Essay Pixar

1452 Words Sep 23rd, 2015 6 Pages
Lauren Patterson
October 7, 2013
Strategic Management 5301
Walt Disney-Pixar Analysis
The Walt Disney-Pixar merger carries a number of convincing advantages for Disney, but Pixar shareholders should be less enthusiastic about such a deal. Pixar’s resources and capabilities have set a standard that is extremely difficult to imitate. Through its highly talented employee pool, culture of creativity and collaboration, and proprietary 3D computer animation software, Pixar has created a competitive advantage in the animation film industry that yielded average total box office sales of $538 million with just six movies. Pixar shareholders should be wary of the potential breakdown of these resources and capabilities, which in essence are
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When an acquisition occurs with the nature of the resources of the company being acquired are highly soft resources, an equity alliance is advised to be the best strategic option.
In addition to its robust human capital, Pixar focused on creating a culture of innovation and collaboration. The “blending” of the creative department and technical department was crucial, and something that Steve Jobs CEO of Pixar noted, did not just happen overnight. But it was this supportive trusting, and team-centric culture that let collaboration flourish. In addition to the commitment to stay close to innovations in the academic world, Pixar functioned under two other basic operating principles: open communication and freedom to share ideas. These principles created an egalitarian environment. In contrast to Disney, which operated under a top-down management style where the executives dictated direction and evaluated individual employees on performance, Pixar encouraged the entire team to work together to create a superior end product. If a team ran into an issue, John Lasseter, creative head, and a group of directors – deemed the “creative brain trust – would be called to participate in a brainstorming discussion on how to improve a movie. Ultimately the decision on what to do was left to the team, though. This is an example of a highly valued soft asset – the intangible brand loyalty – that suggests

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