...stage: Disneyland Resort Paris Saskia Faulk and Jean-Claude Usunier prepared this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a business situation. The authors may have disguised certain names and other identifying information to protect confidentiality. The Institute of International Management of the University of Lausanne (IUMI) prohibits any form of reproduction, storage or transmittal without its written permission. To request permission to reproduce materials, contact Catherine Lombard, administrative officer, IUMI, HEC, BFSH1, CH-1015 Lausanne-Dorigny, Switzerland; phone 00 41 21 692 3310 ; fax 00 41 21 692 3495; e-mail admin.mim@hec.unil.ch. © IUMI/HEC, 2003 Version: (A) 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...
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...SHEET Financial arrangements relating to Tokyo Disneyland, Disneyland Paris and Hong Kong Disneyland 1. Background 1.1 At the special meeting held on 4 July 2009, the Panel on Economic Development discussed the financial arrangements relating to the proposed expansion of Hong Kong Disneyland. During the discussion, a member requested the Research and Library Services Division to provide information on the financial arrangements relating to Tokyo Disneyland, Disneyland Paris and Hong Kong Disneyland. As such, the purpose of this fact sheet is to provide the Panel with information on these three theme parks in terms of their ownership and the financial arrangements for the construction project. 1.2 This fact sheet originally intended to study the operational statistics of the three theme parks. According to the Tourism Commission of Hong Kong1, both the Government and the Walt Disney Company (Walt Disney) are bound by the confidentiality provision under the current agreement not to disclose any commercially sensitive information of Hong Kong Disneyland, including the gain or loss from the operation of the theme park. Against this, this fact sheet only lists the key operational statistics of Tokyo Disneyland and Disneyland Paris for comparison. 1 See Tourism Commission (2009). page 1 Research and Library Services Division Legislative Council Secretariat FS30/08-09 2. Tokyo Disneyland Overview 2.1 Tokyo Disneyland opened on 15 April 1983 at a cost of US$1...
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...Disneyland 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...
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...Pace University DigitalCommons@Pace Case Studies Lubin School of Business 3-1-2002 Disney in Asia, Again Raymond H. Lopez Pace University Recommended Citation Lopez, Raymond H., "Disney in Asia, Again" (2002). Case Studies. Paper 3. http://digitalcommons.pace.edu/business_cases/3 This Article is brought to you for free and open access by the Lubin School of Business at DigitalCommons@Pace. It has been accepted for inclusion in Case Studies by an authorized administrator of DigitalCommons@Pace. For more information, please contact rracelis@pace.edu. CASE STUDIES No. 26 March 2002 Disney in Asia, Again? by Raymond H. Lopez, Ph.D. Professor of Economics and Finance Lubin School of Business Pace University DISNEY IN ASIA, AGAIN? by Raymond H. Lopez, Ph.D. Raymond H. Lopez is Professor of Finance at the Lubin School of Business of Pace University. Introduction INTRODUCTION “We could be getting close to the time for a major Disney attraction in the world’s most populous nation.” 1 “I am completely confident that Chinese people love Mickey no less than they love a Big Mac.” 2 Early in 1999, Michael Eisner, CEO of The Walt Disney Company, voiced his opinions concerning potential markets for his firm’s entertainment products and services. A major thrust for the new millenium would be development in Asia. The firm had now achieved a certain level of experience with owning and/or managing assets and operations outside the United States...
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...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 Cultural Imperialism”...
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...CASE 21 The Not-So-Wonderful World of 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. 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 EuroDisney, 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 biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing, but the Disney response was that their views reflected...
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...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris 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. 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 EuroDisney, 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 biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing...
