Reference no: EM131520657

Question: The Y Corporation is based in the United States of America (USA). It was founded in the early part of the last century when Mr Y produced cartoon films. These soon proved very popular as a form of family entertainment and the characters in the films became household names. The Corporation established a theme park (based around the film characters) in the southern USA, where there was a warm and mainly dry climate. The theme park, known as Y-land, proved to be an immediate success, attracting millions of visitors each year. A whole range of family entertainment flourished, based on the original theme of the cartoon characters. These included shops, restaurants, hotels and amusement rides.

Following the success of Y-land in the USA, the directors of the Corporation established another Y theme park based in Northern Europe. The rationale behind this was that although many Europeans visited Y-land in the USA, the cost of travel made visiting the attraction very expensive. The directors believed that establishing a Y-land in Northern Europe would enable European people to visit the attraction without incurring high travel expenses. Y-land Europe was built in a highly-populated area of Northern Europe which is easily accessible. A factor which differentiates Y-land Europe from the theme park in the USA is that it is located in a region which is frequently affected by rain and it does not enjoy a guaranteed warm climate. Y-land Europe did not in fact attract the volume of visitors that were expected and almost went bankrupt before receiving a massive cash injection from a wealthy donor who took part shares in the theme park.