Profile Sheet
Original Title: Economists Research Effects of Disney World Closing
Primary Subject Area: Social Studies
Outside Subject Area: Language Arts
Description of student roles and problem situation:
Students become members of the Florida Economic Committee. The current
weakening economy has drawn many concerns from the local officials in Orlando,
Florida. The local officials have brought their concerns to The Governor of Florida.
Therefore, the Governor sends a memo to the Committee requesting a report on the
local economy. The report will detail the possible effects of a full or partial closing
of Walt Disney World in Orlando, Florida.
Teacher: Deborah Van Zant
Grade level: 4th Grade
Adaptations for Student from Non-Western culture:
Research values system of culture and align instructional techniques and classroom
activities with these value systems
Provide additional resources on topic to student including access to kid friendly Disney
World website
Provide additional information about Florida to student including map of United States,
map of Florida, and internet brochures on Orlando and surrounding counties
Adaptations for ESOL Student:
Translate memo into student’s first language
Provide picture representations when possible
Allow native language dictionaries
Title, Learner Characteristics, Sunshine State Standards
Teacher: Deborah Van Zant
Primary Subject Area: Social Studies
Outside Subject Area: Language Arts
Class Level: Regular
Grade Level: 4th grade
Class: Beginning Economics
PBL Title: Economists Research Effects of Disney World Closing
SSS in Social Studies:
Benchmark
Number:
SS.4.E.1.1
Benchmark
Description:
Identify entrepreneurs from various social and ethnic
backgrounds who have influenced Florida and local economy.
Subject Area:
Social Studies
Grade Level:
4
Strand:
Economics
Standard:
Beginning Economics -
Date Adopted or
Revised:
12/08
Status:
State Board Approved
Remarks/Examples: Examples are Henry Flagler, Walt Disney, Ed Ball, Alfred
Dupont, Julia Tuttle, Vincente Martinez Ybor.
Independent
» SS.4.E.1.In.a:
Recognize contributions of entrepreneurs who influenced Florida,
such as Walt Disney (theme parks) and Henry Flagler (railroads).
Supported
» SS.4.E.1.Su.a:
Recognize a contribution of an entrepreneur who influenced
Florida, such as Walt Disney (theme parks).
Participatory
» SS.4.E.1.Pa.a:
Recognize that many people made contributions to Florida.
Benchmark
Number:
SS.4.E.1.2
Benchmark
Description:
Explain Florida's role in the national and international economy
and conditions that attract businesses to the state.
Subject Area:
Social Studies
Grade Level:
4
Strand:
Economics
Standard:
Beginning Economics -
Date Adopted or
Revised:
12/08
Status:
State Board Approved
Remarks/Examples: Examples are tourism, agriculture, phosphate, space industry.
Independent
» SS.4.E.1.In.b:
Identify important economic contributions of Florida, such as
tourism, agriculture, and the space industry.
Supported
» SS.4.E.1.Su.b:
Recognize an important economic contribution of Florida, such
as tourism, agriculture, or the space industry.
Participatory
» SS.4.E.1.Pa.b:
Associate a good or service with Florida, such as oranges,
spacecraft, or theme parks.
SSS in Language Arts:
Benchmark
Number:
LA.4.6.2.1
Benchmark
Description:
The student will select a topic for inquiry, refine a predetermined
search plan;
Subject Area:
Reading/Language Arts
Grade Level:
4
Strand:
Information and Media Literacy
Standard:
Research Process - The student uses a systematic process for the
collection, processing, and presentation of information.
Date Adopted or
Revised:
01/07
Status:
State Board Approved
Learner Characteristics #1, Physical: Students can now sit quietly for extended
periods and concentrate on whatever intellectual task is at hand.
Justification for #1: Because students can now sit quietly for extended periods and
concentrate on whatever intellectual task is at hand, it is important to provide an orderly
and quiet classroom environment for students to be able to concentrate on the assignment.
Learner Characteristic #2, Social: Friendships become more selective and gender
based.
Justification for #2: Because students will avoid the opposite sex when left to their own
devices, it is important to ensure each group has an equal number of girls and boys
whenever possible.
Learner Characteristic #3, Emotional Characteristics: During this period, children
develop a more global, integrated, and complex self-image.
Justification for #3: It is important to ensure the instruction is positive and allows all
students to feel good about their participation in the assignment.
Learner Characteristic #4, Cognitive Characteristics: On tasks that require more
complex memory skills, elementary grade students' performance is more limited.
