Disney Audit

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The response addresses the queries posted in 3172 words with references.

//In the paper, we are required to make a thorough analysis of The Walt Disney Company. We must be aware about its internal and external factors which decide the growth of the company. I would like to provide some information as an assistance which will be helping to write the paper. See the text below: //

Introduction

Walt Disney is a leading name in the field of family entertainment from last eighty years. The Walt Disney Company was found in 1923 by Walter Elias Disney. Initially, Walt Disney was a picture company but later, the creativity of its founder led to the inception and development of Disneyland (Disney, 2009). Walt Disney follows the vision of its founder and strong core values. Today, Walt Disney and its affiliated companies are having a position of leading diversified family entertainment. In addition to this, they are operating in four business segments which are studio entertainment, media networks, consumer products and parks & resorts.

//The above paragraph discusses about some general information about the Walt Disney Company. The paragraph written below will be providing us an idea about the current performance and strategic posture which is being used by the company. //

Current Situation

Current performance

Currently, the Walt Disney Company witnessed 43 percent decrease in diluted earning per share (EPS) for the quarter. The lower operating results in domestic sales of DVD units, low performance of theatrical releases, low advertising at ESPN, high programming cost of ABC Television network and decreased spending at Disneyland Resort Paris & domestic parks are the primary reasons of this financial decline (10-Q: WALT DISNEY CO, 2009).

In addition to this, the restructuring and impairment charges also put an impact of $0.10 on EPS. The financial performance of last six month shows a decrease of 36 percent in diluted earning per share. The reasons of this decline are same as mentioned above. These decreases were somewhat compensated with the benefits which incurred due to higher rates of affiliated fees from cable service providers, mainly from ESPN.

Strategic Posture

The primary objective of the Walt Disney Company is to secure a position among one of the leading producers and providers of entertainment & information in the world with the help of using its different consumer products, content, services and a brand portfolio. From the financial point of view, the primary goal of the Walt Disney Company is to maximize its earnings and cash flow. Further, it seeks to allocate financial profitability for growth initiatives so that it can increase the shareholders' value in long term.

The Walt Disney Company intends to follow its roots while changing with the pace of present time. Though, it seeks to operate its business profitably, it does not forget to give respect to the environment, people and surrounding government. In future also, the company would like to focus on family solidarity and core values along with considering the changes in accordance with the customer requirements.

//There is an important role of the board of directors and the top management of the company. For this section we need to know about the members who all are the part of these. //

Corporate Governance

Board of Directors

The Walt Disney Company is having a strong team of Board of Directors and top executives. The members of Board of Directors are very experienced, skilled and qualified who guide the company on the core areas which are critical for the success of the company. There are twelve members in the Board of Director. These are Susan Arnold (Director since 2007, held various senior positions in P&G, Director of McDonalds), John E, Bryson (Director since 2000, held various senior positions in Edison International, Director of The Boeing Company & W.M. Keck Foundation & the California Endowment), John S. Chen (Director since 2004, held various senior positions in Sybase Inc., Siemens Nixdorf, Siemens Pyramid, Director of Wells Fargo & Company), Judith L. Estrin (Director since 1998, held various senior positions in JLABS, LLC, Cisco Systems Inc. Precept Software Inc., Director of FedEx Corporation), Robert A. Iger (Director since 2000, held various senior positions in Walt Disney International & ABC Inc.), Steve P. Jobs (Director since 2006, held various senior positions in Apple Inc.), Fred H. Langhammer (Director since 2005, held various senior positions in The Estée Lauder Companies Inc., Director of The Shinsei Bank Limited), Aylwin B. Lewis (Director since 2004, held various senior positions in Potbelly Sandwich, Sears Holding Corporation, Kmart, YUM! brands Inc., Pizza Hut), Monica C. Lozano (Director since 2000, held various senior positions in La Opinión, Director of Bank of America & Weingart Foundation), Robert W. Matschullat (Director since 2002, held various senior positions in The Seagram Company Ltd., Morgan Stanley & Co., Clorox Company, Director of Visa Inc.), John E. Pepper, Jr. (Chairman of the Board since January 2007, held various senior positions in National Underground Railroad Freedom Center, Yale University, Director of Company since 2006) and Orin C. Smith (Director since 2006, held various senior positions in Starbuck Corporation, Deloitte & Touche, Nike, Washington Mutual).

Walt Disney is a privately held company. The members of Board of Directors are from various fields such as finance, software, etc., and they are having years of experience, therefore, they ...