EURO DISNEYLAND

CASE STUDY ANALYSIS

Submitted By : Shivangi Sharan (137) Shreya Ghosh (140) Shreya Vashisht (142) Surabhi Ramachandran (153) Surbhi Rastogi (154) Swatilekha Mukherjee (160)

CASE SUMMARY
Disney has been successful with its theme parks inside USA and also in Far East, Tokyo. This boosted their confidence and they planned to venture into Europe. Setting up Euro Disney at Marne De Valle, near Paris. French Government, supported this project as it promised bright employment opportunities. France had suffered an unemployment rate of more than 10% and the construction industry was also hit hard by their economic problems. Disney had built a very good relationship with the French Government. The Government also promised up setting up of highways and rail networks. Disney had done their homework well. Coming to setting up of the theme park, it had a plan in place. But its plans on all functional areas lacked. There was a lack of cultural synchronisation. This led to wastage of resources, lack of proper estimation of turnout. Their hiring practices, which were to hire maximum local people failed to understand the French labour laws. The menu served at restaurants did not cater to the French fooding habit. Where wines was not served, it being a common French practice. Their advertisements, were in English, which made the local French employment agencies feel alienated in their own land. On the opening day, their marketing and publicity actually led to negative publicity, where radios and newspapers said, there could be severe traffic jams, instead of creating buzz, and it actually reduced the turnout of people, leaving their parking spaces more than half empty. With such situations, Disney needed strategies where they localise Disney in the French way without losing their Brands unique appeal. Proper market research and a detailed study had to be done spending time their observing their practices and societal norms. Disney has been successful at most of the places, taking care of the above stated matters could have saved the losses they incurred on account of over capacity or mis management.

CASE REVIEW
Question 1. Using Hofstedes four cultural dimensions as a point of reference, what are some of the main cultural differences between the United States and France? Solution 1. Disneyland has been extremely successful in U.S. since its first inception built in Anaheim, California in 1995. After some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for building a Disneys theme park at

Marne-la-Valley, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris. However, the European Disneyland was not as such success as they had expected because of a no. cultural differences that existed in the French and American culture. So we try to bring out some of these differences between the US and France using Hofstedes Model: Individualism is the tendency of people to look after themselves and their immediate family only. In the American culture which is highly individualistic, an employee looks after ones self and his or her immediate family whereas the French culture which is comparatively more collective in nature, emphasis is laid on what is best for the group. This is a proponent of communism, which may apply in some industries in France. Power distance is the extent to which less powerful members of institutions and organizations accept that power is distributed equally. France is more centralized than the USA with a high power distance cultures, which clearly distinguishes it from other nations in its immediate regional locale whereas the Americans pursue a greater equality between societal levels including government, organizations and even in ones own domestic. For example, in the case the French were confused when Disney appointed mostly US expatriates into the top positions at Euro Disneyland- most of whom even cannot speak French well.

Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. French has strong uncertainty avoidance and hence are unwilling to face ambiguity and risk as compared to the Americans who are more tolerant of opinions different from what they are used to and are more phlegmatic and contemplative. This can be referred from the case as when Euro Disneyland was open in its first year only 29% of visitors were French. They would rather visit Disneyland in America than taking risk to try new and unknown Disneyland.

Masculinity exists in a culture when the dominant values in society are success, money, and things. Masculinity is very apparent in U.S. culture, which perpetuates individualism and materialism. In the French culture there is a trade-off to femininity because French culture does not emphasize materialism. This is evident from the case when the Disney executives

suggested that they should have met French needs for low masculinity values to give them more employee freedom, group decision making and environmental conservation.

Question 2. In what way has Trompenaars's research helped explain cultural differences between the United States and France?

Solution 2. Until 1992, Disney had been very successful for theme parks. The first theme park was in the city of Anaheim, California, USA. The theme park was called Disneyland. The park's theme song is "It's a small world"; "Peddling a gorgeous environment, allowing visitors to enjoy a variety of exotic culture, and prone to the kind of living in an extended family with warm feelings. The dark tunnel with the roller coaster of ups and downs can intimidate children. The theme park is not like real-world with insidious people. The familiar Disney cartoons and a variety of roles in comic books dispersed throughout the park to guide visitors and leaded them to watch Mickey Mouse show or listen to the song of Mermaid. Anaheim Disneyland was successful. Disney had another miracle in Florida. In 1983, Disneyland in Tokyo proved that the Japanese really liked their Mickey Mouse.

