Disney Case Analysis Essay

869 Words Mar 22nd, 2013 4 Pages
Hostile Takeover Attempt by Saul Steinberg

Walt Disney Productions should repurchase Saul Steinberg’s shares. The management for Walt Disney has lost their focus over the course of the last few years, prior to June, 1984. After the death of Walt Disney in 1966, the company has found it hard to replace his leadership and the ability to make sound decisions.
Business Strategy
In the past, Walt Disney Productions’ business strategy has been focused on their theme parks and motion pictures. This strategy propelled Disney to become the most well-known company in the world and it was very profitable. Recently, Disney’s strategy has been real estate development and trying to gain a foothold in the cable programming services. They have
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A growth company can also be explained as a company whose rate of growth significantly exceeds that of the average in its field or the overall rate of economic growth. Walt Disney Productions is trying to stay competitive and maintain their stance as a growth company. The EPCOT center cost Disney almost $2 billion dollars, but produced less than a 4% return (see Exhibit 3). It boosted attendance, but only for a short period. Their net income and EPS have decreased dramatically over the last few years (see Exhibit 4). Walt Disney Productions has put themselves in a precarious position. They are in a negative environment with strong competition in the cable programming services and low growth rate at their theme parks. I believe if they were to put more emphasis in the segments that have been successful in the past, then Disney could continue double-digit growth.
“Excellent” Company
It is true that Walt Disney Productions has achieved business excellence. They have continually ranked high in different lists from the nation’s top companies to the nation’s best-run companies. Disney understands how to retain talented employees and gain consumer contentment. They put special emphasis on the quality of their products and services, respect for individual workers, and attention to their customers. The problem is that none of these will create value for their shareholders in the short run. The shareholders want to see…

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