SEU Management Euro Disneyland Critical Thinking Case Study

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Over2020

Business Finance

Saudi electronic university

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Critical Thinking Case Study: Euro Disneyland

In the Euro Disneyland case study, many of the issues Disney had from the start related to cultural differences between the United States and France. Using the Business Problem Solving Model outlined this week in the course content and video, how would you make the following decisions?

  1. Discover-Identify the problem: What were the main issues described in the case that were problematic?
  2. Investigate-Gather information to define the problem: In managing Euro Disney operations, what were some of the mistakes Disney made?
  3. Brainstorm-Produce Alternatives: How could Disney have resolved these mistakes?
  4. Implement-Put the best solution into effect: Of your alternatives, which one do you think would work out best? Why?
  5. Review-Assess the effects of the solution: Based on Disney’s experience, what are the lessons the company should have learned about how to deal with diversity? Describe each.


Explanation & Answer:
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Attached.

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Running Head: DISNEY IN FRANCE

Disney in France
Name:
Institution
Date:

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DISNEY IN FRANCE

Disney in France
Abstract
In the year 1984, Disney decided to launch one of its theme parks in Marne-la-Vallee,
France, following its massive success in Anaheim, Florida, and Japan. Euro Disneyland
(EDL) expected a high turnover of visitors as it started setting up the park. However, the
realities of launching the park were far different from the expectations as the company
narrowly escaped bankruptcy due to the low turnover of people in the park. Marne-la-Vallee
was chosen as the ideal location for the park. The selection was because of its proximity to
Paris as well as its central positioning in Western Europe.
The French government was in support of the EDL project as it looked forward to the
creation of at least 30,000 French employment opportunities. The negotiations took place,
though at a slower rate than expected. In the year 1985, Michael Eisner signed the first letter
of agreement, and construction began in August 1988. The theme park was later opened in
September 1991, where the recruitment of Cast Members began. The park was, however,
opened up to visitors on 12 April 1992 with an expectation of up to 500,000 visitors. These
expectations did not materialize as only approximately 50,000 people visited the park on the
very material day. This trend went on for the next few months, with the park only attracting
25,000 visitors instead of the expected 60,000. However, most visitors were not of French
descent, with only 30% being French while the others were either of American or Japanese
descent.
The company had experienced significant losses by the year 1994. The park had so
many hotels while visitors could even tour the entire park within just a single day. This
exaggeration, coupled with their unimaginably high prices for food, accommodation, and
souvenirs. However, despite the many challenges, EDL restructured and evaluated their rates

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DISNEY IN FRANCE

to attract more visitors. The name of the park was then changed to Disneyland Paris as an
attempt to woo the French citizens. By the end of 1994, the losses dropped from 650 million
to 200 million.
Introduction
In business negotiations, all negotiators will always table their cultural backgrounds,
thus making culture a significant aspect of any business negotiations. In most instances, it is
these cultural values that will influence their interests and priorities. If the customs of one
side of the negotiators seem to conflict with the others as being offensive or inappropriate,
this might perpetuate discord among the negotiators hence termination of the negotiations.
This paper, therefore, see...


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