Contemporary Strategy Analysis Text and Cases

Question: Discuss about the Contemporary Strategy Analysis for Text and Cases. Answer: Issues The vision and mission of the company is to be the leading company in the entertainment world. The strategies focuses on differentiating the company based on services and products. One of the major threats of the company is the cost of the Walt Disney Companys products and services. This is mainly because; the cloths and toys that are offered by the company are expensive as compared to its competitors. This is one of the major issues due to which the profit of the company was reduced (Wasko, 2013). The other threat is from the competitors. The major issue that is faced by the company is the dilemma with respect to choosing the best strategy. This includes whether the company should diversify its services or not. Diversification has both rewards and risks. The performance of Walt Disney is improving. The park and resort performance of the organization is better than its competitors. The company should not only focus on developing park performance, but also concentrate on investing in studio performance. The revenue of the company decreased by seven percent compared to its competitors. The company should concentrate in pushing new toys in the market based on the movies that they release in order to increase the revenue (Mannheim, 2016). However, there are two main issues that the company needs to address for the growth in its future. They are discussed in the paragraphs below: The first issue that Walt Disney faces is the poor performance of media network division. The revenue from the media network grew just by one percent. The contribution of the media networks towards the revenue is negligible. This is one of the major issues for the growth of Walt Disney. The second issue that Walt Disney faces is regarding the management strategy. This relates to the strategy of paying for acquisitions and stock. The share count of the company has also decreased by 0.4 percent. The spending of the company in the form of cash and stock is high during the purchase of new company and acquisitions (Peters et al., 2015). Analysis The poor performance of Media networks led to a decrease in the profit and revenue of organization. The theme park and the resort performance of the organization are contributing towards increasing the revenue of the organization. The organizations largest segment is media networks. The organization should not only concentrate on developing the theme parks and resorts but also put an emphasis on studio performances as the revenue from studio performance is declining. The organization was criticized for affecting the health of children by providing them bad working conditions (Dal Maso et al., 2015). The smoke that was used for filming the show greatly affected the health of the children. The company has also been charged on the grounds on violating human rights. The diversification of services involves uncertainty. It is a long process and complex where large amount of data needs to be collected by the manager of the organization. The product portfolio of the company is strong. The main weakness is that it relies heavily on the income from North America and that can be harmful for the organization. The organization is involved in acquisition that reduces the opportunities of growth of the company. The Research and Development technique of the organization should be well developed. Decisions The company has divided its market into various segments such as media and network, Walt Disney studio, theme parks and studio and product studio. The organization should not only concentrate on developing services and entertainment programs but also should concentrate on providing relevant toys and other accessories to increase the revenue. The products of Disney include magazines, books, musical records and television programs (Gupta, 2013). It is essential for the company to not just concentrate on one media network that is ESPN but diversify its channel to other network providers as well. These will help the organization to increase its profit. It is also beneficial for the company to rely on debt financing instead of stock and cash market. These will help the company to increase its share count. The dilution of the company in its strategies has led the company decrease in its share and profit. Hence, it is essential for the company to formulate and modify the strategies to achieve the goals and objectives. Firms gain economies of scale through improved allocation of financial resources, based on investments inside or outside the firm. Implementation of strategies requires the firm to improve its Research and Development area (Kantola et al., 2016). Outcomes Implementing proposed strategy will help the company increase its profit and shareholders. It will also help the organization achieve competitive advantage and survive hard competition in the market. In case of violation of child right, it is essential for the management to ensure that the employees work in coordination with the rules and regulations set by the government. The company should use products in its production that is not harmful to humans specially children (Grant, 2016). Moreover, acquisition alone is not a solution. Diversification of services and products is necessary for the benefit of the company. It will help the company with its competitors. References Dal Maso, C. B., da Silva, W. M., de Mello, P. C., de Paula Arruda Filho, N. (2015). Integrating Project Portfolio With Business Strategy: Imagineering.Future Studies Research Journal: Trends and Strategies,7(2), 155. Grant, R. M. (2016).Contemporary strategy analysis: Text and cases edition. John Wiley Sons. GUPTA, D. A. (2013). Organizational challenges towards international growth.Arth prabandh: A Journal of Economics and Management,2(10), 24-33. Kantola, J. I., Barath, T., Nazir, S., Andre, T. (Eds.). (2016).Advances in Human Factors, Business Management, Training and Education: Proceedings of the AHFE 2016 International Conference on Human Factors, Business Management and Society, July 27-31, 2016, Walt Disney World, Florida, USA(Vol. 498). Springer. Mannheim, S. (2016).Walt Disney and the quest for community. Routledge. Peters, J. C., Beck, J., Lande, J., Pan, X., Cardel, M., Ayoob, K., Hill, J. (2015). Using healthy defaults in Walt Disney World restaurants to improve nutritional choices. Wasko, J. (2013).Understanding Disney: The manufacture of fantasy. John Wiley Sons.