FIN 370 WEEK 3 Ethics and Compliance Paper
Strategic Initiative Paper
Strategic Initiative Paper
Having to commit to a strategic planning with many other agenda items that a
business or organization must focus on to be successful can be very stressful. There
must be an initiative among the management and employees that they each
understand and do the best to comply with the organizations set initiative. In order
for each annual report to meet the expectations set by the management team and
the shareholders, there must be discussion about the organizations financial
planning, and have identified a proper and successful initiative. The organization
will also determinehow the chosen initiative will affect the costs and sales. A very
important thingthat will need to plan for and discuss will be the risks that will be
affiliated within the organizational plans. With the proper plan and understanding
and with everyone affiliated with the company the organization can achieve not
only success, but also canreach above the normal numbers for sales.
Strategic Planning
After the strategic planning division was restructured in 2005 by CEO Robert
Iger (New Release, 2005). Disney CEO Robert Iger quoted “Strategic planning
will continue to play an important role in identifying the opportunities and
challenges presented to ourcompany as we grow our leadership position as the
most valuable entertainmentbrand in the world,” during his announcement of the
restructuring project (News Release, Para. 3). The strategic planning was broken
into four segments (Studio Entertainment, Parks and Resorts, Consumer Products,
Media Network, and all so Disney’s International organization). With the strategic
plan in order this willmean more growth and opportunity for Disney with minimal
disasters. The Disney Corporation would need key elements in their strategic
planning that would include (a) mission, (b) vision, (c) risk management, (d)
performances goals, (e) budget goals, (f) objectives for the next five years
(whatmankgoodleaders.com). Even with the current strategic plan in place Disney
will still need to continue to re-evaluate the plan to see with can be revised if need
to continue to have a strong and successful business. Although the view of the
annual report 2009 for Disney it does show that there are risk. The risk comes into
This study source was downloaded by 100000852681095 from CourseHero.com on 12-06-2022 13:54:44 GMT -06:00
https://www.coursehero.com/file/38288469/FIN-370-Week-3-Team-Assignment-Strategic-Iniative-Paper-Walt-Disneydoc/
, play with the handling of the foreign currency exchange. Disney is aware of the
risk, and they have put in place a system the address the issues. Disney has also has
a minimal and maxim that will be set to help keep down the loss of currency but
still be able to do business with countries outside the United States.
Describe how the initiative affects the organization's financial planning.
Disney’s strategicgoals are in line with the current direction of the company
and past accomplishments to support this direction. For example, the past merger
of Disney and Pixar has given them the technological means to pursue the
production of high quality content with global appeal. However, producing this
content involves ongoingfinancial costs that require planning in order for projects
to reach completion. Production costs primarily include amortization, distribution,
marketing, product cost, and participation costs (The Walt Disney Company,
2010b, p. 35). Therefore, an appropriate budget should be in place that accounts for
these individualcosts in connection to each project. Following the strategic plans,
these costs mayincrease because of increased worldwide theatrical distribution but
also can be offset by the trend of decreased home entertainment and music
distribution (The Walt Disney Company, 2010b, p. 35).
Initiative affects costs/sales
If the initiative is successful, Disney’s salesshould increase in proportion to the
national and international success of their productions. The quality of the product
and marketing will affect unit
Sales, but Disney should also consider if revenue willbe bolstered by adjusting the
net effective pricing. Disney’s greatest increase in profits in the past year from this
segment has been from international home entertainment. Therefore, by expanding
in this area and protecting their intellectual rights Disney should continue to
experience enhanced sales revenue.