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...MICKEY GOES TO FRANCE: A CASE STUDY OF THE EURO DISNEYLAND NEGOTIATIONS Lauren A. Newell* In 1984, The Walt Disney Company (“Disney”) was riding the wave of success from its newest Resort,1 Tokyo Disney Resort (“Tokyo Disney”),2 which attracted 10 million guests3 in the first year alone,4 and its thoughts turned to further international expansion—this time, in Europe. After careful consideration of potential locations and preliminary negotiations with two European governments,5 Disney decided in 1984 to launch Euro Disneyland (“Euro Disneyland” or “EDL”)6 in Marne-la-Vallee, France. The ´ realities of opening and operating EDL in France were far different than Disney’s expectations when it began negotiations—so much so that the Resort narrowly escaped bankruptcy.7 For an “entertainment empire”8 like Disney, this was an unprecedented * Assistant Professor of Law, Ohio Northern University, Pettit College of Law; B.A., Georgetown University, 2004; J.D., Harvard Law School 2007. 1 As used herein, “Resort” refers to a Disney resort property, consisting of (unless otherwise indicated), Parks, hotels, all entertainment facilities, and the transportation systems that connect them. “Park” refers to a Disney theme park, including (unless otherwise indicated) the park grounds, rides, and attractions, and surrounding resorts, hotels, and other Disney-affiliated entertainment facilities. 2 Tokyo Disney was Disney’s third Park and first international venture, located in Tokyo, Japan. See...
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...MICKEY GOES TO FRANCE: A CASE STUDY OF THE EURO DISNEYLAND NEGOTIATIONS Lauren A. Newell* In 1984, The Walt Disney Company (“Disney”) was riding the wave of success from its newest Resort,1 Tokyo Disney Resort (“Tokyo Disney”),2 which attracted 10 million guests3 in the first year alone,4 and its thoughts turned to further international expansion—this time, in Europe. After careful consideration of potential locations and preliminary negotiations with two European governments,5 Disney decided in 1984 to launch Euro Disneyland (“Euro Disneyland” or “EDL”)6 in Marne-la-Vallee, France. The ´ realities of opening and operating EDL in France were far different than Disney’s expectations when it began negotiations—so much so that the Resort narrowly escaped bankruptcy.7 For an “entertainment empire”8 like Disney, this was an unprecedented * Assistant Professor of Law, Ohio Northern University, Pettit College of Law; B.A., Georgetown University, 2004; J.D., Harvard Law School 2007. 1 As used herein, “Resort” refers to a Disney resort property, consisting of (unless otherwise indicated), Parks, hotels, all entertainment facilities, and the transportation systems that connect them. “Park” refers to a Disney theme park, including (unless otherwise indicated) the park grounds, rides, and attractions, and surrounding resorts, hotels, and other Disney-affiliated entertainment facilities. 2 Tokyo Disney was Disney’s third Park and first international venture, located in Tokyo, Japan. See...
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...S HONG KONG DISNEYLAND w 907M13 Michael N. Young and Donald Liu wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2007, Ivey Management Services Version: (A) 2007-08-27 September 12, 2006, marked the one-year anniversary of the opening of Hong Kong Disneyland (HKD). Amid the hoopla and celebrations, media experts were reflecting on the high points and low points of HKD’s first year of operations, including several controversies that had generated some negative publicity. At a press conference and interview to discuss the first year of operations, Bill Ernest, HKD’s executive vice-president, acknowledged that the park had learnt a lot from its experiences and that the problems had made it stronger. Ernest also announced that HKD attendance...
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...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris 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. 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 EuroDisney, 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 biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned ...
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...parks and resorts, studio entertainment and consumer products. This executive summary summarizes the issues surrounding The Walt Disney Company based on its globalization efforts into a multinational corporation, its business power related to the exportation of “American imperialism”, its business ethics related to its theme parks and resorts, and its corporate governance problems under former CEO Michael Eisner. Many blame these kinds of changes in company values and mission to Michael Eisner. Globalization efforts made by The Walt Disney Company would prove costly when it made bad decisions based on naïve assumptions of the cultural acceptance of Mickey Mouse into Japan and France. Tokyo Disneyland emerged as the most profitable theme park, but with TWDC having no stake in the company; and Disneyland Paris, backed heavily by TWDC, had to be restructured only after two years of opening. Domestically, theme park safety had been compromised, all in the name of profit. An embittered declaration for Eisner’s resignation came in 2003 by ousted board member Roy E. Disney, nephew of Walt and last remaining active family member at TWDC, and his trusted friend, Stanley Gold, who resigned the board. Ultimately, Roy Disney helped lead a Disney shareholder revolt that arguably contributed to Eisner’s departure from the company with nearly 45% of shareholders disapproval of Eisner. Table of Contents Introduction 4 Globalization 5 Tokyo Disneyland 5 Disneyland Paris (formerly...
