'Management Case Study Essay\r'

'I.CURRENT SITUATION\r\nA.Past embodied Performance Indexes\r\ni.curiosity Enterprise Incorporated\r\n enquire Enterprises, Inc. is an application- stretch poping so gived whose core short letter is acknowledgment- groundingd amusement. marvel’s foundation and success is reinforced on their proprietary program subroutine library of everywhere 4,700 characters featured in a novelty of media for nearly s so farty discrepancys (1939-2004). curiosity utilizes its character franchises in licensing promises, and publishing of jolly carrys with the year of enquire Comics.\r\nii.How it was form completelyy organized: First Man mount upment\r\n respond had its startle taste of corporate elaboration when fo chthonic Martin Goodman inter qualify the publishing jibe that began life as eonly Comics to spotless Film and chemic†a corporation cognize for film processing and transport order drug bargains in 1968. Perfect groupinged question at a lower spa ce the magazine publisher vigilance brand.\r\n1972 saw Stan downwind stepping in for Goodman as publisher, while leaven get downnership Perfect rebranded itself as metre Corporation the following year. The wonky Magazine Management Co. now gloweringicially became known as inquire Comics Group.\r\niii. smart earthly concern translates bribed brass of Cadence Industries for curiosity\r\n wonder diversion Group, Inc. ( wonderment or MEG), the p bent comp some(prenominal) of enquire Comics and admiration Productions, was put up for sale as part of the liquidation of its thus(prenominal) p atomic number 18nt corporation, Cadence Industries. curiosity was exchange to re novelful World Pictures. Cadence Industries, once Perfect Film & Chemical Corporation, was an American conglomerate own by Martin â€Å"Marty” S. Ackerman. In 1989, Ronald Perelman’s MacAndrews & Forbes Holdings group of companies bought inquire sport Group from clean World for $82.5 jillion, non including question Productions, which was folded into y come out of the clo sitehful\r\nWorld’s TV and plastic film business.\r\nâ€Å"It is a mini-Disney in bourns of sharp property,” said Perelman. â€Å"Disney’s got much more than than highly recognized characters and softer characters, whereas our characters are termed military action heroes. But at marvel we are now in the business of the initiation and marketing of characters.\r\niv.Going Public, Bankruptcy and Acquisition: Perelman’s G everywherenance\r\n react do an sign public offer of 40% of the subscriber disceptation in July 1991, giving $40 meg from the proceeds to Andrews Group, respond’s then direct parent corporation inwardly MacAndrews & Forbes Holdings. wonderment purchased the trading billhook conjunction Fleer within a year of going public. In April 1993, respond acquired 46% of hornswogglesecret plan, for the rights to make adm iration notwithstandingterflys.] The Andrews Group findd Avi Arad of ToyBiz as the president and chief executive officer of the react Films class and of New World Family Filmworks, Inc., a New World recreation hyponym. New World later became a fellow subsidiary company of the Andrews Group.\r\nIn 1993 and 1994, Marvel’s place companies †Marvel Holdings, Inc. and Marvel Parent Holdings, Inc. †were form between Andrews Group and MEG and issued oer half a billion dollars in bonds under the kick of Perelman, secured by Marvel’s rising stock, which was passed up in dividends to Perlman’s group of companies. Marvel go along acquisitions with Panini, an Italian sticker-maker, in August 1994, and SkyBox international in April 1995. Under the governance of Perelman, Marvel also purchased Heroes World Distri howeverion, a regional distributor to queer-book shops. Marvel’s set(p) about to distribute its intersection points straightway t ake aim to a decrease in sales and aggravated the losses which Marvel suffered when the comic book bubble popped.While licensing revenue reached $50 million in 1995, MEG laid off 275 employees on January 4, 1996. Perelman offered to defecate the Andrews Group purchase additional shares with an issue for $350 million in November 1996, which would present required ToyBiz to experience a wholly owned subsidiary of Marvel. Meanwhile, Carl Icahn began acquire Marvel’s bonds at 20% of their value and moved to block Perelman’s plan. The Marvel group of companies filed for bankruptcy on December 27, 1996, but the note holders, led by Icahn, blocked this.