Case Analysis Disney

Topics: The Walt Disney Company, Michael Eisner, Who Framed Roger Rabbit Pages: 7 (2789 words) Published: November 4, 2010
Example of Case Analysis Writing
Below is an example of what I consider excellent work. As you read through this example, note how clearly the author applies concepts from the course (this was a class on organizational change) and applies them to the case. This application is clear and explicit. For example, the first section of this paper deals with the problems Disney faces. This author suggests that Disney's "strategic context" is an important issue. "Strategic Context" is a key concept from the literature this class read on managing organizational change. Note how the author introduces the concept, clearly defines it, and then uses that concept to analyze Disney. In this discussion, evidence regarding Disney's strategic context is clearly presented and discussed/ evaluated using the concept. The September 6, 1999 Fortune article entitled, “Eisner’s mousetrap,” describes the well known Disney Company as a large organization ($24 billion in revenue in 1999) that “has simply stopped growing.” The status of the company was examined in detail by the article and a number of problems were revealed. This paper is based on the information provided by the article and is divided into two sections. The first section discusses four reasons for the difficulties currently confronting the Disney Company. The second section offers suggestions that would allow Disney to addresses the difficulties it now faces as it successfully changes. Reasons Why Disney is Facing Difficulties

The myriad of problems facing Disney can be traced to four causes. The difficulties began with a dramatic shift in the strategic context under which the company operates. This shift highlighted shortcomings in the company’s structure and culture. And CEO Michael Eisner’s hands-on, meddlesome approach has thwarted efforts to turn around the company. Disney’s strategic context. Tushman and O’Reilly define strategic context as three key factors that help managers understand the opportunities and constraints that fie before their organizations. The factors are: (1) the environment in which the organization operates, (2) the resources available to the organization, and (3) the history of the organization. The strategic context is the vital first step in Tushman and O’Reilly’s congruence model. Once the strategic context is understood, strategic choices can be made, critical tasks defined, and alignment checked between those critical tasks and the organization’s people, organization, and culture. If that strategic context is altered, however, choices can be incorrect, critical tasks off target, and relationships misaligned. Disney’s strategic context has undergone dramatic changes in recent years. Its competitive environment, its customers, its market position, and its history have all combined to alter its strategic context. Disney used to have the some markets (particularly the kids market) to itself, but in broadcasting Disney is now a “poor third” behind Nickelodeon and the Cartoon Network among kids aged 2 to 11 and in popular kids shows (and related merchandising) Disney has nothing to compare to Nickelodeon’s Blue’s Clues, PBS’s Teletubbies and WB’s Pokemon. In videogames, Disney is an “also-ran.” Disney used to be the only studio to produce animated features, but now Warner, Dreamworks, and Fox all do. Even Disney’s theme parks are facing greater competition from companies such as Universal. Similar competitive changes have happened with the company’s Cap Cities assets. ABC’s network ratings have fallen 13% among the 18- to 49-year old demographic, and it is now third behind NBC and Fox. Disney-controlled ESPN, which used to dominate the sports market, is being challenged by Fox Sports. Disney feels that the technological changes being wrought by the Internet will benefit the company because of its rich and deep stock of content. Others, though, including Patrick Keane, an analyst from Jupiter Communications, feel that technological change may be a competitive...
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