Disney Ethical Implications Business Paper

/ Uncategorized / By

Description

This is a Collaborative Learning Community (CLC) assignment.
The purpose of this assignment is to compile a comprehensive financial analysis for a company.
This assignment is the final installment in your group’s comprehensive financial analysis project. 
Final Submission – Part 1
Access the four previously submitted component assignments and ensure that they have been revised to incorporate all instructor feedback.
For this part of the assignment, your group will integrate all four written component assignments into one 2,250-word comprehensive analysis that details the nine-step assessment process from start to finish.
Additionally, include an explanation of how ethical implications factored into your assessment of the company’s financial future. How does the company uphold its responsibility to carry out work for the common good and to meet society’s needs by making sound financial decisions? 
Include an explanation of how ethical implications factored into your assessment of the company’s financial future. How does the company uphold its responsibility to carry out work for the common good and to meet society’s needs by making sound financial decisions?The Walt
Disney
Company
JWAUN DOOLEY
BEENA SHAJI
MARISA TULL
Outline

•Disney pursues the goal of expansion to new markets by
constantly looking at and expanding its reach across the global
market

•Notably, with these financial details from 2022, it is deducible
that the company had a strong year with exemplary performance
in its various segments and vast growth in subscriptions,
especially in direct-to-consumer services
Analysis of Fundamentals:
Goals and Strategy
The organization’s primary goal is to create high-quality
content focused on providing excellent and customeroriented content to its audiences worldwide.
This goal entails creating innovative, engaging, memorable films, TV
shows, and other forms of entertainment.
Besides, the company commits to using technology to drive
innovation and enhance customer experience by using data analytics
to improve customer preferences, virtual and augmented reality, and
other emerging technologies to create immersive and appealing
content (The Walt Disney Company, 2018).
Disney Goal
Additionally, leveraging technological innovations is another perfect
goal for Disney to achieve its business objectives.
Studies acknowledge that organizations leverage technologies to
optimize their operations and efficiency by streamlining their activities,
similar to the commitment by Disney (Olokundun et al., 2022).
As a result, the organization commits to establishing a culture of
creativity and innovation by allowing the employees to think creatively,
take risks, and promote new ideas to steer the company forward.
Expansion To
Disney
Market


Disney pursues the goal of expansion to new markets by
constantly looking at and expanding its reach across the
global market.
The company acknowledges its moves for global
expansion as strategic positioning for the future by
establishing more effective frameworks for serving
customers across the globe (The Walt Disney Company,
2018).
 Therefore, with the vast leverage on technology,
commitment to expanding in the global markets and
providing high-quality content, fostering innovation,
and building partnerships in service delivery, Disney
adopts the differentiation strategy for high-level
competitiveness and offers products to different
segments.
Disney Competitors
Differentiation entails providing customers with
unique products other than the provisions by
the competitors, which Disney leverages for
customer satisfaction and positive experience
(Keiningham et al., 2019).
For example, the company is continuously
launching new theme parks and creating
content for emerging platforms like streaming
services and new franchises.
Disney Outlook

The Walt Disney Company (TWDC) reported
earnings for its fourth quarter and fiscal year
that ended October 1, 2022. The revenue
noted for the fourth quarter grew by 9% and
for the fiscal year grew by 23%.

The Direct-to-Consumer (DTC) segment has
experienced losses, but these losses are
expected to lessen moving forward with the
Disney+ plus platform achieving profitability
in the fiscal year 2024 barring any major shifts
in the economic climate (The Walt Disney
Company, 2022).

TWDC has also reported that future revenue
will come from the benefits of price increases
and the Disney+ ad-supported tier which will
increase profits from the streaming service
and generate shareholder value in the future
(The Walt Disney Company, 2022).
Disney Outlook

At the end of November 2022, an announcement
was made that the current Chief Executive Officer
(CEO), Bob Chapek, would be replaced by the
previous CEO, Bob Iger. Under Chapek’s guide,
TWDC faced many challenges and trials.

During Iger’s previous four-decade tenure at Disney,
he was able to expand the business in many ways
including the acquisitions of film studio giants such as
Pixar and Marvel (Wulandari, 2022).

