Premium Essay

Pixar Animation

In: Business and Management

Submitted By mlangford35
Words 5910
Pages 24
Pixar Animations
MBA 615
Mickey Langford/Kimberly Horne
Spring 2013

Mickey Langford
Pixar Animations is our company of choice for this case study analysis. In 2006, Walt Disney acquired Pixar, but before we get to all of that, let us start at the beginning. Before Pixar, there was Lucas Films. George Lucas, of Lucas Films, decided in 1979 to upgrade their computer division (Animations, 2012). Lucas had a desire to see how far they could take computer graphics within the film industry. Lucas Films succeeded by creating Andre & Wally B., in 1984 (Animations, 2012). Andre & Wally B. - First Ever Pixar Short Movie - The Adventures of André and Wally B. [1984 HD] - YouTube, was the first ever computer-generated imagery short movie (Movies, 2009). This was the foundational establishment in the film industry that Steve Jobs was seeking. In 1986, Jobs purchased the Computer Division from Lucas Films and named it Pixar Animations Studios. Walt Disney and Pixar Animation agreed to do a number of films together, the first being Toy Story which was a huge success. The movie debut on November 22, 1995 grossed $192 million domestically and $362 million worldwide (Animations, 2012). Listed below is a table of the gross amounts that Disney/Pixar movies have made: Released | Movie Name | 1st Weekend | US Gross | Worldwide Gross | Budget | 11/22/1995 | Toy Story | $29,140,617 | $191,796,233 | $361,948,825 | $30,000,000 | 11/20/1998 | A Bug's Life | $291,121 | $162,798,565 | $363,109,485 | $45,000,000 | 11/19/1999 | Toy Story 2 | $300,163 | $245,852,179 | $484,966,906 | $90,000,000 | 11/2/2001 | Monsters, Inc. | $62,577,067 | $255,870,172 | $526,864,330 | $115,000,000 | 5/30/2003 | Finding Nemo | $70,251,710 | $339,714,978 | $867,894,287 | $94,000,000 | 11/5/2004 | The Incredibles | $70,467,623 | $261,441,092 | $632,882,184 | $92,000,000 |

Similar Documents

Premium Essay

Merger the United States are taken. One of the animation companies has international exposure and a history of merger and acquisition and other solely operating in USA with no history of merger and acquisition. Discussion Walt Disney Company which is commonly known as Disney is an American diversified multinational company that is headquartered at Walt Disney studio in Burbank California. In terms of revenue the company is largest in the world. The business was established by Disney brothers namely Walt and Roy Disney in the year 1923. The company was a leader in the animation industry before it diversified into other ventures. Pixar on the other hand was formed in 1979 by George Lucus and his recruit Ed Catmull. The company was renamed as Pixar when Steve Jobs acquired majority stake in the company in the year 1986. After the demise of Walt and Roy Disney the company lost the initial success that it had with animation films. It was in this time that a series of animation films that were produced by the company did not farewell at the box office and the company suffered losses. On the other hand Pixar’s computer division was also suffering string of losses and the company was about to go bankrupt. This led to the animation department of the company producing animated commercials for different companies. It was in this period that the company formed a relationship with Disney in which Disney would market the films made by Pixar. The generated profits would be shared in...

Words: 1354 - Pages: 6

Premium Essay

Spanish Paper

...Buenos días. Muchas gracias a todos por estar aquí. El tema de mi presentación es de la compañía estadounidense Pixar Animation Studios. Es una compañía de animación por ordenador especializada en 3D, ubicada en Emeryville, California (Estados Unidos). Es muy conocido por sus películas animadas con la característica CGI (Imagen generada por computadora). Fueron los creadores de la primera película comercial totalmente realizada por ordenador en 3D, (Toy Story) en 1995 * En primer lugar, hablaré de la historia de Pixar. * Después, explicaré la adquisición por Disney. * A continuación, presentaré las largometrajes que el estudio ha producido y sus premios * Además, presentaré los costes e ingresos por película. * Para terminar, hablaré de sus próximos proyectos. Historia Pixar se fundó como The Graphics Group, (Una división de Lucasfilm) que se lanzó en 1979 con la contratación del Dr. Ed Catmull del Instituto de Tecnología de Nueva York (NYIT). Después de años de trabajo y trabajar en películas, como Star Trek II: The Wrath of Khan, el grupo, que contraba con cerca de 40 personas, fue comprado en 1986 por Steve Jobs, poco después de que dejara Apple Inc. Pagó US$5 millones a George Lucas e invirtió $5 millones de dólares de capital en la compañía. Cuando el grupo se independizó de LucasFilm, el equipo trabajó en crear al precursor de RenderMan. Un evento que puede explicar esta venta fue las dificultades del flujo de liquidez que...

