Walt Disney 7s Model

In: Business and Management

Submitted By Nareke734
Words 10251
Pages 42
It was early 1991, and Michael Eisner, chairman and CEO of the Walt Disney Company, was sitting down with Frank
Wells, president and chief operating officer, and Gary
Wilson, executive vice president and chief financial officer, to discuss Disney's prospects for the new year.
These men were still basking in the glow generated by another record revenue- and profit-breaking year in
Disney's history. Disney's businesses were performing at an unprecedented level, and confidence was high. The problem facing the trio who had engineered Disney's turnaround was how to maintain Disney's explosive growth rate and its return-on-investment goal of increasing earnings per share by 20 percent over any five-year period to achieve a 20 percent annual return on equity.
Paradoxically, the very success of their strategy, which had originated to protect an underperforming Disney from the rampages of corporate raiders and the threat of takeover, was causing the opposite problem: how to maintain the company's explosive growth in a business environment where attractive opportunities for expansion were becoming increasingly scarce. The men were reflecting on how to develop a five-year plan that would cement the strategy that had led to their present enviable situation and make the 1990s the "Disney Decade."

This case is intended to be used as a basis for class discussion rather than as an illustration of either effective or ineffective handling of the situation.
This case was prepared by Gareth R. Jones,Texas A & Μ University. ©
Gareth R.Jones, 1990,1996. 1997.

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DISNEY BEFORE EISNER
When Walt Disney died in 1966, he left a company that was experiencing record revenues and profits. Disney was at its creative peak and forging ahead at full steam on the many ideas generated by Walt Disney's creative genius.
However by the early 1980s all the drive in…...

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