Disney-Pixar-PPT-Neha Rawal.ppt Answer Paper 1q(2)

Neha Rawal (F1) Roll no 34

NEHA RAWAL ROLL NO 34

BackgroundMotive & FitsOf Partners

Alliance Structure RecommendationProblem &

Latest SituationKey Success

Factors

• One of the leading media companies in the world

– Walt Disney Studio

– Theme Parks and Resorts

– Disney Consumer Products

– Media Networks: ABC and ESPN

• 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




Factors




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

Motive of Partners




Factors

What’s for Stakeholders?

Revenue:

Get higher share price for stockholders

Human Resource:

Be able to exchange valuable human resource between Disney and Pixar




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.

1997Pixar 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 .

2006Disney bought Pixar Merged two companies becoming Disney-Pixar




Factors

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.




Factors

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:

1. 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.

2. 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.




Factors

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.




Factors

Lessons learnt from Alliance

vs.

Pixar Culture Disney Culture




Factors

Pixar

Work office is not a cubicle, but rather a habitat

Main culture is egalitarianism(People should get the same, or be treated the same), which emphasizes on teamwork.




Factors

Disney

Hierarchy Management Style

Aim more on making the profit instead of providing the quality animation

Conclusions

Mergers are like marriages. The right partner must be selected after an honest and meaningful courtship. There must be communication, flexibility and mutual respect. In Organizational culture is a blend of an organization's values, traditions, beliefs and priorities. The very minute that merger rumblings are heard in an organization, the work climate begins to change. Employees become emotionally confused and anxious, similar to how one might feel when a mate makes an abrupt announcement demanding a divorce.

The initial feeling is one of betrayal.

But remember, not all mergers fail. The success of mergers depends on how realistic the deal makers are and how well they can integrate two companies while maintaining day-to-day operations.

Thank You for

Your Attention

Documents

Disney-Pixar-PPT-Neha Rawal.ppt Answer Paper 1q(2)