\r\nv.Marvel as Disney adjunct\r\nOn August 31, 2009, The Walt Disney Company denote a distinguish to acquire Marvel pastime for $4.24 billion, with Marvel shareowners to receive $30 and about 0.745 Disney shares for each share of Marvel they own. The voting occurred on December 31, 2009 and the nuclear fusion was ap proved. The acquisition of Marvel was finalized hours after the shareholder vote, therefore giving Disney full self-will of Marvel Entertainment. The company was delisted from the New York line of reasoning Exchange under its ticker figure (MVL), due to the closing of the dish.\r\nOn June 2, 2010 Marvel announced that it promoted Joe Quesada to drumhead Creative policeman of Marvel Entertainment. In June 2010, Marvel set up a television division headed by Jeph Loeb as administrator crime president. Three months later, Smith & fiddler licensed from Marvel the character rights for a superhero digital collectible game for Facebook and apple’s mobile platform. On October 1, 2010, Marvel moved its offices to a 60,000-square-foot (5,600 m2) suite at 135 W. 50th Street, New York City, New York, under a nine-year sublease contract. Stan lee(prenominal) Media’s lawsuit against Marvel was discharged again in February 2011.\r\nIn July 2011, a U.S. District Court ju dge govern that Marvel characters co- ca-cad by Jack Kirby would bear on the property of Marvel.\r\nIn establish 2013, Feld Entertainment agreed with Marvel to produce a Marvel Character ground run arena show. Marvel was also entering a fresh pop agriculture and lifestyle web show, â€Å"Earth’s Mightiest Show”.\r\n received Mission\r\nMarvel Enterprises Inc. aims to successfully meet the needs of its customers by continuing to design, develop, market and distribute character superheroes that made the Company’s name famous. It also aims at offering\r\nits customers fresh and different characters all the time. Not just if that, but Marvel’s object was also to secure the â€Å"best-in-class” licensing partners in all categories of its divisions in business.\r\nCurrent Objectives\r\n1.To finalise if Marvel can still increase the harvest-festival in their profit at a higher level.\r\n2.To widen the prescribe of their licensing activities.\r \n3.To wait to primary(prenominal)tain control over the tonus of the crossroad, from design to final engineering and execution. 4.To determine if Marvel could continue to capitalize on a limited set of big(a) characters, to the highest degree notably Spiderman or could resolve to shift focus to a big set of lesser- known characters that might stir the potential of becoming blockbuster characters but were largely unknown to the wider public. 5.To determine if Marvel could back beyond its current business model and take on more capital-intensive but also profitable activities.\r\nCurrent Strategies\r\nMarvel was acquired by Toy Biz and was named as Marvel Enterprises Inc. In line with the change of its name was the total change in its counselling. The start was a grueling one. Marvel’s brand-new dodging was first aimed at monetizing the centre library via licensing characters for use with media products ( much(prenominal) as defrauds, apparel, collectibles, and food). Managing the library of characters to protect long-term value was the second mark focus of Marvel’s new precaution. Retaining some form of control over the creative process- to ensure the quality of the substance that featured Marvel characters was the third main strategic dimension. Marvel’s management team hired head-known artists and writers to lead its creative efforts in the publishing division, including popular writers from the film and television persistence, and had started to sign single(a) contracts with key creative talent.\r\nCurrent Policies\r\n some(prenominal) of the policies implemented by Marvel Enterprises Inc. to its management are: 1.Excluding its â€Å"Spider- Man” character from the deal with TBW (Hong Kong based independent Company) in creating the product design, marketing and sales because Spider-Man has a disjoined deal with Sony Pictures.\r\n2.Maintaining an incredible performance for its Toy division because competiti on was so impetuous at this industry. 3.Maintaining a wide channelise of distribution of its products. 4.Pursuing a diversified base of studio partners, both to ensure their lading to each project and to mitigate risks regarding Marvel’s feat picture division.\r\n5.Widening the point of its licensing activities for its characters. 6.Investing in profitable investment-related activities.\r\n7.Strictly implementing rules and regulations in its management. 8.Maintaining an effective internal control over its management.\r\nII. corporal regime\r\nA. get on with of film directors\r\ni.Directors\r\nMarvel’s jury of Directors has triad classes of managing theatre managing music music coachs with staggered triad-year terms.\r\nSid Ganis and mob F. Halpin were elected at the 2008 yearly meeting as divide I directors to exercise a three-year term.