Strategy Formulation A. Strategic Analysis As a leading entertainment and media enterprise Walt Disney has an years of creativity and innovation, and for generations, the Disney name has come to represent trust, morality, cheerfulness and superiority. General Environment Analysis The general environment is composed of dimensions in the broader society that influence an industry and the firms within in. The Walt Disney Company differentiates itself by its fundamental knowledge and practice of the synergy throughout its diversification efforts.
Disney has portrayed a clear and concise corporate strategy that has contributed to its prolonged success, and ultimately has created value. Embedded in Disney’s corporate culture is the understanding that while Disney has exclusive and “magical” products, the magic isn’t in the products themselves, but instead in the way in which they relate and compliment each other. Disney shows itself to be a corporation deeply attentive of the importance of appropriate diversification and the true nature of synergy.
Disney’s creative use of diversification ultimately has the potential of creating vast amount of shareholder value through propating this “magic” throughout society in ways previously unimagined. Source: Strategy Analysis of the Walt Disney Company www. faculty. haas. berkeley. edu? meghan/299/case_study_disney2. pdf B. Strategic Analysis 1. Position A. Mission: “ 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 evelop the most creative, innovative and profitable entertainment experiences and related products in the world. ” 2. Values * Innovation – Follow a strong tradition of innovation *Quality – Strive to follow a high standard of excellence – Maintain high-quality standards across all product categories *Community – Create positive and inclusive ideas about families – Provide entertainment experiences for all generations to share *Storytelling – Every product tells a story Timeless and engaging stories delight and inspire. *Optimism – At the Walt Disney Company, entertainment is about hope, aspiration and positive resolutions * Decency -Honor and respect the trust of people place on them – Fun is about laughing at experiences and ourselves. Source: http://corporatedisney. go. com/careers/culture. html 3. Vision “ to make people happy” – Walt Disney 4. Priorities * Create quality and innovative content that continues to differentiate Disney as best-in-class Deploy cutting edge technologies to showcase their content for early competitive advantage while enhancing the customer experience. *Expand and adding depth to our global presense, particularly in emerging markets Source: http://www. disney. in/corporate/strategic_priorities. html 5. Payments 6. Performance Corporate Governance is a set of mechanisms used to manage the relationship among stakeholders and to determine and control the strategic direction and perfomance of organizations.
The Walt Disney Company is committed to governance policies and practices that assure shareholder interests are represented in a thoughtful and independent manner. The board of directions is to supervise and direct the management of the company to enforce the following duties: 1. Oversee the conduct of the Company’s business to evaluate whether the business is being properly managed; 2. Reviewing and, where appropriate, approving the Company’s major financial objectives, plans and actions; 3.
Reviewing and, where appropriate, approving major changes in, and determinations of other major issues respecting, the appropriate auditing and accounting principles and practices to be used in the preparation of the Company’s financial statements; 4. Assessing major risk factors relating to the Company and its performance, and reviewing measures to address and mitigate such risks; 5. Regularly evaluating the performance and approving the compensation of the Chief Executive Officer and, with the advice of the Chief Executive Officer, regularly evaluating the performance of principal senior executives; and . Planning for succession with respect to the position of Chief Executive Officer and monitoring management’s succession planning for other key executives. 7. The Board of Directors has delegated to the Chief Executive Officer, working with the other executive officers of the Company and its affiliates, the authority and responsibility for managing the business of the Company in a manner consistent with the standards of the Company, and in accordance with any specific plans, instructions or directions of the Board. Executive History Corporate Management Team
Alan BravermanSenior Executive Vice President, General Counsel and Secretary, The Walt Disney Company Alan Braverman was named executive vice president and general counsel of The Walt Disney Company in January, 2003. Braverman serves as the chief legal officer of the company and oversees its team of attorneys responsible for all aspects of Disney’s legal affairs around the world. Ronald L. IdenSenior Vice President, Global Security Ronald L. Iden was named senior vice president, Security, The Walt Disney Company in July 2004. Mr. Iden focuses on developing and coordinating Disney’s security efforts worldwide.
Kevin MayerExecutive Vice President, Corporate Strategy, Business Development and Technology Group, The Walt Disney Company Kevin Mayer was appointed executive vice president of the new Corporate Strategy, Business Development and Technology Group in June 2005. Mayer leads the smaller, tightly-focused group as it targets emerging businesses new to Disney’s existing portfolio, manages cross-divisional issues and opportunities, and evaluates new technology and business models. The group is responsible for aiding in the evaluation and execution of potential acquisition transactions as well. Christine M.
