What would Eisner do?

[WDWprincessloyola]

Alright so I am probably out of the loop on all this, but curiosity has gotten the better of me. Some people mention that Disney might or will get better when Michael Eisner leaves the company. I really have no idea as to how he has affected the company, so what I was wondering is what has he done (or maybe not done) to have such a strong affect on loyal Disney fans? What could he done differently and what might change after he leaves?

As I said curiosity got the better of me.

 

[Feralpeg]

Oh dear, here we go. Get ready for a big debate!

 

[Chuck S]

Mr. Eisner did a LOT right with the company in the early years. The company was on the edge of selling off and licensing the theme parks, the resorts, everything that most of the public today knows as Disney. We have Eisner to thank for the Disney resorts we have today, as well as the Studios and Animal Kingdom. Eisner's right hand man was Frank Wells, he had much the same relationship with Eisner as Walt had with his brother Roy. Wells handled the creativity, Eisner handled the bean counting. Frank Wells was killed in a helicopter crash a few years ago, and Eisner had no where to turn to fill the creative gap. Eisner was making decisions based on profitability (which every company has to do to a certain extent), but the creativity, "spark of magic" was missing.

Then, Eisner and Roy Disney, (who is no angel himself) began having strong differences of opinion. This disharmony at the top created a downward spriral, taking more and more talent away from the company, because both Eisner and Disney were so busy trying to get their way, the company suffered. Then 9-11 happened, tourism dropped, company profits dropped. Roy Disney left the company and started campaigning to oust Eisner, with the support of many stockholders, based partly on the drop in profits, and partly on figuring a "Disney" should be involved with "Disney".

What was basically a "no confidence" vote in Eisner was garnered at the last stockholders meeting, and the rest is history. There have been improvements in both tourism and company profits this year. There are some new attractions, Mission Space, Soarin', Philharmagic..all of them good. Disney (the company) is starting to rebuild, and is taking an interest in the parks again. But I think it is too late for Eisner...who has announced his retirement after the expiration of his contract. Hopefully the next person in charge can restore some of the lost sparkle and begin anew with creativity.

 

[ColoradoBelle1]

WELL(s) said, Chuck!
I don't think people are aware of that creative spark being lost when Frank died....and I think egos got in the way of fixing it.

Lots of mistakes re nickle and diming people to death in the parks...IMHO.

But hopefully, the pendulum will swing back.

Thanks for the fair and honest recap.
colorado belle

 

[Leota]

I agree, very well said, Chuck. I would like to add that Eisner has developed a habit of micro-managing which has inhibited some creative juices & spurred some good folks to leave the company.

Eisner was needed at one time & was well balanced by Frank Wells - but his time is done & it's time for TDC to find a new Team. I can only hope for the best.

 

[SnackyStacky]

A fascinating read on what happened after Frank Wells died:

http://www.jimhillmedia.com/mb/articles/showarticle.php?ID=1246

 

[PrincessCandaceMarie]

Oh dear, here we go. Get ready for a big debate!

You sure said it!

 

[cobbler]

I think Chuck summed it up pretty well.

 

[tjkraz]

Good summary, Chuck.

From my perspective, I felt that things sorta bottomed-out about 18 months ago. Complaints were rampant about cut-backs, maintenance and cleanliness at the theme parks, the other business units weren't doing all that great (ABC: blech!) and Roy & Stanley were bringing all of the dirty laundry into the open.

Then things slowly started to fall into place...

* Pirates of the Caribbean and Finding Nemo were huge box office hits.

* Walt Disney World debuted Mickey's Philharmagic, Mission: Space and Wishes, and promptly announce the construction of four more attractions.

* Matt Ouimet takes-over operations at Disneyland (if you have some time on your hands, read about a year's worth of articles at www.miceage.com to find out how far things have come since late '03)

* Over Christmas '03, WDW set attendance records, which signaled the beginning of the end of the 9/11 travel draught.

* Comcast makes bid to acquire Disney - some would label this event a bit unsettling, but it did jump-start the price of Disney stock.

Today:

* Disneyland Paris was recently saved from bankruptcy and announced expansion plans.

* Disney rid itself of "The Disney Store", which it clearly could not find a way to make profitable.

* WDW attendance continues to be strong, perhaps bouyed by overseas travel due to the weak dollar.

* ABC is in the midst of a wonderful recovery.

* Perhaps of most import to this forum, WDW is not afraid to try new things like evening EMH, ticket packages, dining packages, etc.

Strictly speaking for myself, Disney become a fun company to follow again.