CROSS CULTURAL PERSPECTIVES IN MANAGEMENT

CULTURAL ISSUES FACED BY DISNEYLAND, PARIS

S.AARTHI JAIN DI11001 2011-2012 BATCH

INTRODUCTION

This case study deals with cross cultural issues faced by Disneyland Paris. This report talks about the problems faced by Disneyland, an American based theme park, when it entered the European market without making any changes in its strategies, policies, etc and did not consider local culture, income, tastes, and preferences. The first section talks about how Disneyland was started and why it entered the European Market. The second section deals with the issues faced after the theme park was open to Europeans. The third section deals with four important issues of high admission prices, French settings,

change in the menu and food habits, complying with labor laws in Europe and how they are tackled by the new management of Disneyland. The last section ends with the conclusion where the whole report is briefed and the success of glocalisation is highlighted.

ABOUT DISNEYLAND

Disneyland Park is a theme park located in Anaheim, California, owned and operated by the Walt Disney Parks and Resorts division of the Walt Disney Company. Known as Disneyland when it opened on July 18, 1955, and still universally referred to by that name, it is the only theme park to be designed and built under the direct supervision of Walt Disney. In 1998, the theme park was re-branded "Disneyland Park" to distinguish it from the larger Disneyland Resort complex.

Walt Disney came up with the concept of Disneyland after visiting various amusement parks with his daughters in the 1930s and 1940s. He initially envisioned building a tourist attraction adjacent to his studios in Burbank to entertain fans who wished to visit; however, he soon realized that the proposed site was too small. After hiring a consultant to help determine an appropriate site for his project, Walt bought a 160-acre site near Anaheim in 1953. Construction began in 1954 and the park was unveiled during a special televised press event on July 17, 1955. Since then, Disneyland has undergone a number of expansions and renovations. Disneyland has a larger cumulative attendance than any other theme park in the world, with close to 600 million guests since it opened.

SOCIO- CULTURAL PROBLEMS FACED BY WALT DISNEY IN EUROPE

In the mid-1980s, with a well-penetrated American market and the phenomenal success of Tokyo Disneyland, Disney decided to expand worldwide to achieve optimal market growth. In 1987, after considering more than 200 possible sites

for theme park in Europe, Marne-La-Valle e (dHauteserre, 1999), located just outside Paris was chosen. This location was selected not only for its beauty and history, but also for its vital position in Europe so that there is easy access by train, plane, and cars. The decision to select Paris, instead of Spain, was for the guarantee of financial incentives and developments of transport systems.

Disney had decided to build the theme park, Euro Disney on about 4800 acres of land. Approximately half of the developable land which is 2115 acres would be used for entertainment and resort facilities. Another 1994 acres would be exploited for retail, industrial, commercial, and residential uses. The remaining 691 acres would be used for regional and primary infrastructure, like roads and railway tracks.

Euro Disney finally opened on 12 April 1992 (Adekola&Sergi, 2007), employing 12,000 people and had predicted that there would be 11 million visitors in the first year. Euro Disney had park, six hotels, and an entertainment and retail center. Though there was so much publicity, enthusiasm, and anticipation, the first season that Euro Disneys first chairman, Robert Fitzpatrick, had forecast was unsuccessful. He did not see expected levels 50,000 people visited the park instead of the projected 500,000, food and souvenir sales were low, occupancy rates in the six hotels were low and the Disney Corporation could not capitalize on its enormous land holdings. Within first four months, over 1000 employees quit their jobs & complaints of working conditions were there.

Euro Disneys situation was terrible. Its stock ownership came down to 39%. Hotel occupancy rates were 37%, a sharp contrast with the rest of Disneys US properties, where occupancy rates were 92%. The French government had given the farmland to Euro Disney; this led to protests from French farmers. The amount of debt increased, as ticket sales declined.

Critics said it was a transplant of American culture into one of the intellectual centers of Europe and it was not Europes cup of tea. Many in the entertainment industry take Euro Disney as a case study on how not to open a theme park.After heavy losses, Euro Disney believed it would shut down. Robert Fitzpatrick resigned as Euro Disneys first chairman in April 1993, six years after he took the job. Now, Euro Disneys new chairman was Philippe Bourguignon, Disney insider who changed the scenario.

RESOLVING THE CROSS CULTURAL ISSUES

After careful revaluation of its major problems, the company began making a series of essential modifications. First of all, it renamed Euro Disney to Disneyland Paris, it would help locate the theme park with precision on the map of Europe. Second major change was implemented by the Disney Corporation- fired the American chairman and appointed a French citizen as the new boss in 2003, who introduced new shows. A third major change, advised by the new managers, was to abandon Disneys global approach to local European approach.

Glocalization of Disneyland Paris

Glocalization means adopting the local strategy at the global level. Though a disappointing start, Disneyland Paris was forced to glocalize its corporate philosophy, practices, services, attractions, and products to adapt the park to European tastes. By appointing a French manager, top US-based CEOs such as Michael Eisner now realized the importance of European cultural traditions.

