Bob Iger’s Disney Approach

Bob Iger’s Disney Approach

Lauren Tygrett

Keiser University

Author Note

        This paper is being submitted on May 10, 2015, for Professor Vold’s Principles of Management course.

Bob Iger’s Disney Approach

        When Bob Iger was tasked with the opportunity to take over operations at Disney as the CEO, he was faced with many management scenarios that required his tactful approach to business to run seamlessly. Iger had a very different approach to management than many others, but it has appeared that his unique style has beneficial for the company. He was extremely decisive in regards to his strategy for where he wanted the corporation to go. Strategy is defined as “a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.”1 At his first meeting as CEO he knew that he needed to do something big to ensure that Disney had the upper hand in the competitive market. Iger was able to push for the purchase of Pixar, which was a formerly a collaboration whose bridge had been burned by the previous CEO of Disney and the late Steve Jobs. Strategically rebuilding that relationship gave Iger the edge to not only purchase Pixar, but to set Disney up for future success.

        It was not only strategy that helped Iger get Disney to where it is today, it took proper planning, and at times an almost hands off approach to the many different intricacies that fall under the Disney brand. Iger considered himself as the brand manager for Disney, letting each corporation run self-sufficiently unless something went wrong. When planning, Iger spent his time “identifying and selecting appropriate goals.” 2 This amount of planning ensured that he was running Disney efficiently and effectively. Iger faces many challenges as the CEO of Disney, he uses his decisive action to make decisions based on what he believes is best for the corporation as a whole. Whether that be terminating someone that he does not feel is the right fit for a specific job, or even in instances when he has the opportunity to take ownership of other corporations, he has to ensure that every move he makes will be a profitable one. Taking ownership of Marvel Entertainment was a large step for Disney; it helped boost consumer products by three billion 3, reaching more little boys. Disney is notorious for its loyalty to the Princess fan base, which usually caters to little girls, the purchase of Marvel opened the door to be more marketable towards all children.

        Iger has been able to organize and lead Disney and the many umbrella companies under its brand name by being able to simultaneously control and evaluate what needs to be done and when. He empowers his managers to make business choices for companies such as Pixar and Marvel Entertainment. Although they have been purchased by Disney, they are very much so their own entities. Letting these other managers do their jobs has maintained the expectations and the integrity of each corporation on its own. He faces many challenges, but he surrounds himself with other business professionals that are competent and capable of running things seamlessly.

        On April 16, 2015, Time Magazine listed Bob Iger as one of the top 100 most influential people. They stated that “Hollywood blinked when Bob spent $15 billion on Pixar, Lucasfilm and Marvel. But they turned out to be great and logical investments that have kept Disney on the front foot. Under Bob, Disney is hardly Frozen in time.”4 Iger’s approach has continued to leave an impact on the business world, and although he initially announced his retirement as CEO for March of this year, he has since extended his contract until July 30th, 2018. Iger is not just a successful CEO, Orin C. Smith, the independent lead director of the Disney board stated, “Under his tenure, Disney has reached unprecedented creative and financial heights, driving the stock price to record levels and creating extraordinary value for shareholders. He has transformed Disney’s culture and empowered its businesses to effectively capitalize on evolving markets and new technologies, making Disney a company that doesn’t merely embrace change, but leads it.”5