Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions
Jonathan Day, a recent MBA, is tasked with evaluating tax efficient divestitures for his company. Through his perspective, this case provides an overview of taxable and tax-free structures for corporate divestitures. Students will then analyze Disney's sale of ABC Radio, its portfolio of radio stations, to Citadel Broadcasting Corporation using a tax-free structure known as the reverse Morris Trust, and the tax advantages and financial ramifications of the ABC Radio sale for Disney, Disney's shareholders, and Citadel.
Swot Analysis of "Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions" written by Jonah Rockoff, Ira Weiss includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tax Radio facing as an external strategic factors. Some of the topics covered in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions casestudy better are - – increasing commodity prices, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing household debt because of falling income levels,
geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tax Radio, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tax Radio operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions can be done for the following purposes –
1. Strategic planning using facts provided in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions case study
2. Improving business portfolio management of Tax Radio
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tax Radio
Strengths Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tax Radio in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Tax Radio in the sector have low bargaining power. Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tax Radio to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Tax Radio is one of the leading recruiters in the industry. Managers in the Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Tax Radio is present in almost all the verticals within the industry. This has provided firm in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Strong track record of project management
– Tax Radio is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Tax Radio
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tax Radio does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Tax Radio has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Tax Radio in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Tax Radio is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Tax Radio is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Tax Radio has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Finance & Accounting industry
– Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions firm has clearly differentiated products in the market place. This has enabled Tax Radio to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Tax Radio to invest into research and development (R&D) and innovation.
Training and development
– Tax Radio has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Tax Radio has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tax Radio to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions, it seems that the employees of Tax Radio don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Tax Radio has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Increasing silos among functional specialists
– The organizational structure of Tax Radio is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Tax Radio needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tax Radio to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions HBR case study mentions - Tax Radio takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Workers concerns about automation
– As automation is fast increasing in the segment, Tax Radio needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Tax Radio, firm in the HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions can leverage the sales team experience to cultivate customer relationships as Tax Radio is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Tax Radio 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions, it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Tax Radio supply chain. Even after few cautionary changes mentioned in the HBR case study - Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tax Radio vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Tax Radio products
– To increase the profitability and margins on the products, Tax Radio needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions are -
Creating value in data economy
– The success of analytics program of Tax Radio has opened avenues for new revenue streams for the organization in the industry. This can help Tax Radio to build a more holistic ecosystem as suggested in the Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions case study. Tax Radio can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Tax Radio can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Tax Radio can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Building a culture of innovation
– managers at Tax Radio can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Using analytics as competitive advantage
– Tax Radio has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tax Radio to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Tax Radio to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Buying journey improvements
– Tax Radio can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tax Radio can use these opportunities to build new business models that can help the communities that Tax Radio operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Manufacturing automation
– Tax Radio can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Tax Radio can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Tax Radio in the consumer business. Now Tax Radio can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tax Radio can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tax Radio can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Tax Radio can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions are -
Shortening product life cycle
– it is one of the major threat that Tax Radio is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Tax Radio in the Finance & Accounting sector and impact the bottomline of the organization.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tax Radio can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Tax Radio needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Tax Radio can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Regulatory challenges
– Tax Radio needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Increasing wage structure of Tax Radio
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Tax Radio.
High dependence on third party suppliers
– Tax Radio high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions, Tax Radio may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Tax Radio business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tax Radio can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tax Radio with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture, Assignment Questions is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Tax Radio needs to make to build a sustainable competitive advantage.
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