The origins of the Walt Disney can be traced back to eight decades, when the company was founded by Walter Disney. During 40 years of his presidency, the founder was able to bring his company to a leading position in the entertainment industry. After Walter's death the company went under supervision of his older brother Roy Disney, who continued to manage the company in the best Disney traditions but also proposed and implemented a number of projects like theme parks, initiation of its own channel as well as the establishing of a new film label. Despite seemingly good performance, shareholders felt that the Disney stock was undervalued in relation to the company assets. In order to further improve the performance; in 1984 the decision was taken to appoint Michael Eisner as a chairman and CEO of Disney Company.
Under the total control of the new leader, almost immediately new ways to maximise the assets of the company were proposed.
Throughout the years of Eisner's leadership, the company achieved further growth and even greater prosperity. However, in spite of improved performance and enormous contribution of Eisner to the growth of the company, dissatisfaction about his approach to work grew so big that caused him to leave his post in September 2005, after more than 20 years of leading the company. The decision to make management changes starting with replacement of CEO was due to the number of reasons.
First major problem was Eisner's vision of growth. He was not looking with quality in mind but was more focused on economics of the company. It has to do with the fact that he was paranoid about success and therefore was only interested in the profit maximization. Very often decisions taken by Eisner were controversial to Disney's culture existing under the motto...