Harvard Walt Disney Company The Entertainment King Case Study Questions

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Business Finance

Harvard Business School

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Again, as always, do not use the Internet in any way to help you. No outside sources. No references to what's going on today. Again, use "nothing but the case, your textbook and your brain." :^)

Disney Case Study Questions on Corporate Strategy

  1. Why has Disney been successful for so long?
  2. Discuss the “three dimensions” of corporate strategy and how Disney did with each of them under Eisner.
  3. Was Eisner worth the $230MM in stock options he received? Why/why not?
  4. How can you tell if a diversification strategy is working, according to what we've read? Now, apply that to Disney.
  5. As the last line of the case says: “Did Eisner — the man credited with Disney’s rebirth — now need to change his approach to running his entertainment empire?”

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Explanation & Answer

Attached.

Strategic management
Why has Disney been successful for so long?
One of the reasons for Disney’s success is quality products. Katzenberg had excellent
skills in identification of good scripts which implied production of quality movies and shows.
Katzenberg also persuaded the best actors from Hollywood to join Disney’s entertainment
projects to improve the company’s product quality. Disney also began to produce quality
animations films with highly successful features. The films were profitable and hence, increased
Disney’s film output volume.
Disney’s success is also attributable to the company’s good management practices.
Disney’s management team had good conflict solving skills. Eisner and Wells were always
available to solve challenging situations among Disney’s division executives. Eisner noted that
Disney’s strength was managing creativity and build on it to improve the business. Company
executives use managing creativity as a tool to encourage innovation among employees. Eisner
encouraged extensive creativity among workers to develop the company’s market position.
Eisner also approved spending aimed at enhancing innovation to increase the company’s
profitability. The company’s executives worked in unity. Katzenberg used his convincing power
to attract actors and persuade Disney directors to support implementation of movie projects.
Katzenberg assisted Eisner in bargaining for good deals from lowly established actors with
strong understanding of scripts.
Proper planning also co...

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