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AU Alumnus Peter Cuneo: a Marvel-Ous Success Story 5/06/02

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AU Alumnus Peter Cuneo: a Marvel-Ous Success Story 5/06/02 AU Alumnus Peter Cuneo: A Marvel-ous Success Story 5/06/02 Over the years, scores of superheroes dedicated to the fight against evil have graced the pages of Marvel comic books. The most popular, Spiderman, is known for his breathtaking battles with supervillains high above the streets of New York. He is a solitary figure who swoops in, saves the day, and is gone.Ironically, Marvel found itself in need of a real-life superhero. Less than a year removed from bankruptcy and in need of direction and guidance, it found one in Peter Cuneo '67.Last July, Cuneo, a member of the University Board of Trustees, was hired as President and Chief Executive Officer at Marvel Enterprises, Inc. And while he chuckles at the notion of being compared to Spiderman, he admits he's at his best when going to battle for distressed companies."I don't think of myself as a superhero," Cuneo said during a recent interview at his office at Marvel Enterprises headquarters in New York City. "I do like the challenge of dealing in difficult situations. I've always enjoyed solving big problems."Cuneo, 55, said he's worked to solve the problems of troubled businesses for 20 years - as president of Clairol's Personal Care Division Group and the Security Hardware Group of Black and Decker, as chief executive officer of Remington Products, and now as head of Marvel."There were elements of turnarounds in all my previous positions," he said. "I enjoy the challenge. And in a sense, you are saving jobs, if the alternative is for a company to reduce its activities or even liquidate."Marvel Enterprises certainly qualifies as a business with a troubled past: As Marvel Entertainment Group, Inc., the company was in bankruptcy from 1996-98. Marvel Enterprises was formed in October 1998 upon the emergence of Marvel Entertainment from bankruptcy and its merger with toy manufacturer Toy Biz, Inc. Nine months after emerging from bankruptcy, Marvel Enterprises sought out Cuneo to replace the former president and CEO. Cuneo said he was hired for two reasons: his history of involvement in global, heavily-branded consumer products; and his past success in "business turnarounds."While Marvel Enterprises had emerged from bankruptcy before his hiring, there still existed a need for Cuneo's experience in guiding businesses through rough waters. Cuneo said that in his previous positions running companies, "all were under-performing. Some were in bankruptcy, others were not as troubled but in need of radical change." "Most of the turnarounds I've done involved changing poor management. The business problems weren't because products had been made obsolete," Cuneo said. "Most of the time, the answers to any problem can be found within the company. Turnarounds aren't rocket science - it's a return to performing business basics well."While at Clairol, Black and Decker and Remington, Cuneo made new product development a priority, took steps to cut costs, improved sales and upgraded inefficient manufacturing facilities. The end results were improved efficiency, increased production, higher morale and a significant jump in revenues and profitability.The opportunity to tackle the company's problems, and build upon some positive initiatives already under way, is what attracted Cuneo to Marvel. It certainly wasn't because of any previous deep interest in the world of comics."I explored comics as a kid, but I wasn't an avid reader," he said.Cuneo added that he came to Marvel "unprepared for the fanaticism" of the legion of die-hard Marvel fans. He points to the 36 million comic books Marvel produces each year in the United States alone, the 600,000 site visits and 6 million page visits each month to Marvel's internet site as a testament to the popularity of comic books and characters. "There are fans in every corner of the globe," he said.However, Cuneo points out, comic books represent only a small portion, about 15 percent, of Marvel's business. The true value of the comic books is measured by their 3,500-plus characters. Licensing of those characters - to companies that use them for everything from fast food promotion to apparel to television programs - and the production of toys by Toy Biz, Inc., represent the lion's share of Marvel's business. One of the more aggressive ways Marvel is hoping to further capitalize on its huge fan base is through the motion picture industry. Production is under way on a $100 million feature film on Marvel's popular "X- Men" characters. X-Men, which has a cast including Patrick Stewart, Halle Berry, Anna Paquin and Sir Ian McKellen, is being produced by 20th Century Fox and will open in theaters this summer.Other planned films include Spiderman (Sony) and Blade 2 (New Line Cinema,) to be released in 2001, and The Hulk (Universal) and Fantastic Four (20th Century Fox) in 2002. In addition, there are several television shows based on Marvel characters that are or will be on the air. Cuneo credits current film and television projects to Avi Arad, president and chief executive officer of Marvel Studios and chief creative officer, Marvel Enterprises, Inc. Cuneo lists among his current projects an upgrade of Marvel's Internet site (marvel.com) as well development of new licensed characters. In addition, he has made it a priority to enter into equity ventures partnerships for the development of creative content for new media."In certain circumstances, we don't have the technical skills to build new creative content, so we look for partners," Cuneo explained. One such partnership would involve developing Internet-based activities, including animated features and games, as well as marketing and selling products on marvel.com. "We're becoming much more aggressive on the Internet."So what happens to Peter Cuneo once Marvel is placed safely back on solid ground? It's unlikely he'll settle down - at Marvel or anywhere else. Rather, he'll seek out another difficult situation, another company in distress, and come to the rescue."There is a point, once the job is complete, that I get bored," he said. "I'd be the wrong person to hire into a business that's well run. I'm not a maintainer; I'm very biased toward change."Cuneo said he's "thought a lot about " the possibility he'll someday settle into a position and remain there. "I know in my heart it's not me. There comes a time, naturally, when it's time to move on."For now, though, Cuneo is perfectly content to immerse himself in the world of Marvel, battling on behalf of its swashbuckling characters and their loyal fans. "This business is tremendous fun," he said. "I can argue I have the best job in the world."(Article from Spring 2000 issue of The Alfred Magazine)For more:Peter Cuneo Profile Keys to professional and personal success... Marvel 's CEO to give Cutco Lecture.
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