Wednesday, May 6, 2020
Business Activities of Disney-Free-Samples-Myassignmnthelp.com
Question: Demonstrate the business activities of Disney. Answer: 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. 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$10 million behind this project of creating a theme park. This would probably be the first one of that kind in the continent of Asia (Blanc-Brude and Makovsek 2013). Budget allocations The total amount of budget that has been allocated in this regard has been 3,100,000.00. The sources of income are the total amount of money allocated by the finance department, the venture capital from the bank and the discount sales revenue. The sources of expenses are the staff salary, labor wages, raw materials, raw materials, warehousing and other sources. The total expense is 2,660,000.00. The amount of surplus budget is 440,000.00. This amount can be utilized for various other causes and venturing into their corporate social activities as well (Alon, Gamzu and Tennenholtz 2012). This initial budget will look to improve the scopes in which the organization will deal with the several issues. The increase in the taxes will also increase the other costs as well (Karande, Mehta and Srikant 2013). These things will indeed be very problematic. Thus the deficits will be funded by the loans sanctioned by the various banks. The risks will have to be accepted in the salary of the employe es. They might look to decrease the professional positions of the employees to a certain extent (Sungatullina 2014). The total allocated budget for the retired staff should be decreased. Particulars Amount ($) Amount ($) Sources of Income Amount allocated by finance department 1,000,000.00 Venture capital from bank 2,000,000.00 Reveneue from discount sales 100,000.00 3,100,000.00 Sources of Expenses Staff salary 1,000,000.00 Raw materials 100,000.00 Wages of labour 800,000.00 Warehousing 100,000.00 Electricity 10,000.00 Discount sales(loss) 100,000.00 Free gifts like caps and key chain for sales promotion 500,000.00 Advertising costs 50,000.00 2,660,000.00 Budget surplus 440,000.00 Source of the money 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 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. References Alon, N., Gamzu, I. and Tennenholtz, M., 2012, April. Optimizing budget allocation among channels and influencers. InProceedings 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. 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. InProceedings 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: https://www.disney.in/ [Accessed 12 Feb. 2018]. Yescombe, E.R., 2013.Principles of project finance. Academic Press.
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