As Chief Financial Officer of The Walt Disney Company, Tom Staggs was not only responsible for the financial management of the company but also for the communication of the company’s financial and strategic objectives of its investor base. Because the Disney stature as the world’s most iconic entertainment brand, the company had a particularly broad investor base: over 991,000 shareholders in fiscal 2006 compared to 51,400 for Time Warner. Staggs had to develop and implement … Read more »

As Chief Financial Officer of The Walt Disney Company, Tom Staggs was not only responsible for the financial management of the company but also for the communication of the company’s financial and strategic objectives of its investor base. Because the Disney stature as the world’s most iconic entertainment brand, the company had a particularly broad investor base: over 991,000 shareholders in fiscal 2006 compared to 51,400 for Time Warner. Staggs had to develop and implement a communication strategy that was responsible for the diversity of investor base, the individual, institutional brokerage house, and mutual fund investors. He had to be aware that these constituencies often had different time horizons and investment prospects. In addition, several other factors contribute Staggs had in mind. First he had to consider that each message is delivered perceived by investors as a direct reflection of management’s capability and credibility. Second, he had to consider how the company affects the targets, the behavior of employees. Third, he had to decide how the communication strategy in a wide range of channels to implement, taking into account the purpose of the forum, regulatory requirements and expectations of the investors.
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from
Maureen McNichols,
Brian Tayan
Source: Stanford Graduate School of Business
52 pages.
Release date: 01 September 2007. Prod #: A195-PDF-ENG
Walt Disney Company: Investor Communication Strategy HBR case solution