Overall, the revenue outlook for TWDC is
conservative given the current economic
environment and post-pandemic state, however, the
optimism is high given Iger’s return with some analysts
forecasting the stock price to increase anywhere
from 4.34% to 143.82% higher (Wall Street Zen, n.d.).
References

Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell,
N., Hodgkinson, I. R., & Kearney, T. (2019). Customer
experience-driven business model innovation. Journal of
Business Research, 116, 431–440.
https://doi.org/10.1016/j.jbusres.2019.08.003
 Olokundun, M., Ogbari, M. E., Falola, H., & Ibidunni, A. S.
(2022). Leveraging 5G network for digital innovation in
small and medium enterprises: a conceptual review. Journal
of Innovation and Entrepreneurship, 11(1).
https://doi.org/10.1186/s13731-021-00181-5
 The Walt Disney Company. (2018, March 14). The Walt
Disney Company Announces Strategic Reorganization. The
Walt Disney Company.
https://thewaltdisneycompany.com/walt-disney-companyannounces-strategic-reorganization/
 The Walt Disney Company. (2022, November 8). The Walt
Disney Company Reports Fourth Quarter and Full Year
Earnings for Fiscal 2022. The Walt Disney Company.
https://thewaltdisneycompany.com/the-walt-disney-companyreports-fourth-quarter-and-full-year-earnings-for-fiscal-2022/
References

Wall Street Zen. (n.d.). Walt Disney Co stock
forecast, predictions, & price target.
https://www.wallstreetzen.com/stocks/us/nyse/dis/st
ock-forecast

Wulandari, F. (2022). Disney stock forecast: Will the
stock find its magic again? Capital.
https://capital.com/walt-disney-dis-stock-forecast

