Euro Disney
Disney Euro
I. Blueprint of the Assignment
The Euro Disney is the park located at France and marked its own record as the company fell for the past year in its operations. There are several factors that had caused in this failure and one of these is the cultural factor. There are many cultural differences between the Americans and the Japanese where the company also have a business but went successfully. Some of the culture which had not supported by the French had cause the failure of the business. The company then should be properly analyzed internally as its operations and services and externally as the environmental factors affecting the business so that it can succeed to the second chance of operations.
II. Problems, Strengths and Weaknesses
The Euro Disney had fell it’s for its 20 months in its operations. Further analysis had been done in order to cope up in the exact happenings that happened in the company.
In the context of the external analysis that major cause to the unsuccessful of the Disney Euro are the political factors as the structural reform spur and the coalition as well as the changes in the corporate governance and ownerships as well as the continental Europe faces. In the economic view that affects the business is the down fall of the dollar. For the social factor, it had been a huge issue in the company that the French are being force in their ancestral house that lead to the public protest. In connection to the social effects is the insult in the European culture due to the cultural differences wherein the company brought the American culture in the city that had lead to the cultural dilemma and social problems. The language is also an important factor for the conversation process. The technological factors that affect the theme park business are having its own website wherein all the visitors and all the theme park enthusiasts can visit so that they can have the overview about the places and the offerings of the park. Environmentally, the company also faced some struggle as the bomb terrorist exploded the bomb in the train that lead to the park. Aside form that, French had not embraced the American culture. In the legal aspect, the law had protect the small shopkeeper and lead to the penetration of the culture in Paris.
In the internal analysis, factors including the strengths of the company can be determined as the low hotel prices which were offered to all of its visitors, having heavy promotions, an excellent tax base for the company’s goods and services, and the transportation and infrastructure. The free land for the jobs and the adapting of the European Character are also the strengths of the company. Apart from that it serves as the Europe’s number one tourist attraction. Part of the weaknesses of the company is bringing the American Culture to the Europe but had not supported by the European. There are also low payment and wages to the staff that had resulted to the lack of services to the visitors. The opportunities that had seen by the company is the deal with Al – Waleed Bin Talal Bin Abdulaziz Al Saud who bought for 25 percent investment to the company or about $500 million so that the company will let to ease the bloodletting and to support the finances of the park. It has also maid a new management. There are also constructed an additional construction in the park for the encouragement factor. The threat to the company that it had met and continue facing are the construction of the of the theme parks as the vulcania park which is the volcano park in Auvergne, a fishing park in the Niort which is called the Pescalis, the Micropolis or the ant-theme park in Aveyron and all the water and ride parks all over the country.
The company is now facing financial conditions that may be hard for them to catch up. But, through the joint effort of the management and the staff, the reconstruction has to be done due to the fact that the interest was still there and they want to achieve their missions to succeed and service the European properly. Including in the development of the company is the construction of the five hotels. The establishments of the phase IB are also being leased back in the Hotels S.C.A. and the have no ownership interest in the said Finance.
III. Body
Hofstede made an analysis to determine the cultural differences. The power distance is only talking about in the inequality of the people. To compare the power the distances of Japan, France and United States, study had been done. The result of the said study, Japan had gained 54 score of 0-100 which means it is at the very close in the middle of the road. The United States made a score of 40. Lastly, the France which is the highest of the three had made a Power Distance score of 68 and 31 for the Germany which was also near to the UK and had a marked on 32. In this manner, the highest score of the power distance will agree in the statement of the average human will not going to like the work, which was taken from the theory X of MCGregor. In this manner, the France has the highest power distance score and strictly believed that the employees had loses the respect in their respective managers. In this manner, the acceptance of the France in the same corporate practices but different in the national culture is undoubtedly low. While to the side of the Japan and to the US, the acceptance of the Disney is high.
The collectivism and the individualism according to Hofstede, is the capacity of the individual to stand at its own and to choose it own affiliation or to be member in the organization. It had been noted also that the US is considered to be one of the most individualistic country. On the other hand, Japan is considered to be collectivist because of their prevalence in their culture whereas “losing facet” is primarily important in their culture. The France as well UK made a score of 95 and Germany which marked at 65 in Western Europe had been ranked at the middle of the two countries. The individualism definitely affects the relationship of the organization and the person where they currently belong. Aside form that the individualist also has an attitudes of “calculative” while considering the collectivist as “moral” just like the Japan. These also reflect the Japan’s high intensity when it comes to orienting positively. While being calculative has no assurance of whether positive nor negative however it is considered to be as low intensity. In this case the French which are considered to be at the mid of the collectivist and to the individualist is considered to be no direction and only shows that it only goes with the flow. This is also the result of the business’ failure whereas the visitors has no specific wants and needs that the company needs to offer.
