Essay Disney's "The Lion King": The Two Billion Dollar Movie

1351 Words Feb 8th, 2014 6 Pages
Disney’s “The Lion King” (A): The $2 Billion Movie

“The Lion King” (A): The $2 Billion Movie” is a case describing the transformation that Disney underwent after being taken over by Michael Eisner and the subsequent release of “The Lion King.” Prior to the appointment of Eisner as CEO underperforming both creatively and financially, with critics claiming Disney was failing to innovate and move with the times, and financial analysts taking the company off their stock-to-buy lists due to a dip in share prices. Eisner was able to reinvent and restructure the company by implementing various different managerial ideologies and business models, to which the success of the “The Lion King,” one of the largest grossing movies of all
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Eisner took Disney’s existing flat, nonhierarchical organization and transformed it into a well-defined and clear infrastructure by addressing the rational change, to bring back the movies that had “heart”, and be the company that used collaborative problem solving and learning (by taking new ideas and coming up with a way to promote the idea). This turned Disney’s organic structure into a functional mechanistic structure. In creating other avenues through which to boost profits outside of what Disney had conventionally done, Eisner was creating a safety net for the company, and establishing a profit multiplier business model. Through this model, Eisner generated capacity divisions (Creative Content, Broadcasting, and Theme Parks and Resorts), while using the animation as a core to help reach the added value of profit, bringing in huge returns for shareholders and reviving the flagging Disney brand. The Creative Content division worked several times across the many divisions in order to benefit consumers and shareholders. It is made up of theatrical films, home videos, audio products, television production and distribution, Walt Disney Theatrical production, character merchandise and publication licensing, The Disney Stores, newspapers, technical, and specialty publishing, books and magazines, and Disney

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