-Walt Disney and his brother Roy started a film studio in 1923. -The first Mickey Mouse cartoon, Plane Crazy, was made in 1928. -The studios first animated feature film was Snow White in 1937, and then came Fantasia and Pinocchio in the 1940’s. -Disneyland opened in 1955 in Anaheim, Calif. -Mickey Mouse Club was produced in 1955 until 1959. -The Disney Weekly or better known as The Wonderful World of Disney ran for 29 straight years. -In 1966, Walt Disney died of lung cancer. -In 1971, Roy Disney died and Disney World opened in Orlando. -Roy Disney’s son, Roy E., took over but was falling so Walt’s son-in-law, Ron Miller, took over in 1980.
-Miller was lacking so the Bass family, alliance to Roy Disney, bought a huge part of Disney. -The Bass family brought in CEO Michael Eisner from Paramount and President Frank Wells from Warner Bros. – Eisner has worked for ABC his whole career starting in the 1960’s. -Eisner then went to Paramount, which was ranked dead last out of all the motion picture studios. -Eisner moved it to first with mega hits Trading Places and Beverly Hill Cops. -Eisner kept costs down at Paramount with the industry average being $12 million and he only used $8.5 million.
-He extended Disney by making The Disney Channel, Tokyo Disneyland, video distribution, Disney Stores, Broadway shows (Beauty and the Beast) and additional licensing for the characters of Disney. -Disney represents Buena Vista Television, Disney Channel, Miramax Film, and Touchstone Pictures. Also they represent theme parks and professional sports franchises such as the Mighty Ducks and the Anaheim Angels. -Political pressure ruined Disney’s idea for a Civil War theme park. -Disney’s theme park in France lost $500 million because of miscalculations on attendance and concessions. -In 1994, Eisner underwent heart surgery and Frank Wells died in a helicopter crash.
-Eisner chose Michael Ovitz to replace Wells but Ovitz did not work out and left. -On July 31, 1995, Eisner created a new era for Disney by taking over Capital Cities/ABC. -Disney ranks as the third largest media behind AOL Time Warner and Viacom. -Disney has improved dramatically with revenues of $2 billion in 1987 to $22 billion in 1997. -In 2001, Disney was forced to lower the go.com Internet site because it continued to lose hundreds of millions of dollars. Statement of the Manger’s Problem -One problem was that the firm fell when Roy Disney died and his son took over
. -Disney attempted to build a theme park that was relating to the Civil War but received a lot of political pressure. -Another problem was with the theme park, Euro Disney, in France. This theme park lost $500 million due to miscalculations on attendance and on concessions. -After Frank Wells died, it was hard for Disney to find another president. -Disney paid too dearly for declining network assets and viewer ship among all major networks continues to decline on a regular basis. -The web site go.com is losing hundreds of millions of dollars for Disney. Causes of the Manager’s Problem -The industry watchers felt Disney lost its creative energy and sense of direction because of lackluster corporate leadership.
-Another cause was that they had too many shows so they had to cut some of the popular ones. Solutions and methods to the problem -They came up with other alternatives to display motion pictures such as getting contracts made with other networks. -They are constantly coming up with new ideas such as newer theme parks, magazines, television shows, etc. Case Update Disney is basically doing a lot of remodeling to the rides and theme parks to make it more modern and enjoyable for the visitors. They are also creating more characters to make the children’s imaginations become larger than life.