The Walt Disney Company. (2022). The Walt Disney
Company reports fourth quarter and full year
earnings for fiscal 2022.
https://thewaltdisneycompany.com/the-walt-disneycompany-reports-fourth-quarter-and-full-yearearnings-for-fiscal-2022/
1
Analysis of a Company: The Walt Disney Company
Jwaun Dooley, Beena Shaji, and Marisa Tull
Colangelo College of Business, Grand Canyon University
FIN-504: Finance Principles
Derek Moore
January 11, 2023
2
Analysis of a Company: The Walt Disney Company
Step 1: Analysis of Fundamentals: Goals and Strategy
The Walt Disney Company, or Disney, has an array of goals and strategies crucial for the
company to achieve its business objectives. The organization’s primary goal is to create highquality content focused on providing excellent and customer-oriented content to its audiences
worldwide. This goal entails creating innovative, engaging, memorable films, TV shows, and
other forms of entertainment. Additionally, leveraging technological innovations is another
perfect goal for Disney to achieve its business objectives. Besides, the company commits to
using technology to drive innovation and enhance customer experience by using data analytics to
improve customer preferences, virtual and augmented reality, and other emerging technologies to
create immersive and appealing content (The Walt Disney Company, 2018). Studies
acknowledge that organizations leverage technologies to optimize their operations and efficiency
by streamlining their activities, similar to the commitment by Disney (Olokundun et al., 2022).
Disney pursues the goal of expansion to new markets by constantly looking at and
expanding its reach across the global market. For example, the company is continuously
launching new theme parks and creating content for emerging platforms like streaming services
and new franchises. The company acknowledges its moves for global expansion as strategic
positioning for the future by establishing more effective frameworks for serving customers
across the globe (The Walt Disney Company, 2018). As a result, the organization commits to
establishing a culture of creativity and innovation by allowing the employees to think creatively,
take risks, and promote new ideas to steer the company forward. Therefore, with the vast
leverage on technology, commitment to expanding in the global markets and providing highquality content, fostering innovation, and building partnerships in service delivery, Disney
3
adopts the differentiation strategy for high-level competitiveness and offers products to different
segments. Differentiation entails providing customers with unique products other than the
provisions by the competitors, which Disney leverages for customer satisfaction and positive
experience (Keiningham et al., 2019).
Step 2: Analysis of Fundamentals: Revenue Outlook
The Walt Disney Company (TWDC) reported earnings for its fourth quarter and fiscal
year that ended October 1, 2022. The revenue noted for the fourth quarter grew by 9% and for
the fiscal year grew by 23%. Additionally, TWDC’s diluted earnings per share (EPS) for the
fiscal year increased to $3.53 from $2.29 the prior year. The Direct-to-Consumer (DTC) segment
has experienced losses, but these losses are expected to lessen moving forward with the Disney+
plus platform achieving profitability in the fiscal year 2024 barring any major shifts in the
economic climate (The Walt Disney Company, 2022). TWDC has also reported that future
revenue will come from the benefits of price increases and the Disney+ ad-supported tier which
will increase profits from the streaming service and generate shareholder value in the future (The
Walt Disney Company, 2022). At the end of November 2022, an announcement was made that
the current Chief Executive Officer (CEO), Bob Chapek, would be replaced by the previous
CEO, Bob Iger. Under Chapek’s guide, TWDC faced many challenges and trials. The Board of
Directors’ decision to replace Chapek with Iger put the company back in alignment for a
strategic direction and renewed growth (Wulandari, 2022). During Iger’s previous four-decade
tenure at Disney, he was able to expand the business in many ways including the acquisitions of
film studio giants such as Pixar and Marvel (Wulandari, 2022). Overall, the revenue outlook for
TWDC is conservative given the current economic environment and post-pandemic state;
4
however, the optimism is high given Iger’s return, with some analysts forecasting the stock price
to increase anywhere from 4.34% to 143.82% higher (Wall Street Zen, n.d.).
5
References
Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell, N., Hodgkinson, I. R., & Kearney,
T. (2019). Customer experience-driven business model innovation. Journal of Business
Research, 116, 431–440. https://doi.org/10.1016/j.jbusres.2019.08.003
Olokundun, M., Ogbari, M. E., Falola, H., & Ibidunni, A. S. (2022). Leveraging 5G network for
digital innovation in small and medium enterprises: a conceptual review. Journal of
Innovation and Entrepreneurship, 11(1). https://doi.org/10.1186/s13731-021-00181-5
The Walt Disney Company. (2022). The Walt Disney Company reports fourth quarter and full
year earnings for fiscal 2022. https://thewaltdisneycompany.com/the-walt-disneycompany-reports-fourth-quarter-and-full-year-earnings-for-fiscal-2022/
The Walt Disney Company. (2018, March 14). The Walt Disney Company Announces Strategic
Reorganization. The Walt Disney Company. https://thewaltdisneycompany.com/waltdisney-company-announces-strategic-reorganization/
Wall Street Zen. (n.d.). Walt Disney Co stock forecast, predictions, & price target.
https://www.wallstreetzen.com/stocks/us/nyse/dis/stock-forecast
Wulandari, F. (2022). Disney stock forecast: Will the stock find its magic again? Capital.
https://capital.com/walt-disney-dis-stock-forecast
1
CLC – Case Study Component 2
Beena Shaji, Marisa Tull, J’waun Dooley
Grand Canyon University
FIN 504-Finance Principles
Dr Derek Moore
January 25, 2023
2
CLC – Case Study Component 2
Step Three: Investments to Support the Business Unit Strategy or Strategies
While we know that the company is still growing in an enormous rate, we have to look at
the strategies that are being used for the platform. Almost everyone has been to the parks before
and after the pandemic; but now we have a lot more interesting things that happened at Disney.
We now have Disney plus, and more investors to the company to help everything continue to
grow. Disney plus had mentioned from quarterly earnings. Disney’s CEO Bob Chapek
mentioned billions of dollars of investment content to have this streaming service during the
pandemic. By offering even better value by building premium content in large volumes, Disney
may be able to reprice Disney+, which is now available at $8 for monthly subscriptions and $80
for annual subscriptions in the U.S. The main thing that Disney Plus added was a lot of different
variety of shows and movies. You can even see the new Marvel movies that comes in theaters a
couple months in advance or even when it is in theaters. One movie is Black Widow and it made
great views to the Cinemax and Disney and the same time.
Figure 1: Trends in revenues and profits show the performance from different movies that are on
Disney Plus and future
3
Facts are that Disney is still growing, even if its movies they made or even with their
streaming program that can show the movies or even the other platform they are with. The have
Hulu and ESPN plus. These two platforms are now with a Disney plus and still growing until this
