Free Essay

Eurodisney Management Problem

In:

Submitted By pexdap
Words 1109
Pages 5
1. What specific cultural problems has Disney experienced when communicating with external audiences (stakeholders such as the public, consumers, local community, etc) in France? Keep in mind a firm communicates not only with its (verbal) marketing messages but also with its products and services it launches in the market. List and explain. Disney when first arrived in Paris was concerned about different cultural problem. First of all with the location Paris become the site of the new Disney because of its location central and lots of people in less than two hours by car or plane.

After getting implemented Disney had to face several problem due to consumers, most of them were coming from Europe and France, and all of them were different than what they were used to in Japan or US.
For example we can site the problem they had to face with breakfast, they were told than French don’t eat breakfast, which was false, and French doesn’t only eat baguette but also different food at breakfast, and all the rooms were too small. Also with the food they were only proposing one type of sausage, a French one, and then German and Swiss start to complain because they couldn’t find their home food. In an other hand French like to drink a glass of wine with their meal in general, and alcohol was forbidden in the park. (VINCENDON, 2014)
French are respecting the rules and take their holidays in August for the most part of them; as well they will not skip school to go at Disneyland as American do, that was a mistake of Disney. However the price of hostel as much more expensive than it should be. Moreover pet are part of the family, and it’s not possible to leave them alone at home for holidays, they had to create a place for them in the park.
In the park view several mistake had been made, for example there were no French characters, they were not enough details in the park, for French, in the castle Disney build …
Moreover Disney was expecting people to stay three days in the park, when French only stay two days, they also didn’t put special prices for staying longer in the park.
According to stakeholder, the main problem was how they create the park, and the question of the initial financing plan, which was mostly based on “US-Style free market financing”, where index are not the same, and bank were not really optimistic about it. (La Poste, 2007) 2. What specific cultural problems has Disney experienced when communicating with its internal audiences (employees, management, etc.) in France? List and explain. Disney had to face with managerial issue, in their Euro Park also. First of all the French system is different than in United States. Employees are lets more free in France. In fact one of the first point was the problem of Cast members, who had a lot of pressure and were not able to do what they want or to take initiative. Moreover the system of hierarchy was really difficult and tough for employees. They were part of a big machine.
Another point was for women they were not allowed to put redder nail polish, which had been changed after. For men they had to be shaved and face clean, which is not in French custom, but Disney decided to stick to this rules.
In consequence for a certain period of time a scandal was in France with Suicide employee in the Disney Park, this creates a lot of polemic, which didn’t help the Park also. (VINCENDON, 2014) 3. Can you describe Disney’s organization culture when entering the French market? (i.e., can you say something its mission statement, about Disney’s values, etc)?. What role does ethnocentrism play in the story of EuroDisney’s launch? At the beginning, in 1992 Disney didn’t do any specification of their park, they took exactly the same than they already did, for example in California. Everything was under a the American dream, or the Disney dreams. When they arrived they realised that the price of tickets and hostel were too expansive for French, so they divided the price by 25% in average in order to attract new costumers. They also made employees more smiling and friendly, especially first line workers, the one who were directly in contact with costumers.
They changed the name of the park to be sure that it will suit to French people, and to give him a really identity Instead of EuroDisney, they called it, Disneyland Paris. (Chesneaux, 2003) 4. How did Disney management use their experience in France in their subsequent international efforts in other parts of the world? Specifically, what went wrong and what went right in Hong Kong and why?
In Hong Kong, the problem was different, due to the numerous years of communism, and against America, Disney cartoon were prohibited. In consequence Disney had first to get the future costumers use to their characters. Moreover they try to integrate in the park some traditional way of thinking and culture. In order to accept it, they build the park with the method of Feng shui, to be sure that everything is in the right lace at the right moment, to be sure that costumers will enjoy it. Thank to that, they opening date was set up, by this method, and all the floor were build without a number 4 in it, which is an unlucky number in Chinese culture. One of the problems after the opening was that the park was to small compare to the others and people were disappointed because of coming from very far, and were not enjoying enough different attractions. Disney even integrates the traditional Chinese temple, and costumes in the park. They also integrate different cast member who were able to speak Chinese and Mandarin, everything was write in these both languages and also in English.
In fact the Honk Kong park, was less a problem at his creation than the French one, due to improvement and they were learning from their mistakes they did in Paris.

