Disney Pixar Case Analysis

Disney Pixar Case Analysis Writing Instructions:

Analysis must be typed in Times New Roman, 12pt font with one inch margins. DO NOT INCLUDE A HEADING ON FIRST PAGE! Do not write Name, Date, Professor, etc. Please make sure that writing is original and not plagiarized. Please take a look at the additional material for reference to the grading rubric, I have a goal of receiving an “A”.

Guidelines:

Case analyses will typically consist of key recommendations to the managers in a case, along with the supporting logic for those recommendations. They should be presented in memo format (bullet points are acceptable if the points are explained sufficiently). Address the issues at the time of the case (although you may also include a brief update of what has been done and what remains as current strategic problems). You should identify the strategic problems facing the managers (at the time of the case), state your position as what the managers in the case should do, and support that position using strategic logic. You should not use precious space rehashing facts from the case. Instead, key facts should be used (sparingly) to help justify particular recommendations. That is, do not simply restate what the case writer has said in other words. Go beyond the facts provided by the case writer by doing some new analysis of the situation facing the managers. Then develop recommendations based on the analysis. Also, when making recommendations, do not dwell on things that the company is already doing. Instead, focus on things the company is not yet doing, but probably should, according to your analysis.

Assignment introduction:

DISNEY PIXAR This case examines the decision Bob Iger faces soon after he became CEO of Disney, following Michael Eisner's resignation, to acquire Pixar. Disney's own animated business has been in decline since Katzenberg left to establish DreamWorks (which has had success with its own animated films, including Shrek); and the business has instead relied on revenue from its partnership with Pixar to maintain Performance. Pixar, after the incredible success of its films like Toy Story, that leverages new technology it developed to replace hand drawn animation with computer generated imagery, is seeking to end the relationship and is looking for different partners to distribute its films. 

For this assignment, please respond to the questions below. Refer to the guidelines above on writing your case analysis. You may write the analysis as if you're a consultant (or manager) for Disney providing strategic recommendations to the company. 

QUESTIONS TO ADDRESS:

1. Which is greater: the value of Pixar and Disney in an exclusive relationship, or the sum of the value that each could create if they operated independently of one another or were allowed to form relationships with other companies? Why?

2. Assuming that Pixar and Disney are more valuable in an exclusive relationship, can that value be realized through a new contract? Or is common ownership required (i.e., must Disney acquire Pixar)?

3. If Disney does acquire Pixar, how should Bob Iger and his team organize and manage the combined entity? What challenges do you foresee, and how would you meet them?

PLEASE DO NOT USE ANY OTHER MATERIAL OTHER THAN WHAT IS PROVIDED!