Conclusion

 The Walt Disney Company is a globally trusted brand in the entertainment and theme park industry. Through the seven months of the pandemic, the company has sustained its stock prices proving that the consumer is continuing to trust and have faith in the success and decisions of their executives. Although the theme parks have suffered during these dire economic times, the media branch of the company has enough cash flow to maintain the company during this period. During times of crisis, the company has been focused on pivoting the consumer experience to their digital brands, keeping the consumer invested in the brand and maintain brand loyalty. 

As the pandemic continues, expansion and improvement should not be the priority. The priority is to keep the brand alive, focused, and willing to adjust in order to maintain the trust of our consumer. The focus needs to be on maintaining current guests, local passholders and nearby visitors, giving them an incredible guest experience even as we offer less attractions. Guests are suffering through the pandemic as well and the goal is to offer them an escape from reality, let them experience the magic without noticing that half the experiences are not there. 

The main advantage the company has at the moment is a history of excellence. This reputation will carry the company through these trying times. As the focus shifts to guest experience and sustaining operations during this time instead of profits, it will give the company an excellent survival rate post pandemic. Smart yet difficult decisions now will come back and be crucial to the company’s future. Let the magic continue and the revenue will eventually come.  

Process Analysis

 Because of the restrictions on company operations due to the coronavirus pandemic, 

processes must change within the theme parks. There are multiple changes that have been 

implemented already as the theme parks have reopened but more processes and changes must 

be executed. As of now, the process is different than before the pandemic. A reservation system

has been set in place for guests in order to predict capacity of guests in the park. This ensures

the company can provide a safe and socially distanced environment for the guests, keeping all 

CDC required guidelines in check. With this, staggered parking will be recommended, staggered 

park hours will be implemented, thus controlling the traffic flow on property roads and within the 

theme parks. 

Halfway through each day a decision needs to be made on reducing attraction hours and 

labor depending on the number of guests in the park each day. At this point, the company is not 

expecting to be making a profit so any opportunities to lower operational costs can be crucial to 

the bottom line.

As the changes with the global pandemic occur and the CDC adjusts its 

recommendations, the processes may change, and the company needs to be ready to make

those adjustments as needed. Although the company may be ready at any time to pivot back to 

the regular model, brand trust is crucial in these decisions. 

Six Sigma

 The Six Sigma methodology is apparent in the Walt Disney Company. Our goal is to 

provide an excellent guest experience for our customer. The product is the culture and the culture need to be maintained, if not improved. The first part is defining the problem: the theme parks have less offerings and more restrictions due to the pandemic which is causing less visitors to the parks and much lower revenue. The second part is measuring current operations which has been done by analyzing profits and losses. Analyzing this data has been achieved and has resulted in a reduction in labor and operational costs. With less employees and less guest offerings, the goal is to improve the product that remains. Although there are less offerings, shorter park hours, and less employees, maintaining and improving the quality of the guest experience will result in customer loyalty and brand awareness. As the company positions itself as a leader in the entertainment industry even during the pandemic, the reputation will be a huge return on investment when the crisis subsides. The goal is to control these changes, adjust when needed at a rapid pace, and pivot when needed as changes in the world continue to occur. If this cycle continues, the company will continue to see growth, trust in the brand, and when the pandemic is over, a huge return on investment. 

Total Quality Control

Due to government restrictions the theme parks in Florida have opened at 25% capacity. There have been reductions in personnel and criticisms over reinstating full salaries for executives. At this point, these decisions are crucial to the company’s success and its future post pandemic. Because of this, the company must focus on quality control to not lose the customers trust during this time of change. Adapting Deming’s 14 points can transform the culture of the theme parks resulting in great success once the pandemic is over. Overall, the focus would be on providing the best customer service for the guests and shifting the focus to the quality of the product, investing in the brand, and retaining the consumer trust that the company has built over 30 years. 

