Feedback November 2002 (Vol 43 No 4)

CLASSROOMSWOT ANALYSIS: DISNEY CONSIDERSACQUISITION OF YAHOO!A CASE STUDY ASSIGNMENT FOR AMEDIA MANAGEMENT COURSEJeff Blevins, Central Michigan Universityjeff.blevins@cmich.eduAn earlier version of this paper placed third in the Management & Sales Division annual CaseStudy Competition at the Broadcast Education Association national convention in Las Vegas,NV, April 5-8, 2002.It is, perhaps, difficult to find apt case study assignments that help familiarize studentswith complex business structures of communication conglomerates in electronic mediamanagement courses. Often, it seems that lecture is the best method to discuss thecomplexities of vertical and horizontal integration, and mergers and acquisitions withinthe industry. This assignment, however, will specifically demonstrate the complicationsthat high-ranking corporate officers face when considering a proposed acquisition ofanother media outlet. In addition, students find it fun to role-play at a high-level.Rather than simulating the familiar dilemma of a promotions director for a strugglingstation with little-to-no budget, students get to troubleshoot as executive officers forone of the world’s top media conglomerates, the Walt Disney Company. Focusing on ahypothetical proposed acquisition of the Yahoo! Internet portal, students are requiredto research Disney’s corporate holdings (through trade publications and Securities &Exchange Commission 10-K reports) in order to conduct a Strengths, Weaknesses,Threats, and Opportunities (SWOT) analysis, and critically evaluate the anticipatedtransaction.The assignment accomplishes three central aims of developing familiarity with mediaindustries, fostering critical thinking, and honing research skills. First, students becomefamiliarized with the intricate structure of a contemporary media conglomerate(focusing on the Walt Disney Company) while conducting the SWOT analysis of howan acquisition of another company (in this case, Yahoo!) may affect its businessstrategies. Second, conducting the SWOT analysis builds student critical thinking skillsin thinking through the implications (both positive and negative) of a multi-facetedbusiness venture. Third, the assignment requires students to do a substantial amount ofresearch through trade literature and SEC reports, and then successfully apply thatresearch to their analysis.THE ASSIGNMENTStudents are broken into groups of five, with each student acting as head of one of48Feedback November 2002 (Vol. 43, No. 4)