The Walt Disney Corporation
TABLE OF CONTENT
• Overview
• Situational Analysis
• Issue Statement
• Leadership Analysis
• Courses of Action
• Selected Course of Action
• Implementation
• Questions / Comments
OVERVIEW
• Michael Eisner steps down as CEO
•Management style
•Investment timidity
•Unclear vision
•Broken Fences
•Employees
•Business Partners
•Board members
•Robert Iger steps up as CEO
•Vision
•Reduce turmoil
•Leadership role
SITUATIONAL ANALYSIS
Vision / Purpose / Mission
Vision: The Walt Disney Company is to be the
preeminent leader in the field of family
entertainment.
Purpose: Commitment to producing
unparalleled entertainment experiences based on
its rich legacy of quality creative content and
exceptional storytelling.
Mission: The Walt Disney Company is to be one
of the world’s leading producers and providers of
entertainment and information, which excels in
being a diversified, international, family
entertainment and media company.
SITUATIONAL ANALYSIS
Values
• Innovation – follow a strong tradition of
innovation
• Quality – strive to follow a high standard of
excellence; maintain high-quality standards
across all product categories
• Community – create positive and inclusive
ideas about families; provide entertainment
experiences for all generations to share
• Storytelling – every product tells a story;
timeless and engaging stories delight and inspire
• Optimism – entertainment is about hope,
aspiration and positive resolutions
• Decency – honor and respect the trust people
place in us; fun is about laughing at our
experiences and ourselves
SITUATIONAL ANALYSIS
Stakeholder Map
(LH) Business Partners
(LH) Communities
 Fair dealings
 Synergy
 Free exchange of information
 Negotiating ability
 Quality products / services
 Environment protection
 Compliance with laws
 Involvement / support
(HH) Major Business Segments
 Creativity license
 Free innovation
 Independence
(LH) Customer / Guests
 Quality products and services
 Value prices
 Innovative products
 Knowledgeable service
 Safety / Security
Bob Iger
(HH) Board of Directors
 Return of shareholder value
 Growth in dividend payments
 Consistent dividend payments
 Growth in net asset value
 Involvement in decisions
(LH) Employees
 Empowerment
 Creativity
 Dignity & respect
 Professional Development
 Safe work environment
SITUATIONAL ANALYSIS
Effectiveness Analysis
Internal Efficiency
- Suffers from advertising woes
+ Sales increase by 21.8% to $1.92B
Employee Motivation
- Employee moral / over internal disputes
- Lack of empowerment
- Lack of free innovation / creativity
Resource Acquisition
- Reduction in share price by 15%
+ Shed underperforming assets
+ Rise in stock shares from $15 to $22
+ $698M to $7.8B increase in revenues
- New market development
Customer / Client Satisfaction
- Under appreciated brands
SITUATIONAL ANALYSIS
SWOT Analysis
Strengths
 Size of operations
 Brand loyalty
 Diverse businesses
Weaknesses
 Reliance on relationships
 Seasonal fluctuations
 Diseased culture
 Lack of advertisement
Opportunities
 International development
 Brand extensions
 Create a digital market of products
Threats
 Vulnerability to outside factors
 Foreign business risks
 Increasing competitive pressures
 Soft economy
 Investor confidence / bad publicity
ISSUE STATEMENT
How can Iger improve the company
culture while allowing for freedom of
creativity to aid in the expansion of
brands into international markets and
create a break through in new product
develop?