Justification for #4: Because students' complex memory skills are limited, it is
important to ensure all reference material is available to students throughout the
assignment.
Learner Characteristic #5, Social: During this period, the peer group becomes
powerful and begins to replace adults as the major source of behavior standards and
recognition of achievement.
Justification for #5: It is important to ensure discipline is maintained within the
classroom to prevent students from mimicking unacceptable behavior of peers.
Learning Outcomes, Student Roles and Problem Situation, Meet the Problem
Method
SSS in Social Studies:
SS.4.E.1.1
Identify entrepreneurs from various social and ethnic backgrounds who have influenced
Florida and local economy.
LO#1: Working in groups, students will utilize the library to research the life of
entrepreneur Walt Disney. Students will then create a visual display detailing at least 3
accurate ways Walt Disney has influenced Florida and the local economy as well as at
least three accurate ways Walt Disney World has influenced Florida and the local
economy.
SS.4.E.1.2
Explain Florida's role in the national and international economy and conditions that
attract businesses to the state.
LO#2: Working in groups, students will utilize the library to research the role Florida's
tourism plays in the national and international economy. Students will then create a
visual display detailing at least 3 accurate goods or services Florida's Disney World
provides to encourage tourism and to stimulate the local economy.
LA.4.6.2.1
The student will select a topic for inquiry, refine a predetermined search plan;
LO #3: Given the oral presentation rubric, groups will present their economic forecast
reports via press release, earning 3 or above in each dimension of the presentation rubric,
which uses a 5 point scale.
Description of Student Roles and Problem Situation:
Students will act as the economists investigating the possible effects of Disney World
closing on Orange, Osceola, and Brevard counties in Florida. They will report their
findings to the local officials.
Meet the Problem Documents:
Students will be read a memo from local officials in regards to the partial closing of
Disney World.
MEMO
To The Florida Economic Committee:
Local officials are concerned 2009 will see a significant reduction in the
number of tourists visiting Disney World. This reduction may force a
partial closing of the theme park. Therefore, local officials have asked
you to prepare a report detailing the possible effects to the local
economy. They have provided the following data for your review: an
Economic Impact Report from the Disney Public Affairs Representative,
a 2008 Annual Report from Disney World, an article from the Orlando
Business Journal, and an article from Travel Lady Magazine. Please
provide your report within 5 days of receipt of this memo.
With Regards,
Charlie Christ
Governor Charlie Christ
Economic Impact Report - Executive Summary
THE ECONOMIC AND FISCAL IMPACTS OF WALT DISNEY WORLD ON
ORANGE, OSCEOLA, AND BREVARD COUNTIES
 The opening of Walt Disney World (WALT DISNEY WORLD) in 1971
transformed Central Florida’s economy and ushered in the modern era of tourism
in the region. Today, Orlando is the number one tourist destination in the world.
 Tourism is Central Florida’s most important industry, and WALT DISNEY
WORLD is the region’s single largest employer. In 2003 WALT DISNEY
WORLD directly employed over 49,000 almost all of them at the Walt Disney
World resort complex in Orange and Osceola Counties largest single-site
workforce in the entire U.S.
 In addition to the WALT DISNEY WORLD employees, there are an additional
14,000 on site workers employed by third party hoteliers, restaurants and other
related activities. Also, some 1,200 more work at Celebration. WALT DISNEY
WORLD and its related activities supported a workforce of over 65,000 in 2003.
Table I summarizes the economic and financial impacts of the WALT DISNEY
WORLD’s operations.
Table L. Summary of Economic and Fiscal Impacts of Walt Disney World on
Orange, Osceola and Brevard Counties
Total
Direct
Jobs
65,123
Indirect
Total
46,079
111,202
Payroll/earnings
$1,902
$1,028
$2,931
Expenditures
$2,550
$2,567
$5,117
Fiscal Impact County $186
$25
$211
School Board
$5
$138


$133
In addition to directly generating more than 65,000 total jobs, WALT DISNEY
WORLD and its employees support an additional 46,079 jobs in Central Florida.
These downstream, or multiplier effects, result from the spending by WALT
DISNEY WORLD employees and the Company’s local purchases of goods and
services. Thus, total employment generated by WALT DISNEY WORLD
exceeds 110,000. This represented 12.1% of total jobs in the Orlando MSA in
2003. ·
WALT DISNEY WORLD’s annual payroll exceeds $1.3 Billion. Other jobs
directly supported by WALT DISNEY WORLD generate over $600 million in
annual payrolls. The indirectly supported workers earn an additional $1.0 Billion.
