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Michael Eisner At Disney Case Solution

Solution Id Length Case Author Case Publisher
1853 1014 Words (4 Pages) Paddy Miller, Jordan Mitchell IESE : IES151
This solution includes: A Word File A Word File

Disney and Eisner are facing the number of challenges in 2004, which needs to be overcome on an urgent basis. The financial performance of the company was dwindling with the failure of two main movies. Similarly, the value of Disney also decreased in the wake of certain external happenings. On a personal front, Eisner faced a no-confidence vote, which affected his reputation in the company and raised several question regarding his leadership abilities. It is imperative for Eisner to change his leadership style in order to overcome these challenges.

Following questions are answered in this case study solution

  1. How would you describe Eisner as a leader? 

  2. Has he been successful? 

  3. Do you agree with Eisner in his way of managing creativity? 

  4. What would you recommend that Eisner change to overcome the short-term problems in 2004? 

Case Analysis for Michael Eisner At Disney Case Solution

1. How would you describe Eisner as a leader? 

Eisner brought a completely different style of leadership at Disney. As a result, he was able to develop a positive relationship with key executives in the company, which eventually fuelled the growth of the company. One pertinent example in this regard is of his relationship with Frank Wells. He also stimulated the culture of creativity in the organization, which allowed the company to introduce new products, which turned out to be quite successful. This culture allowed the company to come up with innovative but practical ideas, which enabled the company to convert intangible ideas to successful attractions for the consumers. He was also very hands on his approach towards management. This is due to the fact that Eisner felt that friction and conflict was good for the overall progress of the company. In order to increase both of these variables, he inducted diverse pool of employees, which came up with the different views on matters of creativity. This fostered the competition in the organization, and, in the end, only the best idea of all was able to see the light of day. However, this process was time consuming and caused unnecessary delays, which sometimes proved to be detrimental for the fortunes of the organization. With this leadership, Eisner was able to direct Disney to the path of success. 

2. Has he been successful? 

The tenure of Eisner can be divided into two parts. In the first part, he was able to achieve tremendous success for the company. The second part was characterized by lacklustre performance, which led to the deterioration of results for the company. Nevertheless, Eisner was successful in turning the performance of the company’s film division, which previously had shown poor performance. In addition to this, Disney was successful in acquiring some big media companies such as ESPN, ABC, History Channel, etc. Eisner was also very successful in making Disney once again the leader in animation through success of different animated movies such as Lion King, etc. Similarly, Eisner also brought certain changes in the themes park, which increased their commercial viability. However, in the second part of his tenure, the earlier successes started to fade especially in the film and theme park division. Similarly, Eisner’s heavy investment in internet ventures also proved to be futile attempts to stop the company’s failures. Moreover, the relationship of Eisner with the key executives of the company also started to deteriorate, which proved to be harmful for the company. Many executives left the company due to Eisner’s personality and the management style. Similarly, many critics questioned Eisner’s approach in dealing with the competition. It turned out that his approach of acquisition as a solution to dealing with the competition turned out to be unpractical as it affected the fortunes of the company in a negative way. 

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