Agribusiness

Management
PPT 5101
Lecturer: Golnaz Rezai (Dr)

Case Application: Swedbank

Name : Nur Nasiha Binti Mat Zin

Matric No : GS27497
Learning Issue

• Leveraging

- investing with borrowed money as a way to amplify potential gains (at the risk of

greater losses)

• Strategically maneuver

Strategic skill or expertise in certain area that someone have, and to take clever or

cunning steps to achieve one’s goal

• Disney brand

• Strategic management

- What managers do to develop organizations strategies

• Functional strategy

- The strategy use in an organization’s various functional departments to support

the competitive strategy.

• Corporate strategy

- An organization strategy that specifies what business a company is in or wants to

be in and what it wants to do for those businesses.

• Differentiation Strategy
 - When the company competes on basis of having unique products that are widely

valued by customers

• Cost leadership strategy

-when a company compete on the basis to having the lowest cost in the industry

Introduction

The Walt Disney Company is the largest entertainment and media that consist of different

business organization that have joined together in the world. Founded on October 16, 1923 by

brothers Walt Disney and Roy Disney, the company was reincorporated as Walt Disney

Productions in 1929. Walt Disney Productions are well- known as the leader of the American

animation industry before diversifying into live-action film production, television, and travel.

The Walt Disney Company also expanded the operations and started divisions focused on

theatre, radio, publishing, and online media. Besides that, the company also makes new

divisions in order to find the market that can associate with flagship family orientation.

Disney owns and operates the ABC broadcast television network; cable television networks

such as Disney Channel, ESPN, and ABC Family; publishing, merchandising, and theatre

divisions; and owns and licenses 11 theme parks around the world. The company has been a

component of the Dow Jones Industrial Average since May 6, 1991. An early and well-

known cartoon creation of the company, Mickey Mouse, is the official mascot of The Walt

Disney Company. Today one of the largest and best-known studios in Hollywood is The Walt

Disney Motion Pictures Group.

Problem identification

1) The difficulty in doing business during economic downturn in 2008 to 2009

2) Media markets are not fully utilized

3) Give too much funding to expansion of the Disneyland theme park in Hong Kong

4) Disney brand is out of date

5) Doubt of the changes in strategic approach

Situational Analysis

1) The difficulty in doing business during economic downturn in 2008 to 2009

. - When the economic downturn, Disney seem it as a challenge to manage the

company business because of the environmental uncertainties and the Disney wide

operations around the world. It's hard to oversee all the performance is in a good way.

2) Media markets are not fully utilized

- Disney business span over the world, with operations in North America, Europe,

Asian Pacific, and Latin America, latest in Russia. But Disney do not use all the

market media that they have as an opportunity to plan they broadcast version of the

Disney channel.

3) Give too much funding to expansion of the Disneyland theme park in Hong Kong
 - Although the economic slowdown, The Company is funding $452m for expansion

Disneyland theme park in Hong Kong. One of new themed area called Grizzly trail.

Disney did this action in hoping to increase the number of visitors on that particular

place.

4) Disney brand is out of date

- Disney has too much products in market place and it also related with the quality of

the product. The combination of lack of quality and too much product led to decline

of customer demanded, furthermore, there was a sense that they core audience was

young and that product could not really attract the older kids interest. Other that, the

brand also tied to Disney heritage.

5) Doubt of the changes in strategic approach

- Iger had recognized the importance of improving the company vast media content

on different platform, but the effectiveness of the strategic approach is still ambiguity

in the long term

Recommendation

1) Disney has to know how to stabilize and reduce uncertainty of risk in manage all the

business around the economic situation to ensure that economic downturn not

adversely impact on the performance and affect the profit drop.

 2) Disney should use the opportunities that they have in media market in order to expand

Disney’s product brand and strengthen the authority of the company business, and

also improve the creativity and enrich the innovation.

3) the decision to give fund to build new themed area and assume that will increase the

numbers of visitors maybe useless, the company should do the strategic analysis to

ensure what actually be the cause of the decline of visitors, maybe there are

something lack in Disney Hong Kong internal management

4) Disney need to be more open minded in rebranding the company image, and also be

creative and innovative in order to attract other audiences. Disney also needs to know

how to fend off the nasty perception about Disney brand.

5) Iger and his management team need to use all the strategic tools they have to returns

on their success era.

Plan of Action

Conclusion

Discussion Question:

1) What is the Disney Difference and how will it affect the company’s corporate,

competitive, and functional strategies

 The Disney different is an ability to cross promote and market their brand across

different business segment. The company corporate strategy is based on horizontal

and decentralization approach, idea come from around the department division and

work up throughout the low hierarchy of worker, where the final decisions are made.

Besides that the company always refreshes its top management with new executives. Top-

managers will bring new ideas and concepts which can be applied in the Disney Company.

Second, competitive strategy, Disney has to know what the company product competitive

advantage to make sure reach customer need and like, thirdly, function strategy that

Disney need to use it in an organization in various functional department to support

competitive strategy.

2) What challenges do you think Disney might face in doing business in Russia How

could Iger and his top management team use planning to best prepare for those

challenges?

There are several challenges that Disney might face in doing business in Russia,

especially from oppositions parties, custom regulations, piracy, media inflation,

breadth of the market and tough competition resulting from increased variety of

product including local productions. Disney also faces with Russia political

transparency, and the ethic. So, Iger and his top management team must to investigate

the necessity and the sensitiveness in doing business in Russia ,concerned on rule and

regulation in doing business in Russia and create products base on Russia culture,

also aware about local product content.

3) What the announced expansion of Disney’s Hong Kong Disneyland, what goals might

the company set? What type of planning will be necessary?

 The company has to set goal to increase numbers of visitor and improve the

management options to attract they customer back and give the best customer service

and knowing the culture, Disney’s Hong Kong has to use specific planning that

identified the resources led to increase the number of visitor and establish specific

procedures, budget allocations and work schedules to reach the goal.

4) How might Iger and his top management team use the strategic management process

“to keep the magic coming” in the current economic climate?

Iger has to define the strategic that he and his top management team create is useful and

toward to company mission and goals. Besides that, they also need to do external and

internal analysis to understand what actually they strength and weaknesses in doing the

business and also threat that they face and also the opportunity. The strategic management

process need to emphasis on company's growth priorities, including creativity and

innovation, new technologies and international expansion