Expanding Disney's Business in Bangkok: Project Risk, Financing, and Budget Allocation

This paper discusses the business activities of Disney to expand in Bangkok, covering project risk, financing, and budget allocation. It also includes marketing strategies and the culture of Disney.

Running head: INTEGRATED BUSINESS CHALLENGE
Integrated Business Challenge
Name of the Student
Name of the University
Author Note

1INTEGARTED BUSINESS CHALLENGE
Executive summary
The purpose of the following paper is to demonstrate the business activities of Disney by which
they will be able to expand in a city like Bangkok. The most important things like the financial
average costs have been given here along with the proper marketing strategies. The culture of
Disney has been discussed in this paper as well. This has reflected in the probability of being
successful in Bangkok.

2INTEGARTED BUSINESS CHALLENGE
Table of Contents
Introduction......................................................................................................................................3
Project risk.......................................................................................................................................3
Project financing..............................................................................................................................4
Budget allocations...........................................................................................................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

3INTEGARTED BUSINESS CHALLENGE
Introduction
Walt Disney has been one of the most important organizations to cater to the
entertainment among the children (www.disney.in 2018). The purpose of this organization is to
focus upon the marketing strategy that will be very useful for expanding their business to other
continents. One of the most important sections is financing, risks related to the project, legal
systems for the project, Disney and culture. These issues have to be handled properly indeed for
the better marketing of the company and increasing their profits (www.disney.in 2018).
Project risk
The project risk management has been one of the most important things in the expansion
of the business indeed. As the company is expanding into Bangkok and it is an Asian country the
rates have to be in priced as per the US dollars. It has been taken as an assumption that two
factors could be very essential for the success of the Disneyland if they migrated into other
countries (Pinto 2015). If they migrate to Bangkok, the entire scenario would change indeed.
This is why they wanted to concentrate on those two factors. They wanted to create the
Disneyland in Bangkok and this could be done only after affirming the attendance that could turn
up at the theme park there. The second factor was the fact about the improvement of the real
estate (Elnaga and Imran 2014). Disney had assumed that almost 2 million people could turn up
from Bangkok and adjacent countries. The company had estimated some prices regarding the
hotel bookings, tickets and other expenses (Iger 2015). It has been noted that ticket prices of
Disney has increased a lot over the last few years at around 2.5% indeed.

4INTEGARTED BUSINESS CHALLENGE
Project financing
As a matter of fact, Disney would have to be very careful after their venture into Europe
through Euro Disneyland. The costing has been a huge issue in this regard as Disney has to make
to apply the proper strategies in terms of costing the things for their own development indeed.
They have to implement the proper changes into the designs of the theme park so they can be
able to meet the demands of the tourists after making a proper survey. This would take almost
US$4 million indeed. Apart from that there are other expenditures as well (Yescombe 2013).
It has to be put in a way that Disney will provide almost 45% of the equity and the
Bangkok government would have to put in a grant of cash for the completion of the project. They
are ready to invest almost US$10 million behind this project of creating a theme park. This
would probably be the first one of that kind in the continent of Asia (Blanc-Brude and Makovsek
2013).
Budget allocations
The total amount of budget that has been allocated in this regard has been 3,100,000.00.
The sources of income are the total amount of money allocated by the finance department, the
venture capital from the bank and the discount sales revenue. The sources of expenses are the
staff salary, labor wages, raw materials, raw materials, warehousing and other sources. The total
expense is 2,660,000.00. The amount of surplus budget is 440,000.00. This amount can be
utilized for various other causes and venturing into their corporate social activities as well (Alon,
Gamzu and Tennenholtz 2012). This initial budget will look to improve the scopes in which the
organization will deal with the several issues. The increase in the taxes will also increase the
other costs as well (Karande, Mehta and Srikant 2013). These things will indeed be very