When the Disney Company wanted to build a theme park in Europe, more than 200 regional administrative officials around the world pleaded with cash to lure Disney Company to build the park in their hometown like creating medicine miracle. Finally after some debate about the site for a European theme park, Michael Eisner and Jacques Chirac signed a contract for the building of Disneys theme park at Marne-la-Vallee, a region of sunflower and sugar-beet farmland and small villages located twenty miles east of Paris, which was considered in terms of demographic and financial subsidies. Approximately 17 million Europeans living in less than two-hour car journey from there. There are 310 million people with less than two hours flying to Paris. In addition, the French government was eager to attract the Disney Company and provided more than $ 1 billion for a variety of incentives. The French government expected the project to give France 30,000 jobs. However, the European Disneyland was not as successful as they had expected.

This answer is in regard to the main issues in opening the Euro Disneyland by comparing the French cultural with the American cultural by using Trompenaarss cultural dimensions.

Trompenaarss research assisted to explain cultural conflicts among both the USA and France. According to Trompenaarss Cultural Dimensions (TCD), the cultural conflicts among both France and the USA arose on the basis of the following aspects: 1. Universalism versus Particularism (U/P); 2. Individualism versus Communitarianism (I/C); 3. Specific versus Diffuse (S/D); 4. Achievement versus Ascription (A/A).

Universalism versus Particularism (U/P): there are three differences between Universalism and Particularism in the following aspects:

Firstly, universalistic cultures (USA) are focused on the rules, but Particularism cultures (France) are focused on relationships. Secondly, the people in USA feel that there is only one truth or reality, while people in France have a number of perspectives on reality. Finally, in USA all cases are treated in the same way, whereas the French people treat cases on their special merits and create private understandings. Based on above rules, there are also three critical points to accommodate the ethical conflicts between French and American negotiators in business:

To begin with, faced with a problem, people from France take part in demonstration as a particularistic outlook, even if they have a good relationship with their superiors. In order to conquer that drawback, the hierarchical relationship is necessary to keep between them.

Next, the French superiors cope with their employees via bend the rules based on egalitarian social relations. However, Americans are bounded via universal obligations under Americans cultures.

Last of all, Americans prefer to make legalistic, universal judgments while the French make a decision through holistic approach and the context of the situation.

To sum up, the French people love to bend the rules to work with people, while people from the USA reckon it will lead to issues.

Individualism versus Communitarianism (I/C): there are three different points between Individualism and Communitarianism (I&C) in business decisions. First, the individualistic cultures (USA) may well rest with the negotiator, while the communitarian cultures (French), the negotiator is the final decision-maker of the group. Second, in USA, the superiors accept personal responsibility, whereas in France, the responsibility lies jointly between the Superior and the people. Finally, in USA, people believe in individualistic success whereas in France people trust that the results of success belong to the groups. Based on above rules, there are also three critical points to analysis the differences between France and the USA. Firstly, people are living in a communitarian society in France while Americans are staying in the individual society. Second, the French prefer to work together and take part in social relations mutually, whereas people from USA believe in individualism. Finally, people in American believe in a structured society; however, the French people refuse it.

Specific versus Diffuse (S/D): this dimension mentions the following differences between USA and France. Firstly, USAs culture is of Explicit national cultures, which leads to decisions with low context manner; while France is based on Implicit national cultures, which believes in taking actions based on a high context manner. Secondly, in USA people pay attention to a negotiation clearly, logically and persuasively, whereas the French stress on a discussion indirectly, so as not to hurt peoples feelings. Finally, managers from America are good at emphasizing specific points and induction, while the French managers take decisions via instinction. Therefore, managers from USA deal with negotiators based on facts and figures, conversely, the French managers deal with their counterparts more diffusively or holistically that stresses their reliance on inter- personal relationships.

Achievement versus Ascription (A/A): This dimension mentions two differences between USA and France: 1. Achievement versus ascription

2. Doing versus being. Americans focus on achievement and doing in the culture of their country, such as dividing their individualities from their jobs. In contrast, the French people prefer to stress ascription and being.

