Disney
By: Christie Lam

Unit 1: Business Fundamentals

Needs vs. Wants

International Business Structures

Cooperative Multi-divisional
(M-form) organizational structure

which is a priority when it
comes to diversifying the business

adds to the intensive strategies
for their growth & uniqueness to their
company

Strong centralization in its
headquarters:

big functional group has created
a diversified growth in the global media

Disney incorporates:

Business-type segments
or divisions

functional groups for
centralization

Geographical division

Media networks

Consumer products &
interactive media

Types of Businesses

Limited Liability Company

Service business

Merchandising business

Manufacturing business

Hybrid business

5Ps of International Business

Product

Price

Average of $348 per night (for most Disney hotels) or roughly $822 for 4 nights

Promixity

Many Disney fans would choose to live in Disney hotels that are walking distance to other services they offer:

Great for bigger families that are
on a budget & wants more space

Close to the pool

Preference

Beautiful outside with lights
during the night time

Great for couples as bars & restaurants
are all down the street

9.2/10 hotel rating

Good pricing

Nice bedding

Free breakfast

Promotion

Off season rates

Value season is the least expensive & least
crowded time

Followed by fall season

Regular season

Summer season

Peak season

& holiday season

Typically offers other discounts too
such as:

Room discounts

"Undercover tourist
room-only" discounts

Imports & Exports

Trade Agreements

Extension of Reciprocal
Trade Agreement Act

International Business
(pros & cons)

However, the stunning decorations would
often cause a big crowd at wherever the beauty would be & many fans began to get mad at the fact that not everyone was able to see the decorations up close.

Maybe Disney should find a solution
to this small problem? Or else triggering
fans will no longer support the company & this can lead to decrease in attention.

The pro to this amazing deluxe resort
is the inexpensive fee you pay to
live there, & the room can fit up to 12 people !

However, many bloggers have
complaint that there was no view whatsoever and walking distance to everywhere are all so far away.

Maybe Disney should let fans
understand the reason why the room itself is cheaper compared to other rooms or else
this can potentially ruin the experience for many Disney lovers.

Shanghai vs Hong Kong

however, many have also claimed that
Hong Kong disneyland is good but when compared to other disneylands, it is far from achieving a greater experience & time

Having differences in different locations should be a good thing but if negatively impacted, then maybe not so great. Disney could possibly adjust the negatives & make all the locations unique in their own ways instead of making it not enjoyable?

Unit 2: Functions of Business

Production Process

Although many food supplies that Disney
uses are imported from other countries, Walt is all about innovation & making their dreams come true so growing their own food will not be a pass!

Plus, they use innovative methods to
grow the foods, using less space, fertilizer,
water, & pesticides.

Food supplies will then be taken to the
food service operations branch of Disney to be made & distribute to customers.

Functions of Managements

Planning

They set their goals high
so they can be different &
achieve them !

Then, they present the idea
to their CEO (Walt) for approval

They set long-term goals
which will continue to change
overtime !

The final product can be completely
different from the idea since the
beginning.

Setting regular meetings with their
employees & managers when
ideas are provided & thought of.

Walt will then provide managers
with instructions, then managers
will give employees tasks to complete;
chain reaction.

"it's not a secret. We've always
tried to manage by our values because
when you know what your values are,
decision-making is easier". - Walt Disney

Controlling

managers usually
provide clear instructions
to employees when
given tasks

Disney is also very cautious
on who to hire &who to fire through
the prepartation tests given to them

Organizing

Disney has many different network
but there are branches to each
of them.....

Staffing

Many employees are often left with
unforgettable memories

When hiring, Disney is often very open
& relaxed, asking people "who are their
favorite Disney characters?" or putting
them in different scenarios to see their
decision-making skills, never anything too
serious.

Disney managers would often cheer
up the crowd's mood by calling their employees who are playing characters in a show as "cast members" to make the employees less nervous in certain situations.

Disney overall treats every employee
with kindness, however, Walt sometimes
demonstrates anger when he is not in a good mood, leaving certain workers with
unsatisfied moments

Directing

Motivation is key

Managers tech employees
how to stay on top of their job &
be motivated to work

Communication &
Culture

Disney employees value
different cultures & will try to
incorporate them into different
products & services (clothes, foods..)

