Euro Disney

In: English and Literature

Submitted By Someoneelse
Words 1455
Pages 6
Case Study: Disney in France1
Until 1992, the Walt Disney Company had experienced nothing but success in the theme park business. Its first park, Disneyland, opened in Anaheim, California, in 1955. Its theme song, "It's a Small World After All," promoted "an idealized vision of America spiced with reassuring glimpses of exotic cultures all calculated to promote heartwarming feelings about living together as one happy family. There were dark tunnels and bumpy rides to scare the children a little but none of the terrors of the real world . . . The Disney characters that everyone knew from the cartoons and comic books were on hand to shepherd the guests and to direct them to the Mickey Mouse watches and Little Mermaid records. The Anaheim park was an instant success.
In the 1970s, the triumph was repeated in Florida, and in 1983, Disney proved the Japanese also have an affinity for Mickey Mouse with the successful opening of Tokyo Disneyland. Having wooed the Japanese, Disney executives in 1986 turned their attention to France and, more specifically, to Paris, the self-proclaimed capital of European high culture and style. "Why did they pick France?" many asked. When word first got out that Disney wanted to build another international theme park, officials from more than 200 locations all over the world descended on Disney with pleas and cash inducements to work the Disney magic in their hometowns. But Paris was chosen because of demographics and subsidies. About 17 million Europeans live less than a two-hour drive from Paris. Another 310 million can fly there in the same time or less. Also, the French government was so eager to attract Disney that it offered the company more than $1 billion in various incentives, all in the expectation that the project would create 30,000 French jobs.
From the beginning, cultural gaffes by Disney set the tone for the project. By…...

Similar Documents

Euro Disney

...Utilizing Hofstede's research in culture discusses one area in which the Disney corporate culture did not fit with the French national culture? Do the US and France rate similarly in this dimension? 2) Which of the four strategic dispositions did Disney seem to use in the case? What is simplification and was Disney guilty of utilizing this process. Describe one specific example to justify your answer. Disney corporate culture did not fit with the French national culture in many aspects. Using the Hofstede’s research I will discuss the individualism in USA and France. Individualism is the “tendency of people to look after themselves and their immediate family only”. The acceptance of the strict dress code by thousands of employees even when it is criticized by labor organizations is an example for the difference in individualism level. The hiring process was heavily criticized by applicants, the press, and even the French unions. The controversy revolved around Disney’s grooming requirements. Disney enforced a strict dress code, a ban on facial hair and colored stockings, standards for neat hair and fingernails, and even a policy of “appropriate undergarments.” Applicants and labor leaders felt that requirements were excessive and much stricter than other employers. It was against the French law, which prohibits employers from restricting individual and collective liberties. The efforts to force Disney loosen the standards were unsuccessful. Another example......

Words: 519 - Pages: 3

Euro Disney

...Introduction The Walt Disney Company was originally founded in 1923; a company committed to providing quality and wholesome entertainment experiences to people of all ages. The company is known for the following four segments, which consist of Studio Entertainment, Parks and Resorts, Consumer Products and Media Networks. The Walt Disney Company consists of five (5) Disneyland and Disney Park Resorts, in total. Two are located in the United States, one in Europe and two in Asia Pacific. The original Disneyland Resort was built in 1955, in Anaheim, California; followed by Disney World Resort, Lake Buena Vista, Florida in 1971. After the success of these two large theme parks in the United States, Disney decided to expand internationally. First Tokyo Disney Resort built in 1983, secondly, Disneyland Resort Paris (EuroDisney) which opened its doors in 1992, and thirdly, Hong Kong Disneyland, opening its doors in 2005. Case Study Questions 1. The factors that contributed to EuroDisney, now called Disneyland Resort Paris, poor performance during its first year of operation was the lack of knowledge of their target market, cultural differences between the USA and Europe, and the failure to take into account that “Paris is Europe’s most-popular city destination among tourist of all nationalities”. Disney did a bad job at understanding Europeans and their lifestyles. Unfortunately, for Disney the French were neither happy nor receptive to having what they called “America......

Words: 1893 - Pages: 8

Euro Disney

...The Not-So-Wonderful World of EuroDisney—Things Are Better Now at Paris Disneyland Bonjour, Mickey! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—Bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. In 1989, EuroDisney was expected to be a surefire moneymaker for its parent, Disney, led by Chairman Michael Eisner and President Frank Wells. Since then, sadly, Wells was killed in an air accident in spring of 1994, and EuroDisney lost nearly $1 billion during the 1992-1993 fiscal year. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at Euro Disney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the......