In total WALT DISNEY WORLD pumps almost $3 Billion per year into the
earnings stream of Central Florida.
2008 Annual Report
In fiscal 2008, despite an economy that weakened as the year progressed, we delivered
strong creative and financial results, posting record revenue and earnings per share.
Highlighting our financial achievements, revenue hit an all-time high of $37.8 billion, a 7
percent increase over the previous year. Earnings per share, excluding certain items
detailed in the footnote on page one, were $2.27, up 18 percent from the previous year.
Link to article from the Orlando Business Journal
http://orlando.bizjournals.com/orlando/stories/2004/05/31/story3.html
Link to article from the Travel Lady Magazine
http://www.travellady.com/Issues/Issue77/77W-orlando.htm
Problem Statement, Know/Need to Know Boards, Possible Resources
Sample Problem Statement:
How can we, as Florida Economic Committee Members, determine the effects on the
local economy of Disney World closing in such a way that

We meet the deadline for the report

We analyze the current effects of Disney World on the local economy

We provide the Governor with accurate data

We explain the economic impact in a way the Governor and the public can
understand
Know Board:
1. We must prepare a report for the Governor of Florida within five days.
2. The opening of Walt Disney World in 1971 transformed Central Florida’s
economy and ushered in the modern era of tourism in the region.
3. Today, Orlando is the number one tourist destination in the world.
4. Tourism is Central Florida’s most important industry, and Walt Disney World is
the region’s single largest employer. In 2003 Walt Disney World directly
employed over 49,000 almost all of them at the Walt Disney World resort
complex in Orange and Osceola Counties largest single-site workforce in the
entire U.S.
5. Walt Disney World’s annual payroll exceeds $1.3 Billion.
6. Other jobs directly supported by Walt Disney World generate over $600 million
in annual payrolls. The indirectly supported workers earn an additional $1.0
Billion.
7. In total Walt Disney World pumps almost $3 Billion per year into the earnings
stream of Central Florida.
8. In fiscal 2008, despite an economy that weakened as the year progressed, Walt
Disney World delivered strong creative and financial results, posting record
revenue and earnings per share.
9. Highlighting Walt Disney World financial achievements, revenue hit an all-time
high of $37.8 billion, a 7 percent increase over the previous year. Earnings per
share were $2.27, up 18 percent from the previous year.
10. Orlando is a major international attraction with more than 42 million visitors
annually.
11. Walt Disney World has four theme parks, three water parks, two nighttime
entertainment districts, and more than 25 on-site resorts.
12. Walt Disney World is the largest single-site employee in the United States.
13. Walt Disney World is responsible for more than 15% of Florida's $490B income.
Need to Knows:
1. Who is Walt Disney and why is he important to Florida's economy?
2. What is Florida's role in the international and national economy?
3. Have the number of visitors to Walt Disney World changed dramatically?
4. Has Walt Disney World changed the number of employees recently?
5. Have reservations changed in comparison with last year?
6. What is the forecasted number of visitors for 2009 in comparison with 2008?
7. Have the prices for hotel rooms changed for 2009 in comparison with 2008?
8. Which of the Walt Disney World's attractions has the least amount of visitors?
9. In what ways can Walt Disney World attract more visitors to the Orlando area?
10. How much does it cost for a family of four to visit Walt Disney World for one
week and frequent all of the attractions?
11. What information can the Walt Disney World Economic Impact Team provide?
10. What has Walt Disney World done to keep open during past tough economic
times?
11. If they were going to close a part or parts of Walt Disney World, what would they
close?
Resources:
Web sites:
http://corporate.disney.go.com/
www.orlandoinfo.com
www.waltdisneyworld.com
www.affordabledisney.com
Books:
Birnbaum's Walt Disney World For Kids 2009, Disney Editions; 2009 edition
(September 30, 2008), Steve Birnbaum
Magazine Articles:
Link to article from the Orlando Business Journal
http://orlando.bizjournals.com/orlando/stories/2004/05/31/story3.html
Link to article from the Travel Lady Magazine
http://www.travellady.com/Issues/Issue77/77W-orlando.htm
Webcast:
THE WALT DISNEY COMPANY EXECUTIVES TO DISCUSS FISCAL FIRST
QUARTER 2009 FINANCIAL RESULTS VIA WEBCAST
BURBANK, Calif., December 8, 2008 – The Walt Disney Company (NYSE: DIS) will
announce fiscal first quarter 2009 financial results via a live audio Webcast beginning at
4:30 p.m. EST / 1:30 p.m. PST on Tuesday, February 3, 2009 (results will be released at
approximately 4:01 p.m. EST / 1:01 p.m. PST). To listen to the Webcast, point your
browser to www.disney.com/investors. The discussion will be available via re-play
through February 17, 2009 at 7:00 p.m. EST / 4:00 p.m. PST.
