Euro Disneyland case study
Diagnosis
Disney has experienced a lot of challenges in its years of operation. A good example is the case where Philippe Bourguignon took over from Fitzpatrick as the company’s president. After taking over, the company experienced a loss of FFr 188 million in the Euro Disneyland project in 1992. Also, the company believed that hiring a French president would increase the number of French visitors and that they would account for half of the population that visited the park. However, only 29 percent of the visitors were French. Furthermore, the company had to cut ticket prices when the number of visitors dropped to 10 million which was lower than the 11 million visitors expected (Krishna, n.d). There were other problems that existed during the process to construct Euro Disney. French citizens were against the location chosen for the park, others were against the characters used in Disney entertainment such as Mickey Mouse with claims that it promoted individualism in a country that encouraged communalism and considered the Americans as being neo-provincial. Farmers were against the park as it would require them to sell their land and be relocated elsewhere to create space for the park. There were objections from the confédération Générale du Travail (CGT) which was against the bill allowing Disney to control the flexibility of employee’s working hours out of concern that employees may be mistreated. Their concerns were raised by the rules governing employee way of dressing, type of hairstyle and jewelry among other attributes. The rules were against the French culture of privacy and individualism and this created more problems for the company (Krishna, n.d).
Even after construction of Euro Disneyland, there were challenges involved in the way various guests behaved while in the park. In the case where visitors were served with ribs as they enjoyed a show, they found it difficult to eat and applaud at the same time forcing Disney to provide napkins and teach them how to stamp their feet as a way of applause. Also, the French were reluctant to queue and often cut in between lines causing a lot of commotion and problems while accessing various facilities in the park (Krishna, n.d). The challenges experienced before, during and after construction of the park revealed one major problem, Euro Disneyland had failed to take into consideration the culture of the market they were trying to enter and this made it extremely difficult for the park to enjoy the success it had in other areas.
Solution
Locals have a high uncertainty avoidance ration and the conflict is as a result of fearing the unknown. Other than their collectivism culture, their culture has a lot of femininity as they are more concerned on the overall well being of each other and the quality of life than on wealth. As a solution, the company will alter its organizational culture to make it formal and informal. Through this, the company will be able to understand what is acceptable in its area of operation as well as which practices are acceptable and which are not. A guided missile culture will be ideal as it is in line with the communalism culture in Disney’s target market (Doh & Luthans, n.d).
Action
- Probing for the cultural dimension
Since lack of understanding the culture of Euro Disneyland’s market is the cause for lack of cooperation between the company and the local residents, the resolution process will start by identifying the differences in culture that exist between the company and its target market. This will ensure that the company does not disrespect the people’s customs and traditions and that they in return will feel obliged to either work or visit the park (Doh & Luthans, n.d).
- Identify a mediator
After the difference in culture between the company and its target market has been identified, the company will then identify a mediator to assist in repairing the relationship between all parties involved. Since the locals already view Americans as intruders, the mediator will come from their side as a show of trust and willingness to do things their way. The goal will be to show that Disney is willing to learn the cultural practices of the locals so as to operate in a way that is respectful to them (Doh & Luthans, n.d).
- Clarify the problem
The challenges that Euro Disneyland is experiencing is as a result of its lack of considering the culture of the locals. Because of failing to take into account the cultural beliefs and traditions of the French, the locals feel as if they are being violated and that the company is disrespecting their culture. As a result, they have boycotted against its policies such as employee working hours and uniform. The problem is not that Disney has moved in to the area but rather because it failed to acknowledge the traditional customs and beliefs of the locals (Doh & Luthans, n.d).
- Explore solutions
A solution based on changing Disney’s approach in opening up Euro Disneyland and the attitude towards the local’s culture will go a long way in repairing the relationship between the park and the company. One way to achieve this is by adopting a regiocentric predisposition whereby the company will consider blending its interests with that of the people in its region of operation. To enhance the success of this approach, channels of communication will be opened and the message being communicated will be structured in such a way that it is understood as intended by all parties involved. Indirect message method will be used since the relationship with the locals is already tense but caution will be taken to ensure that the message is clear. A personal style of communication will be adopted to reduce the barrier between Disney and the locals (Doh & Luthans, n.d).
- Implement agreed resolution
Changing the existing company culture for a more regiocentric predisposition will serve as a n ideal solution to the cultural problem experienced by the company. Implementation will be achieved through training employees on the company culture as well as the culture of the French and teach them how to blend the two. Due to the difference in the two cultures, trainers from both sides will be employed to educate on the relevant cultures as well as how to ensure that there is no conflict. Since training will be the only stage in the implementation plan that will require capital, the cost for the overall solution will be affordable and convenient to the organization (Doh & Luthans, n.d).
Evaluation
The conflict in culture has created a system where French visitors have a negative attitude towards Euro Disneyland or they do not know how to carry themselves while in the park. This has caused various issues of protest, decline in sale, low French visitors and conflicts when accessing the park. Evaluation will therefore involve observing the sales made by the park, the percentage of visitors attributed to the French and the level of conflict resolved in the park. An increase in sale and a high French visitor percentage will indicate good relationship with the locals. A decline in conflicts will mean that the locals agree with the changes brought about by the new company culture and that they are comfortable with the park’s operation in the area.
References
Doh P and Luthans F, (n.d) “International management: Culture, strategy and behavior”
Krishna S, (n.d) “In-Depth integrative case 2.1a: Euro Disneyland”