McCarthyExecutive Vice President, Corporate Finance and Real Estate and Treasurer, The Walt Disney Company Christine M. McCarthy is the Executive Vice President, Corporate Finance and Real Estate & Treasurer of The Walt Disney Company. She is responsible for the company wide management of a variety of functions including corporate finance, capital markets, financial risk management, pension and investments, risk management, global cash management, and credit and collections, as well as the global real estate organization, including facilities development, operations and portfolio management.
Zenia MuchaExecutive Vice President, Corporate Communications, The Walt Disney Company Zenia Mucha is the executive vice president, Corporate Communications, The Walt Disney Company. In this capacity, Ms. Mucha has overall responsibility for both the communications policies and strategic positioning of The Walt Disney Company and its diverse global business segments, which include Media Networks, Parks and Resorts, Studio Entertainment and Consumer Products. She serves as the chief spokesperson for The Walt Disney Company and oversees media relations and communications strategy.
Before assuming her current position, Zenia Mucha was senior vice president, The Walt Disney Company, Corporate Communications, since May 2002. Jayne ParkerExecutive Vice President and Chief Human Resources Officer Jayne Parker is Executive Vice President and Chief Human Resources Officer for The Walt Disney Company. Ms. Parker is responsible for areas that include leading Disney’s overall human resources strategy including global talent attraction, staffing and retention, leadership development, diversity, organizational design and cultural development, employee education and development, compensation and benefits and employee relations.
Jay RasuloSenior Executive Vice President and Chief Financial Officer, The Walt Disney Company Jay Rasulo is senior executive vice president and chief financial officer of The Walt Disney Company and oversees the company’s worldwide finance organization, corporate strategy and development, brand management, acquisitions, corporate alliances, investor relations, treasury and risk management activities, controller functions, information systems, corporate outreach, real estate and taxes. Mr. Rasulo began his current role on January 1, 2010 and was most recently chairman of Walt Disney Parks and Resorts.
Brent WoodfordSenior Vice President, Planning and Control, The Walt Disney Company Brent A. Woodford was appointed Senior Vice President, Planning and Control for The Walt Disney Company in February 2005. Previously he was Senior Vice President, Corporate Controllership. Brent is responsible for developing the company’s operating profit, cash flow and capital spending plans and its external and internal financial reporting. He oversees Corporate Controllership, Corporate Operations Planning and Analysis, Corporate Travel and Disney Worldwide Shared Services in Orlando.
Brent also provides administrative oversight of Management Audit. Board of Directors Susan ArnoldDirector since 2007 Susan E. Arnold, 55, is retired and was President – Global Business Units of Procter & Gamble from 2007 to 2009. Prior to that, she was Vice Chair of P Beauty and Health from 2006, Vice Chair of P Beauty from 2004 and President Global Personal Beauty Care and Global Feminine Care from 2002. She is a director of McDonalds Corporation. Ms. Arnold has been a Director of the Company since 2007. John E. BrysonDirector since 2000 John E.
Bryson, 66, serves as Senior Advisor to Kohlberg Kravis Roberts & Co. (KKR) and is Retired Chairman of the Board and Chief Executive Officer, Edison International. Mr. Bryson served as Chairman, President and Chief Executive Officer of Edison International (an electric power generator and distributor), the parent company of Southern California Edison, from 1990 to 2008. He is also a director of The Boeing Company, a trustee of the California Institute of Technology and a director of the W. M. Keck Foundation and the California Endowment. Mr. Bryson has been a Director of the Company since 2000.
John S. ChenDirector since 2004 John S. Chen,54, has been Chairman, Chief Executive Officer and President of Sybase, Inc. , a software developer, since November 1998. From February 1998 through November 1998, he served as co-Chief Executive Officer. Mr. Chen joined Sybase in August 1997 as Chief Operating Officer and served in that capacity until February 1998. From March 1995 to July 1997, Mr. Chen was President of the Open Enterprise Computing Division, Siemens Nixdorf, a computer and electronics company, and Chief Executive Officer and Chairman of Siemens Pyramid, a subsidiary of Siemens Nixdorf.
