Walt Disney Case - 16863 Words

9-701-035 REV: JULY 25, 2001 D MICHAEL G. RUKSTAD DAVID COLLIS O The Walt Disney Company: The Entertainment King I only hope that we never lose sight of one thing—that it was all started by a mouse. —Walt Disney The Walt Disney Company’s rebirth under Michael Eisner was widely considered to be one of the th great turnaround stories of the late 20 century. When Eisner arrived in 1984, Disney was languishing and had narrowly avoided takeover and dismemberment. By the end of 2000, however, revenues had climbed from $1.65 billion to $25 billion under Eisner, while net earnings had risen from $0.1 billion to $1.2 billion (see Exhibit 1). During Eisner’s first 15 years, Disney generated a 27% annual total 1 return to†¦show more content†¦The result was Mickey Mouse. When Mickey failed to elicit much interest, Walt tried to attract a distributor by adding synchronized sound—something that had 8,9 never been attempted in a cartoon. His gamble paid off handsomely with the release of Steamboat 10 Willie in 1928. Overnight, Mickey Mouse became an international sensation known variously as â€Å"Topolino† (Italy), â€Å"Raton Mickey† (Spain), and â€Å"Musse Pigg† (Sweden). However, the company was still strapped for cash, so it licensed Mickey Mouse for the cover of a pencil tablet—the first of many such licensing agreements. Over time, as short-term cash problems subsided, Disney began to worry 11 about brand equity and thus licensed its name only to â€Å"the best companies.† The Disney brothers ran their company as a flat, non-hierarchical organization, in which everyone, including Walt, used their first names and no one had titles. â€Å"You don’t have to have a title,† said 12 Walt. â€Å"If you’re important to the company, you’ll know it.† Although a taskmaster driven to achieve creativity and quality, Walt emphasized teamwork, communication, and cooperation. He pushed 13 himself and his staff so hard that he suffered a nervous breakdown in 1931. However, many workers were fiercely committed to the company. Despite winning six Academy Awards and successfully introducing new c haracters such as Goofy and Donald Duck, Walt realizedShow MoreRelatedWalt Disney Case2290 Words   |  10 PagesThe Walt Disney Company’s Yen Financing International Financial Economics Universiteit van Amsterdam Question 1 Should Walt Disney Company hedge its yen exposure? Why? On April 1983 Tokyo Disneyland started to operate. The Japanese company that operated this park paid royalties on certain revenues to Walt Disney Productions. The Yen royalties receipts in 1984 already reached a height of 8 billion Yen. The director of finance of the Walt Disney Company expected a further growth of 10% toRead MoreWalt Disney Case2137 Words   |  9 PagesWALT DISNEY CASE STUDY 1. SWOT Strengths * Stable Revenue and Profit Growth * Diversified Portfolio * Tremendous Brand Recognition * Responsiveness to Markets * Substantial Asset Holdings Weaknesses * Top Tier Management Turnover * Redundancy in Business Functions Due to SBU Structure * Inclusion of High-Risk Investments in Holdings * Lack of Corporate Control over Divisions * Growth Barriers in Theme Parks Opportunities * Continued Growth throughRead MoreCase Conflict at Walt Disney880 Words   |  4 PagesManagement Organization ____________________________________________________________________________ Week 6 Case Assignment 1. How would you describe the conflict between Michael Eisner and the Weinstein brother, the two board members (Disney and Gold), and Steve Jobs† Was it functional or dysfunctional? The functional conflict is defined as a confrontation between groups that enhances and benefits the organization’s performance’ while dysfunctional conflict is defined as any confrontationRead MoreWalt Disney Strategy Case Essay718 Words   |  3 Pagesï » ¿QUESTIONS FOR DISNEY CASE 1. What is Walt Disney Company’s corporate generic strategy? Explain the reason for your answer. Broad Differentiation because its products are in media networks, parks and resorts, studio entertainment, consumer products, and interactive media. Thus, it attracts a wide base of consumers through differentiating its products by superior dedication to creating high quality content, technological innovations in entertainment and international expansion. 2. What isRead MoreCase Study : Walt Disney Company1789 Words   |  8 Pages1 – Chapter One 1.1 – Case Study Background: The Walt Disney Company was founded on October 16, 1923 when Mr.Walt Disney signed a contract with Mr. Winkler for producing a series of Alice Comedy. Then the company never stop. Its first cartoon Trolley Troubles was released in 1927 whereas, very first â€Å"Mickey Mouse† cartoon was released in 1928 and it was also the first appearance of â€Å"Minnie Mouseon† on screen. Moreover, the first full-color cartoon Flowers and Trees was released in 1932 whichRead MoreConflict at Walt Disney- Case Study1170 Words   |  5 PagesConflict at Walt Disney Eve Stapler Webster University Conflict at Walt Disney Within every organization there is some type of conflict, whether the conflict is personal, organizational or emotional. But the key is to manage the conflict so as to not hinder the profitability, functionality or public image of the company so that it is viable competitively. In the case of the Walt Disney Company, although the company had conflict within the organization, this did not hinder its competitivenessRead MoreWalt Disney Case Study2980 Words   |  12 PagesJanuary 2013 I – Executive Summary 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. Eisners takeover for fifteen years had climbed the revenuesRead MoreEssay about Walt Disney Case Study1867 Words   |  8 PagesThe Walt Disney Company The Entertainment King I. Executive Summary After analyzing the Walt Disney case, we found that the root issues include the need to increase revenue to reach the 20% growth target set by upper management and to expand into new markets and/or industries. We used a Porter’s Five Forces analysis to develop our alternatives (Please See Exhibit A for further information). The alternatives that we proposed were to expand globally and enter the Internet and cable distributionRead MoreCase Study : Walt Disney Company5336 Words   |  22 Pages1 – Chapter One 1.1 – Case Study Background: The Walt Disney Company was founded on October 16, 1923 when Mr. Walt Disney signed a contract with Mr. Winkler for producing a series of Alice Comedy. Then the company never stop. Its first cartoon Trolley Troubles was released in 1927 whereas, very first â€Å"Mickey Mouse† cartoon was released in 1928 and it was also the first appearance of â€Å"Minnie Mouse† on screen. Moreover, the first full-colour cartoon Flowers and Trees was released in 1932 whichRead MoreEssay Walt Disney Company Case Study1555 Words   |  7 PagesWalt Disney Company Case Study PART I Why is Disney so successful The success of Disney is a combination of creativity and innovations, and the managerial ability to identify and take advantage of every possible synergy. Walter Disney was the entrepreneur who had the creative skills. Knowing his limitations, he let other people do what he couldnt do good enough himself. This is an important skill, as it leads to quality products being made. The step from making short cartoons to doing