A CASE STUDY ON EURO DISNEY

(A)

PRESENTED BY

Anurag Gupta
Ankita Banik
Ankit Mehrotra
Arti Kumari
Anjusha Kumari
 INTRODUCTION
 About Walt Disney
  Establishment and growth of
Disney land in us
 Japanese experience
 Initial planning of Euro Disney
 problems faced by Euro Disney
 Recommendations
 conclusion: lesson
PROBLEMS IN EURO DISNEY

 Management hubris
 Culture differences
 Environmental and location
factors
 French labor issues
 Financing and the initial
business plan
 Competition from U.S. Disney
parks.
 wrong planning for Euro Disney
 Eisner was obsessed with maintaining Disney’s reputation
for its quality and was convinced by the designers that
Euro Disney would have to brim in competing with
great monuments and cathedrals of Europe.
 There were mistakes on the project plans as for instance,
Disney has allowed companies built hotels to house
visitors and that Disney merely collected royalties from
the park and not having equity ownership stake.
 The business performance was not that great and stable
and it does not have ample assumption to the European
market
 There has been severe European recession as well as
high interest rates and strong French currency value.
 The initial plan in  a way, was not comprehensive and
accurate in providing solutions to the arising Disney
problems
To be cont………
 It does not go with the standards of changes ideals and
concepts as the application was typical in details.

 There were also shortcomings with Disney’s financial

planning indicating that Euro Disney was just a cornerstone
of a huge real estate development plan.
  
  
Recommendations to deal with the problems of Euro Disney

 There is a need for Disney to take control of the

management decisions and analyzing issues and
problems based on their own practice and not to
use same team to analyze the problem.

 There is also the imperative need to understand

and execute appropriate plan of actions that will
bridge the gap of culture difference.

 Focus on useful market tactics such as by having

promo discounts for families on weekends.

 There is a need to achieve good operations

management by means of implementing
strategies that fit in to the European culture
To be continue…..

 Disney can implement and apply

flexible labor systems that will be
adaptable to the situation, and is
accepted by the French laborers.

 In lieu to the environment and location

factors, Disney can choose such
locations that have strong sales
magnet.

 The financial and initial business plan

must undergo precise review.
Lessons learnt from Disney’s problems with Euro
Disney
1. The lesson to always have precise
business planning before deciding on the
actual process of the project.

2. The value of finance planning control is

also a lesson and that in every aspect of
business operations.

3. Every business environment factors has to

be precisely reviewed and should be
equipped with positive thinking and right
business motivation.

4. A business paradigm that is flexible and

dynamic that knows how to bend with the
blows.
SWOT ANALYSIS
4. Disruption.
3. Diversification
2. Popular brand name
OPPORTUNITIES
1. Global localization think global, ac
1. Global standardization
STRENGTHS local.
2. Character of national and regional
appeal

SWOT
WEAKNESS
1. High sunk cost.
Global
petitors : National, Regional and
2. Excessive Research and
development. THREATS
3. High investment.
4. High risk factor