Strategy Formation at Disney Under Michael Eisner

Decent Essays
Carolina Pedreros
MGT 3830
Extra Credit
Strategy formation at Disney under Michael Eisner

Walt Disney was a real visionary in term of animations. He developed his capability to select new ways to invent special cartoons, with a "Disney's prestige" that was going to be the most famous brand in terms of family entertainment. Since Walt Disney's death in 1966, The Walt Disney Company had barely survived appropriation attempts by other corporations. Its shareholders Sid Bass and Roy E. Disney brought on Michael Eisner and Frank Wells to maximize the company’s assets. Disney Chairman and CEO Michael Eisner had a path of triumphs and challenges in the Company but in his last years as chairman and CEO two main problems prevail. First
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Various networks were in pursued such us CBS and Cap cities/ ABC, board members though felt that the acquisition of Cap Cities was the best choice. The turn of events at the Herb Allen’s Conference in Sun Valley made the acquisition of ABC the next step on Eisner agenda. ABC's relationship Disney has been in place for a while with when Leonard Goldenson back in 1953 invested sufficient money so that the "Disneyland" theme park could be terminated. With this relationship in place came efforts of cross-promotion, which led to countless meetings and negations within board members as of what would be the most beneficial option to Disney. Finally, in 1996 The Walt Disney Company acquired Capital Cities/ABC, and renamed the broadcasting group ABC, Inc. (Eisner 2 357-371). The acquisition of ABC increased Disney costumer audience putting them in a leading position in the entertainment industry.

The following years Disney experience successful acquisitions and rapid growth in its assets. Although with this period of success, Eisner became convince that he was the rightful heir to Walt Disney. Michael Eisner began making an array of changes to Disney's governance structure and The Walt Disney Company had come under a severe examination for its governance practices. The Board of Directors were often criticized for a lack of independence and inside dominance. Roy Disney, founder Walt Disney's
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