On the Basics –

1. On the Basics –
2. We have said that strategic management is an evolution and a destination. What does this mean? Discuss in detail

Strategic management is vital in the world of today, since it is required for the ultimate progress of the business. It is perceived as being a destination for those clung into the business world of the present times. Strategic management can be termed as a complete set of organized action used or rather employed by managers in a well framed manner so as to determine the long term performance of a business venture. Some mistakes have cost the business in terms of profit gains, hence it is deemed as important to implement the tool of strategic management, which is a destination that firms need to embrace in order to escape and recover from the risk. Strategic management has become a trending evolution of the modern times for the struggling firms to seek clarity and visibility of goals dwindling economic environment of today, despite of it helping to conserve the marketplace competition. Firms have been able to determine the strategic vision through the fours approaches of tactical management listed below and be able to advantageously focus on the growing fluctuations of the marketplaces.

The approach of competitive management is best realized through its highlighted phases that have helped many firms over the years evolve significantly. They are as follows:

• Financial basic planning- The plan assist the manager in setting up a budget plan for the succeeding years, hence providing them with a one year horizon for development of a proper budget.

• Predicted planning or rather planning based on forecast-It drives managers to draft a proposal that attempts to cover up to a period of up to five years. The organizers have to build strategic proposals for the future so as to justify their set actions or rather assumptions that they will make during their timely leadership of the company. The stage gives the managers a serving period of between three to five years due to the tedious matter of politics that comes up as well as other emerging issues that needs proper interdictions.
• Strategic management that is externally oriented- These are results emerging from managers that look for responsiveness in the marketplace. It is usually associated with a top down performance planning approach that’s coves a period of five years.
• Calculated management-It is based on the realization that an organization cannot make a decision without consulting or involving other colleagues for proper obligations of the entire organization. The strategy involves envisioning unforeseen future risks that may slow the performance of the company, and formulate tactics that may help solve the current problems. The problems are always there; therefore, the plan needs regular updates throughout the year so as to develop new strategies for new contemporary matters in Disney.

1. Provide three examples of how Disney is or is not a strategic management firm?

Walt Disney Company has shown immense effort and proficiency to become a strategic management firm since its discovery in the year 1923 by two brothers Walt and Roy Disney. The company has gone overboard by spending more than ten years in researching of ways to implement and act on the co-friendly movie that rhyme well with the demands of the viewers. The firm has definitely surpassed the two mentioned phases out the four and has very well used all the outlined phases to execute the company’s plans swiftly and timely. Disney has spent some fair time of its production and movie labels to showcase its products and contents to the targeted viewers in a more feasible and strategic manner   hence opening the market base. The Walt Disney Company is composed of employees who are mindful about the aspect of maintaining the wellness of the environment at large, even though their mission statement has not mentioned any environment word. Through the established professional workforce of the company the firm has been maintaining and leading in the professionalism in the film making industry.

Through the phases of strategic management, Disney has managed to incorporate different managers on board due to varied reasons that have enabled the firm to remain steadfast and solid till the present. The company has experienced challenges of different measures but has managed to tactically emerge distinct and big than never before. Seemingly, they have devised new ways of packaging and producing their product services to the audience thereby reducing on the cost of production and on the same time updating into new technological advancements. The company managers together with the employees are able to make this initiative happen in real time due to the organization of ideas into practical standpoints.

Disney is able to involve everybody in decision making process of the company so as to enable the company realize the mission through different filming project experiences and characters development. This step has enabled the firm to develop a global mindset through strategic thinking and develop talents that have enabled and actualize a culture of collaboration and innovation hence fostering professional development. Disney uses this approach as a further training program for the employee so that to know the mission as well as cultivate their growth. This approach of is a proper manifestation that the company is portraying to show how ready it is to collude with the employees even apart from the top management in order to deliver quality services and products to the market, thus the management can be b able to predict the market place environment.

Disney has major global investments in different foreign markets such as Shanghai China as well as Disneyland Paris, and other major places of the world. By it tapping to the foreign markets, the company was able to make bigger returns. The company targeted areas with proper economic growth and high population for the market base of the products, and since they used less money for making their products, it was easy for the product to break even in the market due to the increased demand hence high longevity. The company looks to sustain in the global market arena, through growth and capitalizing on opportunities with a long-term performance mindset, of which strategic management emphasizes. The company invests mainly in developed countries such as China and tailors their products to meet the demand of the Chinese population. Disney demonstrates the capacity to forecast and establish long term strategies that helps in expanding the production capacity and market of the farm, embodying the mindset of a strategic management.