day because the growth of the network and the expanding of the company. Disney strategies are
mainly trying to expand the streaming program so that not only kids but also grown-ups can
enjoy it by watching the old Disney shows to watching sports on ESPN plus.
Step Four: Future Profitability and Competitive Position
Generally, revenues and profits are on an upward trend and are likely to keep growing as
the economy stabilizes. As the economy recovers from the recession caused by the pandemic, the
company’s overall performance is expected to improve. In the last financial quarter of 2022, total
revenues made by the company grew by 9%, indicating an increase in demand for its streaming
content and visitors to its essential theme parks. Suppose the company can successfully venture
into new markets using its streaming service. In that case, it will be able to grow its long-term
revenues and profitability and be in a better competitive position.
4
Revenues and Profits
90
80
70
60
50
40
30
20
10
0
-10
2019
2020
Revenue
2021
Profits
2022
Figure 1: Trends in revenues and profits show the performance of the company has been on an
upward trend in the recent past and is likely to be sustained in the future
The fact that the company has multiple revenue streams is also a critical competitive
advantage that will enable its operations to grow in the long term. For most film studios,
distribution has moved to streaming platforms, which the company has successfully adapted to
by establishing its streaming services. Several strategic acquisitions in the recent past have also
enabled the company to reduce the competition it faces and grow its revenue base. The multiple
revenue streams are critical sources of sustainable competitive advantage that will allow the
company to protect its profitability for the long term.
5
References
Kline, D. (2022). Disney CEO makes it clear a big price increase is coming (here’s when).
TheStreet. https://www.thestreet.com/investing/disney-ceo-bob-chapek-hints-at-a- majorprice- increase?puc=yahoo&cm_ven=YAHOO
Martinez-Sanchez, M. E., Nicolas-San, R., & Díaz, J. B. (2021). Analysis of the social media
strategy of audio-visual OTTs in Spain: The case study of Netflix, HBO, and
Amazon Prime during the implementation of Disney+. Technology Forecasting and
Social Change, 173, 121178.
The Walt Disney Company. (2022). The Walt Disney Company at the Morgan Stanley
technology, media and telecom conference. https://thewaltdisneycompany.com/thewalt-disney-company-at-the-morgan-stanley-technology-media-and-telecomconference-2/
Zern, A. (2022). The theme park throwdown: The successes and failures of IP-related
attractions and expansions in Disney theme parks and strategies for the future. Senior
Honors Theses, 1213. https://digitalcommons.liberty.edu/honors/1213
6
1
Case Study Component 3
Beena Shaji, Marisa Tull, J’waun Dooley
Grand Canyon University
FIN 504-Finance Principles
Dr Derek Moore
January 25, 2023
2
CLC – Component 3
Step Five: Future External Financing Needs
The future external financing needs for Disney is a quite simple thing to do for company.
Disney have made many of television shows and movies that are well known in the world today.
They also have taught the youth a lot about different things in the world. The best situation for
Disney is to keep promoting the streaming productions and to keep the parks up to dates on
seasonal dates. I believe in all four seasons Disney have always been promoting during the
seasons like the Spring and Winter. Disney earning revenue is $19.24 billion dollars, this is also
a distribution of the media, entertainment, parks, experiences, and product that Disney is selling
to the public. Analysts review the capital structure of a firm to gain insights about management’s
strategic relationship with and reliance on outside capital.
DISNEY SALES IN MOVIES AND PARKS REVENUE
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Sale/Revenue
Gross Income
2022
2021
2020
Figure 1 shows the Sales Revenue from parks and movies in the past years
Disney is a well-followed firm. Zacks reports at least 24 sell-side analysts who have
made buy, sell, or hold recommendations on the firm, providing estimates of earnings per share
3
and future growth. While the firm provides substantial amounts of information about itself in
the form of earnings reports, there is a substantial amount of information that is available about
the firm from external sources. Both facts would lead us to expect less bias in the information
that is available about the firm. The CEOS LPV biomass protocol will include a thorough
discussion outlining the types of errors that should be considered (many of which are discussed
above) and present three basic methods of error propagation.
Access to Target Sources of External Finance
Generally, the company can easily use existing and new shares to raise additional capital.
Common shares, as a critical external source of finance that the company intends to use, can be
easily accessed by the company in various ways. As the company is already listed, new shares
can be quickly issued by the board of directors without the need for approval by all shareholders
at an annual general meeting. Only major shareholders need to be consulted. Alternatively, a
rights issue can instead be used, where only existing shareholders will be allowed to buy new
shares (Brigham & Houston, 2021). Preferred shares can also be issued if the company intends to
raise capital and create a particular group of shareholders.
4
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2021
2020
Equity
Debt
Figure 1: A comparison of current debt and equity levels shows that the company still has
additional borrowing capacity.
The company can quickly raise debt due to its stable financial position and brand value.
The company’s debt-to-equity ratio is 2022 was 1:2, meaning there were two equity units for
each unit of debt in the capital structure. This generally indicates a stable financial position that
can be used to source additional debt capital. The company also has a strong brand reputation
and is a well-known global corporation, which makes it easier to source money from leading
financial institutions.
5
References
See, for example, Mintzberg Henry, “Of Strategies, Deliberate and Emergent,” Strategic
Management Journal, 6 (1985): 257–272; Pettigrew Andrew M., “Strategy Formulation
as a Political Process,” International Studies of Management and Organization, 7 (1977):
78–87; Quinn J.B., Strategies for Change: Logical Incrementalism (Homewood, IL:
Irwin, 1980).
Rumelt R.P., “Towards a Strategic Theory of the Firm,” in Lamb R.B., ed., Competitive
Strategic Management (Englewood Cliffs, NJ: Prentice Hall, 1984); Lippman S.A.,
Rumelt R.P., “Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency
under Competition,” Bell Journal of Economics, 23 (1982): 418–438; Reed Richard,
DeFillippi
R.J., “Causal Ambiguity, Barriers to Imitation, and Sustainable Competitive
Advantage,” Academy of Management Review, 15 (January 1990): 88–102.
Carillo, Carlos, Jeremy Crumley, Kendree Thieringer, and Jeffrey S. Harrison. The Walt Disney
Company: A Corporate Strategy Analysis. Case Study. University of Richmond: Robins
School of Business, 2012.
Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management: Concise.
Cengage Learning.
Disney. (2021). Annual Report.
https://www.sec.gov/Archives/edgar/data/1744489/000174448921000220/dis20211002.htm#i38ede6ac0fed40ab821ebfc9f1f7e403_142

