Semester Spring 2012
Organizational Development (MGMT628)
Assignment No. 1
Due Date: April 18, 2012 Marks: 15
Instructions:
Please read the following instructions carefully before preparing the assignment solution:
•
This assignment is a short case study. Read it carefully and answer the questions given at the
end.
• Be very specific and focused on the issue while answering a question.
• You should complete the answer within 500 words.
• No marks will be given for extra/ irrelevant details.
• As this case is meant to apply your knowledge, so do not give any definition n
or do explain
theoretical concepts in answers.
Case:
The Walt Disney Company was founded in 1923 by Walt Disney and Roy
. The company is famous for
film making, cartoons and animations, broad casting television network, publishing, merchandizing,
hotels and entertainment theme parks. In the decades following Walt Disney's death, the leaders of the
Magic Kingdom (Disney) shunned innovation and shut themselves away from their audience. The
company, that had produced Fantasia, Snow White, and a string
of other brilliant animated films, was
under-
licensing its cartoon characters, underutilizing its film making capabilities, and under pricing its
theme parks when Michael Eisner was appointed Chairman and CEO of Disney.
After analyzing the situation, Mich
ael Eisner devised a plan that would restore the openness to change
that had brought Disney such great success. Rather than attempt to change Disney's corporate culture,
which centered on a strong creative leader, he stepped right into Walt's shoes. This a
pproach was
risky, but it was exactly what Disney needed.
Eisner became not a reincarnation of Walt, but a living, walking embodiment of all that Walt stood
for. He set a creative example for his staff, suggesting ideas for Disney ad copy, new health-
food
restaurants, and the next Disney comedy. He even appeared on a weekly TV show the company
launched.
Eisner used a number of tactics to encourage, even induce, creativity in others. To kick off planning
for the $2 billion Euro Disneyland, he met with 12 of
world's most respected architects in a wildly
creative session, which became so heated that two architects almost came to blows. "I’ll use meetings,
company anniversaries, anything to create some kind of catalyst to get us all going.” he said.
Instilling
the creative spirit throughout the Disney organization became one of Eisner’s top priorities.
As part of their management training, employees develop innovative ideas and practice presenting
them to top management. He also established an "I Have an Idea"
program to reward employees who
submit original creative ideas (with checks of up to $10,000).
Eisner guided the revival of Disney's fortunes by communicating clear strategic goals to his staff, inc
luding an
ambitious growth plan. Although Disney World at Orlando was already on its way to becom
ing what it is
today—the most popular vacation destination in the United States. Eisner ordered an ambi
tious $1 billion hotel
docsity.com