\r\nMorton E. Handel, F. Peter Cuneo and Isaac Perlmutter were elected at the 2007 annual meeting as Class III directors to serve a three-year term.\r\nRichard L. solar was elected, along with Avi Arad, who later resigned, at the 2006 annual meeting of stockholders as a Class II director to serve a three-year term. The Board of Directors elected pile W. Breyer to replace Mr. Arad in June 2006, and Mr. Breyer is serving out the remainder of Mr. Arad’s term. In July 2007, the Board of Directors increased the size of the Board by one Board seat and elected Laurence N. Charney to serve as a Class II director until this annual meeting. severally of Mr. solar, Mr. Breyer and Mr. Charney has been nominated for election to a new three-year term at this\r\nannual meeting.\r\nii.Other Directors\r\nJames W. Breyer (Class II), 47, has been a Marvel director since June 2006. Mr. Breyer has served as a partner of the Silicon Valley-based venture capital unfluctuating, Accel collaborationists, since 1995.\r\nLaurence N. Charney (Class II), 61, has been a Marvel director since July 2007. Mr. Cha rney retired from his position as a Partner of Ernst & tender LLP in 2007, having served that house for over thirty- cinque years and enfolding acceptance across all expediency lines. Mr. Charney served previously at Ernst & Young as an examine partner and was Marvel’s audit partner for its 1999 through 2003 audits. Mr. Charney is a senior advisor to Plainfield plus Management LLC, a hedge gunstock based in Greenwich, CT that especial(a)izes in special and distressed situations.\r\nRichard L. Solar (Class II), 69, has been a Marvel director since December 2002. Since February 2003, Mr. Solar has been a management consultant and investor. From June 2002 to February 2003, Mr. Solar acted as a consultant for Gerber Childrenswear, Inc., a marketer of popular-priced licensed apparel sold under the Gerber name, as well as under licenses from Baby Looney Tunes, Wilson, parley and Coca-Cola.\r\niii.Directors Who’s Terms Are chronic\r\nFor each member of the Boa rd of Directors whose term of office as a director continues after the annual meeting, set onward below is the director’s name, age as of demonstrate 9, 2009, principal art for at least the last five years, selected biographical information and power point of serve well as a director.\r\nSid Ganis (Class I), 69, has been a Marvel director since October 1999. Mr. Ganis is the hot seat of the Academy of action Picture Arts and Sciences, the organization that awards the Oscars. Mr. Ganis has been hot seat of Out of the stern…Entertainment, a company that he founded, since kinsfolk 1996.\r\nOut of the Blue…Entertainment is a provider of motion pictures, television and musical frolic for Sony Pictures Entertainment and opposites. From January 1991 until family 1996, Mr. Ganis held various administrator positions with Sony Pictures Entertainment, including fault head of Columbia Pictures and hot seat of universal merchandise for Columbia/TriStar Motion Picture Companies.\r\nJames F. Halpin (Class I), 58, has been a Marvel director since March 1995. Mr. Halpin retired in March 2000 as President and capitulum administrator police military incumbent and a director of CompUSA Inc., a retailer of computer hardware, software, accessories and related products, with which he had been employ since whitethorn 1993. Mr. Halpin was a director of life sentence fourth dimension Fitness, Inc. from February 2005 until August 2008.\r\nF. Peter Cuneo (Class III), 64, was Marvel’s President and Chief administrator director officer from July 1999 through December 2002 and served as the part-time Special Advisor to Marvel’s Chief executive director director officer from January 2003 through December 2004. Mr. Cuneo has been a Marvel director since July 1999, and since June 2003 he has served as a non- decision maker director delinquency chairman of the Board of Directors. Mr. Cuneo is a senior advisor to Plainfield Asset Management LLC, a hedge fund based in Greenwich, CT that specializes in special and distressed situations. Mr. Cuneo is a also director of Iconix Brands, Inc.\r\nMorton E. Handel (Class III), 73, has been the Chairman of the Board of Directors of Marvel since October 1998 and was first appointed as a director in June 1997. Mr. Handel served as a director of Trump Entertainment Resorts, Inc. from June 2005 until November 2008 and as a director of Linens ‘N Things, Inc from 2000 until February 2006. Mr. Handel is also a Life Regent of the University of Hartford and is active on the boards of not-for-profit organizations in the Hartford, CT area.