SOLUTION 1

https://prezi.com/73mzjg5bopa9/euro-disney-the-first-100-days/

Situation Assessment
Euro Disney: The First 100 Days
Synopsis
Where Would Euro Disney Be Located?
Major Problems
Management Team
is Facing
Identification & Evaluation of Alternatives
Recommended Course
of Action
Discussion Questions
1.
What were the reasons
for Euro Disneys
problems in Europe?
2.
Could Euro Disney
have foreseen any
of those problems?
3.

A. What issues should a company think through before extending a successful concept
across cultural boundaries?

B. Should the park be adapted for the local market from the U.S. model, and if so, in
what ways?

C. Why was the Disney concept successful in Japan?

4.
What should Disney have done differently?
Conclusion
Updated Information
Thank You for Listening and Participating!

Any Questions?
Cody Ruggirello
Lin Luo
Yunong (James) Wu
Patrick Rosa
Emily von Hollen
Fangyuan (Donna) Hua
Jingwen (Sam) Mei
Decrease Prices
Too expensive
Cut rates during off-peak seasons
Learn from consumer demand
More Central Target Market
"French" approach
Build a Euro identity
Understand your target market
Adapt a French Style
Dining
Waiting experience in line
Service style
Attractions
Better Employee Conditions
Increase communication
More reasonable hours
Less strict dress code
Staff Housing
France > Spain
Central Location of Europe
17 million people within 2 hour
From Britain, 4 hour
Vacation Destination
50 million tourists annually
5 weeks of EURO V.S 2-3 weeks of USA (vacation/year)
Government Suppose
Highways, Metropolitan railway, high speed TGV train
Value-ad tax reduction, from 18.6% to 7%
$700 million loan, with no repayment in 5 years
Land value and tax reduction

Under-Promise Target
11 million visitors
$373 million operating income
Project Forecasting
Higher than other European theme parks
Lower than Paris Region

Higher price > Inferior Quality

Ticket Pricing
Disney University
Standard of Service

Bilingual Service
French and English

Working Environment
Long hours and chaotic pace
No accommodation for staffs
Employee Training
Culture Elements
A mistake from the beginning?
1.Cultural Issues
100% American Disney elements?
or add some Euro elements?
2.Emotional Issues
Avoid Nationalism,Show respect.
Price
Arrogant? Humble!
The Idea of a European theme park and resort complex had been germinating within
Disney since the early 1980s

Disney felt that the success of the Tokyo park proved the international appeal of the
concept
Reduce the admission fee and the cost of spending a day in the theme park.

Pro:
Attracts more customers
Con:
Inappropriate low price may cause financial problem.
Bring more French and European culture elements into the theme park.
Pro:
Fits the French and European taste.
Con:
Makes the theme park more different from the one in Florida.
Crowd Control
Utilize Information Technology, such as the Customer Relationship Management
(CRM).
Pros:
The ability to serve more visitors per day.
Increase customer satisfaction.
New kinds of products increase revenue
Cons:
Visitors don't use the system and products can not use the service.
Increases the cost.
Dress code
Loosen the dress code and regulations to the employees.

