The given case of Euro Disney elaborates about the issues that were faced by Walt Disney Company in its pursuit to expand to international borders. The case first begins with the history of how Euro Disney was started and became so successful and expanded to various states across the country. It then describes its first international success like the Tokyo Disney and the factors affecting it (Spencer 104). The case then concentrates on Disney's decision of expanding in various parts of Europe. Finally, the case then describes the various problems and differences that were faced in setting up this magical park.
In setting up this Resort, some issues involved; environmental and location factors for establishing the park, cultural differences between the American and the European market, there was no consideration of French labor laws while conducting the workforce. Also, financial and business plan was not thoroughly analyzed in line with external economic factors, and finally there were management issues such as different attractions in the resort.
In analyzing the issues, firstly, it is essential for multinational companies to target markets accurately even in the same country or regional market. This is because traditional cultures make different control power to various people (Spencer 107). They should, therefore, be based on detailed market research to help them find the weak links. Secondly, such companies should pay full attention to the importance of cultural differences by acknowledging the differences in cultural practices of consumer demand and respect it. Lastly, multinational companies should fully exploit the competitive advantages of cultural differences and promote international marketing.
It should be noted that euro Disney resort wanted to control all the hotel operations at the park so that there could be a central management of the hotels and also this was to provide the necessary management and to avoid the problems that had earlier been experienced in the US where it failed to control hotel operations (Spencer 110). I think it was a wise decision because centralized management where directives are communicated from the main branch is useful in avoiding skewed information that originates from multiple sources.
The intention of developing themed resort hotels at Euro Disney was to continue the traditional design of Disney because it shared the many features and attractions of other Disney. This was to cater as a leading tourist spot for the Europeans when they want to travel to the US. Euro Disney emphasized on making Disney entirely American for visitors. This was why these themed hotels were developed at Euro Disney.
There are several challenges in managing a diverse workforce. These challenges range from difficulty in understanding the value of differences like was observed in the management of Euro Disney hotels and parks, problems of discrimination at the workplace, different cultural backgrounds which significantly affected the operations of Euro Disney businesses among others (Spencer 113).
In conclusion, the business performance of Euro Disney was not that stable. This was mainly because it couldn't have the right assumptions of the European market and there were already talks of possible recessions like the increase in interest rates as well as a French currency value. It can, therefore, be stated that this preliminary plan was not enough and accurate but was misjudged in providing resolutions to problems of Disney and other concerns. However, after it picked up, Euro Disney gave those who couldn't afford to go to America a likely experience as same as in America.
Spencer, Earl P. "Educator Insights: Euro Disney-What Happened? What Next?" Journal of International Marketing3.3 (1995): 103-114.
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