Words: 989 - Pages: 4

Premium Essay

Imnterview with Jay Shushter

...working at Pixar in 2002 as a character and environments designer for Cars and Wall-E. He won an Academy Award in 2009 for 'Outstanding Animated Character in an Animated Feature Motion Picture' for Wall-E. He recently worked on Cars 2 as the character art designer. He also worked as a sketch artist in Toy Story Toons: Small Fry (short film), Toy Story Toons: Partysaurus Rex (short film) and Toy Story 3 (2010), as a concept artist in Star Wars: Episode I-The Phantom Menace (1999) and in Star Wars: Episode II-The Attack of the Clones (2002) and as a production designer in The Blue Umbrella (short film). So Jay, did you always think you would be in the Art Department for Pixar? Jay: Well I am the son of a car designer, so no. But I guess as a child I grew up around a nest of blue prints, drawings, posters, machines and models of all things connected to mechanised transportation. Seeing lots of drawings kind of inspired me to draw, especially vehicles. What was your first designing job and what did it involve? Jay: My first job was for Lucasfilm (Star Wars), it was an opportunity to work in a creative environment. I designed a variety of vehicles and environments for the Star Wars prequel film trilogy. How did you gain your skills and have they always been helpful in your jobs? Jay: I went to school and studied industrial design that gave me the greatest skills for the work I do. My personal skill set didn't really find traction until I got the Pixar gig. You're...

Words: 807 - Pages: 4

Premium Essay

Business, Disney, Swami

...Walt Disney-Pixar Merger Brief Industry Analysis Because of the technology nowadays, one successful film can be distributed all over the world, which is in a form of motion pictures or DVD. Animation is one media that is spread all over the world; push it to be one of fastest growing industry. The demand for the animation is increasing from the emerging number of cables and satellite TV and the popularity of The Internet. In addition, in the past, the target market of the animation industry was just kids, but now, it expands market to cover all ages of customers. The companies can be range from a big company such as Walt Disney to an individual artist with a PC. The trend of the industry has changed from drawing and photographs, which is labor-intensive, to using computer technology in order to create the realistic and higher quality pictures. However, producing the animation is still labor intensive and take a long time, this push the cost of production to be high. Therefore, now we see the trend of outsourcing the production from North America to Asia Pacific area, which has a lower cost, high quality computer animation production, and lower cost. Walt Disney Company Overview Walt Disney is one of the leading companies in the world that provides entertainment experience since its founding in 1923. Walt Disney Company and its subsidiaries and partner have four business segments, which are media networks, parks and resorts, studio entertainment, and consumer...

Words: 2979 - Pages: 12

Premium Essay

Disney Case

...Disney is a diversified American multinational mass media corporation. Disney was founded on October 16, 1923 by Walt Disney and his brother Roy O. Disney. The company is best known for the production of cartoons, animations and recently a movie Pirate of the Caribbean Sea. In 2006 Disney under the CEO Bob Iger, came up with hit movie cars that generated $462 million worldwide. Then he created Hanna Montana, High school musicals and the Disney princesses. Bob Iger introductions have broadened Disney’s opportunities in the following ways; the creation of Cars franchise helps in cracking tween boy market which in turn will open another new franchise of science fiction adventures. Hanna Montana is another market opportunity that targets children that were created by Bob; he did this to push for new market for adult since the franchise was known to produce children film. Pirates of the Caribbean Sea were also the market changes since a new target market of adults came on board. Bob Iger priority was to broaden the Disney market which he did successfully by the creation of the franchises. He also increased viewership by the move of Disney channels from the premium to basic cable and also launching the local version to international or global market. Bob Iger created a new brand to broaden the market the first one was Pirates of the Caribbean, first Disney film which was rated Pg-13. It played an important role in the...

