Question: QUESTION 1 [ 1 0 0 MARKS ] Disney & Pixar merger: The inside story of a $ 7 . 4 billion deal The story

QUESTION 1[100 MARKS] Disney & Pixar merger: The inside story of a $7.4 billion deal The story of Disney and Pixar begins with two very different paths that eventually led to a powerful merger. Walt Disney Studios, founded in 1923 by Walt Disney and his brother Roy, quickly became the leader in animation, creating timeless characters like Mickey Mouse and producing groundbreaking films like Snow White and the Seven Dwarfs (1937). For decades, Disney was the face of animation, influencing generations with its classic movies. However, by the early 2000s, Disneys animation department started facing challenges. Traditional hand-drawn animation was losing its appeal, and their attempts to create successful computer-animated films struggled to match the creativity of Pixars work. Pixar, on the other hand, began in 1986 as a small animation studio. Originally part of Lucasfilm, it was bought by Steve Jobs, who saw potential in animation technology. Pixars big break came with Toy Story (1995), the worlds first feature-length computer-animated film, which became a worldwide box office hit. That same year, Pixar held its IPO, which was also a major success, with Pixars stock price soaring from $22 to $45 within the first half-hour of trading. A. Using appropriate strategic management tools (eg, PESTEL or SWOT), critically
evaluate the internal and external environmental factors that shaped Disney and Pixars
relationship before the merger and how these factors influenced the post-merger
integration strategy. (20)
B. Discuss the importance of due diligence in mergers and acquisitions. Based on the
article, identify and analyse at least three key areas where due diligence likely played a
crucial role in Disneys decision to acquire Pixar. (15)
C. Compare and contrast the management strategies used in the Disney-Pixar merger with
those used in one other Disney acquisition (eg, Marvel, Lucasfilm, or 21st Century Fox).
Focus on pre-merger negotiation, leadership restructuring and brand integration. (15)
D. Assess the role of management information systems (MIS) in the post-merger integration
of Disney and Pixar. How might MIS have facilitated coordination, innovation and
decision-making across both entities? (15)
E. Assume you are part of an M&A advisory team evaluating a future acquisition between
two creative content companies with differing cultures and legacy systems. Drawing
lessons from the Disney-Pixar merger:
Identify and explain five strategic recommendations you would make to ensure
post-merger success. (15 marks)
Reflect on how these recommendations align with broader trends in digital
transformation, intellectual property management and cross-platform content
integration. (20)

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