References :

Chesneaux, V. (2003, January 15). Une Socio-Anthropologue dans les coulisses de Disneyland Paris. Consulté le May 5, 2015, sur Socio Anthropologie: http://socio-anthropologie.revues.org/36#tocto1n3

La Poste. (2007, November 16). Le marketing de l’expérience, levier du redécollage de Disneyland Paris. Consulté le May 5, 2015, sur La poste: http://www.laposte.fr/lehub/atelier,206

VINCENDON, S. (2014, October 19). Disneyland Paris, le paradoxe de Mickey. Consulté le May 5, 2015, sur Liberation: http://www.liberation.fr/economie/2014/10/19/disneyland-paris-le-paradoxe-de-mickey_1125221

Similar Documents

Premium Essay

Eurodisney

...In April 1992, Disney opened the door of EuroDisney at 30 kilometers east of Paris. During that time, it was designed to be the biggest and most impressive theme park that Disney has ever built in the world. Before the EuroDisney, Disney has built up theme park in California, Florida and Japan. When Disney saw the success of Tokyo Disneyland, they wanted to build other theme parks outside America and after choosing from over 200 potential sites included Spain, Italy and Greece; Paris was the chosen one. The management of Disney has expected to receive the same behaviour in EuroDisney as their Japanese counterparts in Tokyo Disneyland but they actually experienced the exact opposite of what they experienced in Japan. At EuroDisney, families were unwilling to spend the US$280 a day which was only to enjoy the attractions of the park with a milkshake and a hamburger. Staying overnight was not even in their mind as the prices were very high. Paris was chosen due to its location and also that it is the Europe’s most popular city for tourist destination. The management planned to received 11 million visitors and generate more than US$100 million during the first year but the attendance reached only 9.2 million and by summer 1994, they made a loss of more than US$900 million. The financial losses were so huge that the President had to put in place a rescue package to make EuroDisney back on firm financial ground. They had to revise their marketing plan and made new strategic and tactical...

Words: 1882 - Pages: 8

Premium Essay

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 biggest...

Words: 4663 - Pages: 19

Premium Essay

Not so Wonderful

...CASE 21 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...

Words: 5355 - Pages: 22

Premium Essay

The Not-so-Wonderful World of Eurodisney – Things Are Better Now at Paris Disneyland

...Case 2-1: The Not-So-Wonderful World of EuroDisney – Things Are Better Now at Paris Disneyland 1. What factors contributed to EuroDisney’s poor performance during its first year of operations? What factors contributed to Hong Kong Disney’s poor performance during its first year? Europeans failed to “go goofy” over Mickey in part because of the high prices of the theme park and nearby hotels. Families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including the food. Staying overnight was out of the question for many because prices ranged from $110 to $380 a night, and $340 to $380 a night at better hotels. Other factors that contributed to poor performance were unforeseen transatlantic airfare wars and currency movements, causing visitors to go to Disney World Orlando for vacation. EuroDisney successfully alienated many European visitors with its iconic American feel at EuroDisney. Many Europeans were put off by the Disney characters which they felt reflected only traditional American Disney characters, not European characters. Disney management’s conviction that it knew best what Europeans liked proved insensitive to the local culture. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney? The reluctance of visitors to stopover at EuroDisney due to high prices of the theme park and nearby hotels...

Words: 1288 - Pages: 6

Premium Essay

The Not-so-Wonderful World of Eurodisney * —Things Are Better Now at Disneyland Resort Paris

...CASE 21 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 ...

