The Walt Disney Company is showing expansion and growth in both the American and global economy. As per the Walt Disney’s 2011 annual report the company seems to be doing quite well within the United States slumped economy. Disney’s net income increased 21 percent over the previous year with this years total at 4.8 billion dollars. Revenue increased 7 percent from the previous year and was at a record high of 40.9 billion dollars. Even per share earnings went up 24 percent and also hit a record high of 2.52. This is all very interesting and welcome news since many American businesses have seen losses and deterioration.
Growth in both short and long term markets is planned and already occurring. With the companies excellent profits they are adding investments in Pixar and Marvel to expand their animations market. According to a TCC library resource http://web.ebscohost.com.ezproxy.vccs.edu:2048/ehost/detail?vid=5&hid=105&sid=a729a1b4-e557-4d3f-aef5-de5d94fa0f4f%40sessionmgr115&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=65555286
In 2010 multiple films did both well while others fell flat and ultimately evened out profits with 1.62 billion in revenues but with a drop of 60 percent down to 49 million, this created a lower profitability than desired last year.
Park and resort income has been a stable and growing mainstay for the company. To capitalize on this in the American market new lands and attractions are scheduled to open in 2012 along with another cruise ship. The company has redesigned their stores to be fresh and interactive and is even adding a baby store. Disney in China and Russia are also showing immense growth for international market advancement. The Shanghai Disney Resort is being developed as a 930 acre site. New lands are being opened in Shanghai and there are now 100 channels available in foreign markets along with an English language program.
With all of the current and planned growth, Disney seems to be right on track in capitalizing on all fronts and doesn’t seem to be hindered by a slowed economic situation worldwide.
The Adam Smith term “invisible hand” pg 33 can be applied to The Walt Disney Company as the company continues to grow both nationally and internationally providing social and economic benefits worldwide.
President Obama visited Walt Disney World Orlando Florida recently to promote tourism and create an environment hospitable to foreign visitors as a means of economic growth. “The President said that his goal is to ensure that the United States is the top tourist destination in the world.”
http://web.ebscohost.com.ezproxy.vccs.edu:2048/ehost/detail?vid=3&hid=126&sid=a729a1b4-e557-4d3f-aef5-de5d94fa0f4f%40sessionmgr115&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=32W3964535021 The Global Entry program is being utilized to create a streamlined process to allow foreign visitors to visit and vacation at the Disneyland Parks. As an example the goal is “to accelerate our ability to process visas by 40 percent in China and in Brazil this year” as these are foreign markets where middle class growth is large. These actions are a part of the We can’t wait campaign.
I am very impressed with the company's ingenuity and ability to adjust, equalize and grow both nationally and internationally. The future for The Walt Disney Company looks very bright. The famous Mouse and all his friends will be visited quite often from people all over the world bringing happiness and prosperity worldwide.