Question

Complete an IFE Matrix with 10 strengths and 10 weaknesses for disney world. Please explain the results (above, below or average total score). Select 2 to 2 strengths and 2-3 weaknesses and comment on them in details.

Answer 1

Disney Company Assignment Help
The Disney Corporation is a leading diversified international family entertainment and media enterprise that has five business segments. The company is successful and leading organization due to its hard work, strong dedication and core values of the organization (The Walt Disney Company). Internal factors of the organization have strengths and weaknesses while external factors have opportunities and threats for external environment (see appendix 1). Internal factors of Disney Company with strengths and weaknesses are as follow:
Operations: The Company operates business in various segments such as media networks, parks and resorts, studio entertainment, consumer products and interactive media. It gains maximum revenue from its internet and mobile operations (The Walt Disney Company: Annual report). Along with this, its Imagineering provides master planning, real estate development, attraction, entertainment and show design, engineering support, production support, project management and other development services for the Company’s operations.
At the same time, company has some weaknesses in its operations. The success of its services and operations depends on public taste and preferences (The Walt Disney Company: Annual report). Results of operations fluctuate due to the timing and performance of theatrical, home entertainment and television markets. Changes in business strategy and operation increase the costs of the company and negatively affect the profitability of business.
Human resource management: The Company has energized and dedicated employees that help to meet business challenges in the fast changing media and entertainment. Along with this, company has hard worker and talented human resource to fulfill its functions (Ferrell, Fraedrich & Ferrell). In addition of this, company puts additional focus to provide safe and respectful workplaces for employees, so they feel comfortable and security and gives their best for organization development. Employees and cast members of Walt Disney Company make the magic happen (The Walt Disney Company: Human resources).
At the same time, Company needs more diverse workforce to complete its different tasks and operations. Disney’s main weakness is very large work force that increases the cost of the organization. Along with this, it results into possible communications problems, and a high bureaucracy level within the corporation (Hartley).
Finance/accounting: Disney’s main strength is in its resources, its low-cost strategy. The company has been able to diversify its operations and products to hedge against decreasing sales in product lines. It has diverted its business into Home Video, Film, merchandise, Radio broadcasting, Network television and in theme parks (The Walt Disney Company: Annual report, 2011). The low-cost-corporate-strategy is a benefit for the company. The company can control costs, and produce quality goods and services. Financial risks have been minimized by sharing initial investment costs.
Cost of its pension and postretirement medical benefit plan affects the financial condition of the company in negative manner. The company has recognized pension and postretirement medical benefit plan expenses of $576 million in 2011. The Walt Disney Studios unit lost money for the second quarter in a row. The movie studio reported a loss of $13 million, despite a 3 percent increase in revenue. It is because of write-downs on films like “Disney’s A Christmas Carol” which cost at least $175 million to make, but started out with a disappointing $31 million in ticket sales on its opening weekend (Barnes). In addition of this, large overhead costs are usually direct effects of a large number of fixed assets. In that situation, customers are not prepared to spend much more money, so they move to other firms or entertainment resources.
Strategies for strengths and weaknesses
Operations: For improving its strengths, company should focus on interactive media to gain more revenue.
To reduce weakness, company should develop entertainment programs according to taste and preferences of customers.
Human resource management: Company should develop more creative and innovative products for customer with the help of dedicated employees (Ferrell, Fraedrich & Ferrell, 2006).
By diversifying into more businesses and niches, the company’s work force grows larger, so, company should develop effective structure that supports an expansion of the work-force.
Finance/accounting: With the help of low cost strategy, company should expand its business in more diversify areas (Hartley,).
To reduce large overhead costs, company should closely monitor these costs to match the price that customers are willing to pay for the goods and services offered.