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ANSWERS Group Activity _2 Chapter 1

ANSWERS Group Activity _2 Chapter 1 - The Walt Disney...

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The Walt Disney Company was founded in 1923 and operates as a diversified entertainment company. Its Media Networks segment comprises a domestic television network, television production and distribution operations which include ABC and ESPN. The company's Parks and Resorts segment owns and operates (or licenses) theme parks as well as hotels; retail and dining outlets worldwide in addition to the Disney cruise line and ESPN Zone facilities. The company's Studio Entertainment segment produces live-action and animated motion pictures, direct-to-video programming and musical recordings. The company's Consumer Products segment licenses Disney and other characters to manufacturers, retailers and publishers. This segment also publishes books, magazines, computer software and video games. 1) Speculate and discuss how the strike by the Writers Guild of America may affect the company’s future financial performance. Several different answers are possible; here is an example answer: Without writers Disney will be unable to produce new television (or other) programs which will lead to lower revenues from lost or reduced advertising sales based on lower ratings of reruns. As a result the company’s income statement will suffer unless the company can reduce its expenses. Regardless, the company’s balance sheet will also be hurt from the “lost” cash and/or accounts receivable that would have accompanied the regular advertising sales.
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