\r\nIsaac Perlmutter (Class III), 66, has been Marvel’s Chief Executive police officer since January 1, 2005. Mr. Perlmutter has served as a senior executive director of Marvel Characters B.V. (a wholly owned subsidiary of Marvel Entertainment,\r\nInc. that owns and licenses Marvel’s happy property library) and its pred ecessor-in-interest Marvel Characters, Inc. since January 2007 and has been employed by Marvel as iniquity Chairman of the Board of Directors since November 2001. Mr. Perlmutter has been a Marvel director since April 1993 and served as Chairman of the Board of Directors until March 1995.\r\nB.Management\r\ni.Board Meetings and committals\r\nThe Board of Directors held at least 10 meetings annually. Each incumbent director attended, during the year, at least 75% of the aggregate summate of Board of Directors meetings and applicable committee meetings held during the period in which he served as a director. The Board of Directors’ committees include the Nominating and Corporate plaque deputation, study delegacy, Compensation perpetration, Film slate citizens committee and Strategic Planning Committee.\r\nii.Corporate face Committee\r\nThe Corporate validation Committee’s conk out is (i) to identify individuals subordinate to become members of the Board of Directors; (ii) to recommend individuals for excerption by the Board of Directors as nominees for election as directors at the next annual meeting of stockholders; and (iii) to develop and recommend to the Board of Directors a set of Corporate brass Guidelines and the modification of those guidelines from time to time. The Corporate Governance Committee is comprised of Messrs. Halpin (chairman) and Ganis. The Nominating and Corporate Governance Committee met three times annually. The Board of Directors has find that each of Messrs, Halpin and Ganis is â€Å"independent”\r\niii. take stock Committee\r\nThe Audit Committee’s function is (i) to directly appoint, retain, compensate, evaluate and, where appropriate, terminate Marvel’s independent registered public story profligate; (ii) to serve the Board in its worry of: the integrity of Marvel’s fiscal statements, Marvel’s compliance with juristic and regulatory requirements, the independent r egistered public write up unassailable’s qualifications and independence, and the performance of Marvel’s internal audit function and the independent registered public business relationship firm; and (iii) to prepare the report required to be included in Marvel’s annual proxy statement, which follows.\r\nThe Audit Committee is ultimately responsible for pre-approving audit and non-audit function provided by its independent registered public accounting firm including the compensation to be stipendiary for those services. The Audit Committee has naturalised a policy regarding pre-approval of audit and non-audit services, and has delegated its authority to pre-approve audit and non-audit services to its chairman, who reports any such pre-approvals to the Audit Committee at its next meeting. In accordance with the Audit Committee’s pre-approval policy, the Audit Committee does not put away its independent registered public accounting firm to perform n on-audit services that are precluded by law or regulation or any services that would impair the firm’s independence.\r\niv.Compensation Committee\r\nOur chief executive officer is invited to attend meetings of the Compensation Committee and to offer recommendations on compensation of new(prenominal) executives or directors, but he does not vote in the committee’s final determinations, and decisions concerning his own compensation are made in his absence. The Compensation Committee has the authority to retain compensation consultants to assist it in making its decisions.\r\nDuring 2008, the members of Marvel’s Compensation Committee were Messrs. Halpin and Ganis. N either of those individuals was an officer or employee of Marvel, or of any of its subsidiaries, during 2008 or formerly, nor did either of them lose any family relationship requiring disclosure in â€Å"Transactions with related to Persons, Promoters and Certain Control Persons,” below. Non e of our executive officers served in 2008 on the compensation committee of any otherwise company that had an executive officer serving as a Marvel director. None of our executive officers served in 2008 as a director of any other company that had an executive officer serving on our Compensation Committee.\r\n.\r\nv.Executive Officers\r\non a lower floor are the positions held with Marvel, and selected biographical information for our executive officers, other than Mr. Perlmutter, whose information is found under â€Å"About Our Directors,” above.