Muhmmad Shoaib Shafqat Malik Name: Haris Javed Akhtar (01-221112-028) Submitted to: Class: Date: Sir Shoaib

Baloch MBA 4 F 14/05/2012

Bahria University Islamabad

Disney has steadfastly experienced resurgence since Michael Eisner took the helm in1984. He was able to incorporate his superior business acumen while maintaining the fundamental values founder Walt Elias Disney treasured. With superior strategizing, the Disney Empire was made into one of the most diversified business marvels. Although Disneys management triumvirate has been disassembled, time will show how successfully its CEO will lead this entertainment giant into the new millennium Disneys first and most important resource is its creativity-driven culture. The enterprise was born out of a character Walt Disney created. As Eisner described it, managing creativity is Disneys most distinctive corporate skill and a driving force behind most its activities. This is evidenced by emphasis on creation and significance/independence that has been given to Imagineers to come up with new ideas free from external pressures and constraints. It is noteworthy to recognize that spending was readily approved if necessary to achieve creativity. In addition to creativity, the companys thorough knowledge and understanding of the family entertainment industry coming from its successful track record and history is a critical resource. Disney has been able to build a strong brand of wholesome and family-friendly image, which is closely aligned with Walt Disneys original philosophy of creating a universal timeless family entertainment. While the Disney brand is widely recognized as wholesome, it is associated with family, rather than kids only. Understanding how to meet the needs of adults and children alike and creating an experience that families could enjoy together sets Disney apart from competitors and serves as a concrete base for business expansion into related industries. Most of businesses Disney entered early in its corporate life are wellaligned with Disneys critical resources. Emphasis on creativity encouraged vertical and horizontal expansion in content production, and itself benefited from the growth as a result as well. For example, moving from full-length animated film to live action movie production (and entering cable TV business later on) made sense because the company was able to leverage on numerous ideas generated within the company and monetize more of those ideas. Entering distribution business (Buena Vista Distribution) also made sense because Disney could benefit from the companys own pool of talent and invest back into the. Disney is known for identifying their strongest brand product and expanding its successive the use of their diverse business groups. Throughout the years, Disney has successfully managed to expand its corporation with business units that have opened up their brand to a new generation of customers. The partnerships formed with Touchstone, ESPN as well as Pixar have strengthened Disneys

offerings. Not to mention, the evolution into an international chain of specialty stores selling exclusive Disney merchandise and increased Disney toy sales. Even though of it success Disney faced slumps early on after acquiring ABC less success was achieved compared to what they actually wanted. High budget movies also did pour in profits to their likeness thus reverting back to low budget movies also converting of parks to holiday destinations required large sum of money. Therefore Eisner decided on cost cutting techniques which were estimated to save 500 million. Disney also had a failed attempt at internet world as it revealed uneven results. Furthermore Eisner faced three strategic challenges such as managing synergies which was done through synergy programs that worked together and reported to Eisner directly this was fruitful, and then there was brand management as adding up new channel such as ABC and starting a channel of its own named as Disney placed difficulty especially the problem raised last was managing creativity where it faced difficulties in finding president and executives. When Disney started a show named Allen hosted by a lesbian where people protested against it for the reason that Disney had forgotten family values. Disney also updated its movie division which started to produce movies for adults. The Companys expansion into parks, resorts and entertainment has made the Disney Corporation a16 powerful company to compete against, Of course, all of Disneys projects have not been a success story but the company has not allowed low profit ventures to bring the company down. The Disney Company has continued to discover new and creative ways of entertaining their customer. The success of one venture or division is the success of the company as a whole. Disney has managed to develop synergies across several of their business units and maintained control of their business resources. Disney ensures all their divisions are working in sync to the same tune making Disney a successful corporation