In the Euro Disney Case, The Company made the following errors on the basis of the above evaluation: Cultural Operational Errors: The main cultural mistakes in the Euro Disneyland were: There was no alcohol/wine in the Euro Disneyland Park which forms a complimentary drink with the French food habits. Secondly, the Park set up a sit-down breakfasts, which would help to shrink the space of their restaurants on the basis of the fact that the French preferred to eat fast-food in the morning and thus would not be spending ample time in the restaurants. Furthermore, they needed some bacon & eggs for their breakfasts, which was not taken into account. Also, they preferred to have leisurely lunches. Finally, the short break such as the American vacation style was not popular in France. Secondly, the other aspect was to conquer the ethical conflicts among both the universalist-individualistic and the Particularist-comunitarianism between the US and French cultures. On the one hand, the French staff would try to create some the universalist individualistic occupations while US partners would also try to launch some Particularistcomunitarianism occupations among both American and French programs. On the other hand, the value consensus was the key point to figure out the cultural conflicts.

Solutions, which could be implemented: Firstly, the managers should learn how to make the park a success through the ethnocentric of a local approach. Secondly, they should not employ an American method to manage the Disney in France. For example, Americans would study the French cultural awareness and sensitivity to develop the project. Thirdly, they should also be aware of the French Laws and take it into consideration on their projects. Next, American managers should avoid the Selfreference criterion when they communicated with their staff who were from the local community. Finally, the HR management should understand the specific strategies as accurately as the company knew. Therefore, they could promote the relationship with their staff.

The Disney managers could upgrade the perception of market by culture adaptation, environmental policy and economic stability. Firstly, it is no doubt that Cultural adaptation could promote the operation of the Euro Disney, such as French language in the park, amusements such as movie theatre which were suitable for the local culture and the local style of the architectures. Last of all, the Euro Disney executives should make local marketing plan found on cultural adaption, environmental policy and economic stability.

Question 3. Is managing its Euro Disneyland operations, what are three mistakes that the company made? Explain. Solution 3. Disney had been successful with it stints at different places like California, Florida and outside USA it had been Tokyo. Local adaptation till that point of time, had not been a challenge. However with its foray into France with Euro Disney, it faced a lot of difference. America and France have very different cultures and creating the same magic with Euro Disney needed local flavours. Venturing into a new market, or a geographical area for expansion, where what one is intending to sell is not a product but more of an experience. Here lies the true challenge, where without losing French cultural heritage, serving the Disney magic. The three main mistakes made by the company are: Lack of Proper Research A thorough research is very important, it is a common business practice, when companies merge or are trying to fit in a new geographical area. This research will provide cultural knowledge about their heritage, practices, food habits, customs, and way of living, societal norms. Few examples would be, French meals have wine as a main component, but USA did not, hence it was not served. Recruitment and selection of staff Disney was expected to generate huge employment opportunities for the area. It was one of the reasons, why the French Government, welcomed them. Creating employment for local people, where what one actually selling is experience, that is unique to itself. It does not mean, that not hiring of local people. But their cultural and societal norms were different and this had to cater with. Also hiring the right people

for the right job. Like the man from Haiti, posted in front of a hotel to greet visitors, was not proper with his pronunciation. This could be looked into. An analysis of individual and job fit is very essential. Competency analysis remains a major key while hiring. The stringent appearance norms, were not acceptable, as French law prohibits employers from restricting individual and collectivist liberties unless such restriction can be justified. Lack of proper strategy So far, Disney had been very successful. Its managers lacked long term vision and proper strategy. They did not take into account different situations and accordingly strategize. It could be their promotional strategy and hiring too. They distributed pamphlets in English, which left localities feeling alienated.

Question 4. Based on its experience, what are the three lessons the company should have learned how to deal with diversity? Describe each. Solution 4. From USA to east Japan, to Europe, has been an entirely new geographical territory with its own cultural heritage and legacy. Tokyos success could be attributed to the fact that, for Eastern countries west is always their model, inspite of their own rich culture and practices. Creating Disney in Europe, where it caters not only to French but other Europeans as well and striking the right balance of local flavours yet maintaining their brands identity was a challenge. It requires the right amount of tweaking of ideas and setting appropriate strategies. Proper Research The company needed to design its local adaptation strategy after a detailed research on French culture, practices, societal norms, food habits, people likes and preferences. All their strategies need to be in alignment with this research. None of their proposed strategies should be in conflict with prevailing norms and practices. Few examples would be Serving wine with meals, the food style served. French had laid back culture which needs to be incorporated in the restaurants. Ensuring Employee And Organisational Culture Fit.

Promising employment, providing proper training to their employees, and ensuring that they fit into the Disney Culture. However for that some of Disneys practices had to change, some of it were causing disrespect to the individual employees. Proper Strategy Localisation is successful, when the blend of maintaining ones identity and local flavours coexist. Disney at many places was at conflict with the French culture, practices and legal compliance too, where employee could not enforce a strict appearance code.