Words: 633 - Pages: 3

Premium Essay

Disney Case Study

...The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire? Executive Summary: 3D computer-generated (CG) models changed the way the animation industry worked. The traditional 2D animation used frames that were comprised of hand-drawn cels. These required skills of hundreds of people and it took a lot longer to make. On the other hand, 3D computergenerated required less people, films could be made much faster and at a fraction of competitor’s cost. If there was a change needed to be made to a character, 2D would need to change all its subsequent frames, but 3D had mathematical models to redraw each cel and mimic camera angles. Walt Disney is a company that had mastered the traditional 2D animation. Disney’s Feature Animation unit was known as an open, collaborative environment. Leadership relied on all employees to generate story ideas. “Some of the same features that observers credited for Disney Animations’ success – large staff, large budgets, and lots of time – were blamed for its demise” (pg. 2). In the late 1990s, Disney set up a lab to work on their first 3D CG film but it wasn’t as big of a success as their other movies. Because many staff members needed to be retrained for this new technology, movie releases were pushed back. Throughout this period, Disney relied on revenue and characters produced by a company who excelled in 3D CG animation, Pixar. Pixar used its own proprietary computer animation technology that generated incredibly lifelike 3D images and...

Words: 4467 - Pages: 18

Premium Essay

Disney Harvad Business Case

...Since 1986 Disney and Pixar collaborated several years on different animation movie projects. The first feature film agreement in 1991 was in total favour for Disney. They agreed to produce three full-length 3D CG animation movies. Disney assumed the expenses of production and owned the movie rights, whereas Pixar received a participation fee of the revenue. At this time Pixar was glad to participate in a partnership and called it going to Disney University. In 1997 the co-production agreement was a more mutual business partnership. Disney bought 5% of Pixar and thus tied Pixar to a 10-year business deal. Steve Jobs, CEO of Pixar, was eager to negotiate new conditions for Pixar in order to receive more favourable economic terms for Pixar. This led to conflicting goal positions of the two companies, which caused a breakdown of the partnership. Pixar had two options: compromising on the business conditions with Disney in order to keep the collaboration or trying to find another suitable business partner. On the contrary, Disney thought about acquiring the company Pixar. Disney´s main strategy was to get into the animations business with the new CG technology. Therefore, the main reasons for an acquisition were the valuable assets of the innovative technology of Pixar. The unique selling point of Pixar, the own 3D computer-generated animation technology, positioned the company ahead of the competitors on the market. Furthermore, the three technologies RenderMan,...

Words: 804 - Pages: 4

Premium Essay


...Pixar Contents Pushing for Computer Animated Films Boosting the Creative Component Becoming Accomplished Storytellers Pumping Out the Hits To infinity and beyond? Contents KEY POINT Year: 2009 Pixar: a successful studio (animation)firm Disney V.S Pixar Important person: Bob Iger/Steve Jobs/Edwin E.Catmull/ John Lasseter Disney CEO Bob Iger worked hard to clinch the deal to acquire Pixar(one of the world’s most successful animation companies.2006) Steve Jobs make a deal with Disney to split the profits, ticket sales ,video sales , and merchandising royalties . Iger and Jobs try to protect Pixar’s creative culture . Pixar has continued to operate independently of Disney’s own animation studios ,its key talent has overseen combined activities of both Disney and Pixar. In order to ensure that Pixar manages to preserve its freewheeling entrepreneurial culture ,Jobs sits on a committee to protect its unique approach to making movies. Pixar remains committed to making films that are original in concept and execution despite the risks involved. Pushing for Computer Animated Films Boosting the Creative Component Pixar continued to develop computer animation technology. Steve jobs understood after Toy Story, that it would be the marriage of technology and creativity that would allow Pixar to rise above most of it’s competition. Catmull has built the creative innovation by creating programs to develop the employees. Employees are encouraged to devote up...

