Presentation Transcript
Slide1: Presented By: Sharon Churchill
Neil Fairman
Brenda Michaud
Barbara Munro
Joanne Nichting
Disney’s $tructure: Disney’s $tructure Earnings
1996 Revenues were $18.7 billion
1997 Revenues were $22.5 billion
1997 Revenue from international sources were $4.6 billion
Solid financials
29% stock value increase since 1984
Disney’s $tructure: Disney’s $tructure Horizontal and Vertical Diversification Strategy since 1983
Now offer products ranging from movies to television production to theme parks
Business Units: Business Units Filmed Entertainment
Walt Disney Pictures
Touchstone Pictures
Miramax
Buena Vista International
Buena Vista Home Entertainment
Business Units: Business Units Creative Content
Touchstone Television
Walt Disney Television
Walt Disney Television Animation
Walt Disney Theatrical Productions
Hollywood Records
Mammoth Records
Business Units: Business Units ABC Television Network
ABC Radio
Buena Vista Television
ESPN
The Disney Channel
A&E Network
Fairchild Publications
Business Units: Business Units Theme Parks and Resorts
Disneyland………………..California
Disney World……………..Florida
Tokyo Disney……………..Japan
Euro Disney……………….France
Slide9: trengths
eaknesses
pportunities
hreats
Slide10: The Disney Name/Image
Financial Backing
New Management Team
New Marketing Schemes
Slide11: Disney Attitude/Values vs. European Taste/Ways
High Turnover
European Culture
Old Management Team had no experience.
Slide12: Great Location
No Real Competitors
Number One Tourist Attraction in France
Adapting to European Consumers
Slide13: Currency Devaluation
Visitor Spending
European Economy
High Interest Rates
Strategies: Strategies Differentiation Strategy
“Breathtaking Rides”
Creative Attractions
Disney Characters
Catered to Customers
Strategies: Strategies Cooperative Strategy
International Cooperative Strategy with the French Government
French Gov.. owns 51% stock
Beneficial Tax Breaks
Land at rock bottom prices
Problems: Problems Failed to accurately predict the financial environment they would be in
Recession
Currency Devaluation
Low spending visitors
recession
currency devaluation
culture
high prices
down real estate market
soaring costs
Strategies: Strategies Restructuring Strategy
Replaced Chairman
Downsizing
Problems: Problems Failed to address cultural issues
European Cultural Issues
No Consideration for European Tastes
Smoking Frowned Upon
The Disney “Look”
Strategies: Strategies International Strategy
Previous success in Tokyo
Attracts larger body of customers
Must adapt to different culture
advertising
alcohol
food
holidays
human resource practices
reduce prices
Current FinancialAttendance: Current Financial Attendance 1995 up 21% to 10.7 million visitors
1996 up 9.8% to 11.7 million visitors
1997 up 7.7% to 12.6 million visitors
Current FinancialTheme Park Revenues: Current Financial Theme Park Revenues
1995 rose 8.7% to $500 million
1996 rose 9.8% to $549 million
1997 rose 10.2% to $605 million
Quarterly Financial Statement: Quarterly Financial Statement (In Millions) 1997 1996
Revenues $6,278 $3,837
Operating Income 1,562 863
Net Income 749 497
Earnings per share 1.09 .93
Dividends per share .11 .09
Market price/share 76 62 7/8
Changes in Management: Changes in Management Opened six new attractions
Changed park name to Disneyland Paris
Cut-rate entry & Off season rates
French human resource practices
New Chairman Gilles Pelisson
Restructuring Debt: Restructuring Debt 1994, Creditors offered halt on interest payment
Investment by Saudi Arabian Prince
Strategy of cost cutting
Royalties begin in 1999
Slide27: “EuroDisney was an ugly duckling in the beginning… and Disneyland Paris is becoming a beautiful swan.”