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problematic. Thus the deficits will be funded by the loans sanctioned by the various banks. The
risks will have to be accepted in the salary of the employees. They might look to decrease the
professional positions of the employees to a certain extent (Sungatullina 2014). The total
allocated budget for the retired staff should be decreased.
Particulars Amount ($) Amount ($)
Sources of Income
mount allocated by finance department 1,000,000.00
nture capital from bank 2,000,000.00
veneue from discount sales 100,000.00 3,100,000.00
Sources of Expenses
ff salary 1,000,000.00
w materials 100,000.00
ges of labour 800,000.00
rehousing 100,000.00
ctricity 10,000.00
count sales(loss) 100,000.00
e gifts like caps and key chain for sales
motion 500,000.00
vertising costs 50,000.00 2,660,000.00
dget surplus 440,000.00
Source of the money

6INTEGARTED BUSINESS CHALLENGE
It is a grave matter to discuss about the source of the money. If Disney wants to expand
to Singapore, they will need to address different things. The source of the money has to be
addressed as well (Hope and Fraser 2013). The organizations will have to manage different
things and ask for money from different institutions like the banks and others. Disney might have
to borrow the money from those institutions. If they are expanding their business to Singapore,
they well might argue about the source of money indeed (Hope and Fraser 2013).
The organizations must sell its merchandise both online and offline. This will raise some
funds for the entire program. If the company does not want to borrow money from banks, the
entire process will take a huge time indeed. The organization should outline all the challenges
and issues that have arisen in case of making the business successful. The organizations can also
choose to raise their funds by the business revenues (Bodnar and Hopwood 2012).
The company can also opt for some lease some of their fixed assets to get some money
that is needed for their expansion (Schaper et al. 2014). They can cover their inventory to have a
better chance of sourcing the expansion move. Disney can go for some long-term loans that they
can afford. As they have a strong financial background along with a good customer base, this
will not be a huge problem for them either (Bodnar and Hopwood 2012). The banks can provide
them with all the asset needs, working capitals, real estate financing and other business
equipments. These things will help the help Disney to get the best opportunities to succeed
within the competitive market (Cascio 2018).
Conclusion
This paper can be concluded by saying that Disney has the ability to build up their
network strongly and maintain all the guidelines of creating a successful project in the form of a

7INTEGARTED BUSINESS CHALLENGE
theme park at Bangkok. They will invest a huge amount of money and look after all the things
like the project risks, project financing, providing a proper culture and other things to make the
project successful.

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References
Alon, N., Gamzu, I. and Tennenholtz, M., 2012, April. Optimizing budget allocation among
channels and influencers. In Proceedings of the 21st international conference on World Wide
Web (pp. 381-388). ACM.
Blanc-Brude, F. and Makovsek, D., 2013. Construction risk in infrastructure project
finance. Research, EDHEC Risk Institute, February.
Bodnar, G.H. and Hopwood, W.S., 2012. Accounting information systems. Pearson Higher Ed.

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Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Hair Jr, J.F. and Lukas, B., 2014. Marketing research (Vol. 2). McGraw-Hill Education
Australia.
Hope, J. and Fraser, R., 2013. the Budget. Budgetierung im Umbruch?, 1, p.71.
Iger, R.A., 2015. The Walt Disney Company Fiscal Year 2015 Annual Financial Report and
Shareholder Letter. Anaheim, CA: The Walt Disney Company. Accessed May, 30, p.2017.
Jaiswal, N.K. and Dhar, R.L., 2015. Transformational leadership, innovation climate, creative
self-efficacy and employee creativity: A multilevel study. International Journal of Hospitality
Management, 51, pp.30-41.
Karande, C., Mehta, A. and Srikant, R., 2013, February. Optimizing budget constrained spend in
search advertising. In Proceedings of the sixth ACM international conference on Web search and
data mining (pp. 697-706). ACM.
Pinto, J.K., 2015. Project management: achieving competitive advantage. Prentice Hall.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Sungatullina, L.B., 2014. Application of linear programming in budgeting costs for the
compensation of employees. Mediterranean Journal of Social Sciences, 5(24), p.388.
www.disney.in (2018). Disney.in | The official home for all things Disney. [online] Disney India.
Available at: http://www.disney.in/ [Accessed 12 Feb. 2018].
Yescombe, E.R., 2013. Principles of project finance. Academic Press.

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