Disney case (caso disney) corporate turnaround -jarb
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WALT DISNEY
He born in Chicago , Illinois 1901 He served in the Military with his brother at age 16 Walt Disney was an entertainment pioneer, introducing
families to groundbreaking cartoons, feature films, theme parks and more.
Walt Disney only aEended one year of high school. 1919 Walt dediced to make his love of art career, He got a job at Kansas City Film AdverJsing Group.
He formed their own company called Laugh O Gram films. The company.
With the help of Disney’s brother , Roy, the came up with a series called Alice’s Wonderland in 1923.
The same year they moved the studios to Califronia and renamed the company to Walt Disney. M.J Winkler was their distributer.
1927 Oswald the Lucky Rabbit became very popular and Walt Managed to created 26
cartoons in one year.
Winkler had taken the rights to most of the movies.
Walt needed to come up with a new cartoon quickly and he came up with an idea named
MorJmer, eventually changed to Micky
Mouse.
1928 Steamboat Willie was the first cartoon to have synchronized sounds.
Mickey Mouse became the most famous character of their company.
Snow white was the first cartoon to become a major moJon picture the first done in
technicolor.
Disneyland
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Before Walt could see his project completed, he died on December 1966 ending an era for the company.
1971 Walt disney World opened the doors to the public,
instantly became the top grossing park in the world, pulling in$139 millions.
Disney opened an in‐house travel company in order to generate traffic in the park.
They started the parades to major ciJes all over the world.
From 1980 to 1983 the company’s financial
performance deteriorated.
• Disney was incurring in heavy cost. • They were working in a new cable venture, The
Disney Chanell. • Film division performance remained erraJc.
Oil tycoon sid Bass invested $365 million, recusing the company.
Michael Eisner
• He was the CEO of The Walt Disney Company
from 1984 unJl 2005.
• Michael Eisner was recruited by Walt Disney
Company from Paramount Pictures in 1984 to
help Disney out of its financial slump in the
80’s. Eisner helped revamp Disney’s theme
parks as well as rejuvenaJng their movie
studio.
It was Eisner and his staff who turned the ailing
theme park company into a media powerhouse”
Eisner moved over to Disney from Paramount
taking along with him Jeffery Katzenberg to make
moJon pictures under two new brand names:
Touchstone Pictures and Hollywood
Pictures.
The Walt Disney turnaround
Michael Eisner on his
departure as CEO of Walt
Disney ProducEons
How firm can successfully manage a turnaround situaJon and transform a firm into
a period of long tern‐growht.
Goals
• Strengthening the human talent, giving
emphasis in creaJvity and innovaJon looking
for new and greater synergies between the
businesses.
• ReposiJon the Brand
• Improve the revenues in the current business
and revitalize businesses that had much
potenJal but had remained behind
• Inside decisions
• Recovered and inculcated the Disneys´ history, the corporate culture and the heritage of Walt Disney through Disney University.
• Established strategic and financial objecJves, well defined and controlled thru indicators and incenJves.
• Created a central area of markeJng to promote and coordinate markeJng acJviJes across the enterprise.
• Created an internal group to coordinate media acquisiJons across the company, responsible for cross work to support business focus on opJmize cost and achieve beEer economies of scale agreements.
• Outside decisions • Recovered the movies with real actors, which led Disney to become a market leader in the industry. He also got some of the best Hollywod´s talents to sign exclusive contract with Disney to ensure quality.
• Improve profitability of theme parks, with extended hours, increased price of Jckets, eliminated the number of people who could enter each day, including new aEracJons that aEract new public, built hotels and others services for the costumers.
• Improved the quality and the quanJty of the license agreements of Disney´s characters, trademarks and movies and reached big deals with major brands such as Mc Donalds and Coca Cola.
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Axis Title
The WDC, Revenues
Theme Parks Studio Ent. Consumer Products Media Com
Michael Eisner has been widely criEcized in press releases of his
obsessive micromanagement and autocraEc leadership style.
Eisner was successful in aEaining financially posiJve goals for the Walt Disney Company, but he did it at the expense of losing quality employees, business
relaJonships, as well as tarnishing the company’s image and reputaJon.
Eisner’s micro‐management style is reflected by a 2003 Time Magazine arJcle staJng that
Disney chief Michael Eisner never “misses the small points. “not much escapes him”
“according to one former senior Disney execuJve, program decisions, script decisions –
even decisions on which writers might be signed deals – have oken had to go through as many as six execuJves, headed by Mr. Eisner and Mr. Iger. ‘For six people to like the show is
never going to happen,’
‘Michael and Bob make sure their operaJng execuJves have no real power’”
Eisner’s “micro‐management style has seriously hurt the creaEve process at the Disney
Studios. Eisner insists on having control over the creaEve process, and that he has to
authorize all story development
2012 Company Overview
Robert A. Iger :
• Iger oversaw the acquisiJon of Pixar in 2006
• He also led the company to acquire Marvel
Entertainment
Employees: 156.00
Revenue US$ 40.893 billion (2011) OperaEng income US$ 08.043 billion (2011)
Net income US$ 04.807 billion (2011)
Total assets US$ 72.124 billion (2011) Total equity US$ 37.385 billion (2011)
2012 Company Overview
The Walt Disney Company, together with its subsidiaries and affiliates, is a leading
diversified internaJonal family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment,
consumer products and interacJve media.
11 theme parks and 43 resorts in North America, Europe and Asia.
Disney, including Walt Disney AnimaJon Studios and Pixar AnimaJon Studios; Disneynature; Marvel Studios; and Touchstone Pictures.
This is accomplished through a franchise‐based licensing organizaJon focused on strategic brand prioriJes, including:
Disney Classic Characters & Disney Baby;
Disney Live Ac6on Film; Disney Media
Networks & Games, Disney & Pixar
Anima6on Studios; Disney Princess &
Disney Fairies; and Marvel.
What is your evaluaJon of the
corporate turnaround
Conclusion
Disney Ind
S&P 500
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