2 December 2022 Disney A Corporate Case Study In Brief

Disney
A Corporate Case Study In Brief​

What do you need to know this week?

After a mere 33 months as the CEO of the world’s most valuable media conglomerate, Bob Chapek was forced out by Disney’s board of directors this month. Taking his place is his predecessor and mentor, Bob Iger, who had served as CEO for 21 years before stepping down in 2021.

Over the course of the year, Disney has lost nearly 40% of its market capitalisation. This is largely attributed to the worldwide streaming market’s disappointing performance in recent times, despite the fact Disney has aggressively invested in streaming over the course of the past few years. In Disney’s Q4 2022 report, its accounts stated the group’s streaming division had lost $1.5bn in the fiscal quarter alone.

A Financial Times article reports that Chapek’s inability to adequately cultivate Disney’s “creative output” was another sizeable factor in his ouster. Analysts believe that following Iger’s return as CEO, Disney will scale back on its streaming service to cut costs and reinvest in the firm’s creative divisions, which, under Chapek’s leadership, had lost substantial managerial and financial powers.

Why is this important for your interviews?

One of the skills clients most value in their legal advisers is the ability to understand the client’s commercial position. In simple terms, this means knowing how to leverage the business’ strengths to overcome any pressing weaknesses that are limiting its growth. Only then can a law firm add value to the client’s business.

Given the importance of understanding a client’s commercial position, many interviews test this ability through case studies that ask you to review and analyse a business’ performance. A rudimentary way of demonstrating this form of commercial acumen is through the SWOT analysis. That is, identifying a business’ Strengths, Weaknesses, Opportunities, and Threats.

Strengths and Weaknesses generally refer to the intrinsic nature of a business, such as its strategy, capital structure, market share, and personnel management. Opportunities and Threats refer to external considerations, such as the activity of competitors, political, legal and economic developments, and changes to consumer habits.

Disney’s leadership struggles may provide you with a topical way to develop your analysis. For instance, a SWOT outline of Disney may look something like this: