The Glory that was Euro Disney Essay Example for Free

The Glory that was Euro Disney EssayWhen youve walked up the Rue la Paix at genus genus Paris, Been to the Louvre and the Tuileries, And to Versailles, although to go so far is A thing not quite consistent with your ease, Andbut the mass of objects quite a bar is To my describing what the traveller sees. You who have ever been to Paris, hunch And you who have not been to Parisgo John Ruskin, A Tour Through France Michael Eisner, CEO of Disney Co. one time noted, As Americans, the word Euro is believed to mean glamorous or exciting. For Europeans, it turned appear(a) to be a term they associated with business, currency, and commerce.Renaming the greens Disneyland Paris was a way of identifying it with one of the most romantic and exciting cities in the world This was maybe the cerebrate why Walt Disney Company, a company renowned for its animated character, good films and theme parks, chose Paris for its second business venture outside the United States. In the 1980s, Eisn er was open to export Walt Disney Company to Tokyo, and it was a huge success. Eisner wanted to make his Paris venture as successful as Tokyo Disneyland, however, the venture turned out to be a failure earning more debts for the company than actual profits.What has gone wrong? What were the actors which had lead to the failure of Euro Disney? These are questions which make good learning questions for steering students. This paper aims to answer the following questions 1. Why did Disney choose Paris over the other sites in Europe that it was evaluating? 2. What were the external environmental factors that contributed to Euro-Disneys failure in the early 1990s and why? 3. What were the internal factors that contributed to Euro-Disneys failure and why? The Beauty of ParisIn order for us to know why Paris was the place chosen by Walt Disney for its business venture, let us low gear do a little background of this popular destination in the world. Paris, the chapiter city of France, i s one of the most populated metropolitan areas in Europe (Stefan Helders, World Gazetteer). It is one of the worlds leading business and ethnic centers today in fact, Paris is Europes biggest city economy, and is fifth in the Worlds list of cities by GDP. It is also now know as one of the most popular tourist destinations. Paris has been a symbol for classical Romance.However, in addition to its rich cultural heritage, Paris is also a magnet for corporate France, which is composed of innovative business companies, a motivated and skilled workforce and the political will to make business happen. According to the PARIS DEVELOPPEMENT, a project of the City of Paris and the Paris sleeping room of Commerce and Industry, there are seven unique value propositions which makes it the right place to do business in, which are as follows, Paris is one of the richest urban centers in the world, equivalent to 5% of the total EU GDP. It is located at the heart of the Ile de France which ties wi th London for first place as a city to do business in, benefiting from market proximity, excellent infrastructure, qualified labor and security. Paris provides the nexus for several vibrant Trade Clusters notably in the fields of design, digital and health. It is a centre for innovative companies, backed by a strong tradition and range of RD facilities. Paris is a major decision-making centre, and it serves as a host to the render of international organisations (European Space Agency, OECD, UNESCO), and trans-national corporations. Paris is the world capital for trade fairs, conferences and exhibitions. Paris is a beneficiary of an active local government that understands the needs of business and is position resources to work in favor of creating, encouraging and promoting business. (Paris Developpement, 2006) Many business analysts have tried to explain the real motive in the expansion of Walt Disney Company abroad. It is believed that nigh of the reasons are cost cutting, in the human body of cheap building material or labor.Cost cutting further leads to an increase in revenue and to offend functioning with tax and labor laws. H This further leads to a success in market expansion. This was probably the reasons why Walt Disney Company chose Paris, France as the site of Euro Disneyland. The first theme park outside US in Tokyo, Japan was a huge success. Scimone in 1981 believed that the Walt Disney Executives believed they learned so much about operating a theme park in anther country, so they looked at Europe as the site of a forth park.This was because they have observed that Disney films have done go against in Europe than in the United States. They believed that the publics fascination wit Disney films could contribute to a future success of a Walt Disney Theme park in this area. Initially, there were two choices Costa del Sol in Spain and Paris in France. Finally, the business executives of Walt Disney chose Paris because of ots larger populat ion and its spectacular transportation communicate (Scimone, 1989). Paris also has a similar cold weather climate and latitude with Tokyo.Thus Paris was selected. The site for Euro Disneyland is Marne-la-Vallee, a large parcel of land, once used for agriculture. This place is an ideal geographic location, in the sense that it is located halfway between the two international airports of Orly and Roissy-Charles-de-Gaulle. The mode of transportation which connects Marne-la-Vallee with the Paris chief city is the french railway regional express, making it an accessible area. External environmental factors There were a pass out of issues which had confronted Disney Euro from the start.The idea of an American company running a cut staff was a subject of debate and controversy. Critics have pass around it as a form of cultural imperialism or neoprovincialism. There were a lot of protest groups opposing the presence of Euro Disney in Paris. In June 1992, French framers had marched to Euro Disney in protest to American farm policies. All around, Euro Disney was met with criticism and protest. A journalist in the French newspaper Le Figaro wrote, I wish with all my heart that the rebels would set fire to Disneyland.Ariane Mnouchkine, a Parisian stage director, named the concept a cultural Chernobyl which later on became a phrase synonymous with Euro Disney, in its starting years. Another target of criticism and controversy is the fact that American executives demanded English to be spoken at all meetings. Euro Disneys management has also made a set of rules for its staff, which involved the use of make up, facial hair, tattoos and jewelry for personal coming into court enhancement. This was much for the traditional Frenchmen to bear.As a result, French labour unions began to stage more protests on the streets, attacking the said show code, which appeared to them as an attack on individual liberty. Indeed, this issues revolved around the fact that French culture was way too far different from American culture. Some protest parties have labelled Disney as being insensitive to French culture, individualism, and privacy. The French Law focused more on individual or collective liberties, more than the American law. It told the French citizens to exercise their rights whenever unavoidable.In response to these reactions, Disney emphasized the fact that these efforts are for the good image and long term success of the park. Thor Degelmann, Euro Disneys personal Director had remarked, For us, the appearance code has a great effect from a product identification standpointwithout it we couldnt be presenting the Disney product that people would be expecting. The Walt Disney Company had been known for the implementation of their strict rules and risk management requirements. This may be unacceptable to the Frenchmen, who wanted to preserve their rich cultural heritage and establish their own individuality.Furthermore, Americans found it hard to dea l wit the legal framework derived from the Napoleonic code. Shapiro in 1989 has illustrated a good example of the blending of two different systems, in the form of the difference in insurance laws in France and the United States. The French law requires an insurance policy that covers property damage and third-party claims stemming from construction-related defects. Walt Disney Company would have preferred to barter for a three-year contract as would be allowed by American standards, but could not since they were developing in another country.Instead, the Walt Disney Company had to abide by French Laws. All of these problems are what a typical foreign company experiences when doing business abroad. Indeed, a great deal pf time, patience, understanding, education and willingness to accept and compromise are necessary in this process. An example of the clashing culture between the Americans and the French is the issue of banning alcohol in its theme parks. The French met this with pr otest, as their tradition is to give a glass of wine to a guest during mealtimes.After much consideration, in May 1993, the Walt Disney Company changed its policy and allowed wine and beer in the Euro Disneyland theme park. American executives of the Walt Disney Company did not also understand the European breakfast norms. Disney executives, thinking that Europeans do not eat sit-down breakfasts, have reduced the number of restaurants fate breakfasts. This resulted to a cramped restaurant space jam packed with breakfast eaters who wanted bacon and eggs, a behavior that the Americans failed to realize before.