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Environmental Analysis for Disney

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Disney Corporation

You will be completing an environmental scan and economic analysis on your selected department, group, division, function, or organization (for which you will create a strategic plan), including the remote, industry, and operating environments. Your environmental scan should describe the situation completely and accurately. You should identify any major changes that you expect to affect your remote, industry, or operating environments in the next 5-10 years. This will include the following subcomponents:

a) Utilize a macroeconomic forecast of economic indicators that will affect Disney in the future and should be considered part of strategic planning.

b) Analyze the non-economic factors in the remote environment:

(1) Social and Cultural

(2) Political

(3) Technological

(4) Demographic

c) Complete a competitive analysis of Disney position from a microeconomic perspective based on the pricing of the organization's primary product or service line, an assessment of its cost structure, and an assessment of the market in which the organization competes. (Note: This should be a discussion, not a spreadsheet.)

d) Develop a summary of the organization's current situation, including its mission or business overview, its current competitive position, and the forces and trends in its industry. Based on this situation, you will identify three to six current opportunities and issues you believe should be addressed through the strategic-planning process.

e) Identify strengths and weaknesses in Disney's operating environment that can be leveraged to capitalize on the emerging opportunities or minimize the threats that you identified in items 1-4.

f) Create three to four strategic long-term objectives that can be measured to determine the success of the strategic plan.

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Solution Preview

a) Utilize a macroeconomic forecast of economic indicators that will affect Disney in the future and should be considered part of strategic planning.

The six month forecast of personal income in the US shows a marginal increase from 12,000 billion to 12,100 billion. The six month forecast of the GDP in the US shows an increase from 14,200 billion to 14,290 billion. The six month forecast of unemployment is expected to increase from 10.2 to 10. 3 percent. The six months stock index forecast is a decline from 1,100 to 900, S&P 500. Overall, the current forecast which are reliable show only a moderate recovery in the economy, however, as the unemployment rate remain high and the stock markets are likely to be weak the impact of the economy on Disney will remain poor. Considering, this reality Disney should make its strategic plans. There are also positive aspects of the economy. As the government pumps stimulus money there will be improved infrastructure, efficiency in raising capital and recovery in the business cycle n the next 5-10 years. The economic growth rate will increase and so will the discretionary income n the next 5-10 years.

b) Analyze the non-economic factors in the remote environment:

(1) Social and Cultural:
Disney's social and cultural factors emerge from the demographics. These are favorable to the market that Disney addresses. The number of teens is high and the number is likely to increase. This will help Disney to address them with products like High School Musical and Hannah Montana. The skill levels of the workforce all over the world are excellent and the labor costs are reasonable but Disney should avoid accusations of exploitation of labor. As there is stability in the education sector a growth n sales to young customers and teenagers can be expected. The middle class represents a large market for Disney. The culture of the world encourages entertainment from products being sold by Disney. The attitudes of young people and their parents are positive towards the ...

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