1. Improvement of Product and Service: The theme parks will have less personnel and less attractions for the customer. The focus must be on giving the guests the best theme park experiences possible even with limited offerings. 
2. Adopting New Philosophies: Although Disney has always been about creating a magical experience for the customer, the focus really needs to be on them. Focus on the guest and their experiences as the main priority. 
3. In Process Inspection: As the world changes and behaviors with the pandemic change, decisions and changes need to be immediate. The company must focus on fixing problems in the moment and not after the moment as it could be too late. 
4. Focus on Customer, Not Profit Alone: The reality is that operational costs will exceed profits during this time. The focus needs to be on trusting that the rest of the Walt Disney Company can sustain this period of time, but the brand needs to stay consistent, if not better during this economic crisis. 
5. Improve Customer Service: Not only are the employees going through hardships, so are the guests, so sensitivity to the guests is paramount. Give them a place to escape and feel the magic and go above and beyond usual expectations. 
6. Focus on Training: The world is changing and so is the company. Invest in those who are loyal to the company with training on new protocols, leadership, and customer service during this pandemic era. 
7. Focus on Leadership: The leaders are there for a reason. They are intelligent and capable and must be respected, admired, and followed. They will be the ones to instill these values and pass it on to the rest of the company. 
8. Instill Confidence in the Staff: During this unprecedented time, it is important to let the employees feel safe, trusted, respected and valued. This will then empower them to give more of themselves to the customer and to the company. 
9. Break Down Barriers: During this time of crisis, hierarchies should be ignored (with respect) and everyone should be treated as a part of a team. This will instill more confidence in the employees and have everyone working together to ensure a great guest experience. 
10. Focus on People, Not Slogans: Motivational words and slogans are important, but action is much more noticeable. Do as you say and not just say. It makes a big impact in the long run. 
11. Let Go of Numerical Quotas: Again, the bottom line will not be achieved during this crisis, so the focus needs to be on maintaining customer and brand trust. Focus on what Disney is known for and not revenue. The profits will come. 
12. Take Pride in Talent: A thank you goes a long way in this scenario. Time is crucial and so are the employees. Make sure to show them they are appreciated. 
13. Invest in Training and Education: As the climate of the world changes, so will the needs of the guests and the employees. Invest in their future and they will invest in yours. 
14. Accomplish Change: The entire 14 points is about focusing on guests and employees. These are steps to achieve these goals and actions show results. As leaders emerge, focus on the positive and what can be achieved. As achievements occur, the positivity will be apparent which will create a cycle of excellent customer service, brand trust and recognition, and keep the company as the leaders in theme park entertainment. 

Risk Avoidance

 At this point all decisions to be made are being done under uncertainty. In order to make the right decisions in this trying time the goal is to look at all options available, assess the risk factors, and determine the proper decisions. 

As the government has lifted restrictions to the Theme Parks which are currently running at 25% capacity, the company has the options to completely bring the parks back to 100% capacity and resume operations as they were prior to the pandemic. Should the theme parks cease operations until the virus is contained would result in zero revenue and more losses for the company. Should the company increase capacity and operations, revenue could increase, and employees could be hired back. If this decision is to be made, the risk of spreading the coronavirus is high and would result in a negative impact in the long term. Data would prove that the theme parks are not being as safe, can trace spreading back to the parks, which would eventually lead to customer trust being lost, a public relations negative perception, and eventually a higher loss in revenue. Should the parks stay at 25% capacity, with safety protocols in place, increase in profit is not likely but the brand loyalty and trust will remain and in turn could bring a higher profit in the near future. 

At this point, although the risk of opening up the parks for higher profits is not recommended as the long-term damage would be much more destructive to the company than remaining at its lower capacity. 

Forecast Analysis

     One of the biggest challenges the Walt Disney Company is facing is the effects of the coronavirus pandemic. During this pandemic, the company has been forced to shut down operations of all its global theme parks for a significant amount of time. The company has lost over $5 billion dollars in the three months the parks were closed and have offset their losses with other branches of the company, including Disney’s media networks, but are still reporting a nearly $2 billion dollar loss from the theme parks alone in their third quarter (Tate, 2020). 

Unfortunately, asides from reducing their workforce and operating expenses, the theme parks will continue operating at a loss until the pandemic is under control and restrictions have been lifted. Because of this, the recommended solution would be to increase the revenue through the other branches of the company to increase revenue to the keep the parks afloat. 

During the past 7 – 9 months, Disney has been focusing on their revenue’s coming in from Disney media network which provides streaming media services from Disney Plus, Hulu, ESPN, and more. 

As the consumer is forced to stay at home, increasing subscriptions to media networks are helping drive this market to increased revenue. The competition for streaming media is tight with successful companies like Netflix and Amazon Prime video in close competition. The goal is for Disney Plus and Hulu to gain more subscribers and to create original content that can only be streamed on these platforms. This will give Disney an edge in the digital streaming market and be able to retain its theme park operations during this global crisis.

Risk Analysis

 Risk Analysis

The Walt Disney Company is a leader in the entertainment industry. It is a globally recognized and trusted brand. The coronavirus pandemic has threatened the company as well the rest of the global economy. Due to this, every decision made is a risk. Every decision must be made in real time based on the changes with the pandemic, social behavior, CDC guidelines and more. Although revenue is important and keeping the company afloat is a priority, the main priority now is keeping the company and the brand alive. 

