Corporate Management at Disney

1. Based on the case study and the literature of current literature, Disney's corporate management is characterized by a low level of cohesiveness. Since March of this year, Disney's institutional investors and disillusioned former board members such as Roy Disney and Stanley Gold who own a portion of Disney's stocks have sought to oust CEO Michael D. Eisner from his leadership position. According to these stockholders, Eisner's autocratic management of the operations has led to the departure of many creative individuals from the Disney Corporation and its partners. As a result, the stock value of Disney Corporation has not increased over the last few years (Ahmad; Colvin 66; Swartz). This low level of cohesiveness can lead to the following adverse consequences: a) decrease in the public confidence in Disney stocks, thus contributing to the decline in value; b) loss of strategic direction due to the absence of clear leadership; and c) destruction of the positive image projected by the Disney Corporation.

2. According to the Oregon Mediation Center, there are five different types of conflicts: "relationship conflicts, data conflicts, interest conflicts and value conflicts." In applying these different types of conflicts to Disney, as described in the case study, it is evident that relationship conflicts, interest conflicts, structural conflicts and value conflicts are relevant to this situation:

Relationship conflicts: Since Eisner's personal characteristics (egoti

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m approach in managing the corporation, instead of the traditional hierarchical and autocratic approach. In other words, he should relinquish his micromanagement style by providing his subordinates with the freedom and autonomy to assert and explore alternative perspectives. This oppressive atmosphere has led to the departure of top managers from his corporation and the severance of invaluable relationships with talented partners such as John Lasseter of Pixar Studios (Swartz). Moreover, in spite of his desire to impose "fiscal discipline" (Amdur 1) on the organization to increase stock value, Eisner should be prepared to reconcile his position with his partners who are responsible for the creative aspects of the operation. Rather than adhere to the fiscal approach to increase stock value, Eisner could take into account of the fact the investment in creativity may also lead to increased revenue and stock value. If he undertakes the aforementioned steps, it is likely that Eisner will earn the respect, cooperation and support of the key stakeholders in the company shareholders, employees and partners. By distributing some of his authority and opening himself to alternative perspectives, Eisner may also be able to learn new a

Category: Business - C