The case report describes the transformation of Disney under Michael Eisner in

the 1980s and 1990s:

1. Background:
• Disney World in Orlando, Florida is a popular tourist attraction.
• California Disneyland was the predecessor created by Walt Disney.
• After Walt Disney's death, the Magic Kingdom declined because it lacked
innovation and stayed in its comfort zone.
2. Management change:
• Michael Eisner became head of Disney and aimed to imitate Walt Disney's
innovative spirit and willingness to take risks.
• Realised that change, creativity and openness were necessary to revive Disney's
success.
3. Strategic initiatives:
• Creativity and openness in the organisation are encouraged.
• Initiated projects such as Euro Disneyland in Paris, involving well-known
architects in creative design.
• Implemented a $1.0 billion hotel expansion plan that doubled room capacity.
4. Revival of film business:
• Reshaped the film business by tightening budgets, working on more adventurous
scripts and finding new talent.
• Produced successful films such as Beauty and the Beast, Beauty and the Beast.
5. Financial success:
• Eisner's leadership led to an important turning point; Disney's sales grew from
$1.7 billion to almost $6.0 billion (1984-1990).
• Expanded Disney's business to include book publishing, records and theme parks
in Japan.
6. Optimism about the future:
• Eisner envisioned massive global growth for Disney in the 1990s, emphasizing
internationalization.
• Optimistic about Disney's global expansion. This case highlights the impact of
leadership, innovation and strategic initiatives in rejuvenating an established
entertainment empire.
Questions
1. Stagnation after the death of Walt Disney:
 • Loss of visionary leadership: Walt Disney was a visionary leader and his death
created a leadership vacuum. The organisation may have struggled to find someone
with a similar innovative vision.
• Resistance to change: The company may have become resistant to change,
clinging to past successes rather than embracing new ideas and market dynamics.
• Lack of innovation: Without the creative genius of Walt Disney, the organisation
may have faced challenges in coming up with new and imaginative concepts.
2. Michael Eisner's role in the twist:
• Strategic Vision: Michael Eisner played an important role in the revival of
Disney, implementing strategic initiatives such as Euro Disneyland and the hotel
expansion plan.
• Focus on creativity: Eisner's emphasis on creativity, openness and rewarding new
ideas helped the film industry and other businesses succeed.
• Financial growth: The considerable increase in sales during Eisner's tenure shows
his influence on the company's financial success. Influence of the CEO's
philosophy:
• Management philosophy matters: The success of an organisation can be closely
related to the philosophy and management style of its CEOs. Eisner's approach
brought about significant positive change.
• Impact on corporate culture: CEOs shape organisational culture; Eisner's focus
on openness, creativity, and strategic growth influenced Disney's overall approach.
3. Eisner's leadership style:
• Innovative and risk-taking: Eisner demonstrated innovation and risk-taking,
launching projects such as Euro Disneyland and a billion-dollar hotel expansion.
• Emphasis on creativity: valuing creativity Eisner fostered a culture where new
ideas were encouraged and rewarded, leading to successful businesses such as
blockbusters.
• Strategic visionary: Eisner provided a strategic vision expanding Disney's
business into new areas such as book publishing, records, and theme parks in
Japan.

In conclusion, Walt Disney's death caused stagnation, and Michael Eisner's

leadership played a key role in turning the company around. Indeed, the success of
an organisation is influenced by the philosophy and management style of its CEO,
as seen in the case of Disney.