The original bidding process involved Germany, Spain, France and others

Spain and France were considered most seriously for the project, which would provide
more than 30,000 jobs for the host country
Pro:
Makes employees feel more comfortable while working.
Con:
Inappropriate dressing may make the theme park not as magic as before.
Advantage of Spain:
Weather
Advantage of France:
Central Location
Reasons for Choosing France:
Access to the site by the European population
Highly popular vacation destination
Contractual concessions made by the French Government
Structure of the Deal/
Goals for Euro Disney
Euro Disney was 49% owned by The Walt Disney Company and 51% owned by a
separate company called Euro Disney S.C.A., which traded on the French Bourse
All shares were initially offered to European investors
Attracting 11 million visitors in the first year and achieving an operating income of
$373 million at April 12, 1992 exchange rates
The company planned a Phase II of the Euro Disney project, which would include a
Disney-MGM Studios Park and an additional 13,000 hotel rooms opening in 1996.
Euro Disney President Robert Fitzpatrick predicted that Europe would become as
important to the future success of Disney as America
Lack of cultural sensitivity
Europeans did not want to eat fast meals while walking or standing
Europeans felt it was a poor decision to not serve wine with meals which is an
important French tradition
Europeans did not want to wait in long lines
Many believed the experience would be too "Americanized"
Poor market research and over confidence
Claimed they were under-promising in order to over deliver
Cold weather location
Service standards hard to implement
Encountered resistance in the hiring process
Euro Disney
"A poll conducted in France in 1988 revealed that 85% of the population welcomed
Euro Disney
"Disney down played concerns about weather" based off of Tokyo Disney being
"Weatherproof"
Disney planners also failed to study the European culture and behavior (i.e. drinking
wine, no fast food)
Euro Disney, Phase I, consisted of a theme park and extensive lodging and
recreational facilities. Although it shared the themed lands of the other Disney parks
and featured most of the same rides and attractions, the design of the complex
departed in some ways from the traditional formula in an effort to accommodate the
preferences of European guests and certain French cultural requirements
Euro Disney Failed to live up to Disney's projections.

The company announced that it would incur a loss for the fiscal year ending
September 30, 1992. Attendance had been 3.6 million through July 22.
Shares of Euro Disney, which trade on the French Bourse, dropped 2.5% following the
announcement, capping a 31% loss since the opening of the park.
safety
courtesy
efficiency
appearance
Allows visitors to plan and book their vocation on line.

Provides Fastpass+ access.

Easier for Disney to manage visitors and control crowd

Theme Style Mixing
Study previously expanding data in Tokyo. Make adjustment from previous success.
Encounter potential problems under European laws and procedures.
Recognizing and fully understanding culture differences; Avoiding culture insensitive;
Appreciate foreign culture and people;
Collect Data of age, gender, family size, living standards, income, vacation, habits.
Pricing charges, new attractions, marketing and promotional methods, to increase
off-peak attendance rate.
Break linguistic barriers, hire multilingual skills, University internship program.
What is the expected product and service standard in oversea market?
Has the marketing research done properly?
How to ensure the company deliver the properly and efficiently operation service to
meet local taste?
Does the company hire the right local employees and how to maintain workforce
relationship with cross-culture management?
How will the company sufficiently communication with local society and break culture
barriers with full respect thoughts?

A. Issues should company think about before expanding overseas are:

B. No, but Disney had failed in giving a European flavor:
Sinking ship?
-188 MM French Franc, half billion dollars
29% (attendance) VS 50% (predicted)
Culture blunders
French labor unions against appearance code
Insensitive individualism and privacy culture
Difference norms of personal space
Line waiting and patient
Failed to recognize French daily meal reference
No alcohol policy same as in U.S. and Tokyo
Misunderstanding European breakfast norms
Scale, Seats, Time-slots
No "Five-week vacation" benefits
Environmental and plant factors
Management hubris:
Employees criticize on dress code and American-styled
No willing to working flexibility
French visitors feel over-ambitious of American culture
Pricing strategy mismatch French purchasing power
Uncertain Revenue
Project Forecasting
Cost Problem
Ticket Pricing
Service Delivery System
Employee Training
Culture Accommodation
Theme Style Mixing
C. Tokyo Disney=Successful
Opened April 15, 1983.
10 Million visiting rate Year 1.
Half entire population visited in first 5 years.
Top management quotes:
Everything we imported that worked in the U.S. works here.
We wanted visitors from Japan and South Asia to feel they were getting the real
American things.
A strong Japanese appetite for American styled popular entertainment as society
trends.
Break language barriers
English language support
English signs and maps
Care of cleanliness
Used to crowds and waiting lines
High patient
Employees
Obey bosses and solid team spirit
Management level efficiency and politeness
Souvenirs, "
Omiage
" in Japanese culture
Cross-culture integrated
Traditional Japanese food for elders
English written but "
Japanized"
slogans
Traditional festival fully respect
France
The Euro Disney Resort complex would be built on a site one-fifth the size of Paris and
20 miles to its west.
In our opinion Disney did see many of these problems but had a rebuttal for
everything and were basing most of their answers or solutions on data from Tokyo
Disney