The third part of the cultural analysis of Hofstede is the uncertainty avoidance which is the scope wherein the members of the society tends to cope up in the anxiety through minimizing the uncertainty. In this manner the Japan ranked to be the highest in this avoidance. On the scale also, it has also been recorded that the France followed by the rest of the country in the Western Europe as the UK and Germany which scored 32 and 72, respectively are also ranked as one of the highest. The United States has low uncertainty avoidance. The Japan made it as the highest uncertainty avoidance which has a score of 94, which had been surveyed as the fourth among the highest. On the other hand the France had ranked to be the sixth among the highest which had scored 86. This only shows the risk taking tendency. The uncertainty avoidance score of United States is 46 which only signify low when it comes to risk taking. In addition to what Hofstede had said, the culture which has high uncertainty avoidance often made ways to make an uncertain goodness. This will result to the strict regulation and rules that had been implemented in both Japan and France. In connection to this the rules which should be followed by the French in constructing the Disney Euro is definitely strict. In order for the culture to lessen the uncertain avoidance it should also focus on the account of the fact and data and all the aspects of the situation. The rituals are also factors in order to alleviate the uncertainty due to the believers and to the unbelievers due to the ritualistic actions. To relate these factors to the Disney, it is much important to go in the presence of the founder which seems to be illogical. The business had been decreased for the past 30 years and members of the cast in the Disney will serve as the guide in the principled path of the organization.
The masculinity and femininity is fourth cultural analysis according to Hofstede. In the masculine society, there is a constant value differences in the men and women roles. In connection to the study of Hofstede, Japan is the most masculine compared to the 39 countries. It made a score 95 in the said analysis while the United States had scored 62 and lastly the France which made a score of 43 and for the Germany is 71 while the UK made a score of 63. In this context, the gender is one of the major categories when it comes to the labor in the entire society. In the case of the Disney Corporation, it emphasizes the values of feminine and the masculine stereotype. In the said study also, it has been added that the high masculinity culture had been money and things oriented. The people in the said culture also live for the work and they simply believe that the fast and the big are beautiful in addition to the being decisive. In this manner, it only shows that the Japan and the United are highly decisive and they are towards the money while the France is not for the money sake. It may also the reason for the Disney Euro to be unsuccessful. In the culture which has low masculinity as the France, they are people oriented and they are people work to live. Aside from that, they have an automatic decision and the low and small considered them to be beautiful. In this case, the French sees on the small view as the Disney had experienced.
In the last cultural analysis is the long versus the short term orientation. The societies have attitudes of perseverance, thrift, and sense of shame. The short term oriented societies have an attitudes includes the statements, the stability, respect for the traditions and etc. Japan is one of the countries which have a high or long term orientation and the United States as well. The France also is short term. This is due to the tradition and the stability they are experiencing and had experience. This is also the reason whereas Disney made a record in Japan.
Generally, in the American culture, the corporate culture of Disney had compliment in the dimensional culture as well as the national culture it had been placed. This is then the reason for the continuing support of its customers due to their appreciation. Aside form that, the corporation of Disney is simply unique and had been exemplified in the park. This only means that the management of Disney is not perfect but the negative effects are lesser than those of the positive one. In the case of the Tokyo Disneyland, it had been proved its success for the cultural reason. This success is due to the fact that the Disney culture and Japanese are fitted to one another. In accordance to the Hofstede analysis, the Disney company practice had been suited for the Japan’s business and not in the United States. There are also effects in the hard technology of the Disney made by Japan. To the countries which are closer to one another are will also result of less reinterpretation in the practice of the business. The transferring of the cultures in Japan and in the United States is successful due to the culture similarities. Lastly, the case of the Disney in France is not that successful due to the cultural differences. There are also key differences in the cultural dimensions of their interaction to one another that lead to the failure of the business. The primary reason of the failure also is the negative sentiments to the Disney Company which brought them to the greater extent. This all made of by the clash of the French and the Western countries the Disney culture as the differences of the policies.