This section explains, in detail, the four major glocalizing changes that have made Disneyland Paris successful:

1)

Cutting down the prices

When Euro Disney opened in April 1992, Europe was amidst an economic recession. So, the high admission prices turned off European visitors. The situation was made worse by the high prices on merchandise and menus inside the park. In 1995, a year after it became Disneyland Paris, the admission

prices for a single adult was cut, thus visitors increased by about 23% in 1995, the park operated at a profit for the first time.

In addition, when Euro Disney opened in 1992, the American-style hotels built around the park cost $300 a night, which was not practical for the typical French family, thus Disneyland Paris reduced its hotel prices. Unlike Americans, who like to book their trips directly with Disney, Europeans like to go through travel agents.

2) Turning shows and settings into French style

When the park was opened, France was very familiar with the series of Disney characters. Yet, such Disney experience in the host country did not help. Most French children think Mickey is cunning and with a bit more brains than the American Mickey. Therefore, Mickey is perceived as bland at Disneyland Paris. During the Euro Disney time, French visitors thought that the theme

park had an overwhelming American orientation. French couldnt celebrate Halloween parties. As a result, glocalization in Disneyland Paris was the solution. The theme park looks less glittering, more authentic. Now, shows, attractions, and exhibits are more Europeanized.

When Euro Disney was launched, Disney faced problems with graphics and colors. Disneys signs used great amounts of purple, in Catholic Europe, purple is considered a symbol of death and crucifixion and hotels were painted with pink. Pink color in Europe does not always have positive connotations. Glocalization had to take this religious difference (or even superstition) into account.

3) Change of food menus and eating habits

Until glocalization was brought to Disneyland Paris, Disney theme parks around the world strictly did not serve alcohol, especially in public areas of the parks, its because alcohol and a safe, fun experience for the family were not a good match. Unfortunately, guests at the European theme park complained about the rule. French have wine with their meals. Not offering wine, French took it as an insult.

Americans eat a little while walking around (grazing). This idea conflicted with the French habit of sitting down to eat a massive meal with a glass or two

of wine. Since in Disneyland Paris everyone arrives at 9:30 a.m. and leaves at 5:30 p.m., they like to have lunch at 12:30 p.m. This resulted in producing huge crowds of brusque and bad-tempered patrons at the parks restaurants between 12 p.m. and 1 p.m. Disneys employees had to adjust in order to cater to the guests requests during lunchtime.

Disneyland Paris also offered table- service restaurants along with fast-food outlets. While in the United States, the customer is always right, in France, waiters like to advise (and take pride in doing so) patrons if customers choice of dishes is not a good one. So, Disneyland Paris management had to consider these things while training waiters.

4) Change of employee customs and labor policies

Glocalization implies that strategy and change go hand in hand. Disney lost a great amount of revenue and employee morale was exceptionally low. Labor policies were clashing with worker expectations, which led 3000 employees to leave within a month of the opening day. Euro Disney was seen as a gigantic shopping center with too few worn-out and underpaid employees.

Besides, Euro Disney was the subject of lawsuits in France because there was mismatch between US-imposed personnel policies and French workers. For instance, although French was the first official language, local staff were

required to be bilingual. Workers were required to speak. Later, after new managers came in, French and other European languages were allowed. Competent interpreters were hired. Some attractions were named in French while others kept their original American name. Signs were both in English and in French.

When Euro Disney opened, it was using the same Look Book (a handbook on how to dress and behave) as the one used in the United States. The French considered this requirement as inconsiderate to their cultural norms. The Walt Disney Company defended this wholesome American look. In January 1995, the theme park was charged violating French labor laws. Accordingly, the Look Book was changed to cater to employee customs and labor policies in France.

Of equal relevance is the fact, cast members there could not smile to the level of Disney University standards. Faking a smile or overly smiling falls called emotional labor was not their cup of tea. Employees had to suppress their real feelings and emotions, and just smile at customers in less than 60 seconds of their entering the theme park.

CONCLUSION

All the difficulties that the Walt Disney Company experienced in its attempt to transfer its American culture into Europe was resolved well. Disney rules and regulations with respect to employee behavior were radically altered. What mostly happened was a shift from ethnocentric staffing to polycentric staffing. As we have seen, American management at Disney had low knowledge of French culture. Because of this, the company lost almost $1 million in 1992 and 1993.

The success of glocalization

The glocalizing changes have proved successful. Today, Disneyland Paris has generated a lot of profits. Over 12 million visitors a year queue up to get into the theme park. With the new extension of Disneyland Paris, called Walt Disney Studios, and with two theme parks, seven themedhotels, and a 28-hole golf course, Disneyland Paris has become Europes premier resort and tourist destination. The Walt Disney Company continues to draw yearly royalties for the acknowledgement and franchise of its brands and trademarks (all of Disney characters) to Disneyland Paris. Witnessing significant improvement in sales at Disneyland Paris, the French government recently helped the theme park even more by offering loan concessions and investments. Thus, glocalization was necessary: what works well in the home country (here,United States) need not work well in other host countries (here, Europe). Thus, Disneyland Paris is an example of this.

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