Human Contacts:
Zenia Mucha
The Walt Disney Company Corporate Communications Representative
(818) 560-5300
Jonathan Friedland
The Walt Disney Company Corporate Communications Representative
(818) 560-8306
Lowell Singer
The Walt Disney Company Corporate Communications Representative
(818) 560-6601
Capstone Description
PBL Title: Economists Research Effects of Disney World Closing
SSS In Social Studies
SS.4.E.1.1: The student identifies entrepreneurs from various social and ethnic
backgrounds who have influenced Florida and the local economy.
LO#1: Working in groups, students will utilize the library to research the life of
entrepreneur Walt Disney. Students will then create a visual display detailing at least 3
accurate ways Walt Disney has influenced Florida and the local economy as well as at
least three accurate ways Walt Disney World has influenced Florida and the local
economy.
SS.4.E.1.2
Explain Florida's role in the national and international economy and conditions that
attract businesses to the state.
LO#2: Working in groups, students will utilize the library to research the role Florida's
tourism plays in the national and international economy. Students will then create a
visual display detailing at least 3 accurate goods or services Florida's Disney World
provides to encourage tourism and to stimulate the local economy.
LA.4.6.2.1
The student will select a topic for inquiry, refine a predetermined search plan;
LO #3: Given the oral presentation rubric, groups will present their economic forecast
reports via oral presentation, earning 3 or above in each dimension of the presentation
rubric, which uses a 5 point scale.
Capstone Performance Description:
The capstone performance for the problem contains 3 parts: a group presentation via
visual display on the life of Walt Disney, a group presentation via visual display on goods
and services Florida's Disney World provides, and a group oral presentation of their
economic forecast. Individual students will be assessed all of these parts via 2 different
rubrics—a report rubric and a presentation rubric.
In the first visual display, the student will research the life of Walt Disney and
present three accurate ways Walt Disney has influenced Florida and the local economy as
well as at least three accurate ways Walt Disney World has influenced Florida and the
local economy which will be scored via the report rubric. Each student will then report
their findings to the group. The groups will organize each report, apply connections
between each others work, and communicate thoughts in order to propose at least six
solutions and four justifications for choosing one over the other. Once the six final
selections have been made, students will create a visual display for the information. The
group visual display will be scored via the presentation rubric.
In the second visual display, the student will research the role of Florida's tourism
plays in the national and international economy and present three accurate goods or
services Florida's Disney World provides to encourage tourism and stimulate the local
economy which will be scored via the report rubric. Each student will then report their
findings to the group. The groups will organize each report, apply connections between
each others work, and communicate thoughts in order to propose at least three solutions
and four justifications for choosing one over the other. Once the three final selections
have been made, students will create a visual display for the information. The group
visual display will be scored via the presentation rubric.
After reading the provided resources, students will prepare their economic
forecast reports, earning a 3 or above in each dimension of the display rubric. Working
in groups, students will report their findings to the group. The groups will organize each
report, apply connections between each others work, and communicate thoughts in order
to propose at least two solutions and four justifications for choosing one over the other.
and the group will determine the "best" solutions to be presented to the local officials.
Once the "best" solution has been determined, the group will prepare their report and
provide an oral presentation. The oral presentation will be scored via the presentation
rubric.
One group will play the role of the local officials. Each group member will be
prepared to ask each member of the economic team a related question. The room will be
arranged such that the local officials will sit at a table facing the front of the classroom.
The economic team will stand at the front of the classroom. Each team may use the class
podium, the data projector, the screen, the chalkboard, etc. The remainder of the class
sits behind the local officials in their desks. (See room arrangement)
Student autonomy is incorporated as the individual student will prepare their own
solutions and present these solutions to the group. The individual student then has the
opportunity to brainstorm with the group to decide which solutions are the "best" to
present during the group presentations. The individual will also have to provide
justification to the group of their thought process in finding a solution. In addition, the
individual will be required to work with the group to find a consensus to the "best"
solution. In the culminating oral presentation, each group member must also be prepared
to provide some portion of the oral presentation for individual assessment and to answer a
question from the local officials for individual assessment.
