Micheal Eisner And His Reign At Disney Case Solution
Question:1- board of director-characteristics & backgrounds
At that time,there were three members of the board of directors that are discussed in the case namely; Eisner, Stanley and Disney. Their backgrounds and characteristics are discussed below.
Michael Eisner
Eisner was an enthusiastic and risk taker by nature. He started his career as a programmer and took the respective company to height of profits due to his capabilities and skills. He did his BA in English literature and belonged to a sound family. At the time of joining Disney, the revenues were 1.75 billion which rose to 25 billion after Eisner joined the company and incorporated his innovative thinking into the operations of Disney. He served dual roles of being the CEO and director in boards of director consortium.
Roy e Disney
Roy Disney was the older brother of Walt Disney. He completed his education from Harvard business school and joined the company as assistant editor. He was also a founding member of the Disney theme parks. He served the organization with multiple roles such as editor, cameraman, writer and many more. He became the member of the board in 2003.It was him who appointed Eisner as the CEO of the company.
Stanley
Stanley was a native of Los Angeles. He completed his bachelors in AB from California. He did the course flaw and served the company as a legal partner. He was second in command after Roy Disney. Repossessed the analytical skills which helped him analyze the loopholes in the dual role played by Eisner.
Question: 2- unwavering attitude of board of directors
Through the analysis, the reason of wavering attitude of the two directors,Stanley and Roy, was the dual role played by Eisner. Moreover, the leadership style which was autocratic in nature belittled the director. In addition to this,the nature of ruling out any opinion by Eisner amplified the grudges among the members. Along with this, the criticism on the performance in last 7 years also made the position of Eisner question able.Though the financials do not show any dramatic scale of change however, the situation with the resentment and grades shaped the attitudes of the directors.
Micheal Eisner And His Reign At Disney Harvard Case Solution & Analysis
Question: 3-options and alternative
Eisner had two alternatives which were either resigning from the post or resigning from one of the posts,which was to serve as a single role player.He considered the options and chose to resign from Disney in a good manner. He chose the option because he knew since the worsened, which affected the image and reputation of the company in view of the stakeholders and that the matter had been disclosed. Therefore, iris better to leave as the company will be able to regain the trust of the shareholder in the management and the chances of taking advantage by the competitors will be minimized.............
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