Disney - Succession Problems in the Magic Kingdom?
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Case Details:
Case Code : HROB079
Case Length : 19 Pages
Period : 1984-2005
Pub. Date : 2006
Teaching Note :Not Available
Organization : The Walt Disney Company
Industry : Media and Entertainment
Countries : USA
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Excerpts
WDC After the Disney Brothers
Walker took over as Chairman and CEO in 1980 when Tatum
retired. During Walker's tenure, the company did not do well. The audience's
preference for family films was slowing down and WDP's films were not attractive
enough for the adult and teen market.
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There were no major additions to the theme parks. Further, the EPCOT project,
which opened to the general public on October 1, 1982, had over US$1billion
invested in it. A number of animation employees also left the company. In 1984,
Walker resigned on account of the poor earnings performance of WDP and Miller
took his place.
When Miller took over as Chairman and CEO, Roy resigned from the
board of directors on account of his differences with him. Roy then began a
campaign for a change in WDP's top executives. The 1980s witnessed a takeover
frenzy and aggressive takeovers by corporate raiders became the order of the
day...
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Eisner's Reign at Disney
Eisner brought with him two executives he had closely worked
with at Paramount -- Jeffrey Katzenberg (Katzenberg) and Richard Frank
(Frank). Katzenberg was given charge of Disney's motion picture division,
including the feature animation unit which was not doing well. Frank took
over the television business operations of the company.
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By 1985, around 30 people had left Paramount to join
this team. In 1986, WDP became Walt Disney Company (WDC). Eisner, Wells,
and the new team turned around the performance of the company in what
came to be known as the 'golden decade' for WDC.
In addition to improvement in earnings, the creative spark that had been
the hallmark of Disney came back to life with many critically acclaimed
live-action/animation hits like 'Who Framed Roger Rabbit' (1988), 'The
Little Mermaid'(1989), 'Beauty and the Beast'(1991), 'Aladdin'(1992),
and 'The Lion King' (1994). The Disney channel was revamped and slowly
gained in popularity... |
Excerpts Contd... >>
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