Disney Pixar 5

http://www.youtube.com/watch?v=d4TuB_cNIaY&feature=related

Type Public company

Industry Largest Media and Entertainment Conglomerate

Founded Los Angeles, California, U.S.(October 16, 1923)

Founder(s) Walt and Roy Disney

Headquarters Burbank, California, U.S.

Current CEO & President Robert Iger.

Total assets US$ 69.206 billion

Company Divisions

Subsidies

Pixar Inc History

• Toy Story (1995)• A Bug's Life (1998)• Toy Story 2 (1999)• Monsters, Inc. (2001)• Finding Nemo (2003)• The Incredibles (2004)• Cars (2006)

• Ratatouille (2007)• WALL-E (2008)• Up (2009)• Toy Story 3 (2010)• Cars 2 (2011)• Brave (2011)• Newt (2012 Cancelled

Early Enterprises

• The creator of Mickey Mouse and founder

of Disneyland and Walt Disney World was

born in Chicago, Illinois, on December 5,

1901. His father, Elias Disney and his

mother, Flora Call Disney.

•Walt became interested in drawing at an early age. At

McKinley High School in Chicago.

Cont…….

• Walt joined the Red Cross and was sent overseas to France, where he

spent a year driving an ambulance and chauffeuring Red Cross officials.

• He began producing short animated films for local businesses, in Kansas

City.

• After making a success of his "Alice Comedies," Walt became a recognized

Hollywood figure. On July 13, 1925, Walt married one of his first

employees, Lillian Bounds, in Lewiston, Idaho.

• On December 21, 1937, Snow White and the Seven Dwarfs, the first full-

length animated musical feature, premiered at the Cart hay Theatre in Los

Angeles.

Cont………

• Walt Disney took a deep interest in the establishment of

California Institute of the Arts, a college level, professional

school of all the creative and performing arts.

Creation of Mickey Mouse

In 1928 Walt created a new animated

character, Mickey Mouse.

“ A Real Personality”

In mid- thirties, Mickey had become a

national symbol and as such he was

expected to behave properly at all times

VISIONARY

• His main vision is to spread happiness in the world.

• Walt Disney presents his vision of a magical park´. The more he dreamt of

it, the more elaborate his plans became.

• In 1954, the year before Disneyland opened.• He completely trust his creative employees.

Leadership Style.

Walt Disney of course was one of the founding fathers of the Disney

organisation.

One of Walt Disney abilities was to come at a problem from different

mental perspectives.

He developed three distinct mental methods and gave them names.

The dreamer.

The Realist.

The Spoiler.

HISTORY

• 1923–28: The Silent Era

• 1934–45: Snow White and the Seven Dwarfs and World War II

1934–45: Snow White and the Seven Dwarfs and World War II

• First feature-length animated film in 1934.

• New Release in December 1937- Snow White

• Snow White was released through RKO Radio Pictures,

• Snow white made huge profits

•In the year 1939 initiated Public Offerings

•More succesful releases

Dumbo (1941),Fantasia (1940), Bambi (1942)Pinocchio(1940),

•World War II

•Box-office profits began to dry up.

•Attack on Pearl Harbor,

•Films like-Victory Through Air Power and the short

Education for Death(both 1943)

•Welcome Donald Duck

•Congo Mr Duck Der Fuehrer's Face (1943).

Continued

1946–54: Post-war and television

• With limited staff and little operating

capital

• Low budget films

The Three Caballeros (1944)

Melody Time (1948),

• Introduction of live-action films and

documentaries

• Biggest HIT in Box Office

• Ended its contract with RKO in 1953

•Founded Buena Vista Distribution.

•In December 1950, shaked hand with

COCA COLA

Cinderella (1950) Alice in Wonderland (1951)

Peter Pan (1953)

1955–65: Disneyland

• July 18, 1955, Walt Disney opened

Disneyland to the general public

• November 1965, "Disney World" was

announced, with plans for theme

parks, hotels, and even a model city on

thousands of acres of land purchased

outside of Orlando Florida

• Disney's most successful film Mary

Poppins, (1960s)

1966–71: The deaths of Walt and Roy Disney and the opening of Walt Disney World

Strokes To Disney World

• On December 15, 1966, Walt Disney Passed away

• Roy Disney took over as chairman, CEO, and president of the company.

• Disney World as "Walt Disney World

• The Jungle Book and the musical The Happiest Millionaire were the last movies of Walt

• Roy Disney died of a stroke

1972–84: Theatrical malaise and new leadership

• ed Disney CEO Ron Miller New CEO

• Touchstone Pictures as a brand for Disney. Touchstone's first release

Splash (1984)

• Return of Disney

• announced plans for the second Walt Disney World theme park,

EPCOT Center,

• Disney Productions to build the first Disney theme park outside of the

United States, Tokyo Disneyland, which opened in April 1983.

1984-2005 Michael Eisner-The Savoir

• Michael Eisner was born in New

York as a son of Jewish parents.