Purchase answer to see full
attachment

Description This is a Collaborative Learning Community (CLC) assignment. The purpose of this assignment is to compile a comprehensive financial analysis for a company. This assignment is the final installment in your group’s comprehensive financial analysis project.  Final Submission – Part 1 Access the four previously submitted component assignments and ensure that they have been revised to incorporate all instructor feedback. For this part of the assignment, your group will integrate all four written component assignments into one 2,250-word comprehensive analysis that details the nine-step assessment process from start to finish. Additionally, include an explanation of how ethical implications factored into your assessment of the company’s financial future. How does the company uphold its responsibility to carry out work for the common good and to meet society’s needs by making sound financial decisions?  Include an explanation of how ethical implications factored into your assessment of the company’s financial future. How does the company uphold its responsibility to carry out work for the common good and to meet society’s needs by making sound financial decisions?The Walt Disney Company JWAUN DOOLEY BEENA SHAJI MARISA TULL Outline  •Disney pursues the goal of expansion to new markets by constantly looking at and expanding its reach across the global market  •Notably, with these financial details from 2022, it is deducible that the company had a strong year with exemplary performance in its various segments and vast growth in subscriptions, especially in direct-to-consumer services Analysis of Fundamentals: Goals and Strategy The organization’s primary goal is to create high-quality content focused on providing excellent and customeroriented content to its audiences worldwide. This goal entails creating innovative, engaging, memorable films, TV shows, and other forms of entertainment. Besides, the company commits to using technology to drive innovation and enhance customer experience by using data analytics to improve customer preferences, virtual and augmented reality, and other emerging technologies to create immersive and appealing content (The Walt Disney Company, 2018). Disney Goal Additionally, leveraging technological innovations is another perfect goal for Disney to achieve its business objectives. Studies acknowledge that organizations leverage technologies to optimize their operations and efficiency by streamlining their activities, similar to the commitment by Disney (Olokundun et al., 2022). As a result, the organization commits to establishing a culture of creativity and innovation by allowing the employees to think creatively, take risks, and promote new ideas to steer the company forward. Expansion To Disney Market   Disney pursues the goal of expansion to new markets by constantly looking at and expanding its reach across the global market. The company acknowledges its moves for global expansion as strategic positioning for the future by establishing more effective frameworks for serving customers across the globe (The Walt Disney Company, 2018).  Therefore, with the vast leverage on technology, commitment to expanding in the global markets and providing high-quality content, fostering innovation, and building partnerships in service delivery, Disney adopts the differentiation strategy for high-level competitiveness and offers products to different segments. Disney Competitors Differentiation entails providing customers with unique products other than the provisions by the competitors, which Disney leverages for customer satisfaction and positive experience (Keiningham et al., 2019). For example, the company is continuously launching new theme parks and creating content for emerging platforms like streaming services and new franchises. Disney Outlook  The Walt Disney Company (TWDC) reported earnings for its fourth quarter and fiscal year that ended October 1, 2022. The revenue noted for the fourth quarter grew by 9% and for the fiscal year grew by 23%.  The Direct-to-Consumer (DTC) segment has experienced losses, but these losses are expected to lessen moving forward with the Disney+ plus platform achieving profitability in the fiscal year 2024 barring any major shifts in the economic climate (The Walt Disney Company, 2022).  TWDC has also reported that future revenue will come from the benefits of price increases and the Disney+ ad-supported tier which will increase profits from the streaming service and generate shareholder value in the future (The Walt Disney Company, 2022). Disney Outlook  At the end of November 2022, an announcement was made that the current Chief Executive Officer (CEO), Bob Chapek, would be replaced by the previous CEO, Bob Iger. Under Chapek’s guide, TWDC faced many challenges and trials.  During Iger’s previous four-decade tenure at Disney, he was able to expand the business in many ways including the acquisitions of film studio giants such as Pixar and Marvel (Wulandari, 2022).  