Teacher: Deborah Van Zant

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 Identify entrepreneurs from various social and ethnic backgrounds Description: who have influenced Florida and local economy. Subject Area: Social Studies Grade Level: 4 Strand: Economics Standard: Beginning Economics - Date Adopted or 12/08 Revised: 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 Explain Florida's role in the national and international economy Description: and conditions that attract businesses to the state. Subject Area: Social Studies Grade Level: 4 Strand: Economics Standard: Beginning Economics - Date Adopted or 12/08 Revised: 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 The student will select a topic for inquiry, refine a predetermined Description: 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 01/07 Revised: 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 Indirect Total Jobs 65,123 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 $133 $5 $138

. 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 Resubmit 5 Pts Student accurately fills Student accurately fills in Student accurately fills in more than 7 and less more than 5 areas and Information in 9 out of 10 areas on than 9 areas on the less than 7 on the Sheet the information data information data sheet. information data sheet. Completion sheet. Student chooses Student chooses at least Student chooses at least three accurate two accurate solutions to one accurate solution to solutions to the the question. the question. question.

3 Pts Resubmit 5 Pts Student accurately fills Student accurately fills in Student accurately fills Source in source reference for source reference for more in source reference for Reference more than 7 and less than 5 areas and less than 9 out of 10 areas on than 9 areas on the 7 on the information data the information data information data sheet. sheet. sheet.

10 Pts Resubmit 6 Pts Student accurately Student does not provide Solutions Student accurately provides three any or provides provides two or less solutions to the inaccurate solutions to the solutions to the problem. problem. problem.

10 Pts 6 Pts Resubmit Student accurately Student accurately Student does not provide provides two or more provides two or less any or provides Justifications justifications for each justifications for each inaccurate justifications solution to the solution to the problem. for each solution to the problem. problem.

Timeliness 10 Pts 6 Pts 0 Pts Student meets time Student does not meet Student does not meet frame for completion time frame for time frame for of the assignment. completion of the completion of the assignment but assignment and does not resubmits within 1 day. resubmit within 1 day.

40 - 36 = A 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 Adequate Unacceptable

3 Pts 0 Pts 5 Pts Student participates in Student does not Student participates in Information group discussion and participate in group group discussions and Sheet provides two or less discussion and does not provides three accurate Completion accurate solutions to the provide any solutions to solutions to the problem for group the problem for group problem for group review. review. review.

0 Pts 5 Pts 3 Pts Student does not Student participates in Student participates in participate in group Source group discussions and group discussion and discussion and does not Reference provides three accurate provides two or less provide any sources of sources of information sources of information information for group for group review. for group review. review.

10 Pts 6 Pts 3 Pts Student accurately Student accurately Student does not provide Solutions provides three solutions provides two or less any or provides to the problem to the solutions to the problem inaccurate solutions to group to the group. the problem to the group.

6 Pts 10 Pts 3 Pts Student accurately Student accurately Student does not provide provides two or less provides two or more any or provides Justifications justifications for each justifications for each inaccurate justifications solution to the problem solution to the problem for each solution to the to the group. to the group. problem to the group.

10 Pts 6 Pts 0 Pts Student meets time Student does not meet Student does not meet frame for completion of time frame for time frame for Timeliness the assignment. completion of the completion of the assignment but assignment and does not resubmits within 1 day. resubmit within 1 day.

Cooperative Learning Rubric (Utilized For Learning Objectives 1 - 3 Group Participation)

Evaluating Student Presentations Superior Adequate Unacceptable

3 Pts 0 Pts 5 Pts Student participates in Student does not Student participates in Information group discussion and participate in group group discussions and Sheet provides two or less discussion and does not provides three accurate Completion accurate solutions to the provide any solutions to solutions to the problem for group the problem for group problem for group review. review. review.

0 Pts 5 Pts 3 Pts Student does not Student participates in Student participates in participate in group Source group discussions and group discussion and discussion and does not Reference provides three accurate provides two or less provide any sources of sources of information sources of information information for group for group review. for group review. review.

10 Pts 6 Pts 3 Pts Student accurately Student accurately Student does not provide Solutions provides three solutions provides two or less any or provides to the problem to the solutions to the problem inaccurate solutions to group to the group. the problem to the group. Justifications 10 Pts 6 Pts 3 Pts Student accurately Student accurately Student does not provide provides two or less provides two or more any or provides justifications for each justifications for each inaccurate justifications solution to the problem solution to the problem for each solution to the to the group. to the group. problem to the group.

10 Pts 6 Pts 0 Pts Student meets time Student does not meet Student does not meet frame for completion of time frame for time frame for Timeliness the assignment. completion of the completion of the assignment but assignment and does not resubmits within 1 day. resubmit within 1 day.

Group Presentation Rubric (Utilized For Learning Objectives 1 - 3 Group Participation Presentation Visual Display and Oral Presentation)

Evaluating Group Presentations Superior Adequate Unacceptable

3 Pts Group 5 Pts 0 Pts Group provides two or Information Group provides three Group does not provide less accurate solutions Sheet accurate solutions to any solutions to the to the problem for Completion the problem for group problem for group review. group review. review.

5 Pts 3 Pts 0 Pts Group Group provides three Group provides two or Group does not provide Source accurate sources of less sources of any sources of Reference information for group information for group information for group review. review. review.

10 Pts 6 Pts 3 Pts Group Group accurately Group accurately Group does not provide Solutions provides three provides two or less any or provides solutions to the solutions to the inaccurate solutions to the problem. problem. problem. Group Justifications 10 Pts 6 Pts 3 Pts Group accurately Group accurately Group does not provide provides two or less provides two or more any or provides justifications for each justifications for each inaccurate justifications solution to the solution to the for each solution to the problem. problem. problem.

10 Pts 6 Pts 0 Pts Group Student accurately Student does not Student does not answer Questions answers questions fromaccurately answer their question from the (scored audience. questions from audience. individually) audience.

40 - 36 = A 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.

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.

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.

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.

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-first- quarter-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 Points Awarded

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 Who is Walt Disney and why is he important to Florida's economy? M What do you already know about Walt Disney? E 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 What is Florida's role in the National and International economy? M What do you already know about Florida's economy? E 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

C What steps will you take to research this problem? M What resources do you already have? E 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 What ways could you validate the solution? M What justification data do you already know about the solution? E 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

C How does the solution affect the local economy? M What do you already know about the ways Walt Disney World affects the local economy? E How realistic is the solution to the problem?

6) The Solution Must Also Include Accurate Data On How The Team Determined Their Economic Forecast

C How do you know your data is accurate? M Where did you obtain your information from? E How reliable do you feel the information is?

Coaching Questions

C – Cognitive M – Meta-cognitive

E – Epistemic

Type of Question Question Meet the Problem C What is the student role in this problem? M What do you already know about Walt Disney, Orlando, and Disney World? E How realistic is this problem? Know/Need to Know Board C What currently keeps the local economy on track? M How do you “know” this? E Is it necessary to find the answers to all the “need to know” questions? Problem Statement C What types of predictions have other economists made in regards to the local economy? M Are you comfortable with the problem statement your group has written? Would you add anything? E Can you name some “conditions” that would be common to all problems? Research C What type of research on Disney World does the group need to do for this problem? M What terms can you think of that might be helpful in doing a “Google” search for this problem? E What different types of resources can be helpful in solving problems? Generating Possible Solutions C What reliable information do you have to back up this solution? M Why do you feel one solution is better than another? Explain your reasoning. E Do you think this solution would work in the real world?