1. Lastly, clearly and succinctly describe your team company’s mission statement as well as the 2020 goals and objectives of the firm

Being one of the largest Cartoon and Animation Movies producers company of the world our mission is to ensure our viewers are provided with wide range of movies and films in an affordable, convenient and well-structured manner so as to enable buyers to have variety of purchase of our products in the market place.  The company is entirely committed in investing in the people and opening new foreign markets in different communities where we operate, to help position the company in realization of the long term sustainable growth and development. Through our cooperate objective means, our company is in alignment our mission of provision of quality movies and covering a wider scale of reach, and entertaining people to the fullest. The company is planning the open Disneyland in all the major parts of the world so as people can be entertained in close proximity with quality details. Disney also intends to incorporate more environmentally friendly episodes and also promote scenes that have environmental awareness messages so as to pass the message of nature conservation and reforestation across. Disney land strives to enhances customers experience with the way it showcases and produce its fims both animations and Cartoons.

2. On Corporate Governance –
3. Discuss three traditional roles of the board of directors . Also, identify and discuss the most urgent governance issue impacting Disney company’s board – what are they doing to manage this important issue?

• Monitor-The management ensures through its committee that all the developmental strategies in and out of the company are kept a breast, so as to bring to the attention all the attention that it might overlook
• Influence and evaluate-The board can determine the management’s plans and proposals and either agree or disagree with them, they can also outline alternatives and offer suggestions where necessary.
• Determine and Initiate- Cooperation mission can be delineated by a board of governors and they can specify tactical options to the managers.

1. Finally, identify and evaluate a major philanthropic initiative/program to which your team Disney CEO contributes or leads that aims to do good while also helping the firm do well

Disneyland strongly believes in giving out and helping the homeless, which improves and strengthens our community globally through volunteering and service to the community. Through each year the community volunteers their time and resources to help those in need through partnering with different charitable and nongovernmental organizations. The Disney World wide outreach program has reached out to many children and helped them out in different ways, such as the Make a Wish Foundation, and the First Book foundation.

3. On Competition & Porter’s Five Forces
4. We have said that competition forces society to be better by providing superior value. Identify and discuss disneys CEO’s competitive advantage and core competency?

Competitive advantage is the advantage that a company has over the other competitors in the marketplace, which enables the firm to stay afloat. Disney is able to showcase flexibility and competency in the movie industry unlike the Universal Studios and the 21^ST Century Fox. The firm is able to maximize advantages over competitors with similar industries like the ones mentions above. It is achieved when the firm is implementing a value creating initiative cannot be imitated by the other competitors and of which they are not using at the moment or rather duplicate so as to get the same benefits. The Firm has diverse portfolio, which gives it more competitive advantage.

1. Lastly, provide a descriptive discussion of the Five Forces Model of Disney and include what Wheelen and Hunger call the sixth force in your analysis.

• Rivalries among the existing competitors – Strong companies have few control of the market hence high diversification can be used as a tool to curb the existing competition. Despite of Disney having a wider range of movie varieties, it also commits heavily in sponsoring outdoor activities and charitable events.
• Buyers bargaining power- Customer has a high variety of products in the market to choose from, hence he is price sensitive. Any attempt of hiking the prices means giving other firms like Universal more market base.
• Threat of substitute- There are many movie products in the market, and many companies do have similar products in the same market, due to different product lines, the completion base as well expands.
• New entrance threats- Low entry barriers into the marketplace as there are already more movie companies in the market. There is high initial cost, thus attracts few companies with few largest part of the market share.
• Suppliers’ bargaining power- The number of supplies depends with the available material in the market and the cost of the material.
• Wheel and Hunger believe in a sixth force- The relative power of other stakeholders such as government, creditors, shareholders, local communities plays a significant role in determining the competition scale.

1. Kim and Mauborgne argue that sustaining a “competitive advantage” is to make the competition irrelevant – hence, the blue ocean metaphor ( REFER TO BLUE OCEAN STRATEGY ARTICLE ATTATCHEMENT) . Identify and discuss what must be done to achieve or sustain DISNEYS position in a ‘blue ocean’. Pull from the readings to support your response.

