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TheFailureofEuroDisney1

CONTENTAboutTheWaltDisneyCompanyTheReasonofFailureGeographicalLocationEconomicalProblemManagementErrorsLegalobstaclesIgnorethecultureoftheEuropeSolutionsConculusion22024/5/2

TheWaltDisneyCompany,togetherwithitssubsidiariesandaffiliates,isaleadingdiversifiedinternationalfamilyentertainmentandmediaenterprisewiththefollowingbusinesssegments:MediaNetworksThemeParksandResortsConsumerProductsStudioEntertainment32024/5/2California,1955Florida,1971

Tokyo,1983Paris,1992HongKong,2006Shanghai,200542024/5/2WhytheypickParis?DemographicsAbout17millionEuropeanslivelessthanatwo-hourdrivefromParisAnother310millioncanflythereinthesametimeorless.SubsidiesTheFrenchgovernmentofferedtheDisneymorethan$1billioninvariousincentives52024/5/2

WhatwentwrongwithEuroDisneyland?6

GeographicalLocationEnvironmentPariswintersareparticularlyuninviting.OnlysixmonthsinayearthataresuitableforoutdooractivitiesLocationWestofParisislesspopulatedthanotherpartsofParis72024/5/2

EconomicalProblemsEconomicrecessionin1990sinEuropeHighexchangeratefordollarGasolinepriceofEuropeishigherthanthepriceofAmerica.UnsuccessfulpricingstrategyPricesaretoohigh$340/nightamountingtotophotelsinParis.

82024/5/2ManagerialErrorsUsesameteamworkmodelasintheUSandinJapan

MosttopmanagersareAmericansManagersdon'tunderstandEuropeanhabitsandethicsoflifeStaffingproblemsDisney’sarrogantmanagementstylehostilityfromFrenchpeople

92024/5/2

LegalobstaclesWorkscheduleFrenchlaborlawsdidn’tprovideflexibility

Wasteofhumanresourceduringtheoffseasonbutlackofmanpowerinseason.Freedomoftheemployees

StrictdressingandAppearancecodewasseentohaveoffendedindividuallibertyandviolatedtheLaborLaw102024/5/2IgnorethecultureoftheEuropeNeglectthefactthatFrenchexcludeAmericanCultureFailedtocopewiththeculturedifferencesDifferenteatinghabitsDifferentattitudesontravelingDifferentbehaviorofvisitors112024/5/2Differenteatinghabits

NoalcoholpolicyHotelbreakfastdebacleImproperlunchtime

122024/5/2Differentattitudesontraveling

Europeanstakeschoolmoreseriously.Europeanshavedifferenttravelingexpectations.132024/5/2ShortlengthofaveragestayInadequacyofparkingspaceforcoachesInefficientutilizationoftransportationfacilitiesintheparkDifferentbehaviorofvisitors

142024/5/2Conclusion&Solutions152024/5/2DisneyhasnotimplementedcrossculturalmanagementandstrategiescorrectlyDisneyfailedtoadapttotheFrenchenvironmentandtoforeseetheinfluencesofforeignanddomesticfactorsIt'sorganizationandmanagementreliedmostlyonAmericancultures,experiences,andunderstanding162024/5/2DisneyshouldtakecontrolsofthemanagementresolutionofproblemsbasedonpracticeinotherplacesDisneyshouldacknowledgethecharacteristicsandattitudesoftheEuropeansintermsofthebusinessDisneyshouldaccomplishgoodmarketingstrategies

andthefinancialplanmustundertakeconcreteevaluationSolutions172024/5/2CriticismItisneitherinternationalnorFrenchinnature,anditfailedtosatisfyEuropeansatall.ConclusionsThebusinessperformanceofEuroDisneylandwasnotthatgreatandstable.Disneyshouldmakeuseofculturaldifferencestohaveacompetitiveadvantageandmakeitunique.182024/5/2MultinationalsshouldhaveconcretebusinessplanningbeforedecidingontheactualprocessoftheprojectDisregardingor''attacking''others'

traditionsandcustoms

canbedestructiveMultinationalsshoulddoaverydeepandtargeted

marketculturalresearch

befo

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