FINANCE

Risks Associated With the Initiative and Financial Effects

[Name of College]

Risks associated with the initiative and financial effects

Introduction

Risk is the synonym of the business and every process/initiative of business involve some sort of risk. However, besides some non-cash affects of business initiatives, financial risks is the crucial factor that business should consider for avoiding any financial loss, that can harm the economic health of any company. This study would discuss the financial impacts of the decisions taken by Disney Company and what are the risks associated with the decision of Disney Company.

Disney Company

The Walt Disney Company (commonly known as Disney) is one of the largest companies in the world in the field of media and entertainment and is the market leader for the entertainment of children. Disney Company was founded in October 16, 1923 by Walter Elias Disney and his brother Roy Oliver Disney as the Brothers Cartoon Studio, and is now the second largest in the U.S. media. The headquarters of the Disney Company is in Burbank, California (Dean & Snell, 1996, 459-480).

The company has many key elements within the strategic planning that helps the organization stay within limits. The company intends to meet the market expectations by producing the material as per the taste of the customers. Presently, the company has taken an initiative to produce the content which not only would comply with the tastes of the audience but also take its target audience to a new world by producing more quality content. This step taken by the company involves the purchase of new equipments however; a recent survey reflects that the audience seems present video quality as satisfactory. The initiative taken by Disney Company involves some financial impacts which may increase the viewership of Disney's produced content. Business strategies always involved risks and the chances of success, but ...