1. What factors contributed to EuroDisney’s poor performance during its first year of operation? The plan was to make the most amazing Disneyland theme park they had ever built although during the year that it was opened 1992 the park lost money in excess of $900 million. The Company failed to adapt its theme in direct correlation to its consumer with regards to cultural adaption. Even though it is an American company Disney should have definitely done things the way residents of that area believed to be culturally acceptable. A perfect example of this would be, not wanting to sell alcohol throughout the theme park, when it was as stated unthinkable in their culture not to have a glass of wine with their noon meal. Another thing that would apply to its poor performance accurately attaining a statistic that reveals how long people stay at the park. They didn’t find out until afterword that they would only stay for a maximum of 2 days. While they assumed that a normal stay at one of the theme park hotels who be similar to Americans, three days or more. Europeans also didn’t willingly spend more than $280 per day needed to enjoy the theme park attractions. Lastly their was a consumer shortage do to other leading world events going on. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by either EuroDisney or the parent company, Disney? I believe that it most definitely is not a simple task to go about knowing what steps to take in developing such an immense theme park that has to appeal to millions of people to keep it profitable. Although I do however believe that, the tremendously successful Disneyland in Japan blinded Disney’s management team. Most of the Euro Disney mistakes where fo... ... middle of paper ... ...e relates to the Japanese fanatic desire to assimilate everything that Americans do. The there is the high demand for exportation of agricultural goods that is slowly but steadily increasing their monetary spending power. 9. Given your choice of locale X for the newest Disneyland, what are the operational implicational of the history of EuroDisney and Disney Hong Kong for the new park? I believe that Disney will expand in a more strategically way, having gained the experience with the opening of Euro Disney and Hong Kong. Their Corporation will expand taking into account all of their previous mistakes in the past. They also have to take in the importance of advertisement, such as the opening of new and improved rides. They also have to have a well-developed strategy to open its new parks with out the outrageous losses they suffered in the opening of EuroDisney.
The Business Lessons behind Disneys Magicalexperiences Comments. N.p., 06 July 2013. Web. 01 Dec. 2013. .
As financial consultants, we have been asked by Walt Disney’s management to provide an evaluation of this alternative to the company for this financing decision. For this estimate, we have reviewed the data of the Consolidated Income Statements from 1982 to 1983, the Consolidated Balance Sheets of 1984 and 1983, the Historical Summary of Average Yen/Dollar Exchange Rates and Price Indexes, ECU/Yen Swap flows in the following ten years, Yen Long-dated foreign exchange forward, Cash flow of 10-year ECU Euro bonds with sinking fund (Exhibit 6), and also the list of the French Utility’s outstanding publicly Traded Eurobonds.
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are made through Disney’s corporate strategies and enabled them to reach long-term success. One will discuss Disney’s long-run success through a general approach. Eisner’s turnaround of the company and his specific implications/strategies will be examined in detail in part II. Disney could reach long-run success mainly through the creation of value due to diversification and the management and fostering of creativity, brand image and synergies between businesses (1, p.11-14).
This paper will assess the corporate culture of Walt Disney, addressing the background of the organization, training and teaching, stories, legends and myths associated with the company, philosophy, values, mission statement and the organizational goals of the company.
Disney failed to realize that while its strategy in Japan worked for Japan, its Japan strategy was not going to work in Paris. Disney decided to photo copy their operation and learned that was not acceptable. In 1992, several unforeseen issues arose that Disney was not prepared to handle. There were transatlantic airfare wars and currency movements that lead people to avoid traveling to Paris. Also, Disney was expecting a flocking of French people to visit the park; yet again basing their assumptions on the performance of the Japanese park (Cateora & Graham, 2007).
recent experience with Disneyland in Paris not to have a too aggressive capital structure in place, they
Disneyland marked the onset of theme parks in the nation, which was carved out of a fantasy tale and it has been the leader for 60 years. And, there was virtually no competition to the attraction quotient that attracted people and tourists to visit the theme park.
