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BUS 5117 Unit 3 Written Assignment
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A guide to assignment on PESTEL analysis of Disney
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University of The PeopleMBA Business Administration
BUS 5117-01 Strategic Decision Making and Management
Written Assignment – Unit 3
July 6, 2022
Dr. Madhusmita Panda
Disney Introduction
Walt Disney or simply Disney is a leader in the entertainment industry. It is established in 1923
by Walt Disney as a mass media entertainment (Disney, 2020). It has an annual revenue of over
$70,000 billion and more than 220,000 employees (Disney, 2020). It has bought other major
entertainment businesses like Pixar Animation Studios, Marvel Entertainment, and Lucas Films.
It has merged media distribution and advertising into a single business by acquiring ESPN+,
hulu, and hotstar (Disney, 2020).
PESTEL Analysis
A PESTEL analysis is a strategic framework developed to allow businesses to evaluate their
environment and make an informed decision (Corporate Finance Institute, 2022). It is a crucial
analysis tool for companies like Disney to help them understand the market dynamic,
competition, and opportunities and make improvements to their operation. As the name implies
PESTEL analysis includes political factors, economic factors, social factors, technological
factors, environmental factors, and legal factors.
Political Factors
Political factors include the local and international political dynamics and their implications.
These might include political stability, taxation, trade policies, and other policies. For instance,
policies that affect intellectual property rights will affect content ownership which affects
Disney's business and profitability. Policies that encourage content creators will help Disney's
growth.
, On the other hand, a lack of political stability will negatively affect Disney's business and future
expansion (MBA Skool Team, 2020). Also, stronger political stability will mean policies like the
one above could be implemented and supervised closely. The policies followed by other
countries where Disney releases its movies and shows will also affect its business. The policies
implemented in China especially have a significant impact on Disney. Consequently, as policies
conducive to the entertainment business are being implemented Disney could align its strategic
policies towards expanding its business and improving its performance.
Economic Factors
The economic growth of the country will affect the businesses that operate in that country. For
Disney, its major market is the U.S. hence the growth and stability of the U.S. market are crucial.
Hence, Disney's executives should consider the market indicators while developing strategic
policies. Additionally, Disney is expanding into other markets like Asia. This would be a great
opportunity to create a new source of revenue. China is the leading market in Asia; however, the
slower growth seen there could be seen as a threat to Disney's growth (MBA Skool Team, 2020).
Finding ways to penetrate new markets while analyzing the market growth rate and stability
should all be important factors while shaping the strategic plans.
Social Factors
Social factors are linked with customers' and employees' cultures, values, beliefs, and norms.
Different societies have different social norms and values (Jigsaw Academy. 2021). Hence, as
the company becomes more global balancing and respecting diverse cultures will become
critical. Cultural values will also change and evolve within a society as individuals' values and
beliefs change. Disney needs to cater to these changes while maintaining the internal ethical
standard is important for Disney. A sound strategic decision should incorporate the changing
cultural landscape, the move to online media, and the increasing cultural diversity. Balancing all
these may prove difficult however necessary. Products that are watched by millions of audiences
like movies, TV shows, and video games have the power to reflect the company's value hence
care should be given.
Technological Factors
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