Meta-cognition is encouraged as each student will complete a “reflection”
questionnaire after the group oral presentation to determine their decisions in regards to a
solution helped the group prepare for the presentation.
Room Arrangement Page
Chalkboard with screen
Group Oral Presentation
Local Officials Table
Student Desks
Rubric for Assessing Capstone Performance
Individual Research Rubric (Utilized For Learning Outcomes 1 - 3)
Evaluating Student Performance
Superior
Adequate
Unacceptable
3 Pts
Student accurately fills
in more than 7 and less
than 9 areas on the
information data sheet.
Student chooses at least
two accurate solutions
to the question.
Resubmit
Student accurately fills
in more than 5 areas and
less than 7 on the
information data sheet.
Student chooses at least
one accurate solution to
the question.
5 Pts
Student accurately
fills in source
reference for 9 out of
10 areas on the
information data
sheet.
3 Pts
Student accurately fills
in source reference for
more than 7 and less
than 9 areas on the
information data sheet.
Resubmit
Student accurately fills
in source reference for
more than 5 areas and
less than 7 on the
information data sheet.
10 Pts
Student accurately
provides three
solutions to the
problem.
6 Pts
Student accurately
provides two or less
solutions to the
problem.
Resubmit
Student does not
provide any or provides
inaccurate solutions to
the problem.
6 Pts
Student accurately
provides two or less
justifications for each
solution to the problem.
Resubmit
Student does not
provide any or provides
inaccurate justifications
for each solution to the
problem.
5 Pts
Student accurately
fills in 9 out of 10
Information
areas on the
Sheet
information data
Completion
sheet. Student
chooses three accurate
solutions to the
question.
Source
Reference
Solutions
10 Pts
Student accurately
provides two or more
Justifications
justifications for each
solution to the
problem.
Timeliness
10 Pts
6 Pts
Student meets time
Student does not meet
frame for completion time frame for
0 Pts
Student does not meet
time frame for
of the assignment.
40 - 36 = A
completion of the
completion of the
assignment but
assignment and does not
resubmits within 1 day. resubmit within 1 day.
35 - 30 = B 29 - 24 = C Less Than 24 Resubmit
Cooperative Learning Rubric (Utilized For Learning Objectives 1 - 3 Group
Participation)
Evaluating Student Presentations
Superior
Solutions
Unacceptable
3 Pts
Student participates in
group discussion and
provides two or less
accurate solutions to
the problem for group
review.
0 Pts
Student does not
participate in group
discussion and does not
provide any solutions to
the problem for group
review.
5 Pts
Student participates in
group discussions and
provides three accurate
sources of information
for group review.
3 Pts
Student participates in
group discussion and
provides two or less
sources of information
for group review.
0 Pts
Student does not
participate in group
discussion and does not
provide any sources of
information for group
review.
10 Pts
Student accurately
provides three
solutions to the
problem to the group
6 Pts
Student accurately
provides two or less
solutions to the
problem to the group.
3 Pts
Student does not
provide any or provides
inaccurate solutions to
the problem to the
group.
5 Pts
Student participates in
Information
group discussions and
Sheet
provides three accurate
Completion
solutions to the
problem for group
review.
Source
Reference
Adequate
10 Pts
Student accurately
provides two or more
Justifications
justifications for each
solution to the problem
to the group.
6 Pts
Student accurately
provides two or less
justifications for each
solution to the problem
to the group.
3 Pts
Student does not
provide any or provides
inaccurate justifications
for each solution to the
problem to the group.
10 Pts
Student meets time
frame for completion
Timeliness
of the assignment.
40 - 36 = A
6 Pts
Student does not meet
time frame for
completion of the
assignment but
resubmits within 1 day.
0 Pts
Student does not meet
time frame for
completion of the
assignment and does
not resubmit within 1
day.
35 - 30 = B 29 - 24 = C Less Than 24 Resubmit
Cooperative Learning Rubric (Utilized For Learning Objectives 1 - 3 Group
Participation)
Evaluating Student Presentations
Superior
Solutions
Justifications
Unacceptable
3 Pts
Student participates in
group discussion and
provides two or less
accurate solutions to
the problem for group
review.