Words: 958 - Pages: 4

Premium Essay

Strategic Management at the Walt Disney Company

...Identify an episode of strategic change for an organisation of your own choice. How appropriate was the approach to strategic change given the issues faced by the organisation? Critically evaluate the effectiveness of the strategic leadership during the change process. Identify the impact of the change episode upon the key resources and core competencies of your organisation. This paper will analyse a recent period of strategic change at The Walt Disney Company which began in 2005 with the appointment of current CEO Robert Iger. The company began to experience halted growth during the late 1990s. The former CEO Michael Eisner had been successful himself in the late 1980s in changing the company during what is known as the Disney Renaissance. Eisner successfully concentrated the company’s energy back into producing animated films and helped the company to create now-classic names such as The Little Mermaid, Beauty and the Beast, The Lion King, Aladdin and others. However starting in 1999 share prices began to fall as changes in Disney’s competitive environment, consumer preferences and technology combined to alter its strategic context – which posed problems for the company in aligning its strategic objectives with its organisational structure and culture. Eisner was well known for his micromanagement and top down approach to management (Gunther, 1999), which served the company well during the 1990s when he could focus on single brands. The production of animated feature films...

Words: 4251 - Pages: 18

Free Essay

Pixar Case Report

...purchasing Pixar, from Lucas Films, Steve Jobs invested nearly $60 million to keep the company afloat before they began seeing success. When Jobs purchased the company for $5 million, he was seeking a new technology venture similar to Apple. His individual needs aligned with Pixar’s company culture, as both Jobs and Pixar are regarded as some of the most innovative companies/public figures ever to live. Jobs’ was able to innovate Pixar’s business model of selling rendering computers to producing films and selling animation softwares. Jobs’ personally holds a high standard for the need for achievement. Fresh off of leaving Apple, Jobs was looking for another company to bring into the limelight and wouldn't settle for anything else. Steve Jobs was able to recognize the potential for demand for computer graphic generating companies and refused to sell out too early. Although the technologies may not have been originally there for Pixar to achieve financial success, Jobs’ never failed to invest time and money into the building and development of Pixar. Along with his high standard of need for achievement, Jobs’ places a large emphasis on the need for affiliation throughout his company. He feels it is important for everyone to get alone well and contribute at the same level. Along with head animator Jon Lasseter, he was determined to change the animation process of a top-down management style, into a large collaborative process throughout all the employees at pixar. When Jobs’...

Words: 679 - Pages: 3

Premium Essay

The Disney Pixar Merger

...Disney Pixar Merger In 2006, Disney announced it was going to acquire Pixar for $7.4 billion. Upon doing so, one of the most successful mergers of the past ten years developed. “The merger brings together Disney’s historic franchise of animated characters with Pixar’s stable of cartoon hits” (La Monica). A lot of time and thought went into deciding how this merger would be prosperous and profitable for all parties involved. Disney wanted to guarantee Pixar’s executives that they would still hold positions of power with the ability to make decisions. They hired Steve Jobs, Pixar’s chief executive, as a non-independent director at Disney and made him one of the largest shareholders in the company. John Lasseter, a director and creative voice at Pixar, took the title as their chief creative officer as well as the creative advisor at Walt Disney Imagineering. (Holston) There were also high level statuses given to other directors and executives of Pixar at Disney. Promoting Pixar’s executives to equally powerful positions within the company was not the only requirements of the deal. Pixar also wanted their HR policies to remain intact, a steering committee to oversee animation, and all films produced post-merger branded as “Disney Pixar”. These are all just a few of the steps Disney took to merge with Pixar. There are so many positive results that come to mind when considering this merger. Combining with Pixar will give Disney access to their top of the line animation capabilities...

