Grid Analysis to invest a theme park for Walt Disney
1.0 Introduction
Grid Analysis (also known as Decision Matrix Analysis, Pugh Matrix Analysis or MAUT, which stands for Multi-Attribute Utility Theory) is a useful technique to use for making a decision. It is particularly powerful where you have a number of good alternatives to choose from, and many different factors to take into account. This makes it a great technique to use in almost any important decision where there isn’t a clear and obvious preferred option. Being able to use Grid Analysis means that you can take decisions confidently and rationally, at a time when other people might be struggling to make a decision. Besides, it is easier to manageable, efficient and effective.
The technique works by getting you to list your options as rows on a table, and the factors you need consider as columns. You then score each option or factors combination, weight this score, and add these scores up to give an overall score for the option.
Here is the example of a grid analysis.
Variable Leverage Country Argentina Brazil Cuba Thailand Indonesia
Accepted Factor (A);Unaccepted (U)
Allow 100% equity hold
Allow licensing to subsidiaries which are owned by majority
Income (higher score = higher choice)
Tax rate 0 - 2
Economy - Income per capita 0 - 5
Market size 0 - 4 Total
Walt Disney Company have been the world’s largest media corporation, with five main business segments of media networks, parks and resorts, studio entertainment, consumer products and interactive media. More than 55 year later, Walt Disney Company have expand their business to five world class Walt Disney Parks and Resorts vacation destinations with 11 theme parks and 43 resorts in North America, Europe and Asia. Looking into great business opportunities on the Parks and Resorts, the expansion of this business to maximize the earnings and cash flow as well as allocating capital towards growth initiatives, a
Grid Analysis (also known as Decision Matrix Analysis, Pugh Matrix Analysis or MAUT, which stands for Multi-Attribute Utility Theory) is a useful technique to use for making a decision. It is particularly powerful where you have a number of good alternatives to choose from, and many different factors to take into account. This makes it a great technique to use in almost any important decision where there isn’t a clear and obvious preferred option. Being able to use Grid Analysis means that you can take decisions confidently and rationally, at a time when other people might be struggling to make a decision. Besides, it is easier to manageable, efficient and effective.
The technique works by getting you to list your options as rows on a table, and the factors you need consider as columns. You then score each option or factors combination, weight this score, and add these scores up to give an overall score for the option.
Here is the example of a grid analysis.
Variable Leverage Country Argentina Brazil Cuba Thailand Indonesia
Accepted Factor (A);Unaccepted (U)
Allow 100% equity hold
Allow licensing to subsidiaries which are owned by majority
Income (higher score = higher choice)
Tax rate 0 - 2
Economy - Income per capita 0 - 5
Market size 0 - 4 Total
Walt Disney Company have been the world’s largest media corporation, with five main business segments of media networks, parks and resorts, studio entertainment, consumer products and interactive media. More than 55 year later, Walt Disney Company have expand their business to five world class Walt Disney Parks and Resorts vacation destinations with 11 theme parks and 43 resorts in North America, Europe and Asia. Looking into great business opportunities on the Parks and Resorts, the expansion of this business to maximize the earnings and cash flow as well as allocating capital towards growth initiatives, a
References: Tariffs - The Economic Effect of Tariffs retrieved on 21st October 2013 from http://economics.about.com/cs/taxpolicy/a/tariffs.htm Geographical of Cuba, Brazil, Thailand and Indonesia from http://en.wikipedia.org/wiki/Main_Page Tariff Rate & Population of Cuba, Brazil, Thailand and Indonesia from http://www.tradingeconomics.com Shyam Kemani, Merger Policy in Small vs.Large Economies, in CANADIAN COMPETITION POLICY AT THE CENTENARY 205 (R. Shyam Khemani& W.T. Standbury eds., 1991