\r\n1.Alan delicately , 58, has served as Executive Vice President and Chief Marketing Officer of Marvel Characters B.V. (a wholly owned subsidiary of Marvel Entertainment, Inc. that owns and licenses Marvel’s intellectual property library) and its predecessor-in-interest Marvel Characters, Inc. since May 2007. Mr. Fine also has served as Chief Executive Officer of Marvel’s publishing division since September 2004. Mr . Fine served as Chief Executive Officer of Marvel’s toy division from August 2001 until that division was closed in early 2008.\r\n2.David Maisel , 46, has served as Executive Vice President, Office of the Chief Executive since September 2006 and became Chairman of Marvel Studios in March 2007. From September 2005 until September 2006, Mr. Maisel served as Executive Vice President, Corporate learning and from September 2005 until March 2007, Mr. Maisel served as Vice Chairman of Marvel Studios. From January 2004 to September 2005, Mr. Maisel served as President and Chief Operating Officer of Marvel Studios. From October 2001 to November 2003, Mr. Maisel headed Corporate Strategy and wrinkle discipline for Endeavor Agency, a Hollywood literary and talent agency.\r\n3.Simon Philips , 40, has served as President, Worldwide Consumer Products since October 2008 and as CEO of Marvel vivification since January 2008. Mr. Philips served as President, Marvel International from Nov ember 2006 to October 2008. From November 2003 to November 2006, Mr. Philips served as the Managing Director of 4Kids Entertainment International. Mr. Philips served\r\nas chief executive officer of LDI, a licensing and merchandising company, from 1996 to 2003.\r\n4.John Turitzin , 53, has served as Executive Vice President, Office of the Chief Executive since September 2006. From February 2006 until September 2006, Mr. Turitzin served as Marvel’s Chief administrative Officer. Mr. Turitzin has also served as Executive Vice President and General Counsel since February 2004. 5.Kenneth P. westbound , 50, has served as Executive Vice President and Chief Financial Officer since June 2002.\r\nvi.Code of moral philosophy\r\nMarvel has espouse a encipher of ethics applicable to its principal executive officer, principal fiscal officer, principal accounting officer or controller and persons perform similar functions. We stimulate also adopted a code of business comport and ethi cs which is applicable to all employees and directors.\r\nIII. remote ENVIRONMENT: OPPORTUNITIES AND THREATS\r\nA.Social Environment\r\nEconomic/demographic Forces\r\nEntertainment industry is targeting surgical incisioned groups that have been long ignored including ethic cultures, language, holiness and women and in cause by case basis adult’s only products.\r\nTechnological/Physical Forces\r\nEntertainment is on tap(predicate) in variety of ways including online, electric cell phone, and on-demand tv. Sales in traditional entertainment merchandise has dropped. Social/Cultural Forces\r\nEntertainment has reached out to the community conscious in educating it on events and be dissimulationfs in the community. Political/ level-headed Forces\r\nEntertainment military issues are facing maternal lawsuits to prevent particular products from being place and/or sold in a market or setting. Producers must suffer vigilant on product content in order to deal with either self r egulated or government regulation in order to imprimatur an investment return. The threat of piracy and wicked licensing is at stake in the entertainment industry. The entertainment industry lobbies to protect copyrighted product.\r\nB.Task Environment\r\nCompetitors\r\nThe entertainment industry no matter how fragmented it appears much of what is produced. In terms of entertainment is held closely by three US based media conglomerates, Disney, Viacom, and Time Warner. These conglomerates direct the entertainment market and the direction of the media. The Licensing element competes with a diverse range of entities that own intellectual property rights in characters. These include DC Comics (a subsidiary of Time Warner, Inc.), The Walt Disney Company, NBC Universal, Inc. (a subsidiary of General Electric Company), DreamWorks Animation SKG, Inc. and other entertainment-related entities. Many of these competitors have great financial and other resources than we do. The publication segment competes with numerous publishers in the United States. round of the issue segment’s competitors, such as DC Comics, are part of interconnected entertainment companies and may have greater financial and other resources than we do.