SOLUTION 2
https://es.slideshare.net/amandameyrick/euro-disney

Euro Disney
1. Team 2 Randy Antonuccio Evan Finkelstein Jennifer Kayal Amanda Meyrick Jason
Sammartino Case Study: Euro Disney The First 100 Days Background: Walt Disney
started his vision with a pen and a mouse. In 1955, Walts dream of an amusement
park that was clean and organized came true and Disney Land emerged. Soon, Disney
World opened in Florida, and Tokyo Disney became the companys first excursion
across the Atlantic. With the success of California, Florida, and Tokyo, many expected
the Disney charm to continue. When Euro Disney opened in Paris in 1992, the standard
model of Disney theme parks, long considered to be a recipe for guaranteed financial
success, soon ran into trouble. Disney faced new problems in daily operations, and
thus forced Disney to look into their standard model of gold. Euro Disney Pros: There
are several pros for Disney to open a theme park in Europe. The first would be the
overwhelming response of the Parisians that took a poll and responded that they
wanted a Disney park, giving Disney the demand to fill. Another pro would be the
employment opportunities that a park could offer, allowing for more then 30,000 jobs
that would give Disney a major profit. The French government was willing to provide
the necessary contractual concessions, i.e. infrastructure to reach the park from
different areas of Europe. Another huge advantage of opening a park in Europe was
the number of tourists that visit Europe every year, 50 million to Paris alone. Disney
would have a huge competitive advantage over other theme parks making its global
awareness widely available.
2. Euro Disney Cons: The translation of American culture into European culture was
the biggest issue. A failure to modify Disneys standard to better fit the unique needs
of European customers was a problem. Restaurants were not prepared for the eating
habits and times of European customers. By not selling alcoholic beverages in the park,
Euro Disney forced customers to leave the park to purchase them. Until Euro Disney,
every Disney theme park was locally owned and operated. Euro Disney was the first
Disney Park that had a significant amount of foreign ownership. Euro Disneys strategy
was to have ownership through newly structured companies in order to have larger
share of financial return, while bringing in as many local investors as possible to reduce
risk, the company owned a 49% share in Euro Disney. This resulted in management by
remote control where decisions were often made by managers unfamiliar with daily
operations of the park, and who did not have a strong understanding of the culture
and the market. This made it harder to accurately understand the European Disney
market, as well as reduced their ability to respond effectively to concerns by European
shareholders. Decision: We believe it was a good decision to build Euro Disney despite
its initial start up problems. This decision was based on the market potential, demands
for a Disney park in Paris, and also the amount of government support. Disney was no
stranger to entering a foreign market with its previous success in Tokyo Disney, and its
global branding awareness of Disney products. The demand for another Disney park
was needed, and Disney saw a perfect opportunity to fill that need. When you look at
the overall picture, Euro Disney has the potential to become a successful follow up to
the other 3 Disney
3. parks. It is clear that America and Europe have very different cultures. If Disney can
realize that American trained French managers would have a greater understanding of
the European way, then Disney will be able to make a more profitable and successful
park. Service Across Cultures: Based on the Disney case, we see that the company
needs to focus on certain areas before extending outside of the US. It should develop a
better understanding of the European market, and meet the needs of its visitors.
European investors should be a given a bigger role in planning and the decision making
to provide more of a European perspective in managing the operations of the park.
Disney should also focus on customer service as a whole. A greater effort should be
made to identify and retain cast members that are compatible with the corporate
values of Disney. Services should be made better to fit the needs of the multi-cultural
European customer base. Communication in the workplace should be created to
bridge the gap between American management and European cast members.
Conclusion: By entering the European market, the Walt Disney Company is proving to
the world that it has the will and potential to continue to spread the Disney vision that
Walt himself started in 1955. The opening year cracks of Euro Disney should be seen as
a learning experience, and will help Disney in its future endeavors, if they should
choose to expand onto another continent. The key to the success of Euro Disney will
lie in the balance of the European market blended with the American appeal