Disney made …show more content…
Moreover, management of all business units was not structured and clearly coordinated. Conflicts among division executives were needed to be resolved quickly and get on with their jobs. As a result, Eisner conducted a major review of capital spending with an eye toward eliminating businesses that could not show a healthy return and selling non-strategical assets.
Meanwhile, inventing corporate synergy group with representatives in each business unit solved such problems. They had realised its purpose and boosted revenues. Synergy affected the scope of Disney’s business geographically, horizontally and vertically and, more importantly, its costs within its limits. Moreover, entering new businesses led the Disney to damage its brand. Disney had a strategic planning unit as a financial check on Disney’s various divisions.
We are agree with some observers that worried that the Disney became too large to accommodate Eisner’s management style and that Disney was putting too much emphasis on controlling costs and thus driving away its creative talent. It would be effective to mix all business as far as it does not negatively affect its main feature (creation talent). Once it does, the company should go back to its core business and manage its activities in such way that the main feature will stay the