The Walt Disney Company is an American Multinational Company with diversified industry of mass media. The company was founded by the Walt and Roy Disney in 1923. The company is headquartered in Burbank, California, United States. The company is owned and executed by the Chairman and Chief Executive Officer Bob Lger. The company is serving its product and services all over the world. The products produced by the company are publishing, movies, theme parks, radio, internet and publishing. The company is one of the best and recognized studios in the Hollywood. The services provided by the company to its customers are licensed.

Walt Disney External Factor Evaluation

External Strategic Factor

Weight

Rating

Weighted Score

Comments

OPPORTUNITIES

       

Opportunity to expand and enhance

0.13

4

0.52

The company has the opportunity to expand and enhance its services by moving it into different segments in the respective markets.

Proper and appropriate inventory or stock management

0.07

2

0.14

The operating cost of the company can be reduced by the proper and appropriate inventory or stock management and hence profitability be improved.

Development of market in the under development countries is the great opportunity.

0.03

3

0.09

The development of the market by the company in the under development countries is the great opportunity and also with the establishment of the online websites can make the company to success.

Improving the bench mark rate according to the market scenarios.

0.05

1

0.05

The Walt Disney Company can improve its management practices by improving the bench mark rate according to the market scenarios.

Attaining more and more interest of the people.

0.08

1

0.08

Through the development of the park with different variations of the themes that make them more and more attractive so that they attain the interest of the people.

Cheaper alternative toys should be introduced.

0.04

1

0.04

Cheaper alternative toys should be introduced by the company to grasp the attention of the consumers and also involve the characteristics of the national and regional appeals.

The demand for the Disney land is increasing

0.14

2

0.28

The demand for the Disney land from the people is increasing rapidly so development of the park in the Hong Kong is the great incentive for the company.

THREATS

   

0

 

Security Issues

0.05

4

0.2

The threats related to the security are the major issue that occurred during the terrorism.

High level of competition

0.05

4

0.2

There is the high competition for the company in the media industry and also in the domestic markets as well as the international markets so there is the tough job for the employees to maintain its position.

Social and Ethnic Groups

0.1

3

0.3

The social and ethnic groups are again the threat for the company as they are acting as the hurdle and barriers in the success of the company.

High demand of innovation and company has to pace up with that

0.1

2

0.2

The high demand from the market in case of the innovations in the product is difficult to maintain as regulating with the inventions.

Increasing cost of labor

0.06

2

0.12

The increase in the wages and the cost of the labor declines the growth of the company and also the factor of the employee’s retention is the issue in front of the success.

People preferences are changing

0.08

1

0.08

The aspects and preferences that are changing in the younger people are the issue for the company so for that search for the new young people and retain them to their jobs.

Brand consistency, unprofitability and acquisitions

0.02

2

0.04

The case of brand consistency, unprofitability and acquisitions is the issue for the declining the company from its growth.

Total Weighted Score

1

 

2.34

 

Conclusion

As per the above calculations it has been concluded that the company’s Total Weighted Score is 2.34 which shows that somehow company has been successful in utilizing its opportunities and minimizing the threats around it.

References

• www.thewaltdisneycompany.com, Accessed on June 30, 2012.

• (2011), The Walt Disney Company: EFE Matrix Analysis & Company Profile.