Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Disney and Pixar
The acquisition of Pixar by Disney in 2006 is an example of vertical merger, which is best described as a merger that occurs between two firms that work at separate and distinct stages of the production process. By merging operations, the two firms become one and their oversight of the production process is made that much more complete. Prior to the merger, Pixar produced films and Disney released them, marketed them, and so on. After the merger, the entire process would be overseen by Disney with Pixar leaders still playing a fundamental role in the creative development phases of production (Jain, 2013). As Debruge (2016) notes, however, the merger was more of a bailout for Disney, whose animated studio had floundered ever since Pixar’s hit Toy Story took animation and audiences in a whole new direction. Disney thus wanted to keep the firms separate while retaining ownership of Pixar because it did not want it to seem to stakeholders that Pixar had saved Disney animations—when in reality that is exactly what happened.
However, Debruge (2016) points out that there were immediate clashes as Pixar’s heads—the “brain trust” of Lasseter, Docter, Stanton and Ranft—wanted to retain creative control...…development. This may be one reason many fans have disliked the new Disney-produced Star Wars films and why many fans of Toy Story still enjoy the Pixar films that are produced under Disney. Pixar has retained creative control.
The only drawback, if there could be said to be one, is that once the brain trust goes at Pixar, Disney will be left to run Pixar on its own and it will be the same old sad story of Disney having no talent to produce creative films anymore—which has been made all too clear with its Lucas Films adventure.
Disney and Pixar Disney's acquisition of Pixar in 2006 resulted in many headlines and opinions. The main reason for the acquisition was Disney's reluctance to lose its ties with the new giant in animation, while its own opportunities were waning because a lack of technology and innovation. The acquisition was therefore based upon Disney's drive to maintain a relationship that has historically proven to be profitable, while also maintaining its own
Creating an economy of scale can prove difficult, and the new, larger entity can be unwieldy. Again, using stock to finance the deal can be its downfall "a booming stock market encourages mergers...Deals done with highly rated stock as currency are easy and cheap, but the strategic thinking behind them may be easy and cheap too." ("Mergers and Acquisitions: Why They Can Fail," 2006, Investopedia) Financial risks of merging with
Marketing Analysis of the Walt Disney Corporation Marketing Mix Industry Influences Environmental Influences in Demand The Walt Disney Corporation started out as a small animation studio in 1923. Originally named Disney Brothers Cartoon Studio, after the founders Roy and Walt Disney, the firm grew and diversified, moving first into live actions films and diversifying with different leisure and entertainment interests either developed internally or acquired (Disney, 2013). A great deal of the firms success sis
Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies. What are the pros and cons of this implementation strategy? How will you know if the strategy is working? The risks and downsides of mergers are well-known -- it is often said that mergers make it easy to predict the future, because they almost invariably fail. In fact, two-thirds
Change Resistance Human beings are by nature change-resistant and particularly within an organizational context there is anxiety about change, given fears of job losses or simply being unable to adapt. It is essential to convince change agents of the need and urgency for change and also of the congruency of the change with the evolving vision for the company. Vision statement A "vision statement should have four elements: a customer orientation, employee focus,
Organization Development and Change Process Merger and acquisitions refer to the combinations of two or more companies forming a new company. In other words, mergers and acquisitions (M&A) are the strategic move of corporate organizations dealing with an aspect of dividing, buying and selling of different companies of similar entities to assist the enterprises to grow. One of the examples of the major merger was the merging of Uniphase Corp. And