Case 11.1 (p. 337) “Conflict at Walt Disney Company: A Distant Memory? |
1) How would you describe the conflict between Michael Eisner and the Weinstein brothers, the two board members (Disney and Gold), and Steve Jobs? Was it functional or dysfunctional?
Ivancevich (p. 311) defines functional conflict as a confrontation between groups that enhances and benefits the organization’s performance’ while he defines dysfunctional conflict as any confrontation or interaction between groups that harms the organization or hinders the achievement or organizational goals. Though, a point the Ivancevich makes (p. 311) is that in most cases, the point at which functional confrontation becomes dysfunctional is impossible to identify precisely.
…show more content…
The conflict of Eisner and Jobs at first was the perceived stage due to the negative comments Eisner made at congressional hearings; Jobs took the comments personally and so was very emotional about the words.
As the feud continued and escalated, Jobs took the perceived stage to the last stage of conflict—manifest. As the feud escalated, Jobs threatened to not renew the Disney-Pixar relationship after the release of Cars in 2006 if Eisner was still CEO of Disney. Thus, Jobs acted upon the conflict with this threat which would have had dire financial losses for Disney.
3) Which of the following best describes Michael Eisner’s and Bob Iger’s approaches to resolving conflict: dominating, problem solving, avoiding, or accommodating? Explain:
Certainly Eisner’s approach to resolving conflict would fall into the dominating category; dominating approach is the person/group’s maximum focus on meeting its own concerns, coupled with a minimal focus on meeting the concerns of other group (Ivancevich, p. 319). It seems Eisner fought or had difficulty with all key persons with the other companies he dealt with; apparently maintaining these key relationships was not a high priority with Eisner. I think as Eisner still continued to be successful in spited of these issues, he probably gained a sense of unlimited power and authority; while he may have kept the
Net income increased from $93 million in 1984 to $445 million in 1987, so Disney increased its net income more than four times after Eisner’s takeover in the first four years. Much of this incredible success is due to Eisner’s tough leadership, brand management and his corporate strategies. He not only brought the company back on track, but also made sure, that Disney did not loose its sight in his own corporate values (quality, creativity, entrepreneurship and teamwork) (1, p. 4). Much of Disney’s success in the first four years under Eisner was due to the strategies of simultaneously “managing creativity” and keeping an eye on costs due to well-defined financial objectives (1, p.4). What’s more, Disney
Fingernails may not extend more than a quarter-inch beyond fingertips. No more than one ring
Managing conflict for organizations is very important in maintaining business relationships, especially ones that are profitable like that of Disney-Pixar. At the helm of the Walt Disney Company during the begging and end of these feuds was Michael Eisner and Bob Iger. Even though Michael Eisner is the one responsible for the conflict with Disney and Pixar, he should be equally responsible for trying to fix the damaged relationship. When trying to manage conflict there are several approaches that can be taken to resolve the conflict at hand: dominating, accommodating, problem solving, avoiding and compromising.
My first trip to Disney World, now that, that was a memorable trip. That trip was one of the most magical and happiest memories of my life. It was back in 2008, I had just turned 6 years old a few months before we left to go there. It was summertime, and the weather was perfect. I remember being so bored on the way there because I am an only child so I didn’t have anyone to entertain me besides myself. My mom’s side of the family went on this trip with us, and at the time I was the only grandkid, and the only kid at all. So once we finally were almost there I remember passing the big ‘Welcome to Disney World” sign and being so excited I peed my pants--my mom was pretty mad, but my dad thought it was kinda funny so I didn’t get in too much trouble.
Walt Disney is extremely known for being a film producer and popular showman. He was very recognizing for being an innovator in animation and theme park design. Disney was a visionary in terms of cartoons. Disney views and visions came from his persistence for the future. Walt Disney strives upon building Disney’s to have core strengths in three areas of entertainment and recreation, motion pictures and videos. Walt created his first animated character, Mickey Mouse.
