The conflict between the entities would have a severenegativeimpact on the confidence of the shareholders, becauseconflictcreatedresistance in the managementwhich would make theindividual to diversifyand work with the bestinterest 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 hassuch aninternalmanagement.Moreover, it would alsolead to distrust and mismanagement, which would damagethe profit profiles of the shareholders.
The impact of the conflict can be more terrifying on the company with respect to the perspective of the claimants.Thecompany operateswith the collaboration of theshareholders and the stakeholders. Due to such severe conflict, the externalthird parties,claimants,might perceive the conflictsto be alarming due to which they mightwithdraw their money from the organization.This may include the suppliers, distributors and technical partners to claim their money outbecause of thedistrust created by the event.This, as a result, would negatively affect the financial positionof the company as well as itsreputation which may hinderthe investment strategy of the organization.
Since Robert Igor has been serving the companyfor about 16 years as a president and Chief Operation officer, he is wellaware regarding the business strategy and the company’smission.Moreover, he has right amount of knowledge of the culture and the visionandmission of the Walt Disney which makeshim 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 thebest choice that could drive the brandeffectively in the right direction. These factors collectively as a whole may createtrust amongthe shareholders. Moreover, the election of Igor as a successor of Michaelwould 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.
Theclaims that Roy andStanleymade were right, which were ruled out by theinitiativetaken 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. Healso proved to be a wise leader, who made the team gain synergy through thismove. In addition, this step showedthe intentions that Michaelhadregarding Stanley and Roy to dissolve the resentment and grudges which were clearly seen in the resignation of Roy Disney……………….
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