Overall, the revenue outlook for TWDC is conservative given the current economic environment and post-pandemic state, however, the optimism is high given Iger’s return with some analysts forecasting the stock price to increase anywhere from 4.34% to 143.82% higher (Wall Street Zen, n.d.). References  Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell, N., Hodgkinson, I. R., & Kearney, T. (2019). Customer experience-driven business model innovation. Journal of Business Research, 116, 431–440. https://doi.org/10.1016/j.jbusres.2019.08.003  Olokundun, M., Ogbari, M. E., Falola, H., & Ibidunni, A. S. (2022). Leveraging 5G network for digital innovation in small and medium enterprises: a conceptual review. Journal of Innovation and Entrepreneurship, 11(1). https://doi.org/10.1186/s13731-021-00181-5  The Walt Disney Company. (2018, March 14). The Walt Disney Company Announces Strategic Reorganization. The Walt Disney Company. https://thewaltdisneycompany.com/walt-disney-companyannounces-strategic-reorganization/  The Walt Disney Company. (2022, November 8). The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2022. The Walt Disney Company. https://thewaltdisneycompany.com/the-walt-disney-companyreports-fourth-quarter-and-full-year-earnings-for-fiscal-2022/ References  Wall Street Zen. (n.d.). Walt Disney Co stock forecast, predictions, & price target. https://www.wallstreetzen.com/stocks/us/nyse/dis/st ock-forecast  Wulandari, F. (2022). Disney stock forecast: Will the stock find its magic again? Capital. https://capital.com/walt-disney-dis-stock-forecast  The Walt Disney Company. (2022). The Walt Disney Company reports fourth quarter and full year earnings for fiscal 2022. https://thewaltdisneycompany.com/the-walt-disneycompany-reports-fourth-quarter-and-full-yearearnings-for-fiscal-2022/ 1 Analysis of a Company: The Walt Disney Company Jwaun Dooley, Beena Shaji, and Marisa Tull Colangelo College of Business, Grand Canyon University FIN-504: Finance Principles Derek Moore January 11, 2023 2 Analysis of a Company: The Walt Disney Company Step 1: Analysis of Fundamentals: Goals and Strategy The Walt Disney Company, or Disney, has an array of goals and strategies crucial for the company to achieve its business objectives. The organization’s primary goal is to create highquality content focused on providing excellent and customer-oriented content to its audiences worldwide. This goal entails creating innovative, engaging, memorable films, TV shows, and other forms of entertainment. Additionally, leveraging technological innovations is another perfect goal for Disney to achieve its business objectives. Besides, the company commits to using technology to drive innovation and enhance customer experience by using data analytics to improve customer preferences, virtual and augmented reality, and other emerging technologies to create immersive and appealing content (The Walt Disney Company, 2018). Studies acknowledge that organizations leverage technologies to optimize their operations and efficiency by streamlining their activities, similar to the commitment by Disney (Olokundun et al., 2022). Disney pursues the goal of expansion to new markets by constantly looking at and expanding its reach across the global market. For example, the company is continuously launching new theme parks and creating content for emerging platforms like streaming services and new franchises. The company acknowledges its moves for global expansion as strategic positioning for the future by establishing more effective frameworks for serving customers across the globe (The Walt Disney Company, 2018). As a result, the organization commits to establishing a culture of creativity and innovation by allowing the employees to think creatively, take risks, and promote new ideas to steer the company forward. Therefore, with the vast leverage on technology, commitment to expanding in the global markets and providing highquality content, fostering innovation, and building partnerships in service delivery, Disney 3 adopts the differentiation strategy for high-level competitiveness and offers products to different segments. Differentiation entails providing customers with unique products other than the provisions by the competitors, which Disney leverages for customer satisfaction and positive experience (Keiningham et al., 2019). Step 2: Analysis of Fundamentals: Revenue Outlook The Walt Disney Company (TWDC) reported earnings for its fourth quarter and fiscal year that ended October 1, 2022. The revenue noted for the fourth quarter grew by 9% and for the fiscal year grew by 23%. Additionally, TWDC’s diluted earnings per share (EPS) for the fiscal year increased to $3.53 from $2.29 the prior year. The Direct-to-Consumer (DTC) segment has experienced losses, but these losses are expected to lessen moving forward with the Disney+ plus platform achieving profitability in the fiscal year 2024 barring any major shifts in the economic climate (The Walt Disney Company, 2022). TWDC has also reported that future revenue will come from the benefits of price increases and the Disney+ ad-supported tier which will increase profits from the streaming service and generate shareholder value in the future (The Walt Disney Company, 2022). At the end of November 2022, an announcement was made that the current Chief Executive Officer (CEO), Bob Chapek, would be replaced by the previous CEO, Bob Iger. Under Chapek’s guide, TWDC faced many challenges and trials. The Board of Directors’ decision to replace Chapek with Iger put the company back in alignment for a strategic direction and renewed growth (Wulandari, 2022). During Iger’s previous four-decade tenure at Disney, he was able to expand the business in many ways including the acquisitions of film studio giants such as Pixar and Marvel (Wulandari, 2022). Overall, the revenue outlook for TWDC is conservative given the current economic environment and post-pandemic state; 4 however, the optimism is high given Iger’s return, with some analysts forecasting the stock price to increase anywhere from 4.34% to 143.82% higher (Wall Street Zen, n.d.). 