Euro Disney

In: Business and Management

Submitted By knardoza
Words 985
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What factors contributed to EuroDisneys poor performance during its first year of operations?

There were quite a few different factors that contributed to EuroDisney’s poor performance during its first year. The biggest factors in contributing include: a very poor understanding of the French market place, the out standing issues and cultural differences between the two nations and two completely different approaches to business and everyday life. The ethnocentrism of the American leaders counterbalanced by French national issues was a major factor. Michael Eisner was indeed powerful and seemingly arrogant which also contributed to the problems. The business plan assumed that the people from all over Europe would flock to EuroDisney. This plan wasn’t good because it failed to recognize how diverse those consumers would be. Although Europe is united as the European Union, the cultures have always been extremely distinct and independent.

To what degree do you consider that these factors were a) foreseeable b) controllable by either EuroDisney or the parent company Disney?

A closer look into the history and a better understanding of the characters of Europe and the European market place would have enabled the Disney executives to foresee many of the problems. Most of the problems could have been controllable and others were inevitable. It was clear that the choice to open in France was going to cause some commotion. If Disney had researched French history this would have been understood.

For the American executive to insist on English being the only spoken language at the park was completely wrong. There are strong facts showing the French culture monitors words which are absorbed from other languages. The way Americans do business is completely different to the French way, so pushing the American way was disrespectful. The French take their liberty and…...

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