What did Woody say to Buzz Lightyear? A lot. There were three movies! Toy Story being Pixar’s first feature film in 1995, was nominated for awards by the Academy of Motion Pictures Arts and Sciences. In 1979 Pixar Animation Studios was founded as Graphics Group. It was originally the computer division of Lucasfilm, and became its own corporation in 1986 with funding from Apple cofounder Steve Jobs. People tend to think of creativity as a mysterious solo act, and they typically reduce products to a single idea. Creativity must be present at every level of an organization. In filmmaking and other kinds of complex product development, creativity involves a large number of people from different limitations working effectively together to solve …show more content…
The first six films that have been made since they have been there has been huge successes. The one thing they were really adamant about was that the two studios not be integrated together. “We established an absolute rule, which we still adhere to, that neither studio can do any production work for the other. For me, the local ownership is really important.” Hardware and software are always changing, that means it will become easy for smaller groups of people to get together to try something and when that happens it will give certain people opportunities to be creative in out of the blue ways. Ed Catmull doesn’t believe in the notion of a perfect process. Their goal isn’t to prevent all the problems; their goal is making good movies. They took the opposite approach than most company mergers. They told each studio ‘“You may look at the tools that the other has, you may use them if you want, but the choice is entirely yours.” They each have a development group that’s coming up with different ideas, but because we said, “You don’t have to take ideas from anybody else,” they felt freer to talk with each other.’ Talent is rare, a belief both Pixar and Disney share. Catmull believes that management’s job is “not to prevent risk but to build the capability to recover when failures occur. It must be safe to tell the truth”. “What’s the key to being able to recover? Talented people! …show more content…
Before the merging, Disney had a leader that was ineffective and it showed in the work they produced. I believe Catmull and Lasseter follow the House’s Path-Goal theory of leadership. The basis of path-goal is that effective leaders motivate subordinates to achieve goals by 1: Clearly identifying the outcomes that subordinates are trying to obtain from the workplace. In the Disney-Pixar aspect, the main goal of everyone is to come up with new innovated film ideas that have never been done before. Always trying to push the envelope. This in an interesting job assignment, very challenging this day and age because everything is just getting bigger and bigger. 2: Rewarding subordinates with these outcomes for high performance and the attainment of work goals. I would think there would be compensation for producing a box office hit. There is a shared interest in everyone’s success. They really are a team, the success of a movie counts on each and every person involved. And 3: Clarifying for subordinates the paths leading to the attainment of work goals. To remove any obstacles, the company created an environment where they remove the power structure. “Everyone’s notes are equal.” Everyone is encouraged to share ideas freely and honest feedback is given. This allows employees to
Hightower brings broad career experience for this assignment for change. He has a professional background as a strategic manager. This position for Hightower came as a surprise. Hightower will face the challenge of being accepted as the leader to a very diverse market entrenched with managers. He cannot afford to fail in this initial stage. It will surely take away any opportunity of having any creditability. Hightower must be consistent in his actions.
The companies worked towards a culture that was more in line with team learning. Pixar had previously operated under the premise where people were given the full chance to be creative and use their ideas in order to learn from their success or failures. Disney allowed for creativity however was more micromanaged. This new cultural shift for Disney to let go of some of the control was a hard thing to do for them. Disney had initially lost some of the people with this shift in their culture mainly with those who failed to adapt to this new free-spirited environment. With Disney’s regimented culture they followed more of a top down approach within their work environment. This approach initially during the merger hindered the learning approach that Disney Pixar was trying to create. Some employees at Pixar initially had issues with the cultural clash of a free-spirited environment and the rigid environment Disney operated with causing problems with retaining the talent at Pixar. Despite these cultural clashes and differences Disney Pixar was able to pull their new-shared vision in a direction that allowed for cross-organizational collaboration and for a new culture that worked for both companies.
Walt Disney Company is an expanded global company with operations in four major business segments i.e. Studio Entertainment, Media Networks, Consumer Products and Parks and Resorts. The company has a workforce of more than 15,000 employees in more than 40 countries across the globe. In addition to having a huge workforce, the firm is largely renowned for its success and profitability in all its business segments on an annual basis. One of the most important aspects that have contributed to its growth and profitability throughout the years is its compensation program. The firm has compensation programs for all its employees because of its consideration of employees as one of the major stakeholders of its operations. However, Walt Disney Company has experienced significant challenges in relation to its compensation program because of the various peer groups used in this process. As a result, the company's compensation program has significant structural flaw because of its size and complexity.
