Micheal Eisner And His Reign At Disney Harvard Case Solution & Analysis

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 bynature. 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 Englishliterature and belonged to a sound family. At the time ofjoiningDisney, the revenueswere 1.75 billion which rose to 25 billion after Eisnerjoined the company and incorporated his innovative thinking into the operations of Disney. He served dual roles of being the CEOand director in boards of director consortium.

Roy e Disney

Roy Disney was the older brother of WaltDisney. 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 rolessuch as editor, cameraman, writer and many more.Hebecame 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. Hecompleted his bachelors in AB fromCalifornia.He did the course oflaw and served the company as a legal partner. He was second in command after RoyDisney. Hepossessed the analytical skills which helped him analyze the loopholes in the dual role playedby Eisner.

Micheal Eisner And His Reign At Disney Harvard Case Solution & Analysis

Question: 2- unwavering attitude of board of directors

Through the analysis, the reason of waveringattitude 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 Eisneramplified the grudges among the members. Along with this, the criticism on the performance in last 7 years also made the position of Eisnerquestionable.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.

Question: 3-options and alternative

Eisner had two alternatives which were either resigning from the post or resigning from one of the posts,whichwas 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 grudgeshadworsened, which affected the image and reputation of the company in view of the stakeholders and that the matter hadbeen disclosed. Therefore, itis better to leave as the companywill be able to regain the trust of the shareholder in the management and the chances of takingadvantage by the competitors will be minimized.

Question: 4- Compensation plan

If we analyze the compensationplan and the revenuesthat the company earned during the tenure of MichaelEisner, it can be easily identified that due to the strategy and mindset of the CEO, the company earned tremendous profits and revenues.On the contrary, the salarypackage of CEO remained the same for almost 7 years while the bonus was offered yearly on the basis of the revenues generated during the year.........................

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