5. Does Disney’s portfolio exhibit good strategic fit? What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? Please be specific and explain why.
The Walt Disney Company started as a small entertainment company in 1923 (Disney.com, 2011). Since that time the company has used various strategies enabling them to grow into a global entertainment company.
1. About Disney Difference and how it will affect the company’s corporate, competitive, and function strategies.
Welcome to the happiest place on earth, otherwise known as hell. Imagine entering a place where the air smells like fresh homemade cookies, the lush green trees are shaped like animated characters, and the sidewalks are always squeaky clean. The employees or “cast members” appear to be clean-cut, happy, wholesome, all-American people. This is the image Walt Disney World provides for its guests. But what goes on behind the scenes at Disney? Until a person has worked for the “big mouse” she won’t be able to understand the torture that can go on for employees. I’ve been in that Disney “cult,” part of the “wonderful world of Disney.”
The initial conflict was started due to an incompatibility of goals by the two parties. Michael wanted to fulfill his work obligation and prioritized that over study hours while the executive board was concerned for obtaining those study hours. Tensions got heated when they confronted him head on after returning home from work, which lead to finger pointing and bickering. The initial conflict interaction ended relatively shortly, but the conflict seemed to push forward over the span of a couple weeks. Evaluating the goals on both sides is crucial to apprehending the communicative process (Berger, 2005). Due to the goals being misconceived, it lead to a standstill. Another important proximal context aspect that directed this conflict was the rules that were at play. Since this conflict was an organizational conflict instead of a social conflict, it created little room for Michael to justify his actions through emotions or other strategies. The organizational goals were not aligned with Michaels prior to the conflict itself, which our textbook would explain that Michael was challenging the rules of the organization through the use of conflict in desire to change the rules and or create new ones (Cupach, Canary & Spitzberg, 2010). It goes without saying, that this conflict did not lead to a successful resolution; but understanding the proximal outcomes and how they shaped the individuals experience is worth noting for future
With this extremely diverse group and the lack of a formal structure, one can see how conflict can and will easily arise. The company is developing a “top-of-the-range laptop scheduled to launch in two-weeks’ time,” but Jason wants the timetable pushed back until all of the glitches are worked out. Don, on the other hand, is adamant about keeping the current launch date do in part to the spokesperson he procured who will not be available during the time frame Jason has suggested. This issue has caused a major break in the already fragile working environment.
The case is related with a decision regarding The walt Disney Company’s relation with Pixar. Though, history defined their collaboration and success. Pixar’s CEO Mr. Steve Jobs has tried to negotiate the contract but with no success because The Walt Disney Company wants to stay with previous terms. This pushed Steve Jobs to find for partnership with others. This search is a big threat for The Walt Disney Company and it has to decide whether to acquire Pixar or not.
The Walt Disney Studio’s Diversity Mission Statement is “To create an inclusive environment that is open to all perspectives, allowing us to tell compelling stories in film, animation and music that visually and emotionally reflect our audience worldwide.” “The Walt Disney Studios maintains that the only existing boundaries are those of talent, ambition, imagination and innovation.” (Moore, 2007)
The difference between functional and dysfunctional conflict is that functional serves a purpose in the organization such as the interest and dysfunctional serves no purpose but to threaten the organization ((Kinicki A. Kreitner R.2008 p. 277).
Conflict is inescapable, having the ability to recognize, understand, and resolve conflicts are important in both personal and professional lives. Myatt (2012) states that conflict in the workplace is unavoidable; if left unresolved, workplace conflict may result in loss of productivity and the creation of barriers that can inhibit creativity, cooperation, and collaboration. It is vital to embrace conflict and address problems through effective conflict-resolution tactics because if not handled appropriately, conflict will escalate. “If not handled properly, conflict may significantly affect employee morale, increase turnover, and even result in litigation, ultimately affecting the overall well-being of