Governing the House of the Mouse

Governing the House of the Mouse - Governing the House of...

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Governing the House of the Mouse: Corporate Governance at Disney, 1984-2006 CASE ASSIGNMENT At the departure of Eisner, Chairman George Mitchell and new CEO Robert Iger are preparing to move the company forward. They have invited your consulting firm to meet with the new Board of Directors and discuss the situation at Disney. To familiarize yourself with the client, your first task is to prepare a background report which analyzes Disney's business environment and strategy. 1. What external forces and industry conditions have had an impact on Disney's performance over the years? 2. How did the internal organization and culture at Disney influence its performance? 3. How has Disney strategically responded to its competitive environment and internal capabilities? You have been asked to present a five-minute overview of the root causes of Disney's governance issues. The content of this brief presentation should achieve the following goals. 4. Identify the causes and consequences of the Board of Directors' ineffectiveness. 5. Highlight other governance weaknesses that have made Disney vulnerable to managerial opportunism. To be prepared for the ensuing discussion, you'll also need to be familiar with the following items. 6. How have governance mechanisms at Disney been used in the past, and what was their effect? 7. What unprecedented maneuvers were made by Disney stakeholders to overcome internal governance weaknesses? During the discussion, you should be able to demonstrate an insightful look at Disney's situation, make recommendations for establishing effective governance practices, and support the need for governance mechanisms despite the appearance of performance success. 104
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Governing the House of the Mouse: Corporate Governance at Disney, 1984-2006 STRATEGIC MANAGEMENT INPUTS AND ACTIONS 1. What external forces and industry conditions have had an impact on Disney's performance over the years? The prevalence of television viewing and at-home viewing devices has reduced movie attendance and ticket sales revenues dramatically over the years. Additional distribution channels, including cable and subscription-based services, have also increased competition for motion picture industry participants. To replace lost revenues and respond to industry changes, movie studios have shifted their primary focus from show quality and content to distribution, licensing, marketing, and merchandising arrangements. Seeking alternative sources of revenue and taking advantage of emerging technological opportunities, traditional studios have extended their reach more broadly into other forms of entertainment. Diversification and integration have not only helped participants survive the industry's transformation, but strategic actions by major industry players have caused some of the changes in the industry. Disney's core business has always centered on its reputation as the premier producer of
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Governing the House of the Mouse - Governing the House of...

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