5 References Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell, N., Hodgkinson, I. R., & Kearney, T. (2019). Customer experience-driven business model innovation. Journal of Business Research, 116, 431–440. https://doi.org/10.1016/j.jbusres.2019.08.003 Olokundun, M., Ogbari, M. E., Falola, H., & Ibidunni, A. S. (2022). Leveraging 5G network for digital innovation in small and medium enterprises: a conceptual review. Journal of Innovation and Entrepreneurship, 11(1). https://doi.org/10.1186/s13731-021-00181-5 The Walt Disney Company. (2022). The Walt Disney Company reports fourth quarter and full year earnings for fiscal 2022. https://thewaltdisneycompany.com/the-walt-disneycompany-reports-fourth-quarter-and-full-year-earnings-for-fiscal-2022/ The Walt Disney Company. (2018, March 14). The Walt Disney Company Announces Strategic Reorganization. The Walt Disney Company. https://thewaltdisneycompany.com/waltdisney-company-announces-strategic-reorganization/ Wall Street Zen. (n.d.). Walt Disney Co stock forecast, predictions, & price target. https://www.wallstreetzen.com/stocks/us/nyse/dis/stock-forecast Wulandari, F. (2022). Disney stock forecast: Will the stock find its magic again? Capital. https://capital.com/walt-disney-dis-stock-forecast 1 CLC – Case Study Component 2 Beena Shaji, Marisa Tull, J’waun Dooley Grand Canyon University FIN 504-Finance Principles Dr Derek Moore January 25, 2023 2 CLC – Case Study Component 2 Step Three: Investments to Support the Business Unit Strategy or Strategies While we know that the company is still growing in an enormous rate, we have to look at the strategies that are being used for the platform. Almost everyone has been to the parks before and after the pandemic; but now we have a lot more interesting things that happened at Disney. We now have Disney plus, and more investors to the company to help everything continue to grow. Disney plus had mentioned from quarterly earnings. Disney’s CEO Bob Chapek mentioned billions of dollars of investment content to have this streaming service during the pandemic. By offering even better value by building premium content in large volumes, Disney may be able to reprice Disney+, which is now available at $8 for monthly subscriptions and $80 for annual subscriptions in the U.S. The main thing that Disney Plus added was a lot of different variety of shows and movies. You can even see the new Marvel movies that comes in theaters a couple months in advance or even when it is in theaters. One movie is Black Widow and it made great views to the Cinemax and Disney and the same time. Figure 1: Trends in revenues and profits show the performance from different movies that are on Disney Plus and future 3 Facts are that Disney is still growing, even if its movies they made or even with their streaming program that can show the movies or even the other platform they are with. The have Hulu and ESPN plus. These two platforms are now with a Disney plus and still growing until this day because the growth of the network and the expanding of the company. Disney strategies are mainly trying to expand the streaming program so that not only kids but also grown-ups can enjoy it by watching the old Disney shows to watching sports on ESPN plus. Step Four: Future Profitability and Competitive Position Generally, revenues and profits are on an upward trend and are likely to keep growing as the economy stabilizes. As the economy recovers from the recession caused by the pandemic, the company’s overall performance is expected to improve. In the last financial quarter of 2022, total revenues made by the company grew by 9%, indicating an increase in demand for its streaming content and visitors to its essential theme parks. Suppose the company can successfully venture into new markets using its streaming service. In that case, it will be able to grow its long-term revenues and profitability and be in a better competitive position. 4 Revenues and Profits 90 80 70 60 50 40 30 20 10 0 -10 2019 2020 Revenue 2021 Profits 2022 Figure 1: Trends in revenues and profits show the performance of the company has been on an upward trend in the recent past and is likely to be sustained in the future The fact that the company has multiple revenue streams is also a critical competitive advantage that will enable its operations to grow in the long term. For most film studios, distribution has moved to streaming platforms, which the company has successfully adapted to by establishing its streaming services. Several strategic acquisitions in the recent past have also enabled the company to reduce the competition it faces and grow its revenue base. The multiple revenue streams are critical sources of sustainable competitive advantage that will allow the company to protect its profitability for the long term. 5 References Kline, D. (2022). Disney CEO makes it clear a big price increase is coming (here’s when). TheStreet. https://www.thestreet.com/investing/disney-ceo-bob-chapek-hints-at-a- majorprice- increase?puc=yahoo&cm_ven=YAHOO Martinez-Sanchez, M. E., Nicolas-San, R., & Díaz, J. B. (2021). Analysis of the