Words: 545 - Pages: 3

Premium Essay

Mergers and Acquisition

...Currently, in the world of growing economy and globalization, many businesses on both domestic and international marketplaces struggle to achieve the best market share. Every day business people from top to lower management work to achieve a common goal, being the best at what you do, and getting there as fast as possible. As companies work hard to beat their competitors they accept many tactics to do so. As for my assignment, I have chosen to examine why Disney and Pixar merged as a company. A brief definition of an Acquisition and a merger will be given following with the difference between them. I will be discussing if these two companies were a success or a failure and why and which were their reasons behind this statement. A merger is a combination of two companies, which form a new firm, while an acquisition is the purchase of one company by another in which no new company is formed. Mergers and Acquisitions take place for many strategic business reasons, but most of their reasons are due to economic standards. These are some reasons: Cutting costs: some companies have similar products or services, if they could combine there could be a huge reduce of costs this is an advantage for both firms. Most of the companies, which merge, can combine different opportunities for the best. This economic strategy has to do with economies of scale “reduction in cost per unit resulting from increased production, realized through operational efficiencies” in other words, when the...

Words: 951 - Pages: 4

Premium Essay

Disney Case Study

...They have also added these characters to their theme parks. 3. Describe the marketing mix for one of Disney’s franchises. Pirates of the Caribbean was Disney’s first PG-13 rated film. This helped Disney finally reach a different target market. Pirates of the Caribbean appealed to older kids and even adults. This was the preliminary steps for promoting to the tween boy market, ages 6-14. Pirates can also be seen off the classic theme park rides and merchandising around the world. 4. Describe the major components of Bob Iger’s strategic plan. Bob Iger, Disney’s CEO, lead a dramatic change in the Disney brand. He changed Disney’s main focus to stabilize franchises. For example, Iger told the board that revitalizing Disney’s animation business was their top priority. To do that...

Words: 350 - Pages: 2

Premium Essay

Disney Merge with Pixar

...DISNEY BUY PIXAR | Pros | Cons | Disney have the brand and distribution | External factors, such as increasing competition or a declining industry, can affect future growth | Pixar have the technology and creative part | The seller’s personality and their established relationships may be a major factor for the success of the business | Buying an established business means immediate cash flow | Influenced by Apple | The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors | Culture between Disney & Pixar | Acquisition of existing customer, contacts, goodwill, suppliers, staff, plant, equipment and stock | Financial stock Dilution | The market for the product (animated movies) is already established | | Existing employees and managers will have experience they can share | | Skipping the start-up stage | | Inheriting systems, customers and image | | Disney consolidate its dominant position in the market | | Pixar improve the capacity of profitability and then create more value | | Revitalize Disney’s animation department, eliminate competition, access to technology & human capital | | | | 1. Buy When assessing if Disney should buy Pixar is necessary to evaluate the pros and cons of the action. Considering the cons, firstly is necessary to understand that there are some external factors such as, increasing competition or the decline of the...

Words: 1108 - Pages: 5

Premium Essay

Course Project

...Course Project- Disney and Pixar- The Change Analysis- Images of Change HRM587- Managing Organizational Change DeVry University, Keller Graduate School of Management July 2014 The Change Analysis- Images of Change Disney used the character of Mickey Mouse and others to create movies that customers enjoyed like “Beauty and the Beast” while Pixar was producing made up animated characters to create films like “Cars” and “Wall-E”. Disney was creating animated movies but struggling to generate the amount of money Pixar was making on producing only one movie a year. Disney wanted to grow in creating more animated movies and decided to buy out Pixar in 2006 for $7.4 million dollars. (Barnes, 2008) According to Disney’s CEO Robert Iger, “The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses.” (La Monica, 2006) This buy out was great for Disney but Pixar had many doubts and hesitation about changes that were to come. Disney and Pixar executives needed to come up with an integration plan that would combine two unique cultures into one. In order to bridge these two cultures together, the organizational structure of the merger was discussed and agreed upon in terms of making both parties happy. The shareholders and stakeholders of both Disney and Pixar recognized that “this acquisition combines Pixar’s preeminent creative and technological resources with Disney’s unparalleled portfolio of...

Words: 1827 - Pages: 8