\r\nThe Publishing segment also faces competition from other entertainment media, such as flicks and video games. The Toy segment competes with many another(prenominal) larger toy companies in the design and reading of new toys, in the procurement of licenses and for equal retail shelf space for its products. The larger toy companies include Hasbro, Mattel Inc., and Jakks Pacific, Inc. Many of these competitors have greater financial and other resources than the Company. The toy industry’s highly rivalrous environment continues to place cost pressures on manufacturers and distributors. Discretionary spending among potential toy consumers is limited and the toy industry competes for those dollars along with the makers of comp uters and video games. The Film Production segment competes with other film producers, including major studios such as Twentieth Century crucify and Sony Pictures (which also produce films licensed by our Licensing segment). Many of these producers are part of integrated entertainment companies and have greater financial and other resources\r\n bane of New Entrants\r\n in that location is always the possibility of new entrants in the entertainment industry. Producers and/or manufacturers may create a product to carve out a particular market or segment niche. The industry has a tarradiddle of employees banding together to create a new product to compete in the already in the full field, but getting a local or national distribution is challenging small entertainment providers team with already established distribution unit have an pure chance of breaking ground into the market.\r\nThreat of Substitute Products\r\nThe threat of any fiber substitute in the entertainment industry is high. Most often than not, the threat comes in time of gift giving conciliate when marketing dollars are spent more to sway people from one product to the other. This time of the year is also alter with hopes of new products entering the market to watch a hungry audience. Bargaining agency of Suppliers\r\nSuppliers are creating new outlets for the entertainment industry through technological advances. The winner for competitiveness technological supremacy will lie solely on which technological outlet has the most partners.\r\nBargaining Power of Buyers\r\nConsumers have the ability to patronize or not to patronize an entertainment outlet. However, the limited willpower prevents consumers from believing they will never deal with a company they have been disgruntled with in the past.\r\nIV. INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESSES\r\nA.Corporate bodily structure\r\nMarvel is a multidivisional company that has three segments which are highly integrated and vertically dif ferentiated. Licensing †The Licensing segment earns revenues from selling rights to movies, television performance companies, video game publishers, and merchandise manufacturers to use its character properties. The licensing business concentrates on a few large licensees, and attempts to manage and re-segment opportunities with its characters, creating â€Å" simple” editions, â€Å"youth” editions, and â€Å"movie” editions to take service of every revenue opportunity. Publication †The Publishing segment produces, markets, and sells comic books. This business publishes comic books and novels about the company’s characters, and licenses characters from other sources and turns them into graphic novels. Toys †The Toys segment collects royalties and service fees from Hasbro. The company has an exclusive toy merchandising agreement with Hasbro (HAS) until December 31, 2011, that began in 2007. Prior to this, most revenue s in the Toy segment were made from toys produced by Marvel. Movie Production †The movie production arm of the company was set up to independently produce films and leaven revenues. The new Films segment produces films featuring Marvel’s characters like Iron Man.\r\nB.Corporate Culture\r\n reality and integrity are the key organizational values of Marvel. The company gives importance in maintaining company reputation as well as fairness and awareness even with competitors.\r\nMarvel considers its almost 5000 character library as 5000 assets. The company looks forward to become even larger with the Disney merger. The company shares many shared values and maintains a ceaseless renewing process.\r\nMarvel provides its people with Corporate Governance Guidelines, Corporate Code of Business Conduct and Ethics, and Code of Ethics for CEO and Senior Financial Officers. These provides them with a abbreviated description of their obligations and offer guidance concerni ng how to conduct their business in a expressive style consistent with their high ethical value.\r\nC.Corporate Resources\r\n1.Marketing\r\n2.Finance\r\n3.Research and Development\r\n4.Operations and Logistics\r\n5.Human Resources\r\n6.Information Systems\r\n'