Hi!
Actually,can we makeitlike 7.00 on Thu. I dontthink
I will be ableto get outbefore 6.30 PM.
I was actually hoping that we could discuss this
via email a bit before we meet. I have read the paper a couple of times
and here are my thoughts:
Primary Problem: I believe the primary issue is
that Disney has too many diversified businesses that do not drive of its core
competence.
Core Competence:
I am not clear and how to present
what Disney's core competence is. I can come up with two - Creativity and that
makes Disney provide wholesome entertainment to the family. 2. Its core
competence could simply be "providing wholesome entertainment to the
family"
Solution:
So, now we can say that there
are many of Disney's businesses that do not leverage its core competence or have
no relation to the core competence and incidentally many of those businesses do
not generate enough revenue. Things like Internet, broadcasting (except
for Millionaire years), adult movies etc.
So, I thought we could created a
balance sheet without those units in the company and see howthat changes their
bottom line. What would be leftwould pretty much be the Disney's Animated
Film's Division (some of the adult movies lost money), Theme Parks, consumer
products and things like Disney Channel and certain programs.
So, if Disney keeps just these
units, then it gains due to exploiting synergies, cross promotion, its expertise
and that makes it highly profitable.
Implementation:
1. Nurture its core competence -
creativiy, providing wholseom entertainmentfor the family eetc.
2. Organize the company into two
divisions - Imagination and Practicality or some such thing and make Jerry
Kratzenbeg the head of the first one. Hire back some of thetalent that
made Dinsney a great company.
3. Divest units that dont fit in whith
this strategy - Hockey teams, Broadcasting stations, Radio stations, newspapers
etc. Evne though some of them may make profits in the short run, Disney is
unlikely to make profits on a continuous basis.
Presentation:
1. I thought we could go almost with no bullet
points putting everything we need to say in the form of diagramsn, schematives
and pictures. So, forexample wecan have one slide with core competence in
the center circle and its units around the core circle etc.
Please do send your ideas so we can be well
prepared fortomorrow.
Thanks
venkat