You are a major senior executive with a company in an industry you love or would maybe want to join. You and your team are brainstorming a major project or endeavor to add to the company’s operations to improve its financial condition. Answer these questions regarding Disney’s Pandora Project Disney’s Pandora Project – Alternative Formats for this assignment.
What kind of financial assumptions and metrics do you think mattered to Disney executives? Be sure to comment on sunk costs, opportunity costs and financing costs.
What were the incremental cash flows (revenue streams and related expenses) Disney executives projected from opening this ride? What were the sources of cash flow? What were some incremental costs associated with adding this land to the park?
How many additional visitors would Walt Disney World receive from this new land in Animal Kingdom?
Would there be any cannibalism at their other “lands” within Walt Disney World (this includes the Magic Kingdom, Hollywood Studios and EPCOT)? How much? Or would it increase visits to all parks?
How long would the Animal Kingdom draw additional visitors due to Pandora? Would there be a point where popularity would taper off over time?
How would this project impact competitors? What would they likely experience? How would they react in terms of their own projects?
What has been the actual results vs. projections made prior to the land being built? (answer this if you research a past project for a company).
Where? – Secret Company Board Room
Who? – Senior Executives and Other Movers/Shakers
Why? – To make plans for a future major project
The Back Story
Recently, my family vacationed at Walt Disney World and ended up visiting a new area in the
Animal Kingdom called Pandora – The World of Avatar. While waiting in the long queue for the
signature ride, Avatar, Flight of Passage (the ride was well worth it, let me tell you!) we talked
about the cost of constructing this land and what would be the financial benefits of this new
land at Animal Kingdom.
Opened in May 2017 at a supposed cost of $1 Billion dollars, Disney has had high hopes for this
project with the aim to reinvigorate Animal Kingdom. Some questions we addressed included:
What kind of financial assumptions and metrics do you think mattered to Disney
executives?
What were the incremental cash flows (revenue streams and related expenses) Disney
executives projected from opening this ride? What were the sources of cash flow? What
were some incremental costs associated with adding this land to the park?
How many additional visitors would the Walt Disney World receive from this new land in
Animal Kingdom?
Would there be any cannibalism at their other “lands” within Walt Disney World (this
includes the Magic Kingdom, Hollywood Studios and EPCOT? How much? Or would it
increase visits to all parks?
How long would the Animal Kingdom draw additional visitors due to Pandora? Would
there be a point where popularity would taper off over time?
How would this project impact competing companies? What would they likely
experience? How would they react in terms of their own projects?
What has been the actual results vs. projections made prior to the land being built?
(answer this if you research a past project for a company).
Your Mission
Now it’s your turn to take another industry project for a “ride”.
You are a major senior executive with a company in an industry you love or would maybe want
to join. You and your team are brainstorming a major project or endeavor to add to the
company’s operations to improve its financial condition. Using the questions we posed above
regarding Disney’s Pandora Project, answer them for your project.
Here are some sample ideas (you don’t need to use these ideas, just use them for inspiration):
Norwegian Airlines is considering expanding into three new cities in the U.S with flights
to Asia.
Hilton is considering starting a new hotel brand to go after a new lodging segment.
Darden Group is thinking of adding a new segment to compete with Panera Bread and
other fast casual concepts.
EA has a new video game they are thinking of introducing to thwart competitive
pressures.
Whole Foods/Amazon are interested in going after smaller markets using a sub-brand of
smaller footprint locations. (This is true it’s called “365”)
You’re a mall operator trying to reduce the threat of online retail.
Be creative! You’ll be sharing your strategy session in a discussion forum to share with the class.
The goal is to learn from each other!