Movie company markets is one of the competitive markets of the world today on that note Disney has a feature that gives it an edge over its competitors. The ability of the firm to evolve in character development and different aspects of innovation has enables the firm to a leap in value for both the consumer, and itself. In the article, Kim and Mauborgne, define the blue ocean as, “all industries not in existence today _the unknown market place untainted by competition…demand is created rather than fought over”(78-79). The blue Ocean strategies drive the cost down and value up for the consumer by incorporating an entire-system approach involving the firm’s operational and functional processes. Blue oceans are typically created with incumbents core businesses.

On the Value Chain –

1. Identify and discuss the business model that best describes DISNEYS CEO (NEW REFERENCE).

A business model is a method of a firm of making money in the competitive market of the current business environment. It includes the structural and operational characteristics of a firm and how it makes profits and generates revenue. A business model is composed of five elements them being: Whom it serves, what it provides, how it makes money, how it compares and differentiates competitive advantage, and how it provides its products and services. Since Disney operates in many foreign markets it reaches a huge audience of people hence should put in place proper profit pyramid mode, profit multiplier model and the advertising model respectively. These tools ensure the model starts at a certain point and ends and a particular set point for varied needs and leisure.

1. Lastly, provide a descriptive overview of the various components of Porter’s value chain model – include DISNEY AMUSEMENT PARKS current and target profit margin?

value chain: a linked set of value-creating activities that starts with raw basic products coming from suppliers, moving on to a series of value-added activities involved in producing and marketing a product or service, and ending with distributors betting the final goods into the hands of the ultimate consumer.

•             Primary Activities:

• inbound logistics: raw materials handling and production process
• operations: machining, assembling, testing
• outbound logistics: warehousing and distribution product services
• marketing and sales: advertising, promotion, pricing, channel relations
• service: installation, repair, parts

• Support Activities: ensure that the primary value chain activities operate effectively and efficiently
  • Firm Infrastructure: general management, accounting, finance, strategic planning
  • human resource management: recruiting, training, development
  • technology development: R&D, produce and process improvement

procurement: purchasing of raw materials, machines, supplies and technology agvancement.

1. Identify the areas within the value chain needing to be strengthened for your company to strengthen the profit margin of the firm. o Pull from Zenger’s Corporate Theory to help support your discussion

The areas of production processing and the distribution of the firm’s  product services that will enable the product to reach a wider market.

5. On General Strategy –
6. Define and discuss the current business and corporate strategies DISNEY using the language from THE ATTATCHMENTS.

The business strategy of an organization primarily focuses on improving the competitive position of the firm in the industry it participates in.  This can be executed through combating competitors in the industry or co-existing with multiple companies to develop a competitive edge against rivals. One of Disney’s business strategies is to have an alliance with The Universal  Group and more. It plans to employ a cooperative strategy to incorporate a wider variety of movie productions categories such as vivid animations. This relates back to the business strategy to provide affordable and sustainable practices.

1. What are the strengths and weaknesses of the current strategies?

Disney company is a large movie production and distribution network; this is the other strength of the company. The organization’s ability to take it product near the consumer is one of the core elements that define the company success. The firm has managed to do this through creation of a massive distribution system. The organization runs 35 mega distribution points in diverse geographical region, which enables the company to produce its products near the consumers. By doing this, it reduces the transportation cost and storage cost of the company, which leads to the higher profit as it reduces the expense more, so storage has improved due to the improved technology.

1. Lastly, identify the most urgent decision needing to be made to ensure the competitive sustainability of DISNEY or to move toward a sustainable competitive advantage

The decision concerning the nature of the market, the products price and the quality as well, together with the market price of the product services available it the market place.

Works cited

Kim, W. Chan. “Blue ocean strategy: from theory to practice.” California management review 47.3 (2005): 105-121.

TN, Satheesh Kumar. “Blue ocean strategy: how to create uncontested market space and make the competition irrelevant.” South Asian Journal of Management 15.2 (2008): 121.

Kim, W. Chan, and Renee Mauborgne. “Value innovation: a leap into the blue ocean.” Journal of business strategy (2005).

1. Identify the areas within the value chain needing to be strengthened for your company to strengthen the profit margin of the firm. o Pull from Zenger’s Corporate Theory to help support your discussion.