"Quality is the Best Business Plan" - Tokyo Disney's Annual Report

[WDWFigment]

Here's a line from the report that resonated with me:

"Although an operating loss was posted for the first quarter (April to June) due to the impact of theme park closure, among other factors, operating income reached record highs in all of the three subsequent quarters. Factors contributing to the performance in and after the second quarter included a recovery in net sales driven by the highest ever figures for theme park attendance and net sales per guest, which reflected the success of the Tokyo DisneySea 10th Anniversary events..."

Perhaps Walt Disney World could take a page from the OLC playbook and do more for individual park anniversaries--such as Epcot's 30th.

You can read the full report here: http://www.olc.co.jp/wpmu/wp-content/blogs.dir/7/files/2012/04/20120426_01e.pdf

Thoughts?

This might *technically* be Tokyo Disney Resort news, but I'm presenting it for purposes of a WDW discussion and hope that it isn't sent to a subforum that few people read, since it is relevant to WDW's business model...

 

[alphac2005]

So, OLC believes that quality is of the utmost importance and that then drives visits and sales? I bet management in Orlando is laughing at that notion while they give the "stupid tourists" as little as possible for their money. Who cares? They won't notice. :lol:

Maybe, one day, there will be a management team in Orlando that sees, yet again, that when quality is presented, in the long-term, it leads to greater sales. I've in been in business for quite a long time and it doesn't matter the company size, quality always prevails and revenue tricks and endless price increases only cover up the problems for so long.

 

[Blueliner]

Quickly skimming the report, I was struck by how many references are made to enhancing guest satisfaction, and how the concept of guest satisfaction goes hand in and with their goal of increasing profitability.

They are taking a long view of capital expenditures, with a "balanced allocation of investment resources to new products and to renovations and improvements with the aim of enhancing the attractiveness of Tokyo Disney Resort." They're not just looking at what will increase profits now.

They want to minimize expense, but not at the cost of quality: "OLC will continue to enhance cost efficiency while retaining a high level of guest satisfaction."

I like what I see -- Invest for the long term and focus on quality. Now I need to figure out how to get my family to Tokyo.

 

[devoy1701]

That has to be one of the most honest and straight forward Annual Reports that I have ever read! The way they break down the finances in the beginning is a bit strange to be, but that's just a cultural gap. They seem very passionate on everything that they are offering, expansions, events, reduction of costs, increasing satisfaction.

Great stuff. Thanks for the link Tom.

 

[MichWolv]

Quickly skimming the report, I was struck by how many references are made to enhancing guest satisfaction, and how the concept of guest satisfaction goes hand in and with their goal of increasing profitability.

They are taking a long view of capital expenditures, with a "balanced allocation of investment resources to new products and to renovations and improvements with the aim of enhancing the attractiveness of Tokyo Disney Resort." They're not just looking at what will increase profits now.

They want to minimize expense, but not at the cost of quality: "OLC will continue to enhance cost efficiency while retaining a high level of guest satisfaction."

I like what I see -- Invest for the long term and focus on quality. Now I need to figure out how to get my family to Tokyo.

Having just visited Tokyo Disney Resort a couple months ago, I would say that they are very much living up to the enhancing of guest experiences and keeping quality high.

But the statements you cite in the annual report are statements that just about any company makes, and I suspect that TDO/WDC would say about WDW as well. I'm quite certain that TDO would absolutely agree that higher guest satisfaction leads to increased profitability, and that one must take a longer view of capital expenditures than just the immediate bottom line, and that resources should be allocated to new expiences and refurbishments with an aim of enhancing the attractiveness of WDW.

It's not that I disagree with your view that TDR is doing these things better than WDW -- I agree for the most part. It's just that the comments in the annual report are not evidence of that, because they are things that just about any company would say.

 

[Blueliner]

Having just visited Tokyo Disney Resort a couple months ago, I would say that they are very much living up to the enhancing of guest experiences and keeping quality high.

