Read Case Study 11.1 and answer the following two questions:

1. Bob Chapek, as of February 25, 2020, is now the CEO.Identify and explore the two principal approaches to resolving conflict by his predecessor.
2. The new CEO is an experienced executive.You are his coach.As he discusses his theory of decision-making, what three steps are you intent on hearing and why?

Case Case 11.1: Conflict at Walt Disney Company: A Distant Memory? Even in the midst of a severe recession in 2009 that To what degree have these business decisions been depressed tourism and a digital revolution in the media successful? Disney was ranked 57th in the Fortune 500 business, the Walt Disney Company fared better than list of largest companies in 2015. Also, it surpassed many of its rivals. Although spending at Disney theme other media companies, including Time Warner and parks was down and fewer consumers bought DVDs of News Corp., in terms of its stock performance and re- its movies, Disney positioned itself well to ride out the turn on invested capital. Disney has become the largest recession by having a broad mix of businesses in its media conglomerate in the world with a market value portfolio. For example, Disney's sports cable network, of about $49 billion. ESPN, and ABC Family and Disney channels reported Who has been the driving force behind many of these increases in operating profits in 2009. The creation and business decisions? Robert ("Bob") Iger took over as CEO marketing of well-known franchises such as the Jonas in 2005. Known to many as "hardworking and likable," Brothers helped fuel the company's success. Also, in Iger has not only had to make a series of important busi- an attempt to capture a larger share of the growing on- ness decisions regarding Disney's current businesses and line viewer market, Disney bought an equity stake in future direction, but he has also had to repair several im- Hulu, the online video-streaming platform. In addition, portant relationships that the former CEO, Michael Eisner, the Disney Pixar creative partnership continues to pro- strained during the later stage of his 22-year tenure. duce popular and profitable animated movies such as Disney's controversial ex-CEO, Eisner, was credited Toy Story 3 and Inside Out. with helping to turn around Disney in the 1980s306 Part Three Group Behavior and Interpersonal Influence and once again making it into a formidable American Iger and his management team have made a series of company. In the mid-1990s, Eisner astutely guided the good business decisions while systematically repairing company to add Capital Cities/ABC and ESPN to its key relationships that were strained during Eisner's reign theme park and film businesses. Following these and as CEO. other well-received decisions, Eisner's abrasive style and tendency toward micromanagement led to a series Questions of public disputes and feuds with key players in the 1 . Mint 1 Disney world. Eisner fought with Miramax founders Harvey and Bob Weinstein over the financial details cha Eis wein - hers, the wo related to Disney's purchase of Miramax films. Eisner board and Steve obs? and Steve Jobs, then CEO of animated film producer Was It run Pixar, bumped heads several times. While testifying in 2. Think . The stages of conflict ibed in this front of Congress about movie piracy, Eisner made chapter. Wha- e conflict be- some negative comments about Apple Computer tween Ex d, felt, or man- (of which Jobs was also CEO). Jobs took this jab per- ifest? sonally and did not forgive Eisner for making these 3. Which of Howing D Tribes Michael Eis- comments. This feud eventually culminated with Jobs ner's and Bo. yes to resolving con- threatening to not renew the Disney-Pixar partnership flict: dor mating, pr lem so avoiding, or after the release of Cars in 2006 if Eisner was still accommodating? CEO of Disney. Eisner had a long-running dispute with 4. To what do you thi and less two (former) influential members of Disney's Board of comm -approach to running Disney helped Directors, Roy Disney and Stanley Gold, both of whom the omp y survive a major an and pos.on were outspoken critics of Eisner and his management self for comm team. For several years, these long-standing board members repeatedly called for Eisner's resignation. Soon after Iger took over as CEO at Disney in 2005, Sources: Written by Robert Konopaske of Texas State University and he reached out and reconciled the company's differ- adapted from "Fortune 500 2015: #57: Walt Disney Company," Fortune, http://fortune.com, accessed April 27, 2016; "Pixar: Top Grossing Movies," ences with Roy Disney and Stanley Gold. They agreed Box Office Mojo, http:/www.boxofficemojo.com, accessed April 27, 2016; to cease their "SaveDisney" campaign and work coop- James Stewart, "Behind the Scenes at Disney as It Purged a Favorite eratively with Iger. The dispute with the Weinstein Son," CNBC, April 7, 2016, http:/www.cnbc.com; Ben Fritz, "Disney Extends brothers was resolved by making a settlement payment Bob Iger's Contract Until 2018," The Wall Street Journal, October 4, 2014, of $100 million (Disney kept the Miramax name and http://www.wsj.com; Matthew Garrahan, "Box Office Flops and Weak DVD film library estimated at a worth of $2 billion). Iger Sales Hit Disney," Financial Times, May 6, 2009, p. 17; Matthew Garrahan, Disney Succumbs to Recessionary Forces with Steep Falls in Profits," repaired the relationship with Steve Jobs and Pixar, ulti- Financial Times, February 4, 2009, p. 13; Richard Siklos, "Bob Iger Rocks mately paving the way for Disney to pay $7.4 billion in Disney," Fortune, January 19, 2009, p. 80; Meredith Downes, Gail S. Russ, stock to acquire Pixar Animation Studios in 2006 and and Patricia A. Ryan, "Michael Eisner and His Reign at Disney," Journal of adding Steve Jobs to the Disney Board of Directors. the International Academy of Case Studies 13, no. 4 (2007), pp. 79-87; Patricia Sellers, "Disney's Mr. Calm Unreels Miramax," Fortune, March 21, In sum, the change in leadership at Disney from Michael 2005, p. 30; Christopher Parkes, "Eisner to Sever All Ties with Walt Eisner to Bob Iger seems to have been a prudent one. Disney," Financial Times, September 21, 2004, p. 33