Leadership Styles

Autocratic leadership:

However, once he moved to his
new studio, his attitude & ego changed

Sometimes, he would fire
employees who disagreed with
his final decisions

Many employees quit
their job as seeing Walt down
the halls made them fear

Many employees chose
to stay silence oftentimes
as they don't want to be fired

He began to show
prejudice towards Jewish &
African Americans

4Ps & 2Cs of Marketing

Product

Price

Market-Oriented Pricing Strategy

Value-Based Pricing Strategy

Promotion

Advertising

Direct Selling

Sponsorships

Public Relations

Sales Promotion

Place

Customers

Many target audiences including:

People who are young
at heart

Competition

Hotels

Product Life Cycle

Development

Company finds new product
from ideas of certain employees,
managers, & Walt himself.

Costs go up, sales are 0.

Introduction

Sales growth is low,
profit is 0.

Ex. when Disney first released
their bundle packages, the start up
costs were high & there was little
to no profit.

Operating expenses

Marketing costs

Fixed costs

& other costs for putting
the plan together

Growth

Products are accepted in the
market & profits increase in value.

Relying on customers to
enjoy the product & would
come back for second time &
so on.

Then Disney would choose
to add some sort of promotion
in the 2nd time purchase to
encourage consumers to keep
spending money on their company.

Or adding other bundle packages
with free meals or restaurant
discounts with the purchase.

Maturity

Slowdown in sales growth;
product has achieved acceptance.

Profit levels decrease
due to competition.

This can be the time
to add any modification
if needed.

Modifying the product itself.

Modifying the marketing strategy.

Modifying the market the product is in.

Decline

Time when profit drops &
sales decrease immensely.

This can be the time where
Disney needs to make a choice:

Adding discounts to
the product.
(ex. 50% off of the product)

Adding more deals &
other benefits to the product.
(ex. could be "buy 1 get 1 free")

Or get rid of the product
completely & make it a
"seasonal" item, can possibly
bring it back if the demand is
high for it from Disney fans.

Forms of Media/Promotional Vehicles

Financial Statements

Income Statement

Balance Sheet

Unit 3: Finance

Saving & Investing

Disney salary investment & savings plan
was effective/adopted on May 1, 1984 by Walt Disney

The plan was intended to be a
profit sharing plan

The plan is broken down into
many parts to see if participant is
eligible:

1. Eligibility & Participation

2. Contribution

3. Allocations to Participants' Accounts

4. Vesting

5. Investment Elections &
Voting of Company's Stocks

6. Participant loans

7. Distributions to Participants &
Beneficiaries

8. Administration of Plan

9. Management of Funds

10. Assignments & Liens

11. Admendment, Merger, & Termination

13. Limitations on Contributions &
Allocations to Participants' Accounts

14. General Provisions

12. Top-Heavy Provisions

Types of Investments

Real Estate

Stocks

Disney stocks: DIS

Disney is reached 13th in the 26
stock media diversified group

But due to COVID-19 & the influence
it has made on their business, their sales
& profits have gone down a lot.

Therefore, making the Disney
stock worth watching only and
not worth buying at the moment.

In fact, Disney has lost
over $1 billion due to closures.

Businesses

There are many companies + stocks
under Disney's name:

Unit 4: Entrepreneurship & Business Ethics

Characteristics & Skills
of Entrepreneurs

Walt was an innovator
& a dreamer

Exceptional leader

Many leaderships in him:

- vision
- communication skills
- people skills
- boldness
- humble heart

Innovations & Inventions

Ethics & Corporate Social
Responsibilities

Disney demonstrates leadership
in the CSR a lot.

CSR is all about the impacts they
make through their decisions & what
effects it can have on the environment.

Disney is all about embodying
CSR as their business model.

For example:

Disney always show their
appreciation for their employees

Provides many benefits for
their workers such as opportunities
to attend movie premieres

Volunteerism is also a big thing for
Disney, they offer a program called
"free tickets to a million people in exchange for a day of volunteer service from an
organization of their choice"

This encouraged over 1 million people
in the US to contribute volunteering in
their community.

As for movies, Disney promotes
environmental education in their Disneynature documentary films

A portion of the profit will then go
to help the 3 million trees that are being threatened in the Atlantic Forest located in Brazil.

and another portion of
the profit will go to help save
50,000 wildlifes in Africa.

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Floating topic