Words: 4663 - Pages: 19

Euro Disney

...as the European Union, the cultures have always been extremely distinct and independent. To what degree do you consider that these factors were a) foreseeable b) controllable by either EuroDisney or the parent company Disney? A closer look into the history and a better understanding of the characters of Europe and the European market place would have enabled the Disney executives to foresee many of the problems. Most of the problems could have been controllable and others were inevitable. It was clear that the choice to open in France was going to cause some commotion. If Disney had researched French history this would have been understood. For the American executive to insist on English being the only spoken language at the park was completely wrong. There are strong facts showing the French culture monitors words which are absorbed from other languages. The way Americans do business is completely different to the French way, so pushing the American way was disrespectful. The French take their liberty and unionization extremely serious. All these problems were very much foreseeable if the Disney executives actually took the time to understand a way outside of their own. What role does ethnocentrism play in the story of EuroDisney’s launch? Disney fell into a trap of not knowing and not understanding the French culture. When you don’t know something, there is not much more too it. You just don’t know it. Ethnocentrism plays a part here because EuroDisney most......

Words: 985 - Pages: 4

Euro Disney

...Venture of Euro Disney On April 12, 1992, Euro Disney was opened on time within its $4.4 billion budget. Situated in Marne-la-Vallee, France on a site that is one-fifth the size of Paris and just 20 miles to its west, Euro Disney was much like other Disney theme parks with a wide array of rides, attractions, hotels, restaurants, entertainment facilities, a campground, and even a championship golf course. Euro Disney is 49 percent owned by Walt Disney Company of the U.S. The company originally project 11 million visitors in the first year of operation for Euro Disney, but reported that attendance for the park’s first seven weeks had only been 1.5 million (it was expected that the majority of visitors have already been attracted to the park before the wet and colder fall and winter seasons, hence, attendance would have slow growth). The break-even point was estimated to be between seven and eight million. While the nearby French residents were projected to account for half of the park’s attendance, they only make up an unexpectedly small portion of the entire attending body. Meanwhile, the Disney restaurants and hotels only registered occupancy rates of just 37 percent. With revenues for its first quarter of operations being only $489 million, Euro Disney had to declare that it would incur a loss for the fiscal year of 1992 (ending in September), causing shares of Euro Disney to drop by 31% since the opening of the park. Despite the frustrations, Disney managers......

Words: 4378 - Pages: 18

Euro Disney Discussion

...2003-09-10 Disney www.disney.com is the biggest entertainment company in the world with a market value of US$38 billion, and one of the oldest, continuously operating since 1923. Today it is comprised of filmed entertainment businesses, major media networks, publishing, theme parks, resorts, a cruise-line, real estate, and consumer products. Disney‟s first international park opened in Tokyo, Japan in 1983. Tokyo Disneyland opened with a flourish and continued to do well until the softening of Japan‟s economy in the 1990‟s, from which it has yet to recover. In an effort to boost attendance, the older male-oriented Tokyo DisneySea Park opened in 2001.1 Disney is currently building Hong Kong Disneyland (www.info.gov.hk/disneyland), which is scheduled to open in 2005 – about the time that Universal Studios will open China‟s first world-standard 1 theme park in Shanghai.2 There has been criticism of value-for-money at Disney parks, which total ten worldwide, with an average admission fee of US$50. The company recently spent five billion dollars to address this concern and to build new rides and attractions to bolster falling attendance at the parks. The parks account for US$1.2 billion in operating income, which is 41% of Disney‟s total – a significant business unit for the company.3 After their initial success with the Japanese park in the mid 1980‟s, Disney entered into negotiations with the Spanish and French governments. The French bid „won‟ by enticing Disney with......

Words: 4082 - Pages: 17

Euro Disney

...Introduction: Euro Disneyland is a foreign venture of very successful American company known as Walt Disney Company which was established in 1923.The organization has been very successful over the years operating in USA, California and Florida and also expanded its business in Japan and Europe. Their operation in Europe widely known as Euro Disneyland was not successful for various reasons which include planning , cultural differences etc. Evaluating some of the areas that went wrong in case of Euro Disney: Walt Disney, a highly successful organization of US, comes up with a theme park, Euro Disney located outside of Paris, France. The Walt Disney Company was one of the American organizations which expand its business to the foreign soil. Doing a very successful and profitable business throughout US, California and Florida, the company established its first foreign venture Tokyo Disneyland, another winning and profitable business of Walt Disney. Being successful from Tokyo Disneyland, the company decided to further expand abroad and enhance its foreign presence, Euro Disney comes forward. But in case of Euro Disney, the company made some wrong steps in decision making which in turn experienced numerous complications from its inception. Below some areas are discussed critically that went wrong in case of Euro Disney. Location or area and environment selection were wrong in first place. Though French suggested to building the Euro Disneyland into the East Paris despite......

Words: 2913 - Pages: 12

Euro Disney

...  EURO DISNEYLAND CASE ANALYSIS 6   Cultural differences between United States and France   Power distance This dimension deals with the fact that all individuals in societies are not equal, and it expresses the attitude of the culture toward these power inequalities amongst us. Power distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. It has to do with the fact that a society’s inequality is endorsed by the followers as much as by the leaders. US The fairly low score on Power Distance in combination with the most individualistic culture in the world reflects itself in the following:   * The American premise of “liberty and justice for all.” This is evidenced by an explicit emphasis on equal rights in all aspects of American society and government.   * Within American organizations, hierarchy is established for convenience, superiors are accessible and managers rely on individual employees and teams for their expertise. * Both managers and employees expect to be consulted and information is shared frequently. At the same time, communication is informal, direct and participative to a degree.   * The society is loosely-knit in which the expectation is that people look after themselves and their immediate families only and should not rely (too much) on authorities for support.              * There is......

Words: 1535 - Pages: 7

Euro-Disney Paris

...Case Discussion Questions 1. ------------------------------------------------- What assumptions did Disney make about the tastes and preferences of French consumers? Which of these assumptions were correct? Which were not? ------------------------------------------------- 2. ------------------------------------------------- How might Disney have had a more favorable initial experience in France? What steps might it have taken to reduce the mistakes associated with the launch of Euro-Disney? ------------------------------------------------- 3. ------------------------------------------------- In retrospect, was France the best choice for the location of Euro-Disney? Disney has made certain assumption about the European taste and preference particularly of French consumers which turn out to be flawed because they did not evaluate effectively the cultural differences and preferences of French consumers. Firstly, Disney followed the traditional policies by forbidding liquor in their theme park, which is astonishingly very commonplace in French culture where wine is complementary with lunches and meals. Secondly, from Disney’s perspective Monday would be a light day and Friday would be a heavy day proved to be reversed. Thirdly, Disney assumed that most of the French did not take breakfast so they downsized the restaurants but customers for breakfast turned out to be in greater numbers than expected. There were 350 serving seats for 2500 people.......

Words: 931 - Pages: 4

Euro Disney

...Controllable facts -price -product -promotion -channels of distribution Since the cost of Disney World Florida was cheaper, customers preferred to fly to the US. This meant that prices in Paris could also be controlled. There were several other mistakes made by the management, for instance, alcohol was banned although consuming wine with meals was a French tradition. The reason for banning alcohol in the park could be justified but it was not acceptable by the French due to their tradition 3) The Disney belief was that what it sells in the U.S and Japan would sell just as well in Europe. So when Disney opened Euro Disney in Paris the park was a symbol of American culture. However, the culture was so different from America or Japan. Believing all Europeans enjoyed the same sausage or Europeans vacationed in the same way that Americans did was easily corrected by cultural awareness that would not have cost much but they were too ethnocentric to even know the questions to ask. 4) In the early stage, Disney had poor cross-cultural skills. Disney management team failed to recognize the importance of cultural adaptation in Euro Disney as they misinterpreted the culture and behaviour of European customers. After Euro Disney suffering for the huge losses, they realized the problems and made appropriate changes in their marketing strategy to cater the needs of Europeans customers. 5) Disney management team were not certain of the success of the first international......

Words: 387 - Pages: 2

Euro Disney - Case Study

...flexibility (step 2) for Euro Disney Key accounting policies • Euro Disney Associés has opted for financial lease. The firm leases the Disneyland Park from Euro Disneyland S.N.C. EDL Hotels S.C.A., which is owned for 99,99% by Euro Disney Associés, leases the hotels from a specialpurpose financing company. • The special-purpose financing companies are fully consolidated in Euro Disney’s financial statements. The substance of the relationship between the group and these financing companies is such that they are effectively controlled by the group. Areas of accounting flexibility • The personnel is transferable between the park and the hotels and vice versa. This way, the company copes with the fact that 90% of the employees have a permanent contract. • Euro Disney can defer the payments of interest, royalties and management fees that it has to pay to The Walt Disney company, when the actual performance is less than the contractually agreed benchmark. • The debt covenants limit the amount of new debt capital that Euro Disney can attract to $50 million. 2. What incentives may influence managing reporting strategy (step 3)? • The CEO of the Gérant, Philippe Gas, could obtain a discretionary annual bonus based on the individual performance relative to the objectives of the company. Moreover, he also obtains discretionary grants of the company’s stock options, The Walt Disney Company’s stock options and The Walt Disney......

Words: 520 - Pages: 3

Euro Disney Case Write Up

...Euro Disney: The First 100 Days Disney products, including films and television shows, had been sold in Western Europe for over 50 years. In 1988 European sales accounted for 25% of all Disney product licensing sales. This is one of the main points that need to be considered while evaluating the opportunity. Europeans were already familiar with Disney products and they appeared to be very receptive to it. Another major point that needs to be considered to evaluate the project is the population and how easily they can access Disney Park. European population exceeded that of the United States by 150 million in roughly one-half of the land mass. This meant that Disney would be accessible to more number of people who lived closer to it than in the United States. Also, Europe had a lot of holiday destinations such as Paris, Madrid and London. This means that a large number of people from outside Europe would be visiting these places and they could also be added to the number of potential people who would visit the park. European vacation practices also would play a major role in setting up a park there as they took upwards of five weeks of vacation a year, whereas most Americans took only two or three. The choosing of location in Paris, France was a wise decision as it was almost at the center of Europe. Seventeen million people lived within two hours; of the site by car, 109 million people lived within six hours of the site by car, and 310 million people could reach the......

Words: 1755 - Pages: 8

Disney Euro

...Resort Paris: Mickey Goes to Europe Case Study Prenae George January 21, 2012 MGT Organizational Theory Walt Disney opened in 1983, Disney US theme parks and had great success. Tokyo Disneyland soon became the most profitable Disneyland in the world. Because of the enormous success of Tokyo, and because Paris was the most visited tourist area in Europe The Walt Disney Company decided to open Euro Disneyland near Paris. Amidst intense criticism form Europe’s cultural elite, Euro Disney opened the Disneyland part and hotels to the public on April 12, 1992. The Walt Disney Company has such great success in the past with their other theme parks in Florida, Japan, and California; this was a recipe for greatness. Regrettably, Euro Disney story did not follow the Florida, Japan, and California drafts for success. After opening Euro Disney they were faced with much opposition such as financial difficulties. These oppositions forced the company to reassess their formula for success. Disney must produce techniques that will densely fit the needs of the European market in order for the Euro Disney to survive. Because Management practices are influenced by cultural valued, global management learning must recognize that successful practices in one culture may work less well in others (Erez, P. and Christopher, E.) Although Disney has been very successful in other countries they appear to have a lot to learn about management and organization......

Words: 435 - Pages: 2

Case Analysis: Euro Disney

...Case Analysis: Euro Disney There are many environmental issues that affect businesses when entering a foreign market, the main environmental factors that will be discussed is as follows: technological, economic, social, political, and demographic. Each factor will impact the business different and cause various degrees of impacts on the company and its decision to enter a foreign market. Euro Disney, a foreign division of Walt Disney Company; is located France and opened in 1992 to service the people of France. Researchers had discovered that like the many people in the United States, foreigners also were attracted to the whole them park idea. When Disney decided to launch Euro Disney, many issues were bough up and many environmental issues were faced; in this paper these issues will be briefly discussed. First off the cultural differences that existed between the US and France had to be discussed and worked out, for example the weather in France was an issue when determining rather the park would be a success or not along with the staff who would ultimately become family to the Disney Corporation. Fist off the economic factors, which are usually income, expenses, and resources; that Disney faced when deciding to build Euro Disney were easily noticed and overcame. Issues such as attraction and income it generated played a huge part in the economic factors, in the beginning Euro Disney estimated that during the first year it would attract 11 million visitors achieving...

Words: 790 - Pages: 4

Euro Disney

...Disney set up a system that has worked in the United States and Tokyo. This system sets forth a set of guidelines that requires all Disney “cast members” to act as one unit and provide the standard of excellent guest service one has come to expect from Disney. Some of the different aspects of this service standard include: • Dress Code: A standard that does not include brightly colored socks, what type of undergarments are appropriate, and their “costume” to be worn appropriately. • Grooming Standards: No facial hair, no outlandish hair styles, clean fingernails, and proper grooming at all times. • Treating others as they were treating you. Sounds like a “golden rule” as of sorts. But Walt Disney had a vision that when you stepped across the gate, you were entering a land where dreams come true, and worries were left behind. By applying this “golden rule” to all guests, it appears that he was intending to have everyone leave happy and want to come return. However, I believe that the system that worked in the U.S. may not have been received well with their European counterparts. It is a widely known stigma that Europeans are not the nicest population in the world. With that, I believe that Disney had a more difficult changing their innate apprehension to buying into the Disney way of doing things. Going along with that, without the proper managers that can sell that ideal to the new employees of Euro Disney, it posed a problem with the delivery of such a service...

Words: 1126 - Pages: 5