Eisner's Destruction of Disney

1266 WordsMar 31, 20106 Pages
Since its humble beginnings in 1923, the transformation and transition of The Walt Disney Company has been staggering. The ability of the organization to integrate and excel in so many business areas is admirable and should be respected on many levels. Michael Eisner’s crucial role in the turnaround of the organization since his arrival in 1984 is valued on many levels, but over that last few years, he has taken many missteps in properly managing the organization. Although Eisner often vocalized his want for Disney to effectively “manage creativity,” the strategy he implemented while CEO did not reflect this want, and over time dismantled the creative core of Disney, and essentially depleted all the synergy that he had created in his early…show more content…
Eisner first pushed this with the film Who Framed Roger Rabbit, and was wildly successful. Disney licensed computer games, jewelry, etc. along with pushing for heavy amounts of merchandise for the movie in their theme parks, and heavy amounts of advertising in their television productions. This established the beginning of Disney focusing on cross merchandising, “using each major movie release as its own miniature industry.” This link across business units from each release created a synergy between these business units, giving the members apart of the Disney organization an increase sense of identification. This implemented strategy proved incredibly successful for Eisner in his first four years, more than doubling the revenues and assets of Walt Disney Co. along with increasing net income fivefold, but unfortunately the quick expansion of the company eventually encumbered the growth of Disney in later yea In the late 1980’s Eisner began shifting the company to more and more unrelated businesses. At the time, expanding into new business area made sense from a fiscal standpoint, so that Disney could market in an even wider array of industries. Over time, Eisner pushed for product and geographic diversification unrelated to their core businesses. The acquisitions included opening retail stores, acquiring the Anaheim Mighty Ducks, producing Disney Broadway musicals, creating a cruise line business, and acquiring the television giant ABC, all

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