He is a director of Wells Fargo & Company. Mr. Chen has been a Director of the Company since 2004. Judith L. EstrinDirector since 1998 Judith L. Estrin, 55, is Chief Executive Officer of JLABS, LLC, (formerly Packet Design Management Company, LLC), a privately held company focused on furthering innovation in business, government and non-profit organizations. Ms. Estrin served as Chief Technology Officer and Senior Vice President of Cisco Systems Inc. , a developer of networking products, from 1998 until April 2000, and as President and Chief Executive Officer of Precept Software, Inc. a developer of networking software of which she was co-founder, from 1995 until its acquisition by Cisco in 1998. She is also a director of FedEx Corporation, an international provider of transportation and delivery services. Ms. Estrin has been a Director of the Company since 1998. Robert A. IgerDirector since 2000 Robert A. Iger, 58, has served as President and Chief Executive Officer of the Company since October 2005, having previously served as President and Chief Operating Officer since January 2000 and as President of Walt Disney
International and Chairman of the ABC Group from 1999 to January 2000. From 1974 to 1998, Mr. Iger held a series of increasingly responsible positions at ABC, Inc. and its predecessor Capital Cities/ABC, Inc. , culminating in service as President of the ABC Network Television Group from 1993 to 1994 and President and Chief Operating Officer of ABC, Inc. from 1994 to 1999. He is a member of the Board of Directors of Lincoln Center for the Performing Arts in New York City. Mr. Iger has been a Director of the Company since 2000.
The Company has agreed in Mr. Iger’s employment agreement to nominate him for re-election as a member of the Board at the expiration of each term of office during the term of the agreement, and he has agreed to continue to serve on the Board if elected. Steve JobsDirector since 2006 Steven P. Jobs, 54, has served as Chief Executive Officer of Apple Inc. , a designer, manufacturer and marketer of personal computers, mobile communication devices and portable digital music and video players, since February 1997 and is a member of its Board of Directors.
Prior to the Company’s acquisition of Pixar, Mr. Jobs also served as Chairman of Pixar from March 1991 and as Chief Executive Officer of Pixar from February 1986. Mr. Jobs has been a Director of the Company since the Company’s acquisition of Pixar in May 2006 Fred H. LanghammerDirector since 2005 Fred H. Langhammer, 66, is Chairman, Global Affairs, of The Estee Lauder Companies Inc. , a manufacturer and marketer of cosmetics products. Prior to being named Chairman, Global Affairs, Mr. Langhammer was Chief Executive Officer of The Est? e Lauder Companies Inc. rom 2000 to 2004, President from 1995 to 2004 and Chief Operating Officer from 1985 through 1999. Mr. Langhammer joined The Estee Lauder Companies in 1975 as President of its operations in Japan. In 1982, he was appointed Managing Director of its operations in Germany. He is also a director of The Shinsei Bank Limited. Mr. Langhammer has been a Director of the Company since 2005. Aylwin B. LewisDirector since 2004 Aylwin B. Lewis, 57, has served as President and Chief Executive Officer of Potbelly Sandwich Works since June 2008. Prior to that, Mr.
Lewis was President and Chief Executive Officer of Sears Holdings Corporation, a nationwide retailer, from September 2005 to February 2008. Prior to being named Chief Executive Officer of Sears, Mr. Lewis was President of Sears Holdings and Chief Executive Officer of KMart and Sears Retail following Sears’ acquisition of KMart Holding Corporation in March 2005. Prior to that acquisition, Mr. Lewis had been President and Chief Executive Officer of KMart since October 2004. Prior to that, Mr. Lewis was Chief Multibranding and Operating Officer of YUM!
Brands, Inc. , a franchisor and licensor of quick service restaurants including KFC, Long John Silvers, Pizza Hut, Taco Bell and A, from 2003 until October 2004, Chief Operating Officer of YUM! Brands from 2000 until 2003 and Chief Operating Officer of Pizza Hut from 1996. Mr. Lewis has been a Director of the Company since 2004. Monica C. LozanoDirector since 2000 Monica C. Lozano, 53, is Chief Executive Officer of ImpreMedia, LCC and Publisher of its subsidiary, La Opinion, the largest Spanish-language newspaper in the United States. In addition, Ms.
Lozano is a member of the Board of Regents of the University of California and a trustee of the University of Southern California. She is a director of Bank of America Corporation and a director of the Weingart Foundation. Ms. Lozano has been a Director of the Company since 2000. Robert W. MatschullatDirector since 2002 Robert W. Matschullat, 62, a private equity investor, served from 1995 until 2000 as Vice Chairman of the board of directors and Chief Financial Officer of The Seagram Company Ltd. , a global company with entertainment and beverage operations.
Prior to joining Seagram, Mr. Matschullat was head of worldwide investment banking for Morgan Stanley & Co. Incorporated, a securities and investment firm, and was on the Morgan Stanley Group board of directors. He is a director of The Clorox Company, where he was Interim Chairman of the Board and Interim Chief Executive Officer from March to October 2006, and a director of Visa Inc. Mr. Matschullat has been a Director of the Company since 2002. John E. Pepper, Jr. Chairman of the Board since January 2007 John E. Pepper, Jr. 71, has served as Chairman of the Board of the Company since January 1, 2007 and is Co-Chairman of the National Underground Railroad Freedom Center. Previously, he served as Chief Executive Officer of the National Underground Railroad Freedom Center from December 2005 to May 2007 and as Vice President of Finance and Administration at Yale University from January 2004 to December 2005. Prior to that, he served as Chairman of the Executive Committee of the Board of Directors of The Procter & Gamble Company until December 2003.