The company must remain at the forefront of the industry. The theme parks will remain open in a safe and minimized manner. Although experiences will be different and layoffs have occurred and may continue to occur, the focus must be on the guests and keeping them coming back. If the company must give the guests half of what they expect and what they are used to but we can keep them safe and coming back, then our goals are met. If the company reputation stays intact during these trying times, then the risks the company takes now shall be beneficial in the long run and in the future. 

The pandemic will eventually go away and the company must maintain strong values and be able to pivot as the world changes. Keeping the strongest and smartest teams together during these trying times will help the company endure and be successful in the long run. 

This is the time to focus on the strengths of the brand, the employees, and the loyalty of our guests. The Walt Disney Company may not be operating at 100% but the goal is to come back stronger once the economy is back on track. 

Sales Analysis

 Sales Analysis

At this point in the pandemic, marketing must be kept local. Restrictions on travel, loss of employment and income, and a global economic crash has to be kept in consideration. The world is suffering from tremendous financial loss and attempting to expand product lines or market overseas would be a big mistake. The goal is to keep the Walt Disney brand and its theme park operations steady and with no loss in revenue. At this point the goal would be to not have giant losses in revenue. As the world changes then focusing on raising the bottom line would be key but until then, the goal would be to keep the guests and cast members safe while keeping revenue even. 

On this below chart, you will notice that the global unemployment rate has increased dramatically in 2020 from 2019. Although predicted to lower in 2021, this shows that the global economy is not due to better in the near future. Due to these numbers, it is recommended to keep marketing within the United States, local preferably, and focus on evening out revenue and lower operational costs. The goal right now is to stay afloat, not necessarily make profit. 

Cash Flow Analysis

 Cash Flow Analysis

    The Walt Disney Company has suffered tremendous loss in revenue over the past year, mostly due to the coronavirus pandemic. This has forced the theme parks to close for over three months. Although they have now reopened, they have opened at a reduced capacity which leads to reduced income. Operating expenses have increased by over three million dollars from 2019 to 2020 but the net income has reduced by over 10 million dollars. Due to this, the proposal is to analyze patterns during the week to reduce operating expenses as well as reduce labor costs. 

    Although reducing labor is a challenge and risk, it could bring the company to a place where the income and expenses can balance out and save the company from too much loss. The goal is to balance out the cash flow so that when the pandemic is over, potentially this decision could be beneficial for the company in the long run. 

Operations Analysis

 Operations Analysis

    Currently, the Florida theme parks are running at 25% capacity with a reservation system which can help predict attendance each day. As the company remains loyal to the CDC guidelines and will not increase capacity although the governor has given the all clear for phase 3 of reopening the state, the company shall remain at 25% capacity. With this decision, revenue will remain lower but will continue with keeping the guests and employees safe in this time of crisis. 

    In order to increase revenue and lower operating costs during this time, it is recommended to the have hourly live data reporting for each theme park each day. As the number of guests fluctuate throughout the day, decisions can be made to close certain attractions, rides, or restaurants. This will reduce operational costs while still giving the guests ample options for entertainment and food and beverage. As this data is analyzed, patterns will be recognized and data will be able to assist in decisions on reduced park hours, guest capacity and what attractions to keep open and when. Below you can see how operating expenses have risen in 2020 compared to 2019 yet the gross profit has decreased. 

Personnel Analysis

Personnel Analysis

    In the past few weeks, The Walt Disney Company has let go of 28,000 employees in both Walt Disney World in Florida and Disneyland in California. The Florida location has laid off 6,800 people as of October 2020. As the capacity for the theme parks has lowered significantly and the closure of the parks on both coasts have caused a huge loss in revenue, letting go of personnel has been inevitable. Currently the Walt Disney Company in Florida is running theme park operations at a minimum and have done so in order to maximize revenue and lower operational costs. 

    As the company continues its struggle and adjustments during the coronavirus pandemic, tough decisions have to be made such as readjusting executives’ salaries while laying off thousands of hourly cast members. These decisions are crucial as the risk of losing high level executives during this time would be a huge threat to the future of the company. 

    The goal is to retain those employees whose decision-making abilities will be crucial to the company as the changes in the global pandemic occur. As the pandemic threats subside, the goal would be to start opening up the parks at a higher capacity with more offerings to the guests (entertainment, restaurants, and more) and with that be able to hire the hourly employees back. This needs to be done in a very gradual and safe manner to ensure brand loyalty, trust, and awareness. 

    As seen below, having let go of a percentage of personnel could save the company over $2 million dollars in annual salaries. Although this is something that no company wants to do, this could save the company in the long run by cutting that operating cost.