The Walt Disney Company: Strategic Initiative

Topics: The Walt Disney Company, Walt Disney, Club Penguin Pages: 6 (1921 words) Published: February 22, 2009
The Walt Disney Company: Strategic Initiative
Amy Doggett, Cherelyn Rodgers, Joanna Poehl, Laura Glod, Tracy Grigsby Finance for Business – FIN 370
Brenda Jaber
University of Phoenix
December 22, 2008

The Walt Disney Company: Strategic Initiative
Most successful organizations practice strategic planning. These organizations benefit not only from having a plan, but also from the planning process itself. The plan is the road map to success, and the planning process unites organizational leadership and enhances the communicating of critical company information. Today’s volatile marketplace demands that employees, work groups, and organizations have a clear understanding of their roles, the products and services they offer, and the processes they use to navigate opportunity to create an outcome-based organization culture. The Benefits

In the face of rapid change, organizations have realized they cannot compete on a global basis without a strategic plan that encourages innovation and creates knowledge internally and that builds customer loyalty to their products and services. A strategic plan provides the path an organization will take in the future. Future planning helps to determine (whether a company will stay on course or follow a different direction ran in the past); the predictions of how the marketplace, customer base, and product line will change or react to the future; and the calculated risk that the organization will need to bear to move in that direction. During strategic planning, organizations set their priorities for the next two to five years and identify how major resources are allocated. If done correctly, the strategic plan should be a document that motivates employees to achieve the plan’s stated goals and tactics. When realignment or redirection takes place, the plan explains the change and refocuses the organization’s efforts by redefining the organizational goals and major tactics. Proposed Strategic Initiative

The strategic initiative for 2008 would be to focus a great deal of Disney’s attention on enhancements with the video game business. Although the economy has gone into a downward spin, the video game industry has managed to hold on somewhat, although other industries have taken serious hits. The reason behind this strategic initiative is contributed to the strong financial results of the video game industry. “U.S. video game advertising spending was $502 million in 2007, a figure forecast to increase to $969 million by 2011,” (Miller & Washington, 2008). Not only does the advertising of this industry show positive results, the outlook for this entertainment sector shows positive results with parents; being a wonderful pastime for the children. According to Miller and Washington, (2008), “More than a third (35%) of parents play computer and video games; 93% have children who also play them. Sixty-three percent (63%) of parents with children under the age of 18 consider computer and video games a positive addition their children’s lives. Statistics such as these demonstrate that Disney’s implementation of more video games would be a success for the company overall. 2007 Strategic Initiatives

Disney made a number of significant decisions in 2007 that were designed to make the most of Disney’s creative products, services, and marketing which helped increase revenue while building brand and shareholder value. The following were three strategic initiatives in 2007 that Disney implemented to enhance business. • Club Penguin

• Online Pirates
• Online Radiator Springs
Disney purchased Club Penguin, a vibrant and entertaining online world for children and families that help anchor the organizational strategy and grow in this important and expanding arena. Disney is the proud owner of Club Penguin, and believes Club Penguin is a perfect fit from a creative and a strategic perspective. According to a PowerPoint presentation from The Walt Disney Company, “ also...
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