Case Study Disney

Disney Corporation: It all started with a mouse

Mohammed Ali

Student ID: 1604153

MADS 6610 V4

Organizational Decision Making

Instructor: Ajay Garg

December 3, 2013

Introduction

Walt Disney is a studio which is renowned for its wide entertainment provided from1923, which is also the founded year of the Walt Disney company: founded by Walt Disney and his brother and nevertheless with its exemplary character Mickey mouse which took this studio in the direction of animated films and even it excelled in it, with 28$billion a year media and entertainment. This all held under the leadership of Michael Eisner who was the chief executive in 1984. But unfortunately from 1990, declination in its business occurs due to many reasons.

Analysis

Disney corporation with billions of turnover had faced the situation of heavy loss and instability created in the company because of the impact of many factors including the 9, 11 attack which effected the revenue from the parks and resorts of the company. But on the detailed study, it shows that the declination of revenues was mostly affected by the instability among the board of directors as they were the main critics due to the poor decisions making policies of Eisner. Moreover, the maximum power was given to one person who was opposed by the directors of the company. Furthermore, share holders of the company were not satisfied with the Eisner’s financial policies, as a result share values decreased with time.

The company had taken actions to curb these governance issues. Widening of the board was done by increasing number of board members along with independent directors to work properly. Also, Replacement of Eisner was done in 2005 as a CEO with Robert Tiger. However, this leads to more conflicts and legal proceedings by Roy Disney and his supportive director board, as there was no proper criterion for the appointment of CEO.

Suggestions

The company can’t be run on the ideology of single handler and just all the...