Micheal Eisner And His Reign At Disney Case Study Solution
Question: 4- Compensation plan
If we analyze the compensation plan and the revenues that the company earned during the tenure of Michael Eisner, 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 salary package 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. It can be said that it was justified, because in order to keep the employees motivated and maintain the work synergy, it is important to reward the individual equally so that he may retain within the organization.The same is the case with Disney, the compensation plan was justified because in everywhere the profits increased,which certified the performance of the CEO. Moreover, if we analyze the competitors’ profile, which are other films makers in the market, we can easily deduce that in every organization, the small players gets the most benefit and rewards, which is a way of acknowledging ad also retaining them with the organization, because of the competitive edge they offer to the organization.
Question: 5- Impact on shareholders
The conflict between the entities would have a negativeness on the confidence of the shareholders, becauseconflictcreatedresistance in the management which would make the individual to diversify and work with the best interest of the individual they support.This approach or situation dilutes the power and interest of the shareholders, making them reluctant to invest in such company, which has such aninternalmanagement.Moreover, it would also lead to distrust and mismanagement, which would damage the profit profiles of the shareholders.
Question: 6- Impact on Claimants
The impact of the conflict can be more terrifying on the company with respect to the perspective of the claimants. The company operates with the collaboration of the shareholders and the stakeholders. Due to such severe conflict, the external third parties,claimants,might perceive the conflicts to be alarming due to which they might withdraw their money from the organization.This may include the suppliers, distributors and technical partners to claim their money out because of the distrust created by the event.This, as a result, would negatively affect the financial position of the company as well as its reputation which may hinder the investment strategy of the organization.
Question: 7- Robert Igor
Since Robert Igor has been serving the company for about 16 years as a president and Chief Operation officer, he is well aware regarding the business strategy and the company’smission.Moreover, he has right amount of knowledge of the culture and the commissionaire of the Walt Disney which make shim an appropriate personnel for the post of the CEO. Moreover, in the final speech made by Eisner, he clearly mentioned the name of Robert to be the best choice that could drive the brand effectively in the right direction. These factors collectively as a whole may create trust among the shareholders. Moreover, the election of Igor as a successor of Michael would resolve the conflict among Roy and Stanley, which, if not resolved, may badly affect the equity and profits of the shareholder. Thus, the decision proved to be beneficial, which may work in the best interest of the company and the shareholders as well.
Question: 8- Succession planning
The claims that Roy and Stanley made were right, which were ruled out by authoritativeness by Michael to nominate Igor.The move taken by Michael depicts his strategy to again unite the team and leave the company on good note by resolving the foundations of the conflict or resentment. He also proved to be a wise leader, who made the team gain synergy through this move. In addition, this step showed the intentions that Carmichael Stanley and Roy to dissolve the resentment and grudges which were clearly seen in the resignation of Roy Disney…………..
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