0 Pts
Student does not
participate in group
discussion and does not
provide any solutions to
the problem for group
review.
5 Pts
Student participates in
group discussions and
provides three accurate
sources of information
for group review.
3 Pts
Student participates in
group discussion and
provides two or less
sources of information
for group review.
0 Pts
Student does not
participate in group
discussion and does not
provide any sources of
information for group
review.
10 Pts
Student accurately
provides three
solutions to the
problem to the group
6 Pts
Student accurately
provides two or less
solutions to the
problem to the group.
3 Pts
Student does not
provide any or provides
inaccurate solutions to
the problem to the
group.
10 Pts
6 Pts
3 Pts
5 Pts
Student participates in
Information
group discussions and
Sheet
provides three accurate
Completion
solutions to the
problem for group
review.
Source
Reference
Adequate
Student accurately
provides two or more
justifications for each
solution to the problem
to the group.
10 Pts
Student meets time
frame for completion
Timeliness
of the assignment.
40 - 36 = A
Student accurately
provides two or less
justifications for each
solution to the problem
to the group.
Student does not
provide any or provides
inaccurate justifications
for each solution to the
problem to the group.
6 Pts
Student does not meet
time frame for
completion of the
assignment but
resubmits within 1 day.
0 Pts
Student does not meet
time frame for
completion of the
assignment and does
not resubmit within 1
day.
35 - 30 = B 29 - 24 = C Less Than 24 Resubmit
Group Presentation Rubric (Utilized For Learning Objectives 1 - 3 Group
Participation Presentation Visual Display and Oral Presentation)
Evaluating Group Presentations
Superior
Group
Information
Sheet
Completion
Group
Source
Reference
Group
Solutions
Adequate
Unacceptable
3 Pts
Group provides two or
less accurate solutions
to the problem for
group review.
0 Pts
Group does not provide
any solutions to the
problem for group
review.
5 Pts
Group provides three
accurate sources of
information for group
review.
3 Pts
Group provides two or
less sources of
information for group
review.
0 Pts
Group does not provide
any sources of
information for group
review.
10 Pts
Group accurately
provides three
solutions to the
problem.
6 Pts
Group accurately
provides two or less
solutions to the
problem.
3 Pts
Group does not provide
any or provides
inaccurate solutions to
the problem.
5 Pts
Group provides three
accurate solutions to
the problem for group
review.
10 Pts
Group accurately
provides two or more
Group
Justifications justifications for each
solution to the
problem.
10 Pts
Student accurately
Group
Questions answers questions
from audience.
(scored
individually)
40 - 36 = A
6 Pts
Group accurately
provides two or less
justifications for each
solution to the
problem.
6 Pts
Student does not
accurately answer
questions from
audience.
3 Pts
Group does not provide
any or provides
inaccurate justifications
for each solution to the
problem.
0 Pts
Student does not answer
their question from the
audience.
35 - 30 = B 29 - 24 = C Less Than 24 Resubmit
Two Alternative Solutions and “Best” Solution Analysis
PBL Solution One
The Florida Economic Committee has determined there will be no significant reduction
in the number of tourists visiting Disney World in 2009. Therefore, they do not foresee
any portion of the park closing. They provide accurate data concerning tourist
projections, they use fiscal year 2008 as a basis for revenue projections, and they use
Disney World Impact Report to determine no negative effects of weakening economy on
Disney World.
PRO
The local economy will not be impacted.
Disney World will not close any parks or attractions.
The 2008 posted record revenue and earnings per share were obtained even though the
economy had weakened significantly in 2008.
There will be few negative effects of weakening economy on Disney World and minimal
job losses.
CON
State economy may be impacted as Disney World tourists may not visit other areas of
Florida while visiting Disney World due to weakening economy.
Disney World projected visitors may remain high; however, visitors may not visit
multiple parks or other Disney attractions to save money. This could result in job losses
due to a reduction in revenue.
The 2008 report does not take into account those tourists who had booked their vacations
in 2007 during better economic times. This could create a false security in regards to
2009 projections.
The Committee is only looking at tourist projections for Disney World not the overall
Orlando area. These projections may not correlate with tourist traffic in Orlando as a
whole. Therefore, the local economy could still see a significant decrease in tourist
revenue.
Consequences
The Local Officials will not be prepared for the potential loss of revenue for the counties
if the tourist projections for Disney World are inaccurate.