Disney’s tentpole strategy has been fairly successful throughout the Disney Studios lifetime. Even though this strategy worked in the past it may not be the best strategy moving forward, as there are advantages and disadvantages to this strategy. One advantage of this strategy is that the tentpole films attract movie going customers that think of the movies more as an event rather than just a film they want to see.“A $200 million movie is more likely than a $20 million movie to have elements that appeal to moviegoers--to have special value for them.”, said Horn. Just as with any bet, there could also be a risk and disadvantage. If the film fails, they would both have to take the fall instead of just Disney Studios. “When our
The current situation that Disney faces is very unique. Considering its relationship with Pixar, Disney holds a powerful set of options to choose from. My recommendation is going with the full acquisition of Pixar. While it is recommended for Disney to acquire Pixar, the merger should be done in a way that ensures a positive, sustainable relationship that maintains diversity. Through the acquisition, Disney can exclusively hold onto the talent that Pixar cultivates. Pixar and Disney both bring a value of fan base and name recognition, which can be powerful when combined. Most importantly, Disney will have control of the revenue stream for both organizations, which will prevent any polarizing negotiations, as both will be under the same roof.
Pixar had a few alternatives besides being acquired by Disney. One alternative for Pixar was to vertically integrate forward and enable distribution of its own content instead of relying on Disney by acquiring smaller media companies. However, this would be a highly unrelated diversification for Pixar and possibly create diseconomies of scope. Pixar would also face rigorous competition from other media conglomerates like Disney, Universal and Paramount.
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are
To answer the main question of the case, we must think of the main problems that it faces. We need to find the solution for Bob Iger. What to do with Disney: to make some improvements in the existed company to compete better with Pixar, or to make a deal with another studio? Or should he work more with Pixar, or maybe just buy the whole company?
The second factor is the economies of scale. The success of the acquisition regarding the economies of scale is questionable as the companies did not seem to work together (Zahed, 2012). Disney started developing their own computer animations, while Pixar got a lot of revenue from their six animated motion pictures. Pixar has the technology plus the creativity, and Disney has good stories plus the
Managing conflict for organizations is very important in maintaining business relationships, especially ones that are profitable like that of Disney-Pixar. At the helm of the Walt Disney Company during the begging and end of these feuds was Michael Eisner and Bob Iger. Even though Michael Eisner is the one responsible for the conflict with Disney and Pixar, he should be equally responsible for trying to fix the damaged relationship. When trying to manage conflict there are several approaches that can be taken to resolve the conflict at hand: dominating, accommodating, problem solving, avoiding and compromising.
Walt Disney saw change as a consequence of employee behaviour (Brownell, 2008). If a leader were to be effective, he or she must understand the needs of a member in an organisation. This also included an awareness of motives, personalities, skills, and abilities (See ‘Emotional Intelligence’ in Northouse 2010, p. 23; Brownell, 2008). Path-Goal Theory comprises the motivation of leaders toward subordinates in order that such needs are met and achievement of an organisation’s proposed goal is reached (Northhouse 2010). Walt Disney sustained subordinate involvement and interest through his leadership commitment to employees, as well as his dynamism and enthusiasm (Bryman 1993). After all, “Walt Disney’s greatest creation was not Fantasia, [n]or Snow White, but...his uncanny ability to make people happy” (Collins and
Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and
Pixar is a company that has ties to other major corporations in our American culture. Pixar Animation Studios started as a part of the Lucas film computer group, which is owned by George Lucas the creator of Star Wars. However, after receiving funding from Steve Jobs the division became its own corporation in 1986. After that Disney purchased Pixar, which allowed Steve Jobs to become a shareholder in Disney also. With these changes due to the ownership of the corporation an analysis of managerial economics is overdue. What follows is an evaluate how Pixar attains balance between culture, rewards, and boundaries, what is Pixar’s organizational structure and why they have the structure they have, how Pixar’s leadership helps to create an ethical organization, how Pixar’s innovation helps the organization to accomplish its goals, how emotional intelligence helps the leadership guide the company, and how Pixar has overcome barriers to change. Pixar’s history has presented the firm with challenges and the firm has managed to overcome those challenges, anyone who plans to one day own their own business should look at the company and understand how the firm accomplished their tasks despite the presented challenges. The merger with Disney resulted in some problems for Pixar, but the merger was pursued for a reason. By merging, both firm have the potential to save time and money; there is also the potential to learn from each other.
This study examines how leadership, teamwork, and organizational learning can contribute in making mergers and acquisitions work. Our intention is to identify critical factors and practices needed for merger success. Our research is part of an ongoing project, and builds on previous analysis of merger success/failure in such organizations as Standard Oil, Exxon Mobile, and Time Warner-AOL. In this paper, we turn our attention to the recent merger of Pixar and Disney. In our view, the Disney-Pixar case seems to be a good example of a successful merger in progress. This is demonstrated very clearly by recent box office successes such as Academy Award
This paper will analyse a recent period of strategic change at The Walt Disney Company which began in 2005 with the appointment of current CEO Robert Iger. The company began to experience halted growth during the late 1990s. The former CEO Michael Eisner had been successful himself in the late 1980s in changing the company during what is known as the Disney