EURO DISNEYLAND CASE ANALYSIS
Euro Disney, nowadays Disneyland Paris, is a holiday and recreation resort located in Mane-la-Valle, a new town close to Paris (Euro Disney, 2009). When the International offer of shares for the Euro Disneyland was issued in October 1989 the strategies for this new enterprise of the Walt Disney group were very optimistic. The financial plans for the first year of operation estimated total revenues of FF 5,482 million and a net profit after tax of FF 204 million. For the subsequent years the development was projected to be even more impressive. Just within a short time after Euro Disney was unwrapped in April 1992, it was noticeable that reality would not encounter the plans. In November 1992, the financial reports for the year ended in 30 September 1992 were published which included the first 172 opening days of Disneyland Paris. There the management had to announce a loss of FF 188 million. The second year was even worse. Although Euro Disney nearly met plans for guest attendance, they confronted a loss of FF 5,337 million whereas total turnover was FF 5,725 million. Plans for the second year of operation (1 April 1993 to 31 March 1994) predicted a turnover of FF 6,801 million and a profit of FF 359 million. (Recklies, n.d.)
Euro Disney started to have problems early, on 1980’s problems with negotiation and construction, on the 1990’s with French figures started to voice
against the park, with phrases
like “Cultural Chernobyl”
(Euro Disney, 2009) .Euro Disney also had problems in the beginning of its operations, since the first day, problems related to cultural issues and operational issues oc
curred massively, affecting directly Euro Disney’s performance and attendance.
The main objective of this report is to understand how Euro Disney had this initial failure. How it could had a better initial experience, and to provide recommendations to students and
business men don’t committee the same errors.
Hofstede's cultural dimensions theory
Hofstede's cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede. It describes the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis. The theory has been widely used in several fields as a paradigm for research, particularly in cross-cultural psychology, international management, and cross-cultural communication. (Hofstede's cultural dimensions theory, n.d.)
Dimensions of national cultures
Power distance index
Individualism vs. collectivism
Uncertainty avoidance index
Masculinity vs. femininity
Long-term orientation vs. short term orientation
Euro Disneyland – Cultural Differences Between U.S. and France
2080 WordsOct 29th, 20119 Pages
As we know, Disneyland is very success in U.S. when the first Disneyland built in Anaheim, California on 17 July, 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of s Disney theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris (Janis, F., 1998, P.247). However, the European Disneyland was not as such success as they expected. This essay going to regards the main issues in opening the Euro Disneyland and compare the French cultural with American cultural by using Hofstede’s cultural Dimensions and Trompenaars ‘s cultural dimensions. This essay will then end by…show more content…
The French strongly resist changes to their traditional beliefs and institutions. By contrast, U.S. with lower uncertainty avoidance societies have organization settings with less structuring of activities, fewer written rules, more risk taking by managers, higher labor turnover, and more ambitious employees. The organization encourages personnel to use their own initiative and assume responsibility for their actions (Tian, F., 2009, p.92).
Moreover, Individualism is the cultural dimension that measures to what extent people to look after themselves and their immediate family members only. America’s individualism score of 91 is the highest in the world and higher than France’s score of 71. This kind of cultural reflect in American executives at Disney based on Walt Disney’s highly individualized, squeaky clean American family values to imposed a strict dress code at Euro Disneyland, such as required extremely short hair and banned beards and moustaches (Corliss, R., 1992).
By imposing the Walt Disney appearance code, the Americans insulted French family traditions. “Many of the highly individualistic French refused to work at Euro Disneyland, including a 28-year-old Parisian trumpet player who insisted on keeping his pony tail hairstyle rather than join the closely cropped Disney