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Why Was The Euro Disney's Land Failed?

5135 words - 21 pages

1. Introduction1.1 PurposeThe purpose of this report is to analyse problems of Euro Disney's Land and recommends alternatives and solutions.1.2 ScopeIn examining the problems and recommending the solutions, the report considers causes of the problems. Not only does it provide alternatives and solutions, but also presents issues that Disney should consider when next entering a foreign market.1.3 MethodIn order to complete this report, information has been researched from academic journals, textbooks, newspapers and websites.1.4 AssumptionsIn preparing the last part of the report, it was assumed that Shanghai, China, would be the next site where Disney would choose to invest.1.5 BackgroundThe Walt Disney Company was founded by Walt and Roy Disney in 1922. At present, Disney, a multinational company, has become a world leader in family entertainment with over 58,000 employees and over 189,000 shareholders around the world ("The Walt Disney Company-a case study", 1996). Initially, Disney was considered as a specialist in animated films, but after the Second World War the company has diversified into several sectors of entertainment such as television, publishing, film, broadcasting, and theme parks. It is said that Disney's theme parks represent American mass culture. Between 1955 and 1992, Disneyland opened theme parks in California, Florida, Japan and France. In 1997, total revenue from these theme parks accounted for 17 per cent of the company's revenue ("Human resource practices at Disney", 2003). However, in the early stage of Euro Disney, there were several problems, which result in falling attendance and losing its revenue (Ball, McCulloch, Frantz, Geringer and Minor, 2002, p.304). The problems will be presented in the following part.2. Primary Problems facing Euro Disney in the early stages of its operation in Europe2.1 Cultural Issues2.1.1 Human Resource PracticesInitially Disney placed its advertisements for work bids in English leaving smaller and medium sized French recruitment firms feeling like foreigners in their own land (Hodgetts & Luthans, 2003, p.243). Eventually Euro Disney recruited 14,000 'cast members' representing 75 nationalities and speaking 40 languages. However, Disney had never had to manage a multinational workforce before. Its two theme parks in the U.S. employ mostly Americans and its third park, Tokyo Disneyland, employs mostly Japanese (Skapinker, 1992). Therefore to employ the same Human Resource strategy as employed in the other parks was to prove problematic for Euro Disney.The Disney Appearance Code which is used in its other three parks was not well received by the French. Codes such as "wear proper underwear, use deodorant, maintain a height to weight equilibrium" proved to be rude and discriminatory in Europe (Deresky, 1997, p.130). Some appearance codes were seen as a 'violation of human dignity'. French law inhibits employers from restricting individual and collective liberties unless the restrictions...

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