Since 1963, he had served in various positions at Procter & Gamble, including Chairman of the Board from 2000 to 2002, Chief Executive Officer and Chairman from 1995 to 1999, President from 1986 to 1995 and director from 1984 to 2003. Mr. Pepper serves on the board of Boston Scientific Corp. and is a member of the Executive Committee of the Cincinnati Youth Collaborative. Mr. Pepper has been a Director of the Company since 2006. Sheryl SandbergDirector since 2010 Sheryl Sandberg, 40, has served as the Chief Operating Officer of Facebook, Inc. , an online social utility company, since March 2008.
From 2001 to March 2008, Ms. Sandberg was the Vice President of Global Online Sales and Operations for Google Inc. , an Internet search engine company. Ms. Sandberg also is a former Chief of Staff of the United States Treasury Department and previously served as a management consultant with McKinsey & Company and as an economist with The World Bank. Ms. Sandberg is a director of Starbucks Corp. and serves on a number of nonprofit boards including The Brookings Institution, The AdCouncil, Women for Women International, and V-Day. Orin C. SmithDirector since 2006 Orin C.
Smith, 67, was President and Chief Executive Officer of Starbucks Corporation from 2000 to 2005. He joined Starbucks as Vice President and Chief Financial Officer in 1990, became President and Chief Operating Officer in 1994, and became a director of Starbucks in 1996. Prior to joining Starbucks, Mr. Smith spent a total of 14 years with Deloitte & Touche. Mr. Smith is a director of Nike, Inc. and Washington Mutual. He also serves on the Board of Directors of Conservation International and the University of Washington Foundation Board and is Chairman of the Starbucks Foundation Board. Mr. Smith has been a Director of the Company since 2006.
Code of Conduct Responsibility to CommunitiesThe communities in which we operate, nationally and internationally, deserve our time, energy, participation and creativity. Government OfficialsThe Company, its Cast Members and employees, may deal with government officials in the course of the Company’s business. It is important that the responsible Cast Members and employees be thoroughly familiar with, and comply with, laws and regulations applicable to dealing with government officials. Cast Members and employees should be aware that business practices which are acceptable in a commercial environment (e. . , meals, transportation or entertainment) may not be acceptable when dealing with government officials. Cast Members and employees should follow Company guidelines in their relationships with government officials, and should direct questions about particular situations to the Corporate Legal Department. Political ActivityAll Cast Members and employees are encouraged to participate as private citizens in government and the political process, unless such participation is either prohibited by other policies of the Company, or would give rise to an improper appearance of partiality.
In any event, no personal contributions to any political cause, party, candidate or charity should be represented as coming from the Company. CommunitiesGood relations with communities in which the Company resides and conducts business are essential. We are dedicated to delivering quality products and services, and to cooperating with community leaders and members for the benefit of local communities. The Company encourages all Cast Members and employees to participate in local activities that address needs of the communities in which they reside and work.
We are likewise committed to the protection of the environment and the conservation of natural resources. In addition to complying with all applicable laws ourselves, we expect the companies and contractors with whom we deal to do the same. InternationalAs we expand our operations abroad, we encounter new challenges as a result of cultural differences and sometimes unfamiliar business practices. While we are bound by U. S. laws and regulations as well as Company policy, we must ecognize that in many cases we are introducing our culture and methods of conducting business into different environments. When conducting business in other countries, it is imperative that we be especially sensitive to foreign legal requirements and cultural differences, and present our own culture as sensitively as possible. The Company must be careful not to enter knowingly into relationships that, directly or indirectly, expose Cast Members and employees to undue health and safety risks, or that use child, prison or forced labor, or other similarly exploitative practices.
The Company, its Cast Members and employees, should never act illegally to secure or conduct business. The Company will adhere to all applicable legal requirements, both foreign and those of the United States, such as the Foreign Corrupt Practices Act, antiboycott laws and export laws, the details of which are outlined in Section II, “Legal Standards,” of this Standards of Business Conduct booklet.
The Company is also responsible to meet product safety standards and to comply with import regulations, as outlined in Company policy. In addition, the Company has established separate Codes of Conduct which set forth certain obligations of Company licensees and manufacturers of Company merchandise. Source: http://corporate. disney. go. com/corporate/conduct_standards9. html