IV. Conclusion
Disney Company had been developed its image and corporate culture for the past years for its operations. The affectivity of the business depends necessarily in the culture as what had been experience by the company in Japan and in the France. This also made the company to encounter many problems to transfer the business came from Walt Disney into Euro Disney but the transfer in Tokyo had been successful. There are also differences in the implementation of the soft technologies in France and in Japan. The changes in the culture will then penetrate the business. Therefore, proper analyzation must be done.
V. Recommendation
In the diversification of the Disney in Europe, it is much important that company should adapt the culture the place where the business laid. This is to have an assurance that the consumer will accept the business the business due to the culture. This is what had happened to failure of the Disney Euro due to the discrepancies of the cultures and not fitted in the national culture of France. The 4Ps in the marketing segmentation should be followed.
The Product
In serving the guest and orienting them, the typical smile and greetings is something annoying and not familiar to the French. This also led to the clash of the policy of guest service of the staffs and to the guests. Therefore, the most recommended move to the management is to have a philosophy which is in the outward appearance of friendliness and that was something not familiar to the people in France. This is then important that the French must follow the company’s procedure. For the training and operations, it is highly suggested that the French have a need for the authoritarianism. This means that it should exemplify the concept as well as looking for the idea in the traditions. Aside from that, it should also offers services which are children oriented. The grooming policy then has to be in the form of the individualism. In general changes in the policy should be done so that all the French can act precisely and can support the business. The data then should be properly analyzed to have the intuitive decision. In connection to the modification of the improvement of the policy, it is important that the company also change the policy of the parent company. The proper strategic policy decision should then be centralized.
Some of the major recommendation also in order to succeed the company is through the improvement of the customer service. There should be greater efforts to be done on the employees which should definitely be compatible with the corporate values of the Disney. Apart from that, there should also be service and accommodation that must be made which are fitted in the desires and the needs of the multi-cultural and multi-lingual European Customer base. The company should then be ready to overcome the issues regarding the workforce. This is only be done by addressing the queries which affects the workforce. This can only be achieved through better communication in the employees and the improvement of the entire morale of the employees. The company also should make a better job planning in order to get the needs of its staffs in connection of improving the services of the company. The company is entitled to have a greater effort also in the increase workforce diversity in order to provide an ample services for the visitors in the and out of the France. Disney also should have a better understanding and analyzation on the European market. This is for the reason that its should hold a record on the park visitors as well as to the places which influence the groups so that the company will have a better planning as well as decision making. The park should also be flexible in its operations as the European remains crucial and patience must be maintained.
The Price
The company should offer prices which are reasonable and worth to the services they offer. It is advisable to use the currency where most of their visitors and clients are using.
The Place
In order to the consumer to support the park it is much important that it should be more of the European style and culture and not to bring the American culture. Since the French Culture varies more for the femininity that of the masculinity and they are family oriented, the business should have an orientation towards family. There should also have a special place for the wine drinkers so that those drinkers can also relate to the park. This move is not to support the alcoholic but to allow them to go in the park while having a special place and the children and the other visitors are safe. The rules of the company also should be revised so that it will not impede the French people as well as the culture. In the case of the travel, it also must properly train and to practice the French culture in speaking and in action so that the French will encourage going back in the park. The tour guides as well should act precisely as to the needs and to the culture of the French so that understanding to one another can occur. Generally, all the staff must be properly trained in the services and in relating to the guests. The new policies therefore must to be done successfully.
The Promotions
The management should have a more realistic planning, so that the problems will going to setback and also properly corrected added to the promotions in the television, in the ads and in the entire place trough the aide of pictures and vouchers.
Bibliography:
Euro Disney Eases Into 2nd Year 1993, Herald Tribune, James, viewed 30 January, 2008, http://iht.com/articles/1993/04/12/dis_.php
Dibb, S. and Simkin L. 1994, The Marketing Casebook: Cases and Concepts, Routledge
Disney fini? Don't take the Mickey 2003, Telegraph.co.uk, viewed 30 January, 2008,
Euro Disney Financial for 1992, viewed 30 January, 2008
http://sec.edgar-online.com/2004/11/24/0001047469-04-035208/Section7.asp
Euro Disney – Case Study I 1993, Themanager.Org, viewed 31 January, 2008,
http://www.themanager.org/ME/Disney_1.htm
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