One of the key factors of the successful diversification is the very strong branding of the name Disney. That the name was famous after the success in the early years made it among other things possible to go into the theme park industry. Evaluated isolated, the theme parks was a success. But when also accounting for the synergies created, the decision to go into this industry was a huge success. It has created a spiral of synergies, where the characters in the movies get more popular due to the parks, as well as the fact that when people are visiting the parks they get stimulated to buy the merchandise. This is just one example of the synergies that exist in Disney. When Michael Eisner took over control in Disney, he kept focusing on same corporate values as earlier, which are quality, creativity, entrepreneurialism and teamwork. These values have been preserved despite of the size of Disney, and are an important factor in sustaining and building the Disney brand.
In this case there has been a recognition of a trend, which is the trend of people going to theme parks during the weekends for entertainment of them as well as their children. Also here is an existing need for entertainment of this kind. Therefore, an opportunity exists in the European market that Euro Disney could have taken advantage of. However, their failure to pick up signals from the macro environment and microenvironment as well as to position their product accordingly, had negative effects on their operations. A further analysis of their macro and micro environment highlights their malfunction.
Sparked Walt Disney World in Florida in 1971, Tokyo Disney Resort in Japan in 1983, Euro Disney in Paris in 1992, Hong Kong Disneyland Resort in 2005 and finally Shanghai Disneyland Resort, which is opening in June 2016 (Dehrer). Walt Disney hosted the opening of Disneyland in June 17, 1955 even with all the chaos he managed to give one last sliver of hope to those yet to experience the magic of it all “ To all who come to this happy place: Welcome. Disneyland is your land. Here age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, the dreams, and the hard facts that have created America, with the hope that it will be a source of joy and inspiration to all the world.” (Bryman
The Walt Disney plans to expand its presence in other countries too mainly the emerging market like China that offers great opportunity. Due to its highly advanced infrastructure and higher population, the Disney already made a biggest investment till date on a development and construction of Disneyland theme park in Shanghai, China. The success of Disneyland Hong Kong and the presence of 330 million people that resides within the 3 hour commute to Shanghai allows the Disney to invest $5.5 billion on this theme park. The Disney CEO states that the park will be open for the visitors in the early The company know its various revenue generating streams very well.
Japanese is the main language used throughout the park, accompanied only by English on signs. The workers in Tokyo Disneyland are only required to speak Japanese, many menus are written completely in Japanese and some games and live shows feature only Japanese as a language option. Many alterations were made to the layout of the park, changing the names of many different areas that contained phrases with context that was difficult for the Japanese locals to understand (e.g. the transition from ‘Frontierland’ to ‘Westernland’).5 In an attempt to maximise profit, Tokyo Disneyland has become a much more localised theme park than Hong Kong Disneyland, and has found great success with that original goal due to the Japanese cultural tendency to appropriate imported ideas into completely new and entirely Japanese creations. In comparison, Hong Kong Disneyland has been much less successful, which can be credited to its far more Americanised system of management that does not cater to the demands of the locals to the extent of the heterogenetic Tokyo
Connellan, Thomas K. Inside the Magic Kingdom: Seven Keys to Disney's Success. Austin, TX: Bard, 1997. Print.
Comparing the size of Disney’s theme parks to that of a shopping store this can be a little harder to accomplish. Each area of the theme park must be broken down and managed, like different departments within a department store, only on a much larger level. When the theme park will open, when shifts will start and end, how many street vendors will be in the park and where, and how long rides will last. These are all things that need to be planned so the company can reach a larger goal. So how Disney’s theme parks are managed would be part of their operational strategy.
Through the ratio analysis, we can conclude that Disney is a stable company, keeping up with industry trends and up to par with industry averages. Although at times it can seem that Disney is a risky and unstable company, those conclusions are false since the unstableness has come through decisions which will better establish Disney’s position on the market. Although Disney’s competition, namely CBS, is on a similar standing as Disney when comparing ratios, Disney will manage to remain the largest media conglomerate in the USA and one of the best corporations in the world.