social media strategy of audio-visual OTTs in Spain: The case study of Netflix, HBO, and Amazon Prime during the implementation of Disney+. Technology Forecasting and Social Change, 173, 121178. The Walt Disney Company. (2022). The Walt Disney Company at the Morgan Stanley technology, media and telecom conference. https://thewaltdisneycompany.com/thewalt-disney-company-at-the-morgan-stanley-technology-media-and-telecomconference-2/ Zern, A. (2022). The theme park throwdown: The successes and failures of IP-related attractions and expansions in Disney theme parks and strategies for the future. Senior Honors Theses, 1213. https://digitalcommons.liberty.edu/honors/1213 6 1 Case Study Component 3 Beena Shaji, Marisa Tull, J’waun Dooley Grand Canyon University FIN 504-Finance Principles Dr Derek Moore January 25, 2023 2 CLC – Component 3 Step Five: Future External Financing Needs The future external financing needs for Disney is a quite simple thing to do for company. Disney have made many of television shows and movies that are well known in the world today. They also have taught the youth a lot about different things in the world. The best situation for Disney is to keep promoting the streaming productions and to keep the parks up to dates on seasonal dates. I believe in all four seasons Disney have always been promoting during the seasons like the Spring and Winter. Disney earning revenue is $19.24 billion dollars, this is also a distribution of the media, entertainment, parks, experiences, and product that Disney is selling to the public. Analysts review the capital structure of a firm to gain insights about management’s strategic relationship with and reliance on outside capital. DISNEY SALES IN MOVIES AND PARKS REVENUE 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Sale/Revenue Gross Income 2022 2021 2020 Figure 1 shows the Sales Revenue from parks and movies in the past years Disney is a well-followed firm. Zacks reports at least 24 sell-side analysts who have made buy, sell, or hold recommendations on the firm, providing estimates of earnings per share 3 and future growth. While the firm provides substantial amounts of information about itself in the form of earnings reports, there is a substantial amount of information that is available about the firm from external sources. Both facts would lead us to expect less bias in the information that is available about the firm. The CEOS LPV biomass protocol will include a thorough discussion outlining the types of errors that should be considered (many of which are discussed above) and present three basic methods of error propagation. Access to Target Sources of External Finance Generally, the company can easily use existing and new shares to raise additional capital. Common shares, as a critical external source of finance that the company intends to use, can be easily accessed by the company in various ways. As the company is already listed, new shares can be quickly issued by the board of directors without the need for approval by all shareholders at an annual general meeting. Only major shareholders need to be consulted. Alternatively, a rights issue can instead be used, where only existing shareholders will be allowed to buy new shares (Brigham & Houston, 2021). Preferred shares can also be issued if the company intends to raise capital and create a particular group of shareholders. 4 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2021 2020 Equity Debt Figure 1: A comparison of current debt and equity levels shows that the company still has additional borrowing capacity. The company can quickly raise debt due to its stable financial position and brand value. The company’s debt-to-equity ratio is 2022 was 1:2, meaning there were two equity units for each unit of debt in the capital structure. This generally indicates a stable financial position that can be used to source additional debt capital. The company also has a strong brand reputation and is a well-known global corporation, which makes it easier to source money from leading financial institutions. 5 References See, for example, Mintzberg Henry, “Of Strategies, Deliberate and Emergent,” Strategic Management Journal, 6 (1985): 257–272; Pettigrew Andrew M., “Strategy Formulation as a Political Process,” International Studies of Management and Organization, 7 (1977): 78–87; Quinn J.B., Strategies for Change: Logical Incrementalism (Homewood, IL: Irwin, 1980). Rumelt R.P., “Towards a Strategic Theory of the Firm,” in Lamb R.B., ed., Competitive Strategic Management (Englewood Cliffs, NJ: Prentice Hall, 1984); Lippman S.A., Rumelt R.P., “Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition,” Bell Journal of Economics, 23 (1982): 418–438; Reed Richard, DeFillippi R.J., “Causal Ambiguity, Barriers to Imitation, and Sustainable Competitive Advantage,” Academy of Management Review, 15 (January 1990): 88–102. Carillo, Carlos, Jeremy Crumley, Kendree Thieringer, and Jeffrey S. Harrison. The Walt Disney Company: A Corporate Strategy Analysis. Case Study. University of Richmond: Robins School of Business, 2012. Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management: Concise. Cengage Learning. Disney. (2021). Annual Report. https://www.sec.gov/Archives/edgar/data/1744489/000174448921000220/dis20211002.htm#i38ede6ac0fed40ab821ebfc9f1f7e403_142 Purchase answer to see full attachment

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.