and a 52-wk high of $150.63(Financial Times, NYQ).