Words: 5417 - Pages: 22

Free Essay

Eurodisney

...Kong Disney's poor performance during its first year? Many 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 previously considered. The first year for EuroDisney was unpleasant and devastating because of various poor decisions taken by the management besides some external factors. Major aspects involve location, foreign exchange rates, management problems, poor understanding of the marketplace and the cultural dissimilarities between the two nations and their distinct ways to business and life. The Gulf war in 1991 had a negative impact and during the same period, Europe was facing a recession. The opening of the park in 1992 with huge events such as the Olympic Games in Barcelona during the summertime and the World’s Fair in Seville was disadvantageous to EuroDisney. Besides this entertaining occurrence, the currency movement made going abroad for vacation is a cheap option for Europeans and gets an additional benefit of enjoying the weather. This resulted in just a minimal difference between going to Disneyland Orlando and EuroDisney for the holidays. Hence, EuroDisney did not have many guests visiting it that year. Almost none of its targets were met and with costs rising, they faced severe challenges ahead.. In order to attract customers, they lowered their prices and introduced new rides that ultimately improved its performance. Another factor...

Words: 1029 - Pages: 5

Premium Essay

Marketiong Student

...CASE 21 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...

Words: 5405 - Pages: 22

Premium Essay

Bole

...CASE 2-1 Ali Zein Kazmi February 1, 1999 THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY -THINGS ARE BETTER NOW AT PARIS DISNEYLAND- 1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation? Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion. Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. In the initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, “emphasizing glitz and size…not the rides or attractions”. Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government. Regional affairs...

Words: 2920 - Pages: 12

Premium Essay

The Not-so-Wonderful World of Eurodisney: a Cultural Lesson

...The Not-So-Wonderful World of EuroDisney: a cultural lesson by Emilio González Introduction This paper introduces some thoughts about the Disney strategy choosing the place for its European park and about the beginnings of its operations; in some way related to cultural factors. It constitutes a personal answer to a case study placed in the book "International Marketing" 13/e by Philip C. Cateora and John Graham, McGraw-Hill 2007. Factors that contributed to Euro Disney's poor performance during its first year of operation. There are several different in nature factors that joined together and contributed to a disastrous beginning of operations. Most of them were management mistakes and others, although external factors, if considered, could have result in different management decisions leading to a better start. In my view these are the most important ones: The timing. EuroDisney opened in 1992, just when two other international events had place: the Olympics games in Barcelona and the World's Fair in Seville; both in Europe and relatively close to Paris. It's obvious that been unrepeatable events, available only for a certain limited amount of time they were a strong competition. A huge amount of people choose attend to these events instead visiting EuroDisney. Suffice it to say that more than 40 million people visited the Seville Expo during the 6 months it was open (versus 9 million EuroDisney visitors accounted for 1992 all year around). To add insult to injury...

Words: 2020 - Pages: 9

Premium Essay

Eurodisney Case Study

...October 1, 2014 MKT 608 Case Study 2-1 The Not-So-Wonderful World of EuroDisney Things Are Better Now at Disneyland Resort Paris 1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? There were two major factors that contributed to EuroDisney’s poor performance during its first year of operation. The two factors include: market research and cultural competency. Within those two factors there were specific details that demonstrate where and why they failed poorly. There are listed below: * Instead of using French cartoon characters, American characters were used. * Europeans are known to enjoy drinking wine, but the park banned alcohol completely. * A misunderstanding regarding breakfast availability cause issues with the guest. * Disney was informed Europeans did not eat breakfast, which was not correct. * Pricing was an issue * Many Europeans believed the prices were too high and would not pay. * Other big events were occurring at the same time the parked open, which cause lots of issues as well At Hong Kong Disney, they had experienced the opposite of what EuroDisney experienced. Hong Kong tried to hard to make it fit. They conducted research and tried to make it work, but guest were disappointed. The park did not differ from other amusement parks in China and therefore consumers...