Risks associated with the initiative and financial effects
The financial impact on the initiative taken by Disney Company can be the
same in return on the company setting up a plan regarding the current currency for
other countries. The company has many key elements within the strategic
planning that helps the organization stay within limits. The company meets and
This study source was downloaded by 100000852681095 from CourseHero.com on 12-06-2022 13:54:44 GMT -06:00
https://www.coursehero.com/file/38288469/FIN-370-Week-3-Team-Assignment-Strategic-Iniative-Paper-Walt-Disneydoc/
Strategic Initiative Paper
Strategic Initiative Paper
Having to commit to a strategic planning with many other agenda items that a
business or organization must focus on to be successful can be very stressful. There
must be an initiative among the management and employees that they each
understand and do the best to comply with the organizations set initiative. In order
for each annual report to meet the expectations set by the management team and
the shareholders, there must be discussion about the organizations financial
planning, and have identified a proper and successful initiative. The organization
will also determinehow the chosen initiative will affect the costs and sales. A very
important thingthat will need to plan for and discuss will be the risks that will be
affiliated within the organizational plans. With the proper plan and understanding
and with everyone affiliated with the company the organization can achieve not
only success, but also canreach above the normal numbers for sales.
Strategic Planning
After the strategic planning division was restructured in 2005 by CEO Robert
Iger (New Release, 2005). Disney CEO Robert Iger quoted “Strategic planning
will continue to play an important role in identifying the opportunities and
challenges presented to ourcompany as we grow our leadership position as the
most valuable entertainmentbrand in the world,” during his announcement of the
restructuring project (News Release, Para. 3). The strategic planning was broken
into four segments (Studio Entertainment, Parks and Resorts, Consumer Products,
Media Network, and all so Disney’s International organization). With the strategic
plan in order this willmean more growth and opportunity for Disney with minimal
disasters. The Disney Corporation would need key elements in their strategic
planning that would include (a) mission, (b) vision, (c) risk management, (d)
performances goals, (e) budget goals, (f) objectives for the next five years
(whatmankgoodleaders.com). Even with the current strategic plan in place Disney
will still need to continue to re-evaluate the plan to see with can be revised if need
to continue to have a strong and successful business. Although the view of the
annual report 2009 for Disney it does show that there are risk. The risk comes into
This study source was downloaded by 100000852681095 from CourseHero.com on 12-06-2022 13:54:44 GMT -06:00
https://www.coursehero.com/file/38288469/FIN-370-Week-3-Team-Assignment-Strategic-Iniative-Paper-Walt-Disneydoc/
, play with the handling of the foreign currency exchange. Disney is aware of the
risk, and they have put in place a system the address the issues. Disney has also has
a minimal and maxim that will be set to help keep down the loss of currency but
still be able to do business with countries outside the United States.
Describe how the initiative affects the organization's financial planning.
Disney’s strategicgoals are in line with the current direction of the company
and past accomplishments to support this direction. For example, the past merger
of Disney and Pixar has given them the technological means to pursue the
production of high quality content with global appeal. However, producing this
content involves ongoingfinancial costs that require planning in order for projects
to reach completion. Production costs primarily include amortization, distribution,
marketing, product cost, and participation costs (The Walt Disney Company,
2010b, p. 35). Therefore, an appropriate budget should be in place that accounts for
these individualcosts in connection to each project. Following the strategic plans,
these costs mayincrease because of increased worldwide theatrical distribution but
also can be offset by the trend of decreased home entertainment and music
distribution (The Walt Disney Company, 2010b, p. 35).
Initiative affects costs/sales
If the initiative is successful, Disney’s salesshould increase in proportion to the
national and international success of their productions. The quality of the product
and marketing will affect unit
Sales, but Disney should also consider if revenue willbe bolstered by adjusting the
net effective pricing. Disney’s greatest increase in profits in the past year from this
segment has been from international home entertainment. Therefore, by expanding
in this area and protecting their intellectual rights Disney should continue to
experience enhanced sales revenue.
Risks associated with the initiative and financial effects
The financial impact on the initiative taken by Disney Company can be the
same in return on the company setting up a plan regarding the current currency for
other countries. The company has many key elements within the strategic
planning that helps the organization stay within limits. The company meets and
This study source was downloaded by 100000852681095 from CourseHero.com on 12-06-2022 13:54:44 GMT -06:00
https://www.coursehero.com/file/38288469/FIN-370-Week-3-Team-Assignment-Strategic-Iniative-Paper-Walt-Disneydoc/