Disney employees may have a false sense of job security when Disney's overall revenue
may decrease from lack of tourist spending during their visit and a lack of tourist visiting
multiple parks and attractions.
PBL Solution Two
The Florida Economic Committee has determined there will be a significant reduction in
the number of tourists visiting Disney World in 2009. Therefore, they foresee at least
one park closing, one water park closing, and one nightclub closing. These attractions
will be closed temporarily until the economy improves. They provide accurate data
concerning tourist projections, they provide accurate data on the number of job losses,
and they use Disney World Impact Report to determine the negative effects to the local
economy and county budgets.
PRO
The closures within Disney World may create additional revenues for the other portions
of Disney World that are still open.
The closures may open up new property management jobs within Disney World thereby
decreasing the number of job losses overall.
State economy may be impacted as Disney World tourists may decide to visit other areas
of Florida increasing the tourist revenue in those areas.
Some Disney World employees may be able to be transferred to other Disney and third
party hoteliers, restaurants, etc. in the Orlando area.
CON
The local economy will be impacted.
Disney World will close one park, one water park, and one nightclub.
There will be significant job losses as a result of the closures.
There will be significant negative effects to the local economy and county budgets.
Consequences
The negative publicity of the Committee's report may drive Disney World visitors to even
lower numbers.
The overall Disney name may also be diminished as a result of the closures and the brand
may suffer sales and revenue losses in other areas such as their clothing line, furniture
line, theatre productions, etc.
Best Solution
Solution one would be the best solution. In this scenario, the local economy would not be
impacted. Disney World would not close any parks or attractions. And, there would be
no negative effects of weakening economy on Disney World.
Justifications
1) In 2008, despite an economy that weakened as the year progressed, The Disney
Company according to its 2008 report, "delivered strong creative and financial results,
posting record revenue and earning per share". In fact, revenue "hit an all-time high of
$37.8 billion, a 7 percent increase over the previous year".
2) Orlando is the number one tourist destination in the world and that Orlando is a major
international attraction with more than 42 million visitors annually.
3) According to an article posted on Travel Industry Bug in regards to The Disney
Companies 2009 First Quarter, "Walt Disney Co reported a quarterly net income of $845
million, or 45 cents a share, a 32 percent decline from $1.25 billion, or 63 cents a share,
a year earlier. Revenue fell 8 percent, to $9.6 billion".
4) The Disney Company is poised to confront the challenging economic conditions. "We
faced a challenging first quarter with many of our businesses impacted to various
degrees by the economic downturn,” said Robert A. Iger, Disney’s president and CEO.
“We are forcefully confronting current circumstance while investing in the great
creativity, brands and assets that are Disney’s strengths and keys to its long-term
success.”
5) The Disney Company Second Quarter "earnings are expected to be even lower, with
analysts estimating profit per share of $0.47 on revenues of $8.4 billion" according to
Travel Industry Bug.
6) With all of the preemptive steps Disney is putting in place, there may be some job
losses in 2009 as a result of the economic conditions. However, these job losses appear
to be minimal in comparison to the overall number of employees. According to Travel
Industry Bug, "In late January, in a likely bid to cushion the impact of a tough Q1
earnings report, the company offered voluntary buyout packages to around 600 execs at
its theme park and resort divisions. The executives have been given until Feb 6 to accept
the offers. If Disney does not get enough volunteers, they plan to implement involuntary
layoffs with lesser severance packages than that offered in the buyout. Secondly, they’re
removing 400 jobs from the ABC TV Division by letting go 200 people and not filling 200
positions. They’re also planning some reorganization, with ABC Entertainment and ABC
Studios to be operated as a coordinated business unit entitled ABC Entertainment Group.
Earlier, Disney’s ESPN had announced a reduction of 200 jobs and a salary freeze for
senior executives. And in what is beginning to look like a trend among the big theme
park operators, Disney is also starting to focus more on expanding it’s footprint in Asia,
with revived plans to set up a long planned Disney theme park in Shanghai".
7) It will not be easy but The Disney Company appears to be taking all the right steps to
prevent severe losses in 2009 and has provided no notice of any park closings scheduled
for the near future. Instead, they appear to be working towards making changes to help
them be successful during these hard times and despite some loss of revenue they should
be able to hold their own over the next few years.
Counter-offer
1) Walt Disney Co.’s Q2 earnings are expected to be even lower, with analysts
estimating profit per share of $0.47 on revenues of $8.4 billion.
