Project Management: Walt Disney Company Portfolio Analysis

This report offers a comprehensive analysis of The Walt Disney Company's portfolio management, examining key aspects such as risk assessment, investment strategies, and marketing segmentation. It delves into the company's financial goals, including maximizing earnings and cash flow, while highlighting the importance of innovative ideas and efficient marketing techniques. The report provides a detailed overview of the company's operations, including its various entertainment ventures, such as theme parks, hotels, and retail stores. Furthermore, it explores the company's brand value, product portfolio, and the actions needed to set up a successful portfolio. The report also recommends tools and techniques, such as the efficient marketing frontline and valuation models, to enhance the company's performance and maintain its competitive edge in the market. It also examines the company's beta value, asset allocation, and the importance of targeting different consumer groups with tailored products and services.

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Walt Disney Company
Project Management: Mastering Portfolios and Progs
5/10/2019

Project Management: Mastering Portfolios and Progs.. 1
Contents
Overview of company.................................................................................................................................2
The information which is needed in making the portfolio...........................................................................2
Actions to be taken in setting up the portfolio.............................................................................................2
Recommended tool and techniques.............................................................................................................3
References...................................................................................................................................................4

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Overview of the company
The Walter Elias Disney founded the Walt Disney Company in 1923. The company has a
headquartered in Burbank, CA. it is one of the leading company, which has a reputation in
delivering entertainment and information. The company operates different entertainments such
as the restaurants, theme parks, hotels, retail stores, etc. the company has the essential element of
its culture, which is based on the values and ethics. The company majorly focuses on innovation
and technology and also provide enjoyment for all the ages (Schepers, et al., 2016). The
company also indulged in providing protection to the environment. The company has the main
occupation of the animations, voice actor, film producing, etc.
The company first created the Mickey Mouse to replace the Oswald. The main financial
goals of the company are to maximize its earnings and cash flows. The company has made a
huge success by accepting the three prolonged approach. The company has fulfilled the Disney
Mission Statement by combining three things of culture, client and their preferences. The
company has given the high standard of excellence in the cartoons.
The information which is needed in making the portfolio
Risk: The risk of the company can be stated by the value of the Beta. Therefore, the three
years of the Beta value are 0.68. The risk is evaluated in making the portfolio so that the threat,
which the company takes to earn a higher profit, can be evaluated (Jordà, et al., 2017). For
earning a higher return, the company takes a higher risk.
Investment: The information is evaluated regarding the investment of the company,
which has the rate of return of 14 %. The information regarding the certain things is evaluated so
that the rate of investment can be identified such as the stock allocation, bond allocation, specific
funds, advisory fees, etc.
Marketing segment: The main marketing segment of the company is the small
children’s. The small children’s are targeted by the company as they only wants the animated
cartoons, theme parks, merchandise, etc. adults people are also targeted as Disney has the big

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influence on the lives of the people. Marketing strategy of the company is different as different
class group are targeted so different services and consumer products are offered to them.
Products and brands: The Company offers the different Disney products and te second
largest media conglomerate which has the very high great brand value. The company has the
good position in the market so it is easy for the company to attract the large number of the
customers. The company has the broad product portfolio and services such as the theme parks,
hotels, cable networks, studio entertainment services, etc. The company also have the massive
distribution of the Disney cartoons and movies which gives the company huge advantage in
building the good brand.
Actions to be taken in setting up the portfolio
Risk: In the company, Walt Disney the beta value is less than the 1.0, which is 0.68 the
stock of the company moves less than the market. The company has less risk as it has a low beta
value and gives a lower return (Van Riper, 2014). In a portfolio, the good beta is 1.0 but the
company has the lower betas, which is showing that the stocks move more slowly than the
market averages. The risk of the company is less volatility as the beta is 0.64. As the company
has a lower risk to the chances of the profit are moderate.
Investment: For good portfolio, the rate of investment should be 15% annually. As an
average, the rate of investment should be 12% so that the company can double their buying
power. The Walt Disney Company has 14% of the investment rate so they are increasing their
purchasing power. The company is giving a good return on the investment and the risk factor is
also less so the investors can invest the money (Ford, 2014). The Walt Disney company has an
efficient rate of investment so they have good potential buyers.
Asset allocation: The Company has the total assets of US $ 98.598 billion so the
company has to do the allocation of these assets properly. As the company mainly engages in the
Disney world so their main allocation is towards to reduce the much use of the fuel and aspiring
the children’s towards the better environment. The company has distributed their asset allocation
in the different fields such as Disney parks, resorts, movies, marketing and distribution of the
films, entertainment, etc.

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Innovative ideas: As the company has the second biggest brand in the market so they
need innovative and creative ideas so that they can seek the Disney world to the next level. The
main motive of the company is to provide the innovative cartoons with the creative Disney
things so that large market segment can be attracted.
Recommended tool and techniques
Efficient marketing frontline: This tool and technique can be used by the company
Walt Disney to increase the level of trust in the consumers in the theme parks. By powering the
Frontline marketing approach, the company can improve its services and provides cartons that
are more creative to the customers. This tool is also effective in bringing reality to the creative.
By using this tool the manager can lead to the success of the tool. This tool and technique also
boost up the morale of the employees who are designing the product and delivering the services
(Barak and Modarres, 2015). This tool is also helpful for the managers in supervising their staff
regarding the theme parks. This tool and technique helps in motivating the employees and
boosting up the morale of the employees as it helps in delivering the services of the products to
the customers. This tool and technique helps in supervising the total workforce.
Valuation model: This tool and techniques are also essential in evaluating the position of
the business by comparing its value to its competitors. By this tool and technique, the financial
worth of the company is ascertained. This tool is helpful in determining the Walt Disney intrinsic
worth and its estimated cash flows (Chiu, et al., 2014). This is also helpful in making the
portfolio of the company. The equity and investment baking rates can be determined by using
these tools. The present value of the asset can also be determined and helpful in ascertaining the
capital budgeting, investment analysis, and other tax liabilities. The valuation model is very
helpful for the company as it obtain the true value of the company. The better knowledge of the
company asset can be known through this tool. When the more investors have to be access then
this tool is very effective as it is powerful driver for the business.

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References
Barak, S., & Modarres, M. (2015). Developing an approach to evaluate stocks by forecasting
effective features with data mining methods. Expert Systems with Applications, 42(3),
1325-1339.
Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers' repeat
purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic value, and
perceived risk. Information Systems Journal, 24(1), 85-114.
Ford, S. (2014). AT&T's new antenna system will boost cellular coverage at Walt Disney
World. Orlando Sentinel, orlandosentinel. com.
Jordà, Ò., Knoll, K., Kuvshinov, D., Schularick, M., & Taylor, A. M. (2017). The rate of return
on everything, 1870–2015 (No. w24112). National Bureau of Economic Research.
Schepers, J. J., Nijssen, E. J., & van der Heijden, G. A. (2016). Innovation in the frontline:
Exploring the relationship between role conflict, ideas for improvement, and employee
service performance. International Journal of Research in Marketing, 33(4), 797-817.
Van Riper, A. B. (2014). Learning from Mickey, Donald and Walt: Essays on Disney's
edutainment films. McFarland.