Economics Today and Tomorrow

"A Mighty Mouse"

Introduction
When Walt Disney formed his company in the 1920s, he was hoping to sell cartoons and comic strips to magazines. He even dabbled in animation during a time when no one else could see its appeal. It is doubtful, however, that even the dreamer in Disney could envision that his company would grow into a multi-billion dollar conglomerate, with worldwide interests in virtually every aspect of communications. To understand the structure of a conglomerate such as the Walt Disney Company, a consumer can read the corporation's annual report. Typically, the report includes financial data and a message to stockholders reviewing the past year and looking forward to the next. Go to the Internet to read the latest annual report of The Walt Disney Company to see first-hand the inner workings of a huge conglomerate.

Destination Title: The Walt Disney Company: About Disney

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Directions
Start at the Disney Online Web site.

• Under "Investor Information," click on Investor Relations.
• Click on 2005 Annual Report.
• Click on the latest annual report available.

1			What acquisitions was Disney concerned with during the past year? Was this acquisition similar to its other businesses, or will it complement the corporation in a different way?
2			To see the corporate structure of Disney, look at the Board of Directors and Corporate Executive Officers. How many Corporate Executive Officers are there? How many chief executives of Disney's principal businesses are listed?
3			Which business segment provides Disney with the greatest revenues? Which segment produces the least amount of revenues?
4			What does the CEO say will be the business's newest ventures in the coming year?
5			Using your research, imagine you are the CEO of Disney. You have been asked to write a letter to the shareholders regarding your vision for the next 10 years. Your letter will be published in next year's annual report. State the businesses that you will try to grow, the businesses that you may phase out, and the next endeavors you would like to achieve. In addition, voice any concerns you may have about challenges facing the conglomerate during next 10 years.