Walt Disney Case

Subject: Case 63 Analysis “Walt Disney Productions, June 1984”

1. What is Disney’s apparent business strategy? (Business model/ Mission)

Disney’s business strategy and mission was to diversify internationally the company engaging in family entertainment and community development. The business activities were developed in four different categories: theme parks, film, consumer products, and real estate developments (see exhibit 1). Moreover, their vision was to formed interlock between these categories into a portfolio, each interdependent of each other.

The entertainment and recreation category included theme parks such as Disneyland, Walt Disney World (see exhibit 7). Also, hotel and resorts was an addition to this category, which consisted in 400 units of vacation villas and 5,163 rooms in various locations that were owned and operated by the brand. They believe that its theme parks segment will benefit from it substantially. The company’s film library consisted in a numerous of full-lengths of animated and live-action features and other shorter films (see exhibit 2). Furthermore, the segment of consumer products included the company licensed of the name of Walt Disney, its animated characters, literary properties, songs and music to manufactures, publishers, as well as, retailers. The real estate developments segment was conducted thru its new subsidiary, Arvida Corp.; who owned and controlled a vast amount of acres of land in Florida, Georgia and California.

Before the hostile tender offer Disney was dedicating more of its assets in expanding in the real estate developments this causing the attempt of takeover from Saul Steinberg a famous green mailer.

2. Are we a “growth company”?

First we need to define what does a “growth company” means. A growth company is a business that generates a positive cash flow or earnings that increases significantly their overall economy, plowing most of its profits back into expanding the business. After this...