Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Prelim 2 Strategies > Module 12: Disney > Flashcards

Module 12: Disney Flashcards

1
Q

Disney Position on course map

A

Corporate level strategy (scope of firm), Having multiple businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why has Disney been such a success for so long?

A
  • Cartoons since you were young
  • Brand awareness
  • Diversified portfolio (movies, theme parks, etc)
  • Ahead of the curve (innovation and technology)
  • Acquire competitors
  • Reputation to attract top talent
  • Target kids and adults
  • Story telling power (emotions)
  • Characters
  • Experience
  • Brand history (Walt Disney)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does Disney mean to you?

A

Emotional attachment of experiences (indoctrinated at a young age) -> Keeps repeating with new generations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Disney’s Business

A

Hotels, TV shows, theme parks, education, games, Broadway, sports/ streaming, movies, radio, consumer products -> all around Micky Mouse character

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What’s good about having an animated cartoon character at the center of the company?

A
  • Durability (Mickey never gets old, never dies)
  • Appropriability (Mickey can’t negotiate, it’s easier to deal with cartoon characters as they get popular)
  • Imitation is difficult
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What was going on at Disney pre Michael Isner?

A
  • Financial performance deteriorated - EPCOT & first cable channel
  • Film performance erratic and new film once every 4 years
  • No shows under its own name on network TV
  • Walt’s nephew, Roy Disney, left the board upset
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How did Michael Isner rejuvenate Disney when he arrived in 1984?

A
  • Raised prices in theme parks & opened parks 7 days a week
  • Re-release cycle of Disney moves from 7 to 5 years
  • Extending licensing of Disney brand to more categories
  • Creating blockbuster release every summer
  • Imagineering (strengthened R&D)
  • Euro Disney (Paris)
  • Synergy committee
  • Sports team
  • Disney retail stores
  • Acquired ABC, ESPN
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Levels of Strategy

A
  • Corporate Strategy - Corporate Office
  • Business Strategy - Business A & Business B
  • Functional Strategy - Finance, Production & Marketing within each business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Corporate Strategy

A

Corporate Office
Key Questions -
- Scope of business
- Vertical integration
- Diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Business Strategy

A

Business A & Business B
Key Questions -
- Competitive advantage
- Low-cost strategy
- Differentiation strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Functional Strategy

A

Finance, Production & Marketing within each business
Key Questions -
- Building capabilities in each activity
- Functional courses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Scope of the Firm

A

Vertical Scope - Vertical integration
Product Scope - Horizontal diversification
Geographic Scope - Horizontal diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Vertical Integration

A

Strategy that allows companies to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers
- May be risky due to significant initial capital investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Advantage & Disadvantages of Vertical Integration

A
  • Greater efficiencies (time and money)
  • Reduces costs
  • More control of in manufacturing and distribution
  • Can make more money by selling directly to consumers (forward)

Dis:
- Heavy upfront capital investment
- Integrating new and existing systems
- Training staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Forward integration

A

Vendor attempts to acquire a company further along the supply chain (ex: retail)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Backwards integration

A

Vendor attempts to acquire a company prior to it along the supply chain (ex: raw material provider)

17
Q

Single Integrated Firms

A

Firm generates majority of its revenue from core business area

18
Q

Several Specialized Firms

A

Firms generate revenue from a few businesses and markets

19
Q

Horizontal Diversification

A

Acquisition of a competitor or related business to eliminate rivalry, improve diversity, expand into new markets and increase overall sales

20
Q

Related Diversification

A

Cars, trucks, busses - concentrate on transferring core competencies and knowledge

21
Q

Unrelated Diversification

A

Conglomerates - cars, watches, flowers

22
Q

Geographical Scope

A

Horizontal Diversification

23
Q

Reasons for Diversification

A
  • Increases value
  • Neutralizing competitors market power
  • Reduce top executive’s risk
24
Q

Disney’s Corporate Strategy with Michael Isner

A
  • Increasing geographic scope
  • Increasing vertical scope
  • Increasing horizontal scope
25
Q

Disney’s corporate strategy (Michael Isner)
Increasing Geographic Scope

A

Tokyo & Paris

26
Q

Disney’s Corporate Strategy (Michael Isner)
Increasing Vertical Scope

A

Forward integration: Distribution (ABC merger), Broadway theater, Disney stores

27
Q

Disney’s Corporate Strategy (Michael Isner)
Increasing Horizontal Scope

A
  • Adult movies, record industry, publishing, cruises
  • ABC merger
28
Q

Ill-fait adventures - Michael Isner

A
  • Lack of plan for successor
  • Poor management of huge egos at top of organization
29
Q

Bob Iger’s Strategy for Disney

A
  • Pixar, Marvel, Lucas Films acquisition
  • Use of technology - user experience
  • Expand globally (Hong Kong, Shanghai) but localized
  • Got rid of oversight committee - autonomy to department
  • Collaborative culture
  • More acquisition of content creating companies and platforms
  • Franchises (relationship building)
  • More control over branding
  • New distribution models
  • Partnering with Netflix
  • Franchise management committee and synergy committee
  • Reluctant to take on an idea unless it could become a factory
30
Q

Why Pixar?

A

Preserve core values and history of the brand BUT ALSO present them in relevant ways to current audience - stick with core values and present them in relevant ways

31
Q

Iger’s Succession & Strategy

A

History with innovation
1. High-quality branded intellectual property (content)
2. Up to date technology
3. Global Presence

32
Q

Corporate Strategy questions

A
  • In which businesses should the firm operate?
  • How does the corporation add value to each of its businesses?
33
Q

Disney’s Corporate Strategy

A
  • Traditional Model: Synergy between animated characters (center of the business), theme parks, hotels, stores, etc.
  • Recent Model: Extension of traditional model -> Synergy created through franchises: Challenge is to show synergy between current range of businesses

Prelim 2 Strategies (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions