The Not So Wonderful World of Eurodisney

The Not So wonderful World of EurodisneyEuro Disney and other Disney argon subsidiaries to Walt Disney guild. This is a courtship field of fool based on Euro Disney to critic all(prenominal)(prenominal)y analyse and answer question of the Not So Wonderful World of EuroDisney- Things ar Better Now at capital of France Disneyland. EuroDisney byset class of surgical procedure was set about with several(prenominal) factors in which hindered their financial growth and achievement in the first of all year of operating th sapre.The case study pass on analyse and answer several questions relating to the Not so Wonderful reality of EuroDisney. The questions are imp everyw presentished down in to five which are 1) Why was Euro Disney performing lamentablely during its first year of operation? Recommend and propose strategies and suggestions to make better the situation? 2) To what degree do you consider that these factors were a) foreseeable and b) manageable by all Eu ro Disney or the parent family Disney? Evaluate the report-cultural merchandising skills of Disney 3) Do you think the current opus commonalty would pass water encountered the same occupations if a location in Spain had been pick outed? 4) If you were the business development manager, what would be the major consideration you would go finished before selecting a location for the next Disneyworld? 5) From your discussion select a location you think go out be the next Disneyland site.By the end of the psychoanalysis, a pass rationality it to be derive on what conduct to the non so wonderful world of EuroDisney, and blend light on mistakes made by the parent comp whatever.CHAPTER 1INTRODUCTIONThe Walt Disney Company is the parent company of Euro Disney and other Disney company in various countries making it a net of external family entertainment network in all house hold around the world with four business diversification which are media networks, parks and resorts, st udio entertainment and consumer products. Disneyland, Disney world and all places Disney confound been cognise as the happiest place on earth, the goal of Walt Disney is opening Disneyland was non to bonny be a pedestal park, but to be a theme park that the unblemished family could enjoy. Although the Walt Disney Company was founded in 1938, it was non until 1952 that the theme park, Disneyland, was opened to the public. When Walt Disney opened an cheer park in the middle of Southern California orange groves in 1955, he changed the way that Americans, and the world, viewed such(prenominal) entertainment. Once the domain of carnival hucksters, amusement parks underwent a significant make all over at the hands of the read/write head of the Disney StudiosWalter Elias Disney is a pi mavener, innovator and possessor of unitary of the most fertile imaginations in the world. He was an American photographic photo producer, maneuveror, screenwriter, voice actor, animator, ent repreneur, entertainer, international icon and philanthropist. Disney is famous for his influence in the field of entertainment during the twentieth century. As the co-founder (with his brother Roy O. Disney) of Walt Disney Productions, Disney became one of the top hat- hunch forwardn motion picture producers in the world. The partnership he co-founded, now known as The Walt Disney Company, today has annual r razeues of approximately U.S. $35 billion. Disney is detailly noned for organism a film producer and a popular showman, as tumefy as an innovator in animation and theme park design. He and his staff created a number of the worlds most famous fictional characters including Mickey Mouse, a character for which Disney him self was the original voice. He received fifty-nine Academy Award nominations and won twenty-six Oscars, including a record four in one year, giving him much awards and nominations than any other individual. He similarly won seven Emmy Awards. He is the nam esake for Disneyland and Walt Disney World Resort theme parks in the unify States, Japan, France, and China.In April 1992, The Walt Disney Company and Affiliated Companies opened a in the buff park for European visitors. It was located by the river Marne any(prenominal) 20 miles east of capital of France and was designed to be the biggest and most lavish theme park that Walt Disney Company had built as compared to other sister companies (Cateora, whole wheat flour, p.615). Nevertheless(prenominal), the development of big theme park in Paris instead arise Euro Disneys start up problems because the management has done some mistakes on project plan. They could non arrange a proper plan. Since the management not able to purposely consider certain outcomes, at that place was a something wrong in planning Euro Disney. The Disney management also did not become ample presumption about the European market as well as they did for their parent mark.CHAPTER 22.0 CASE instructionThe no t-So-Wonderful World of Euro Disney Things Are Better Now at Paris Disneyland.2.1 The questions of case study to be answered dubiousness 1Why was Euro Disney performing pitiablely during its first year of operation? Recommend and propose strategies and suggestions to improve the situation?Question 2To what degree do you consider that these factors were a) foreseeable and b) controllable by either Euro Disney or the parent company Disney?Question 3Evaluate the cross-cultural selling skills of DisneyQuestion 4Do you think the new theme park would pay back encountered the same problems if a location in Spain had been selected? DiscussQuestion 5If you were the business development manager, what would be the major consideration you would go through before selecting a location for the next Disneyworld? From your discussion select a location you think will be the next Disneyland site.CHAPTER 33.0 ANSWERS TO CASE STUDY3.1 Question 1Factors that contributed to Euro Disneys poor performan ce during its first year of operation.Euro Disneys factors of poor performance trade mistakes were present throughout the whole inception of Euro Disney. Euro Disney were faced with several affecting factors which contributed to the failure or poor performance of the company, the factors came along with location, price, and leave out of research in deputise rate, as well as the style of the theme park all played roles in the neglect of success experienced by Euro Disney. The factors that played into the unsuccessful first year could have been foreseen and somewhat tardily by Euro Disney or the parent company, the same goes for their being able to control them. Hostility among the cut had move even as the plans were being set as it was stated earlier, that they did not want American imperialism trespassing(a) their country and nuance. Cateora Graham, p.614 reports, Paris theatre director Mnouchhkin descried Euro Disney as a cultural Chernobyl. In fall 1989, during a visit t o Paris, french columnist pelted Michael Eisner with eggs. The joke going around at the time was, for Euro Disney to adapt properly to France, all seven of snow whites dwarfs should be named Grumpy LocationMany factors contributed to Euro Disney poor performance during the first year of operation and many of these factors could have been alleviated if the proper factors would have been looked at previously. The first problem was the demographics and subsidies, and because the french government made Disney an offer it could not refuse, they located Euro Disney 20miles outside of Paris, a location that was archetype to be very convenient. It played a negative role in the success in the success for Disney. How many people go to Paris to get glimpses of American theme parks? Most of the phaeton going to Paris would spend time travelling the city and its wonders. About 17 million lives less than two hour drive from Paris and another 310 million can fly there at the same tie or less. The French government offered the company much than $1billion in various incentives all in the expectation that project would create 30,000 French jobs. The land came at rock bottom prices, insolent loans were made available, and a dedicated high speed TGV and suburban railway link was also offered by the French. France gave Disney an offer they could not refuse, overlooking the over value franc, bad weather, French people not being known for their hospitality and occasional anti-American demonstration by angry farmers because French agricultural subsidies had been cut, Paris was still chosen to be home of Euro Disney. The climate in Paris was also un adequate and off-season attention was way below expectation. Many landmarks events were competition to Euro Disneys opening year, such event was the one held in Spain. Spain held the world fair in Seville and Barcelona was home to the 1992 Olympics which excessivelyk tourists to area other than Paris. All in all, 1992 was not looki ng fair for Euro Disney in terms of success.Foreign uncontrollable and Exchange rate.In Paris in regards to economic deposits, effective forces, competition, and culture can be held scoreable for Euro Disney misfortune. In opening in the summer of 1992, Europe was enter into quoin and this ca utilize income from catering, merchandise, including souvenirs and foods, hotels to be way below that was expected. High interest rates also caused many currencies to deprecate against Franc leading to more financial difficulties for Euro Disney. In negotiation with France, lawyers were used excessively. The rigid legal approach was criminal offense to the French, who, like most Europeans consider depending on lawyers to reach a conclusion to be last resort. contempt the foreign market uncontrollable hindering the park from the beginning, when Euro Disney opened in the summer of 1992 many trade and operational errors factored into the parks unsuccessful opening.Advertisement made by Eu ro DisneyAnother controllable factor was the imply made by Euro Disney, which factored the poor the poor performing by the Euro Disney in Paris. Euro Disney advertising had emphasised Disney insure as an alluring bit of American rather than an explaining to potential customers what they can actually do for the park. France (2004) reports, all(prenominal) surface that could possibly have an advert placed on it clothing, buses, taxis, myriad walls and billboards, even the snow you lurch on now hawks something. According to Wikipedia encyclopaedia, ad is the promotion of goods and services, companies and ideas, usually performed by an identified sponsor. Company are bombarding us with thousand of advert with only one intention, to persuade us to buy their product. Euro Disneys image marketing did not explain to Europeans that the theme park was or what attractions it had to offer the European consumer. The company advertising focussed on the size of the park and the glamour behind it that this poor marketing strategy hurt over all business. No one in France cared that Euro Disney had cost over $4 billion and that its 4,800 acres embarrass five separate recreation areas, six hotels with way for 5,200 people in all, an entertainment centre, a 27 hole golf course and a wooded campground. The marketing strategy in America was used in France and it backfired when the French visitors stayed away from the park. Yes advertising bombards us everywhere, but it is not without control and regulation by the government, businesses, and citizens. This opens one of the major issues in advertising, the question of law and ethics. The sensitivity perceived by the French in relation to the advert was that, it did not tell them what the citizens will benefit from the EuroDisney, and also the French were not riant with how the Americans use their own advertising style.Poor Management operationThe management of Euro Disney had difficulties due to cultural and lack of commisera teing of the French culture. Operational errors that easily could have been avoided accounted for more troubles than were expected in the Euro Disney. In regards to employees, intoxicant, gateway and hotel prices, and breakfast in the hotel, staffing problems, and regulations regarding pets, many problems cause the Euro Disney misfortune in the first year. The employees dressed code compel on employees prohibited facial hair and limited the use of makeup and jewellery. The lack of understanding by the parent country in regards to the dress culture of the French affected customer patronage. The French did not think dress standards like that existed outside the west military academy. Also the ban on alcohol caused astonishment in a country where glass of wine is normally given for launch and it is necessary as a fork for eating. However banning the alcohol in this theme park could have ever been a consideration is unbelievable and since it was a major issue, this policy of not se rving alcohol in the park was also a hindering factor at Euro Disney. Another factor that leads to poor operation was the price system. Prices involve around Euro Disney were also the cause of it not performing well and not generating profit. consultant who studied the park say that its high admission price 30 percent more that Disney Orlando makes visitors keen to take as many rides as possible, so they spend less time shop for Mickey Mouse ears and such. Prices at the Disney hotel were high compared to other hotels in Paris, the hotels in Paris ranges from $180 to $380 in the Paris metropolis.Staffing problemOne of the major factors in the customer relationship in the international marketing, even at the house servant market is the customer- staff relationship. At Euro Disney, there were staffing approach problems too. The company had tried use the same team work model it did use either in America or Japan, which did not work in France. deep down the first nine weeks of Euro Dis neys operation, roughly 1,000 employees, 10 percent of the employee left. People were go away because they felt they were not being tacit and they were not being treated in an appropriate demeanor that was satisfactory to them. The company actually taught that Monday would be a les prompt day, while Friday a hectic busy time, but the reverse was the case, Monday turned out to be very busy at the Euro Disney.Unforeseen issuesFactors that rattling could not be seen by managers included the approach to European recession, the Golf war in 1991, and increase interest rates. External factors that affected business were also the devaluation of the Franc currency in the international market, which lead to competitors to push the attention of customers to the various sites. These competitors were the worlds fare in Seville and the 199 Olympics, which was held in Barcelona. (Cateora, Graham, p.615)EthnocentrismThe managers of Disney and Euro Disney used their way of doing business, thei r cultural belief and ethics, and what they know and are used to in order to try and get another country to do the same. Cateora Graham describes in more detail, A brainstorming, kick the door down attitude seemed to reign amongst the U.S. decision makers. The authors referred to one former managers comment, We were arrogant, it was like, we were building the Taj Mahal and people will come on our terms. Ethnocentrism is usually referred to as tunnel vision. This view says that one certain ethnic group beliefs about morals is the right one and better than any group. The French saw the American managers as bullies, arrogant, and workaholics. A search for the topic, Business culture Vs French (n.d) refers to Laura Hampton, French ministry of Education as she explains the views that the French have about American business and cultureThe French have a love or hate relationship with the U.S. We are deeply admired for many things (entertainment industry, our policy-making system, our opt imism as a people) but they are also very critical of the role the U.S has played in globalisation which they see threatening their own identity, culture, and language (Regarding management practices) the French are less direct about theory expectation and you have to pay closer attention to the subtle cues given to you.,irrespective the French culture of being the worlds biggest consumers of wine, the management of Disney still hung on their we know best conviction. Male employees had to forbid well groomed as the American managers wanted in this way. Their insensitivity to the French culture guide to a very bad start even though they did relent in some areas such as allowing females employees to wear brightly coloured nails polish and allowing kennels for the quest pets. The French would never dream of release their pets when going on vacation. (Cateora Graham, p 615) determination the major factor that contributed to their poor performance, during their first year of operatio n can be narrowed down to marketing surveysm, which lead to ethnocentrism and self reference criterion.3.1.2 RECOMMENDATION, PROPOSE strategy AND SUGGESTION TO IMPROVE THE SITUATION AT EURO DISNEY.There are several mode in which the controllable factors could be avoided in other to present Euro Disney the success it needful at the first year of business. This means are suggest and proposed as followsThe deliverance of advertising to the customers, not on the physical composition of just the area solely, but on the resources and service that a customer will get from patronising the resort. Advertising should be careful controlled. Society needs to make sure that people are not interpreted in by misleading advertisement. There is a set of principles that all advertisers mustiness follow (Roman Mss, 2003, p.200) put forward the truth, show the truth- the product should look exactly the same way as the consumers will purchase it win the general impression truthful- Advertising is j udged not by what it says, but what consumers thinks it says. (p.201)Ban weasels and dangling companions- All sentences must be clear.Substantiate product claims- must provide evidenced that the claim is lawful.Back testimonials with research.It is life-and-death that cross cultural communication, cooperative decision-making and collaborative problem solving be implemented in multinational corporation management like Disney. It is classical that the management of a multinational corporation work together to get well boundaries and differences and to be able to communicate, and collaborate in order to effectively work together, communicate, make decision, and solve problems as a single entity as globalisation does simple that. This brings the world together. The EuroDisney could use the help of the Disney in turkey in other to be able to handle the cultural difference in French. By understanding the French culture, EuroDisney will be able to bring polices that will be accepted b y the French customers. The French cherish their culture that it is important for EuroDisney to able to adapt the culture and avoid cultural self criterion, rather try to understand the culture of the French.Make use of their number one asset which is gentleman resource in order to apply the best approaches and method and focus on both big and micro economics of the global business. The management from the head quarters branch(in this case, management from the United State) cannot do this alone but will achieve success if he learns from those in the various parts of the world and learns from those who are experts in the various locations and cultures in which they live and work. They will next, approaches communication, sales, customers services, find solutions, developing innovative tactics, and so on. The best way in managing a diverse sales team is to incorporate the sales management from each area and empowering them and learning from them, this system will help the Euro Disne y to overcome the cultural differences and policies that are not suitable for the French workers.Generally as management, it is important to have a general knowledge of domestic activities and policies, and to understand the various cultures and operations of the sales force outside of the United States. This can only be perform by using human resource from which are familiar with the culture of French, company, and cultures, how business is handled in distinguishable parts of the world, varying company policies and operations (although the company is an entity, policies and routines vary slightly, if not extremely, in order to fit out the differences), language and cultural differences, various sales methods, training, customer service, account management, follow up procedures, key account management, and so on. Can only be handled by working with the various sales teams and using their expertise. determination The above mentioned proposed recommendation will tackle the poor per formance at Euro Disney. The first recommendation should be the market research and survey, which will tackle the staffing problem, cultural issues and drafting and delivering of effective promotion,3.2 Question 23.2.1 The factors that could have been foreseeable and controlled by Euro Disney or the parent company. taking a look at the above mentioned factors that lead to the poor performance of Euro Disney in their first year of operation, some of the factors were possibly foreseeable, while some were not foreseeable and uncontrollable. A company reputation and size of Disney is allowed no room for mistakes. The stakes heterogeneous are billions of dollars. Complementary businesses like that of the hotel industry are reliant upon the success on the success of this team park in Paris. Generous funds received from the government and private institutions would have to be made well of. Disney should be able to foreseen the unforeseen.When Euro Disney was established the consideration taking into account is the geographical area and culture as well. However Disney established the Euro Disney based on the nature or American thinking, they expected the Europeans to act as Americans and thrive over newly designed theme park. They forgot that they were producing a massive theme park larger than any other theme park in Europe for the American mentality. They could have calculated the trade rate, and did not calculate the European culture. They could have foreseen the problems mentioned in the above poor performance factors listed.Factors such as those mentioned above are not categorized as the unforeseen rather they are being sort as the expected factors, which Euro Disney or the parent company Disney should have detected. Economics, politics, culture complemented and associated with in depth analysis of the 4Ps follow the basic principles of marketing. Disney should have foreseen the changing economic scene in France with the forthcoming European recession in 1991 . The relationship with the French government should have been handled with greater care and delicacy, because of the size of the investment involved and ultimately, the number of jobs dependant on the success of the Euro Disney. Looking at culture, the parent company can force itself on another people, looking at the cultural pen of the French, which in this case was the European continent. Disney promoted its product, the theme park similar to that of Tokyo Disneyland in Japan believing Europeans wanted their piece of Americana. In international marketing, the needs and wants of the consumer are being indentified, the package presented by Disney to their customer meet neither their needs nor wants. Disney true success lies in adapting to the surrounding culture of the French and Europe as a whole, being marketing oriented in finding success in customer satisfaction. Disney failed in both aspects. Culture is spacious and change occurs when resistance slowly yields to acceptance, so the basis of resistance becomes unimportant or forgotten, which means that on the part of the European community, we are certain to see compromise, but over a period of time. Disney too has to reconcile with the environment it has settled in. we read in the case that Disney does ultimately mend it ways. Making room for continuous change is the best way to go about its business.CONCLUSION most of the factors that lead to the poor performance of EuroDisney in their first year of operation were foreseeable which are the staffing problem, advert problem, and cultural differences and so on, where some factors were not, such as the economic recession at that time in Europe.3.3 Question 3The cross-cultural marketing skills of DisneyThe problem was that in the beginning, cross cultural marketing skills were not used and employed. Taking for example, Disney executives were told that French did not take breakfast in the morning, which lead to downsize but surprisingly, the French do eat br eakfast.Cross cultural marketing would have let the managers know that the Europeans were more energetic and covered more of the Euro Disney theme park and rides than those in the western hemisphere. Therefore, instead of the normally three days stay at the Disney American theme park, the stays were normally shortened to two days stay. The European vacation custom were not being examined so the theme park did not see profits and success as hoped. Americans take short breaks but they take the more often. However, Europeans take one month for holiday. The American managers melodic theme that the Europeans would change their one month tradition and adopt the Americans shorter yet more frequent time off but did not happen. The French schedule remains the same and they would close the office and factory during the entire month of August, which was contrary to what the American do. These factors should have been considered. Cross cultural marketing would have been extremely serviceable but the parent company executives were being quite ethnocentric and it cost a great price. (ibid, p.615) needed to say, their cultural marketing skills were unsatisfactory, in fact, nonexistent. Had they had any skills of this sort, the beginning would have been a success and not such a failure at the start.Therefore, we can say that the skills of Euro Disney cross cultural marketing skill was poor, they did not have skills of cross cultural marketing skills which is the main key in dealings in international trade like Euro Disney. They put an American theme park in the middle of Europe with American mentality, American food, and this did not heed to the cultural values of the Europeans. However, the new CEO in 1993, the park understood their problem and made the changes. They then started their new marketing plan, which included skills of cross cultural values, understanding. They started to include French and European favourites like Zoro and Mary Poppins. They advertising campaig n include famous European characters with the magic kingdom. Within a year, they took off deals boosted.CONCLUSION after the recognition of the problem facing Euro Disney which was the cross cultural marketing skill, which was bad. After some time park understood the pending problem and provided a solution, which was the use of French in their advertising campaign and so on.3.4 Question 43.4.1 New theme park in SpainSpain is a country that accept and receive foreign cultures compared to France, the southerners receive foreign culture with greater fancy compared to the central and east Europeans, in which if Euro Disney would have launched in Spain, Disney would have met less criticism. But we should bear in mind that, Euro Disney is actually built to serve the entire Europe as a whole not just Spain. Therefore, criticism will likely come from other part of Europe, even if Spain receives Americans with warmth.Cultural profile is formed as the bases of international marketing relatio nship, how a product is being marketed in the international market, in a foreign country is based on the cultural variable present in the country. In other for Disney success in marketing the theme park internationally, it will force them never over emphasise the importance of understanding the culture of a foreign culture. A theme park in any part in Europe generally, Spain not excluded will face a varying percent of regal restraints, political risk, culture conflict, and economic disruption as well.Therefore, if Disney places a theme park in Spain, it is believed that the cultural difference will lay a huge role in its success, as suggested earlier. Disney would have to adapt to the customers culture and the culture of Spain generally, and incorporate them into the development, implementation, and operation of a new theme park. The workaholic habits of the Americans is opposite of not just Spains focus of life and family first, but generally Europe as a continent. In the United S tates, people focus more on themselves and individuality is the focus not group (Hofstede cultural dimension).CONCLUSION international marketing is the function associated with culture, what one is able to do in marketing to a particular foreign product is shaped by the cultural variables of the country. A theme park is Spain as in another part of Europe would face a varying proportion of, legal restraints, political risk, culture conflict, and economic disruption.3.5 Question 53.5.1 The major considerations for the next DisneyworldThe consideration for the next Disneyworld should be in Dubai. Dubai should be considers as the next Disneyworld location priority. Dubai (UAE) is the major commercial business hub of the Arab world. Business horizons expand from the west marge of the United States to the eastern Philippine archipelago. Business communities around Europe have created a stronghold here as a gateway to most of Northern Africa, the Middle East and to a limited extent the A sian Subcontinent. Dubai seems to be a good strategic location for the Next Disney world to be established. Dubai is seen as the portal not only to the minority communities from Europe, Asia and Americas but specifically to the Muslim world of over one billion. Then underlying opportunities are immense. The parent company Disney is already a recognise figure in households of the respective location UAE. The relaxed social and cultural atmosphere Dubai possesses over Muslim states should not pose a threat to the continuity of business at Disney in Dubai, which will be called Disney Arabia.Dubai reports a GDP (gross domestic product) per head of US$15,000 to $18,000, one of the highest figures in Asia. The trade balance remains a surplus with over US$500 million. The infrastructure boasts access to telecommunication facilities and transport by land, air and water as state of the art. The diverse ethnic communities level communication barriers between the Arabs and expatriates. All in all, Dubai posses the qualities and the right background to promote the new Disney Arabia to a wider scope of people, both the conservative and the more liberal, foreign and local. Thus, lunching the new Disney subsidiary is obviously not an overnight or one day project, meticulous planning will be needed in defining the eight Ps as pertinent to the Arab world.CONCLUSION it is important to learn from the mistakes that were made when EuroDisnay was started. Having offices and managers from the country will be detrimental. Incorporating Dubai culture and examining the tourist activities, practices and trends will be crucial to the making of breaking of a Disney in Dubai.CHAPTER 44.0 CONCLUSIONEuro Disney faces poor performance during their first year of operation, which makes it important to learn from mistakes that were made when Euro Disney was started. Having offices and managers from th