- Disney and Pixar initially formed a partnership in 1991 where Disney would market and distribute Pixar's computer animated films. This partnership was successful but faced disagreements. - In 2006, Disney acquired Pixar, merging the two companies. The combined Disney-Pixar company is now able to focus on creating creative stories and films to delight audiences worldwide. - For the partnership and acquisition to succeed, both companies needed to share strengths like creativity and tolerance, while overcoming cultural differences in management style and priorities between Pixar's egalitarian culture and Disney's hierarchical structure.

1. Group 7

2. Agenda Company Overview Motives and Fits of Partner Alliance Structure Problems and Future Direction Key Success Factors Recommendation

3. Who is Disney? One of the leading media companies in the world Walt Disney Studio Theme Parks and Resorts Disney Consumer Products Media Networks: ABC and ESPN Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors

4. Who is Pixar? Established in 1986 by Steve Jobs Computer graphics unit of Lucasfilm to be Pixar An Academy Award-winning computer animation studio with technical, creative, and production capabilities Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors

5. Motive of Partners Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors Disney Acquire core strengths of Pixar Increase its revenue Decrease in competition Access to technology Pixar Gain the benefit of being able to produce the other lines of products Increase productivity and more sales

6. What’s for Stakeholders? Revenue : Get higher share price for stockholders Human Resource : Be able to exchange valuable human resource between Disney and Pixar Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors

7. Structure of Alliance Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors 1991 Pixar entered in to Feature Film Agreement with Walt Disney for Development and Production of three computer animated films while Disney do marketing and distribution 1995 Toy Story launched and in the market and was successful. 1997 Pixar entered into Co-production Agreement with Disney and agreed to produce five animations. Disagreement when Toy Story2 would be launched. 2004 Attempted to have a new agreement. Pixar negotiated Disney only do distribution, and Pixar would control entire products and get ownership over the films . 2006 Disney bought Pixar Merged two companies becoming Disney-Pixar

8. Type of Alliance Sales alliance: the agreement of the two companies would be categorized as to increase sales. Investment alliance: The motion will be invested by both Disney and Pixar, which split the cost equally and share 50/50 profit. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors

9. Main Issues Disney aborted the contracts in launching the Toy Story 2 - Partnership between Pixar and Disney ended with an acquisition by following possible issues: Pixar thought it was not getting mutual benefits. Profit would be split after recovered costs on marketing and distribution. Jobs tend to charge the high share price. Pixar can be successful without Disney because they have technological skills and innovation in the company to produce profit-generating films as they did in the past. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors

10. Latest Situation The combined Disney-Pixar company is operated by Ed Catmull as the President of the company, and John Lesseter as the Chief Creative Officer. 15-year partnership has created a good collaboration between Pixar and Disney teams. The acquisition led the collaboration without barriers from different companies with different sets of shareholders. The combined can focus on the same goal that is to delight the millions of people worldwide especially family audience with creative stories, characters, and films. Disney-Pixar can develop its strategic priorities. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors

11. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors Share core strengths to the alliance Tolerance Trust

12. vs. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors Lessons learnt from Alliance Pixar Culture Disney Culture

13. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors Pixar Work office is not a cubicle, but rather a habitat Main culture is egalitarianism,which emphasizes on teamwork.

14. Background Motive & Fits Of Partners Alliance Structure Recommendation Problem & Latest Situation Key Success Factors Disney Hierarchy Management Style Aim more on making the profit instead of providing the quality animation

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