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Governing the House of the Mouse:

Corporate Governance at Disney from 1984-2006

CASE ASSIGNMENT

At the departure of Eisner, Chairman George Mitchell and new CEO Robert Iger are preparing to move the company forward. They have invited your consulting firm to meet with the new Board of Directors and discuss the situation at Disney. To familiarize yourself with the client, your first task is to prepare a background report which analyzes Disney's business environment and strategy.

1. What external forces and industry conditions have had an impact on Disney's performance over the years?

2. How did the internal organization and culture at Disney influence its performance?

3. How has Disney strategically responded to its competitive environment and internal capabilities?

You have been asked to present a five-minute overview of the root causes of Disney's governance issues. The content of this brief presentation should achieve the following goals.

4. Identify the causes and consequences of the Board of Directors' ineffectiveness.

5. Highlight other governance weaknesses that have made Disney vulnerable to managerial opportunism.

To be prepared for the ensuing discussion, you'll also need to be familiar with the following items.

6. How have governance mechanisms at Disney been used in the past, and what was their effect?

7. What unprecedented maneuvers were made by Disney stakeholders to overcome internal governance weaknesses?

During the discussion, you should be able to demonstrate an insightful look at Disney's situation, make recommendations for establishing effective governance practices, and support the need for governance mechanisms despite the appearance of performance success.

STRATEGIC MANAGEMENT INPUTS AND ACTIONS

1. What external forces and industry conditions have had an impact on Disney's performance over the years?

The prevalence of television viewing and at-home viewing devices has reduced movie attendance and ticket sales revenues...