But the statements you cite in the annual report are statements that just about any company makes, and I suspect that TDO/WDC would say about WDW as well. I'm quite certain that TDO would absolutely agree that higher guest satisfaction leads to increased profitability, and that one must take a longer view of capital expenditures than just the immediate bottom line, and that resources should be allocated to new expiences and refurbishments with an aim of enhancing the attractiveness of WDW.

It's not that I disagree with your view that TDR is doing these things better than WDW -- I agree for the most part. It's just that the comments in the annual report are not evidence of that, because they are things that just about any company would say.

You may be right that most companies say things like this but fail to follow through with action. However, I still think this document has a tone that differs from most public filings.

 

[PlaneJane]

Having just visited Tokyo Disney Resort a couple months ago

.. Grrr lucky

 

[COProgressFan]

Having just visited Tokyo Disney Resort a couple months ago, I would say that they are very much living up to the enhancing of guest experiences and keeping quality high.

But the statements you cite in the annual report are statements that just about any company makes, and I suspect that TDO/WDC would say about WDW as well. I'm quite certain that TDO would absolutely agree that higher guest satisfaction leads to increased profitability, and that one must take a longer view of capital expenditures than just the immediate bottom line, and that resources should be allocated to new expiences and refurbishments with an aim of enhancing the attractiveness of WDW.

It's not that I disagree with your view that TDR is doing these things better than WDW -- I agree for the most part. It's just that the comments in the annual report are not evidence of that, because they are things that just about any company would say.

Interesting commentary, and I tend to agree with you here.

What used to make Disney different was that when they said these things, they meant it. They really did try to "exceed guest expectations", and put doing things right ahead of short term profits, with the belief that it would be beneficial to them in the long term. You could see this in the way that the parks were run, how employees were trained and treated, how there was a sense of pride and accomplishment in what they (the company) could do.

Today however, those corporate mantras and guidelines only seem to be followed when it's convenient. In a sense, they've become just like "any other" company, when they used to be so special.

 

[MichWolv]

You may be right that most companies say things like this but fail to follow through with action. However, I still think this document has a tone that differs from most public filings.

I may be jaded from having read (and written) so many public filings, but this stuff doesn't sound any different from anything else.

.. Grrr lucky

No argument there.

 

[devoy1701]

I don't really agree Mike...just comparing TWDC Annual Report to OLC's and I think the tone differs dramatically. The tone of this one sounds more like a Letter to the Shareholders from Michael Eisner's early years.

 

[MichWolv]

I don't really agree Mike...just comparing TWDC Annual Report to OLC's and I think the tone differs dramatically. The tone of this one sounds more like a Letter to the Shareholders from Michael Eisner's early years.

Am I Mike?

 

[devoy1701]

Am I Mike?

BAH! :dazzle:

I knew that Mich was for Michigan and not Michael... but alas I didn't think about it when responding because so many ppl use part of their names as their usernames here!

So yes you are...or were, at the time.

 

[MichWolv]

BAH! :dazzle:

I knew that Mich was for Michigan and not Michael... but alas I didn't think about it when responding because so many ppl use part of their names as their usernames here!

So yes you are...or were, at the time.

First Mike, and now you're referring to me the same as the stupid hat at DHS?!?!??!?

:ROFLOL: No hard feelings, Devon. :lookaroun

In any event, check the following quotes, all pulled from the 3-page shareholders letter in the 2011 TWDC annual report.

"Our financial and capital strength has allowed us to make important near and long term investments"

"We’ve made significant long-term investments in our parks and resorts, enhancing and expanding guests’ experiences."

"We, as a company, have been very fortunate to have a strong board of directors who bring their considerable experience to promoting the delivery of long-term value at Disney."

"On behalf of all of us who work at Disney, I want you to know that we are all committed to excellence, creating insanely great family entertainment and focusing on what counts to deliver incredible entertainment experiences and shareholder value."

Tone sounds similar to the document Tom linked to.

Mind you, I'm not disagreeing with the conclusion that OLC is doing a better job than WDW. I just think that seeing evidence of that in the words of the OLC shareholder communication is simply conforming the facts to what we already believe. The words that Iger uses ain't much difference, and he doesn't even say "cost efficiency" at all.

