Strat Case
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Transcript of Strat Case
School of Business and Governance
In partial fulfilment of the requirements in Strategic Management (Mgt 426)
Theory: Global/ International Issues
Case: Walt Disney Co.
Submitted by: Group 6
1. URBIZTONDO, Karl Angelo2. LABASANO, Rosel Joy
3. KABIGTING, April Rose
Submitted to:
Mr. Antonio A. Emberda
Mgt 426/ 5:55-7:25P TTh/ BSAT4C/ T301
January 27, 2015
OUTLINE
Vision, Mission, Objectives, and Strategies
Organization’s External Opportunities and Threats
Competitive Profile Matrix (CPM)
External Factor Evaluation (EFE) Matrix
Organization’s Internal Strengths and Weaknesses
Internal Factor Evaluation (IFE) Matrix
Strength- Weakness- Opportunities- Threats (SWOT) Matrix
Strategic Position and Action Evaluation (SPAcE) Matrix
Boston Consulting Group (BCG) Matrix
Internal- External (IE) Matrix
Grand Strategy Matrix
Quantitative Strategy Planning Matrix (QSPM)
Recommendation
VISION, MISSION, OBJECTIVES, AND STRATEGIES
Vision
There is no official Vision for Walt Disney.
Mission
"The 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."
Proposed Vision
To be the world’s most famous entertainment company by creating an amazing experience for
individuals of all ages.
EXTERNAL OPPORTUNITIES AND THREATS
Opportunities
1. Growth of cable and satellite operators
2. New innovations and developments in technology
3. Changes in technology and consumer consumption
4. Increasing media networks/ broadcasting market share
5. Room to develop the market in emergent countries
Threats
1. High competition for audiences with other networks, TV stations, and other media
2. Inflation and recession
3. Government regulations and taxes
4. Protection of intellectual properties
5. Non-stable profitability because of unstable demand
COMPETITIVE PROFILE MATRIX (CPM)
EXTERNAL FACTOR EVALUATION (EFE) MATRIX
EXTERNAL FACTOR EVALUATION Weight Rating Score
Opportunities
1. Growth of cable and satellite operators 0.10 2 0.20
2. New innovations and developments in technology 0.10 3 0.30
3. Changes in technology and consumer consumption 0.10 3 0.30
4. Increasing media networks/ broadcasting market share 0.05 2 0.10
5. Room to develop the market in emergent countries 0.20 3 0.60
Threats
1. High competition for audiences with other networks, TV
stations, and other media 0.15 4 0.60
2. Inflation and recession 0.05 2 0.10
3. Government regulations and taxes 0.05 1 0.05
4. Protection of intellectual properties 0.10 3 0.30
5. Non-stable profitability because of unstable demand 0.10 3 0.30
TOTAL 1.00 2.85
ORGANIZATION’S INTERNAL STRENGTHS AND WEAKNESSES
INTERNAL FACTOR EVALUATION
Strengths
1. Highest revenue generating theme park
2. Vast presence in media
3. Diversified business: 5 business segments
4. Responsive to markets
5. High brand recognition
Weaknesses
1. Limited target audience
2. High Research and Development cost
3. High operating costs
4. Has set their standards too high
5. High risks on large investments
INTERNAL FACTOR EVALUATION (IFE) MATRIX
INTERNAL FACTOR EVALUATION
Strengths
1. Highest revenue generating theme park 0.05 3 0.15
2. Vast presence in media 0.15 4 0.60
3. Diversified business: 5 business segments 0.10 4 0.40
4. Responsive to markets 0.10 2 0.20
5. High brand recognition 0.15 4 0.60
Weaknesses
1. Limited target audience 0.10 2 0.20
2. High Research and Development cost 0.15 4 0.60
3. High operating costs 0.05 2 0.10
4. Has set their standards too high 0.05 2 0.10
5. High risks on large investments 0.10 4 0.40
TOTAL 1.00 3.35
STRENGTH- WEAKNESS- OPPORTUNITIES- THREATS (SWOT) MATRIX
STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX
BOSTON CONSULTING GROUP (BCG) MATRIX
INTERNAL- EXTERNAL (IE) MATRIX
GRAND STRATEGY MATRIX
Quadrant I
1. Market development2. Market penetration3. Product development4. Forward integration5. Backward integration6. Horizontal integration7. Related diversification
MATRIX ANALYSIS
Alternative Strategies IE BCG SPACE Grand TotalForward Integration x x x 3Backward Integration x x x 3Horizontal Integration x x x 3Market Penetration x x x x 4Market Development x x x x 4Product Development x x x x 4Related Diversification x x 2Unrelated Diversification x 1Retrenchment -Divestiture x 1Liquidation -
QUANTITATIVE STRATEGY PLANNING MATRIX (QSPM)
Expansion or move to
untapped areas
Acquire more networks that
may target other audiences
other than children and to
have larger market share
EXTERNAL FACTOR EVALUATION Weight AS TS AS TS
Opportunities
1. Growth of cable and satellite operators 0.10 - 3 0.32. New innovations and developments in technology
0.10 - -
3. Changes in technology and consumer consumption
0.10 - 3 0.3
4. Increasing media networks/ broadcasting market share
0.05 - 3 0.15
5. Room to develop the market in emergent countries
0.20 4 0.8 -
Threats
1. High competition for audiences with other networks, tv stations, and othe media
0.15 - 2 0.3
2. Inflation and recession 0.05 - -3. Government regulations and taxes 0.05 2 0.1 -4. Protection of intellectual properties 0.10 - -5. Non-stable profitability because of unstable demand
0.10 - -
TOTAL 1.00
Expansion or move to
untapped areas
Acquire more networks that targets other
audiences other than children and to have
larger market share
INTERNAL FACTOR EVALUATION Weight AS TS AS TS
Strengths
1. Highest revenue generating theme park 0.05 - -2. Vast presence in media 0.15 - -3. Diversified business: 5 business segments 0.10 - -4. Responsive to markets 0.10 3 0.3 4 0.45. High brand recognition 0.15 - -
Weaknesses
1. Limited target audience 0.10 - 4 0.42. High Research and Development cost 0.15 2 0.3 -3. High operating costs 0.05 - 2 0.14. Has set their standards too high 0.05 - -5. High risks on large investments 0.10 2 0.2 -
TOTAL 1.00 1.7 1.95
RECOMMENDATION
Basing on the result of the matrices, we recommend Walt Disney Co. to focus on market development, market penetration, and product development. Also, as a result of our SWOT Matrix, we came up with the following strategies:
Expansion or move to untapped areas.
Acquire more networks that targets other audiences other than children and to have larger market share.