LEADERSHIP ANALYSIS
Leadership Mind & Heart
Self-Awareness
• Emotional self awareness
• Accurate self-assessment
• Self-confidence
Self-Management
• Emotional self-control
• Trustworthiness
• Conscientiousness
• Adaptability
• Optimism
• Achievement-orientation
• Initiative
Social Awareness
• Empathy
• Organizational awareness
• Service orientation
Relationship Management
• Development of others
• Inspirational leadership
• Influence
• Communication
• Change catalyst
• Conflict management
• Bond building
• Teamwork and collaboration
LEADERSHIP ANALYSIS
Moral Leadership
Stage 1
Control
Active
Passive
Stage 2
Participation
Stage 3
Empowerment
Whole
employees
Authoritarian
manager
Obedient
subordinates
Control Centered in the
Leader/Organization
Stage 4
Service
Participative
manager
Selfresponsible
contributors
Team players
Stewardshipempow. leader
Servant
leader
Control Centered in
the Follower
LEADERSHIP ANALYSIS
Motivation and Empowerment
VISION/MISSION
CALLING
(Performance)
Make a difference
Life’s Meaning
Strategic Leaders
Empowered
Teams
HOPE/FAITH
Culture
(Learning Organization)
(Effort/Works)
Endurance
Perseverance
Do what it takes
Stretch Goals
Excellence
Values/Ethical System
TEAM
Members
(Personal Leadership)
Organizational
Productivity,
Commitment
Altruistic Love
(Reward)
Forgiveness/Acceptance
Gratitude
Integrity
Honesty
Courage
Humility
Kindness
Compassion
Patience/Meekness/Endurance
Trust/Loyalty
MEMBERSHIP
Understood &
Appreciated
LEADERSHIP ANALYSIS
Leadership Power and Influence
4. Symbolic
3. Political
Mind-set: Sees
organization as
jungle, power,
2. Human Resource schemes
Mind-set: Sees
Emphasis:
organization as
Resource allocation,
1. Structural
family, belonging,
negotiation, coalition
clan
building
Mind-set: Sees
Emphasis:
People,
Dangers: Power
organization as
plays for purpose of
machine, economics, support,
empowerment
self-interest
plans
Dangers:
Lack
of
Emphasis: Goals,
content or
systems, efficiency,
substance
formal authority
Dangers: Rigidity
and tyranny
Mind-set: Sees
organization as
theater, spiritual
meaning, dreams
Emphasis: Vision,
culture & values,
inspiration
Dangers: “Messiah”
complex
LEADERSHIP ANALYSIS
Vision, Culture, and Values
Flexibility
Clan Culture
Adaptability Culture
Values: Cooperation
Consideration
Agreement
Fairness
Social equality
Values: Creativity
Experimentation
Risk-taking
Autonomy
Responsiveness
Internal focus
External focus
Bureaucratic Culture
Achievement Culture
Values: Competitiveness
Perfectionism
Aggressiveness
Diligence
Personal initiative
Values: Economy
Formality
Rationality
Order
Obedience
Stability
EVALUATION OF ALTERNATIVES
1. Keep the status quo, change nothing.
2. Create empowered business divisions,
through the development of a learning
organization built on spiritual
leadership.
3. Change the bureaucratic culture to one
focused on adaptability.
4. Expand the Disney brand to new
markets to increase visibility.
RECOMMENDED ALTERVATIVE
Change the culture, while adapting to the
strategic leadership creating
empowerment and employee
commitment, needed to expand brands
and increase visibility.
IMPLEMENTATION
Phases
8. Institutionalize
changes in the
org. culture
1. Establish a
sense of
urgency
7. Consolidate
gains, create
greater change
2. Form a powerful
guiding coalition
3. Develop a
compelling vision
and strategy
4. Communicate
the vision widely
5.
Empower
employees
to act on
the vision
6. Generate
short-term
wins
IMPLEMENTATION
Timeline
Task to Change
Sense of urgency
Shared commitment
Compelling vision and strategy
Communicate the vision
Empower employees
Generate short-term wins
Consolidate gains
Changes in the org. culture
Changes complete
Time Frame
1-2 mnths
3-4 mnths
6 mnths
1 year
1-2 yrs
1-2 yrs
1-2 yrs
1-2 yrs
1-2 yrs
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
QUESTIONS / COMMENTS