You may access the case study here: DISNEY CASE STUDYFINAL.pdf Formulating a pro

Question

You may access the case study here: DISNEY CASE STUDYFINAL.pdf
Formulating a problem (or potential problem) statement is an important academic (and practical) skill for managers. The management concepts presented in this unit are important because they can equip you to identify and solve problems in order to reach managerial and organisational goals. The first step is to identify the problem/s or potential problem in a particular situation by narrowing in, stating and supporting a clear bold statement.
In this assessment, please write 200 words on your management problem statement, with reference to one theory that will be used and present a bibliography of at least 5 scholarly articles that you intend to use to support your argument.
Marks will be allocated as follows:
1. Management Problem Statement:
• Link to the Functions of Management (planning, leading, organising and controlling)
• Clearly indicate a management problem or potential problem
• Should not include a solution or imply a solution
• Well written (grammar, structure, flow)
2. Bibliography list
• You do not need to use In-text referencing for this assessment
• Please ensure you list and find at least 5 scholarly relevant articles (peer reviewed).
• The articles presented should have the potential to create the critical evaluation for your report.
• These references will not necessarily be used but are to be presented as a reference list
• These references must clearly relate to the management problem statement. Non-relevant articles (articles on a different topic other than the one you presented) will not be counted towards your grade.

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CASE STUDY
Case Study Analysis Task
Walt Disney Company Headquarters, Burbank, California
Over two decades, your predecessor and boss, CEO Michael Eisner, accomplished much, starting the Disney
Channel, the Disney Stores and Disneyland Paris, and acquiring ABC television, Starwave Web services (from
Microsoft cofounder Paul Allan) and Infoseek (an early Web search engine). But his strong personality and
critical management style created conflict with shareholders, creative partners and board members, including
Roy Disney, nephew of founder Walt Disney.
One of your first moves as Disney’s new CEO was to repair relationships with Pixar Studios and its then
CEO Steve Jobs. Pixar produced computer-animated movies for Disney to distribute and market. Disney also
had the right to produce sequels to Pixar Films, such as Toy Story, without Pixar’s involvement. Jobs argued,
however, that Pixar should have total financial and creative control over its films. When Disney CEO Michael
Eisner disagreed, relations broke down, with Pixar seeking other partners. On becoming CEO, you approached
Jobs about Disney buying Pixar for $7 billion. More important than the price, however, was promising Jobs and
Pixar’s leadership, President Ed Catmull and creative guru John Lasseter, total creative control of Pixar’s films
and Disney’s storied but struggling animation unit. Said Jobs, ‘I wasn’t sure I could get Ed and John to come to
Disney unless they had that control.’
Although Pixar and Disney animation thrived under the new arrangement, Disney still had a number of
critical strategic problems to address. Disney was ‘too old’ and suffering from brand fatigue as its classic but
ageing characters, Mickey Mouse (created in 1928) and Winnie-the-Pooh (licensed by Disney in 1961),
accounted for 80 per cent of consumer sales. On the other hand, Disney was also ‘too young’ and suffering from
‘age compression’, meaning it appealed only to young children and not preteens, who gravitated to
Nickelodeon, and certainly not to teens at all. Finally, despite its legendary animated films, over time Disney
products had developed a reputation for low-quality production, poor acting and weak scripts. Movies High
School Musical 3: Senior Year, Beverly Hills Chihuahua, Bolt, Confessions of a Shopaholic, Race to Witch
Mountain and Bedtime Stories disappointed audiences and failed to meet financial goals. As you told your board
of directors, ‘It’s not the marketplace: it’s our slate [of TV shows and movies].’
With many of Disney’s brands and products clearly suffering, you face a basic decision: Should Disney
grow, stabilise or retrench? Disney is an entertainment conglomerate with Walt Disney Studios (films), parks
and resorts (including Disney Cruise lines and vacations), consumer products (i.e. toys, clothing, books,
magazines and merchandise) and media networks such as TV (ABC, ESPN, Disney Channels and ABC
Family), radio and the Disney Interactive Media Group (online, mobile, and video games and products). Further,
in 2009 Disney acquired Marvel Entertainment (including the Avengers franchises) and in 2012 it acquired
Lucasfilm (Star Wars and Indiana Jones franchises).

Explanation / Answer

Walt Disney case study above clearly highlights the strategic dilemma a company faces on three counts summarized as management problems below:

1. What is the best fit strategy during turbulent times and the right course of action to be taken during business challenging times?

2. How does a CEO personality and his leadership styles in crises align to organization stakeholders and partner expectations?

3. How does an organization innovate the new content/product mix with ways of the "old" and realize synergies therein?

In times of turbulence, especially that of VUCA (Volatility, Uncertainty, Complexity and Ambiguity) it is important for firms to self-assess its current state with the overall mission statement of the organization. In case of Disney, when faced with the pressures of external competition and need to sustain its growth, the question it had to address and also relook its quintessential question of growth and diversification.

Quite often this involves reverting to the planning stage and review of the perceived vision or end state vis a vis the current as is state of the organization.

Also management choices that a CEO often makes may not be in direct alignment of the stakeholder vision or past strategic objectives, however the fungibility of decision-making and trust imbibed in the CEO-stakeholder relationship comes into effect in lieu of how the CEO would like to steer the organization in turbulent times.

Lastly the perennial challenge of innovation, often disruptive which displaces old ways of thinking versus incremental, which brings about small but effective changes in current processes would determine the strategic intent of organizations.

Bibliography

Dedehayir, Ozgur1

Roland Ortt, J.2

Seppänen, Marko

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