 

[PlaneJane]

First Mike, and now you're referring to me the same as the stupid hat at DHS?!?!??!?

:ROFLOL: No hard feelings, Devon. :lookaroun

In any event, check the following quotes, all pulled from the 3-page shareholders letter in the 2011 TWDC annual report.

"Our financial and capital strength has allowed us to make important near and long term investments"

"We’ve made significant long-term investments in our parks and resorts, enhancing and expanding guests’ experiences."

"We, as a company, have been very fortunate to have a strong board of directors who bring their considerable experience to promoting the delivery of long-term value at Disney."

"On behalf of all of us who work at Disney, I want you to know that we are all committed to excellence, creating insanely great family entertainment and focusing on what counts to deliver incredible entertainment experiences and shareholder value."

Tone sounds similar to the document Tom linked to.

Mind you, I'm not disagreeing with the conclusion that OLC is doing a better job than WDW. I just think that seeing evidence of that in the words of the OLC shareholder communication is simply conforming the facts to what we already believe. The words that Iger uses ain't much difference, and he doesn't even say "cost efficiency" at all.

They twisted that around so they didn't have to mention quality, which is I think one of the main points for the OLC report

 

[MichWolv]

They twisted that around so they didn't have to mention quality, which is I think one of the main points for the OLC report

Ok then, more quotes:

"new platforms and new markets provide enormous new opportunities for high quality content and experiences."

"I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally."

"The Disney Fantasy is an exciting addition to our fleet, which has set a new standard in the cruise industry providing outstanding high-quality service and memorable experiences."

"we are enhancing the quality of our storytelling and personalizing entertainment experiences while expanding our reach exponentially acoss brands and businesses."

"We are also excited about our Disney.com/YouTube partnership creating new
online video entertainment, providing fun high-quality family entertainment and allowing us to connect more deeply with our fans."

Those are from Iger's letter. I can't give you a quote mentioning "quality" in the OLC report, because the word doesn't appear.

 

[PlaneJane]

Ok then, more quotes:

"new platforms and new markets provide enormous new opportunities for high quality content and experiences."

"I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally."

"The Disney Fantasy is an exciting addition to our fleet, which has set a new standard in the cruise industry providing outstanding high-quality service and memorable experiences."

"we are enhancing the quality of our storytelling and personalizing entertainment experiences while expanding our reach exponentially acoss brands and businesses."

"We are also excited about our Disney.com/YouTube partnership creating new
online video entertainment, providing fun high-quality family entertainment and allowing us to connect more deeply with our fans."

Those are from Iger's letter. I can't give you a quote mentioning "quality" in the OLC report, because the word doesn't appear.

Yea I guess I was reading other peoples post and got things mixed up about quality.

 

[misterID]

How about this: Actions speak louder than words.

Not even a contest. TDO isn't even their rearview.

I wish the OLC would buy WDW.

 

[MichWolv]

How about this: Actions speak louder than words.

Yes!

 

[The Empress Lilly]

The differences between Tokyo Disney and WDW are not attributably only to isolated business decisions, but to more far reaching cultural differences.
The world has changed. America / the West can not provide the same standards of quality and innovation as East Asia can. We have got the second rate parks now.

The Japanese guest is a Tokyo professional who works sixty hours a week, who visits Disney in a suit and spends on quality escapism. The Florida guest is an obese Walmart customer who wants to see the celebs - cartoon or human - he saw on tv.


~ was that too harsh? ~

 

[PlaneJane]

The differences between Tokyo Disney and WDW are not attributably only to isolated business decisions, but to more far reaching cultural differences.
The world has changed. America / the West can not provide the same standards of quality and innovation as East Asia can. We have got the second rate parks now.

The Japanese guest is a Tokyo professional who works sixty hours a week, who visits Disney in a suit and spends on quality escapism. The Florida guest is an obese Walmart customer who wants to see the celebs - cartoon or human - he saw on tv.


~ was that too harsh? ~

Hey I may be a fat walmart customer, but when I go to WDW I want quality!