Case Study

While many of Disney’s businesses have been performing well of late, one laggard has been its sports entertainment ESPN. The

Eisner insists on having control over the creative process, and that he has to authorize all story development. This creates an atmosphere where writers, composers, animators, and actors do not perform their best, because they have no say in story development. This results in films that under perform at the box office” (The Walt Disney Resource). 3.) Eisner “has failed to negotiate fair contracts with some of Disney’s greatest assets…including Disney’s top writers, composers, animators, actors, and partners. Jeffrey Katzenberg, Hilary Duff, and Pixar Animation are just a few of the recognizable names that have left the Disney Family because Michael was unwilling to pay them what they are worth. Miramax has threatened to leave the company as well” (The Walt Disney Resource). 4.) Eisner’s “desire to cut costs has resulted in many poor quality films and merchandise” (The Walt Disney Resource), and 5.) Eisner “has mismanaged the theme parks…and has tried to save money by cutting down on maintenance costs” (The Walt Disney Resource) where the upkeep is eroding.

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

Last but not least, is the need for the company to have clear goals to determine where they see the company going in the future. There needs to be vision, a kind of foresight to foresee barriers to the changes being planned and that can be accomplished through the collective efforts and brainstorming of all the top level management as well as staff. Since I believe good ideas can come from the bottom up as well as from the top. Bob Iger clearly has goals to increase Disney’s influence in the global market after success meeting with Shanghai government officials Disney will be opening a theme park in China. Disney is a well-established conglomerate that has dominated the theme park and entertainment industry. As well as has recently opened up a hotel/resort in Hawaii, added a fleet of cruise ships to their arsenal many years back. Although Walt Disney laid the foundation for his successor, I wonder if he ever imagined this company he started in 1923 would

To answer the main question of the case, we must think of the main problems that it faces. We need to find the solution for Bob Iger. What to do with Disney: to make some improvements in the existed company to compete better with Pixar, or to make a deal with another studio? Or should he work more with Pixar, or maybe just buy the whole company?

Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and

By hiring Frank Wells as Disney’s COO and President, Michael Eisner as CEO and Chairman, and Jeffrey Katzenberg as head of the film division, Disney was able to begin the transition from their greatest downfall to their greatest success. These three men were ready to lead the company to avoid the same mistakes it had made in the past. Although, Disney was looking to hire new leaders to steer the company into the right direction, they wanted to make sure that the new personnel was qualified and fit for the job. When it came time to hire Eisner, Schneider, a Disney’s first

In recent discussions regarding Disney’s growing franchize, a controversial issue has been whether Disney’s stories and products encourage children to follow strict gender roles. In this regard, some argue that Disney is wholesome and innocent, and only wants to make animated films that every family has the opportunity to enjoy. On the other hand, however, others argue that Disney is a corporation, whose ultimate goal is to spread their brand and make a lot of money. In the words of Michael Eisner, CEO of the Walt Disney Co., “We have no obligation to make history. We have no obligation to make art. We have no obligation to make a statement. To make money is our only objective” (Mickey Mouse Monopoly). According to this view, Disney has

3) Coordination among businesses: Disney set implemented transfer pricing between divisions so that they could share company resources, measure cash flows between their business units, optimizing resource allocation and improved interdepartmental coordination. This helped to create value by driving synergies and creating business for different Disney businesses. To improve coordination within the company, Eisner also introduced a company-wide marketing calendar that planned promotional activities, and a monthly meeting of 20 divisional marketing executives. This kind of cross-department event gave further motivation to create synergies and bolster creativity.

Threats are challenges created by an unfavorable trend may lead to decrease revenues or profits. Intense competition is a Disney’s threat. Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive background changes quite radically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company.

Disney is considered to be one of the pioneers in the entertainment industry, and for almost one century, the company have managed to grow successfully and to respond tremendously well to global changes such as the rapid technological evolution and the constant variations in customer trends. The reason they have accomplished that is because Disney shaped in people’s mind the assumption of permanent, combined with an outstanding delivery of their products and services, which in simple word means: ‘we are always going to be here’. This is described by Miles and Snow (2003) as the ‘Defender’ strategic approach, where large corporations fights to preserve and maintain their top position in the market.

Financially, Iger managed to steadily increase share prices from a 2005 average of $25 to an average of around $34 in 2007 (Barnes, 2010). Despite a global recession which halted consumption of products and visits to its theme parks, the company has seemingly recovered its low of $15 in 2009 with its share prices reaching almost $38 as of May 2010. As I will explain however, the strategic change at Disney has not only provided short-term profits, it has put the company in a position in which it can sustain its competitive advantage in the long-term due to the changes in the structure and underlying culture of the organisation.

The Disney Company has played an iconic role in the American tourism and the evolution of digital media over the years. Its continued success and longevity are a concrete testament of the organization’s solid leadership, innovative growth and vision. Disney’s past and present leaders have made substantial impact on the company’s culture, direction, successes and shortcomings. This case analysis will focus on Michael Eisner and Rob Iger, the two most recent Chief Executive Officers of Disney, and their contribution and management approach to building sustainable business relationships, resolving conflicts and working towards the best interest of the organization. Also, our

The Walt Disney Company is one of the largest media and entertainment corporations in the world. Disney is able to create sustainable profits due to its heterogeneity, inimitability, co-specialization and immense foresight. During the late twentieth century, Michael Eisner founded and gave a rebirth to Walt Disney Company. Eisner revitalize TV and movies, Themes Park and new businesses. Eisner's takeover for fifteen years had climbed the revenues and net earnings of the company. It also successfully uses synergy to create value across its many business units. After its founder Walter Disney's death, the company started to lose its ground and performance declined. Michael Eisner became CEO

Disney has moved well beyond its cartoon-oriented roots. Though the company is still involved the production of original feature films and other related media (and though the media network division of the Company is still the organization’s leading generator of revenue) the company has long since stopped being your typical “animation studio” or “film production company.”