Words: 1204 - Pages: 5

Premium Essay

Disney

...CASE 2-1 Ali Zein Kazmi February 1, 1999 THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY -THINGS ARE BETTER NOW AT PARIS DISNEYLAND- 1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation? Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion. Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. In the initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, “emphasizing glitz and size…not the rides or attractions”. Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government. Regional affairs...

Words: 2920 - Pages: 12

Premium Essay

Eurodisney

...Case Study EuroDisney 1. What factors contributed to EuroDisney's poor performance during its first year of operation? What factors contributed to Hong Kong Disney's poor performance during its first year? It was cheaper for European families to travel to Disney World in Orlando, FL. Not only was the trip to Orlando going to be cheaper, but it was almost guaranteed that the weather was going to be spectacular. People go on vacation to have a good time, but more importantly to enjoy the weather. People in Europe and around the world are not going to vacation at a spot where the weather is going to be unpredictable. France gets cold in the winter, therefore going to Disney World in Orlando would be more logical. It will be cheaper and the weather is going to be decent for whenever you choose to go. The French culture did not like the American Fairy-tale characters. The French had their own fairy-tale characters; one even has a park located near EuroDisney. Starting up a company internationally is an extremely hard task. Researching the culture of the country in which the company is going to be located is extremely important. When the plans to bring EuroDisney to Paris were finalized, they should have begun extensive research on the culture and history of France. By not doing that Disney may have insulted the French, but more so they hurt their chances of making money. The whole Disney idea was not sitting well with the French people. For example, during a trip...

Words: 3160 - Pages: 13

Premium Essay

Case 2-1 Eurodisney

...CASE 2-1 Ali Zein Kazmi February 1, 1999 THE NOT-SO-WONDERFUL-WORLD OF EURODISNEY -THINGS ARE BETTER NOW AT PARIS DISNEYLAND- 1. What are the factors contributed to EuroDisney’s poor performance during its first year of operation? Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion. Mickey, a major promotion tool of Disney management did not create reason or attraction enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an “over-rated” promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affair. In the initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, “emphasizing glitz and size…not the rides or attractions”. Disney remained unsuccessful in attracting customers just by vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government. Regional affairs in Eastern...

Words: 2938 - Pages: 12

Premium Essay

Euro Disney

...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”. Many specially the children welcomed Mickey and his character friends, but there were many against the “cultural Chemobyl”, such as the French...

Words: 1893 - Pages: 8

Free Essay

Eurodisney

...EuroDisney 1. What factors contributed to EuroDisney’s poor performance during its first year of operation? The factors contributing to EuroDisney’s poor performance are: a) Hotel Rooms were high priced. b) Poor Attendance in 1992. c) Gulf War in 1991. d) The World’s Fair in Seville, Spain. e) The 1992 Olympics in Barcelona, Spain. f) Too few seats at restaurants for guests at breakfast. g) No alcohol served with meals h) French visitors stayed away from EuroDisney (Cateora, Graham, 2007, pp. 614-616) 2. To what degree do you consider these factors were a) Foreseeable because Disney knew they were taking a risk by opening the theme park. The post Gulf War kept visitors from taking summer vacations. The World’s Fair in Seville and the 1992 Olympics in Barcelona drew visitors away from EuroDisney. Disney didn’t know what to expect for breakfast and was unprepared. b) Controllable because Disney could have anticipated the French custom of having wine with every meal. They could have lowered costs on hotel rooms and flights into Paris to see EuroDisney right away. (Cateora, Graham, 2007, pp. 614-616) 3. What role does ethnocentrism play in the role of EuroDisney’s launch? Ethnocentrism played an important role in the story of EuroDisney’s launch that Disney believed that the French visitors would really go for a Disney theme park. The variety the theme park had to offer needed to change to attract French visitors...

Words: 807 - Pages: 4