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...Culture, Service and Product (Hong Kong Disneyland) Managing Service Operations in the Evolving Business Environment Executive Summary This paper covers the early stages of Disney and its growths in the years that have past. Disney Company is well known for its television series, movies, radio, shops, and theme parks. Disneyland has evolved throughout the years and has opened internationally theme parks in Paris, Tokyo and Hong Kong. It is soon opening its doors to another one in Shanghai in the first half of 2016. Disney branding is global and its value and culture broadens worldwide, but glocalization and grobalization need to be taken into consideration when opening a new concept in different countries. Furthermore, this paper shows the first negative impact of the opening of Hong Kong Disneyland in 2005 and what had to be changed in order to have a successful future and generate productivity for the business. It puts in perspective what needs to be taken into consideration prior to any opening. It describes the problems that have shown the difficulty of the new theme park and the solutions taken in order for them to be victorious. Finally, this paper talks about the recommendations and actions that can be taken into consideration in order to avoid this happening in the future. Disney first opened in 1926 with the name The Disney Brothers Studio. According to Robbins, (2014), “The Disney Company has been a premier entertainment company for over ninety...
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...internship in the Disneyland Hotel Mr. Ruben Hilberink, who allowed me to use his research on performance quality management while he was in college which inspired me in finding the company problem statement of this paper. While his research focused more in the implementation of performance management in the workplace in general, he advised me that it could be a good subject concerning the hospitality industry, precisely at the level of the reception where the performance can be measured easily. Following his advice and being interested by the subject, I therefore decided to study more precisely this process and how it was implemented, rightly or not, in the Disneyland Hotel. Apart from this person, I would also like to thank my manager Mr. Oliver Drutschmann who hired me as a Team Leader intern and allowed me to work in this environment, involving me in several projects such as the transformation process of the majority our standard rooms in terrace rooms situated in the main floor of our hotel (in order to get a higher average price / room) or empowering me and other team leaders in taking operational decision related to management. I had also the opportunity to work with a wonderful team, always available if needed and I’m grateful to them as my time at the Disneyland Hotel was very positive in terms of personal and professional experience. 3. Table of contents 2. Acknowledgments 4. Development I) Introduction II) Disneyland Paris: the Disneyland Hotel III) The overall...
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...Florida, Tokyo, Paris, and Hong Kong. Today Disney is the largest media conglomerate of the world and their theme parks alone generate almost $13 billion reported in 2012 in annual gross revenues (The Walt Disney Company, 2012). The Disney parks in the United States had been very successful and that is why Disney expanded into Tokyo. This was a wonderful idea, because Asian love fantasy and Disney is all about fantasy; moreover Asians were excited about the Disney Park. Disney Tokyo was constructed and opened with much success; however, Disney did not own the Tokyo location and they only received royalties from that location, but they soon realized the possibilities that could come with expansion. Disney decided to spread their wings again since Tokyo had been very successful, but they chose the wrong location for the next undertaking; Disney Paris. Who in their right mind would choose Paris as a site for a huge American themed park? Parisians hate Americans, this is a very well known fact. They hate us when we visit their city and they hate the way we live, so this venture in Paris was doomed to fail from the start, and that is the ultimate problem in Paris; moreover this will never change. Disney Paris opened and surprisingly enough it did not do well for basically the reasons I stated, but they did reinvent it and worked out the quirks, and it improved overtime, but I do not think it will ever be looked at as a success. Hong Kong Disneyland...
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