Disney case (caso disney) corporate turnaround -jarb
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.
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
Walt needed to come up with a new cartoon
quickly and he came up with an idea named
MorJmer, eventually changed to Micky
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
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
From 1980 to 1983 the company’s ﬁnancial
• Disney was incurring in heavy cost.
• They were working in a new cable venture, The
• Film division performance remained erraJc.
Oil tycoon sid Bass invested $365 million, recusing the
• 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
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
The Walt Disney turnaround
Michael Eisner on his
departure as CEO of Walt
How ﬁrm can successfully manage a
turnaround situaJon and transform a ﬁrm into
a period of long tern‐growht.
• Strengthening the human talent, giving
emphasis in creaJvity and innovaJon looking
for new and greater synergies between the
• 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.
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996* 1997 1998 1999 2000
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
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