2) According to Travel Industry Bug, "in addition to an expected continuing slump in
bookings and ticket sales at its two theme parks and resorts, analysts also predict steep
drops in Disney’s DVD sales from the movie studios and loss of ad revenue from
Disney’s regional ‘owned-and-operated’ TV stations".
3) The Disney Company "offered voluntary buyout packages to around 600 execs at its
theme park and resort divisions. The executives have been given until Feb 6 to accept the
offers. If Disney does not get enough volunteers, they plan to implement involuntary
layoffs with lesser severance packages than that offered in the buyout". This could be
just the tip of the iceberg in regards to job losses within Walt Disney World.
4) Disney's Chief Executive Robert Iger warned analysts "the bad state of the economy
could continue to dampen consumer spending well into 2009".
Reference: http://travel-industry.uptake.com/blog/2009/02/03/walt-disney-co-firstquarter-earnings/
Debriefing Plan and Coaching Questions
All teams of Economic Committee members will make presentations to the “Local
Officials” in the presence of all other teams. In that way, all students will hear all
possible solutions. The teacher will act as scribe and record the characteristics of each
proposed “best solution.” These characteristics will be provided on a handout to all
students on the day of class following the presentations. Economic Committee member
teams will rate each “best solution” providing a list in priority order (#1 is best of the
“best”). Points are assigned for each “place” on the list as designated below. The teacher
will tally the points for each solution.
The two solutions receiving the most points will then be examined in a whole class
session. The teacher will ask the class if there is a way to combine the two solutions to
make one “even better” solution. Through a class discussion, students will reach
consensus on portions of the solutions to use. The teacher will write a bulleted list of
these portions on the board for all to see.
Points on the Ordered List
Place
1
2
3
4
5
6
Points Awarded
10
7
5
3
1
0
Five Essential Concepts
The “best” solutions must utilize accurate scientific concepts. This includes explaining
how each of the following affects the local economy.
1) Identify Walt Disney As An Entrepreneur Who Has Influenced Florida And The
Local Economy.
* Required Coaching Questions
C
M
E
Who is Walt Disney and why is he important to Florida's economy?
What do you already know about Walt Disney?
Where would you find more information about Walt Disney?
2) Explain Florida's Role In The National And International Economy And
Conditions That Attract Businesses To The State.
* Required Coaching Questions
C
M
E
What is Florida's role in the National and International economy?
What do you already know about Florida's economy?
If you were the Governor of Florida, how would you attract businesses to
our state?
3) The Solution Will Demonstrate The Use Of A Predetermined Research Plan
* Required Coaching Questions
C
M
E
What steps will you take to research this problem?
What resources do you already have?
What other resources would facilitate your research on the problem?
4) The Solution Will Provide Accurate Justification For The Group's Economic
Forecast
* Required Coaching Questions
C
M
E
What ways could you validate the solution?
What justification data do you already know about the solution?
How do you know the solution is realistic?
5) The Solution Will Analyze The Effects Of The Group's Economic Forecast On
The Local Economy
* Required Coaching Questions
C
M
How does the solution affect the local economy?
What do you already know about the ways Walt Disney World affects the
local economy?
How realistic is the solution to the problem?
E
6) The Solution Must Also Include Accurate Data On How The Team Determined
Their Economic Forecast
* Required Coaching Questions
C
M
E
How do you know your data is accurate?
Where did you obtain your information from?
How reliable do you feel the information is?
Coaching Questions
C – Cognitive
M – Meta-cognitive
E – Epistemic
Type of
Question
C
M
E
C
M
E
C
M
Question
Meet the Problem
What is the student role in this problem?
What do you already know about Walt Disney, Orlando, and Disney
World?
How realistic is this problem?
Know/Need to Know Board
What currently keeps the local economy on track?
How do you “know” this?
Is it necessary to find the answers to all the “need to know” questions?
Problem Statement
What types of predictions have other economists made in regards to the
local economy?
Are you comfortable with the problem statement your group has written?
E
C
M
E
C
M
E
Would you add anything?
Can you name some “conditions” that would be common to all problems?
Research
What type of research on Disney World does the group need to do for this
problem?
What terms can you think of that might be helpful in doing a “Google”
search for this problem?
What different types of resources can be helpful in solving problems?
Generating Possible Solutions
What reliable information do you have to back up this solution?
Why do you feel one solution is better than another? Explain your
reasoning.
Do you think this solution would work in the real world?