• As Paramount’s CEO

• Leaving Paramount and Joining

Disney

The Eisner Era• New flagships starting from “The Little Mermaid”

• 90’s era Disney domination

• Key feature films – Lion King ,Aladdin ,Duck tales , Tales Spin and many

more

• Forbes's 50 best Companies

• Transition to live action films and cgi from cartoons

• Pirates of the Caribbean ,National Treasure ,The Princess Dairies ,The

chronicles of Narnia, Toy story ,Wall-e ,Cars etc

• Problems with Steve Jobs and Pixar

Criticism/Nature

• An Autocratic Leader

Inability to adapt

Complete control domination

Egotistical Attitude

• Micromanagement Frequency

Obsessive Micromanagement

Brain Drain

•Creative Edge

Idea Generator

Friction and Conflict

•Critics and Media

Heavy criticism

Leadership Style

• Pseudo-transformational

Self-consumed ,exploitive ,power oriented

Negative empowerment

• Transactional

Extracting values from subordinates

Advancing own agendas

• Path-Goal Leadership style

Positive goal establishment financially

Revamping the Disney Image

ValuesInnovation

• We follow a strong tradition of

innovation.

Quality

• high standard of excellence.

high-quality standards across all product

categories.

• Decency

• honor and respect the trust people

place in us.

•Community

create positive and inclusive ideas about

families.

provide entertainment experiences for all

generations to share.

•Storytelling

Every product tells a story.

•Optimism

At The Walt Disney Company, entertainment is

about hope, aspiration and positive

resolutions.

Benefits

• A Wide Range of Benefits, including Health, Dental, Life Insurance and

more

• Complimentary Theme Park Passports

• Learning and Development Opportunities

• The Walt Disney Company Foundation Scholarship Program

• Employee Stock Purchase Program

• Disney TEAM Discounts, including Disney products and merchandise

• Service Awards

• Employee & Cast Member Contests

Learning Program

• At The Walt Disney Company, we know our employees and Cast Members

make the magic happen.

• Disney programs

• Disney Dimensions, an Executive Development Program

• Disney Ethics, Integrity, and Diversity Programs

• Professional Development

• Management/Leadership Development

Relationships/Nature

• Disney's relationship Pixar Animation Studios, Steve Jobs and Ed

Catmull,regarding possible merger.

• The noteworthy results was the transition of Pixar's CEO and 50.1%

shareholder, Steve Jobs, becoming Disney's largest individual shareholder

at 7% and a member of Disney's Board of Directors

Rich / Mike

Erica Doug / Nate

Kip

BoomerGROUP of 7

SWOT Analysis (Strengths)

• Diversified product and service portfolio

• Portfolio of well known brands

• Customer penetration of cable networks

• Strong brand equity by parks and resorts

SWOT Analysis (Weaknesses)

• Overdependence on the North American markets

SWOT Analysis (Opportunities)

• Acquisitions to strengthen the position in the entertainment industry

• Distribution agreement with DreamWorks Studios

• New franchise releases are likely to grow sales

SWOT Analysis (Threats)

• Intense competition keeps market share under check

• Proliferation of piracy in entertainment industry

• Regulatory risks

Perception and Emotion During Negotiation

• Disagreements between Steve Jobs and Michael Eisner• Eisner departs Disney in 2004 over Pixar relationship• Negotiations resumed in 2005 following Eisner departure

• Pixar thought they were not getting mutual benefits

• Pixar felt they did not need Disney

• Cultural differences

Impact to Stakeholders

• Barriers reduced

• During the merger, stockholders received a higher share price

• Better human resource management

• Cultural difference proved to be beneficial

• Share value the first 6 months of 2012

References

• Cohen, P. (2006). Disney Buys Pixar. Macworld, 23(4), 21. Retrieved from EBSCOHOST database.

• Laura, P., & David, L. (n.d). Disney to ponder today the extension of Pixar partnership. USA Today. Retrieved from EBSCOHOST database.

• The Walt Disney Company SWOT Analysis. (2012). Walt Disney Company SWOT Analysis, 1-10. Retrieved from EBSCOHOST database.

References

• BROOKS, B. (2012, April 26). At Disney, a Splintering of Power Makes It Tough to Find a Chief. New York Times.

• Haig, M. (2011). Brand Success (2nd ed.). Kogan Page.

• Cagan, J., & Craig, M. V. (2012). Creating Breakthrough Products: Revealing the Secrets that Drive Global Innovation (2nd ed.). FT Press

• Schermerhorn, R. J. (2011). Exploring Management (3rd ed.). John Wiley & Sons

Disney Acquisition of Pixar• In Jan 2006 Walt Disney agreed to buy PIXAR for

$7.4 Billion• Disney sought to revive its animation capabilities• Disney benefited from Pixar’s success by co-

financing and distributing Pixar films• Talks disintegrated due to Disney not agreeing on

allowing Pixar to own films it produced

Disney Acquisition of Pixar Con’t• Disney moved to repair the relationship by

announcing the acquisition of Pixar on Jan 2006

• Acquisition reflected Disney’s desire to infuse the films internal animation resources with those from a proven animation company

• One key Disney strategy is to use popular Disney movie characters across different venues (i.e., theme parks, merchandise, and television)

Disney Acquisition of Pixar Con’t• The long-term success of the combination hinges on

the ability of the two firms to meld their corporate cultures without losing Pixar’s creative capabilities

• The opportunity to prevent Pixar’s acquisition by a competitor may have been the primary reason why Disney moved so aggressively to acquire the animation powerhouse

• Synergies seen in combining successful animation experts and successful studios. ( Pixar + Walt Disney)

• Disney)Weakness of Pixar in getting the required Capital

Disney Acquisition of Pixar Con’t• Merger in May 06 ensured that Disney got the tech

built of Pixar• Win-Win deal - The strength of Pixar animation was

supported by the money of Disney and made it a force to reckon with and successful

• Best practices used during the negotiation exercise

• Ethics in the negotiation effort• Decision reached after the negotiation• Kip