Reference no: EM133148344

The great success of Disney land in Tokyo has promoted the construction of another theme park in Paris. This European Disney was started to grow since the beginning of the 20th century, however, it was in front of a lot of unprecedented problems, for instance, the arrivals of visitors are much less than expectations, not to mention the profits from the visitor. Some negative report on the management and the wear of Disney land has discredited to the company. By 1995, Paris Disney has lost 25 billion dollars while the reason of which lies in the lack of localization in terms of the operation strategy, improper arrangement of the human resources, and the over-optimistic anticipation of the situation. For instance, the fact that French have strong national pride and a sense of superiority, and they regarded the extension of Disney land as a cultural invasion. Consequently, they have boycotted Disney land. It could be seen that culture has a crucial role in multinational management, and being unaware of this importance, there must be some negative influence on the development of the company. Disney has realized the importance of cultural diversity and has begun to make changes after being failed in Paris. Since the beginning of the 21st century, it has been adjusting the operation strategy via transformation of the name of the park into "Disneyland Paris", hiring the French as the general manager, and restructured the company in accordance with the French management mode, increasing the number of European workers. By 2002, Paris Disney has earned profits for the first time

In the multinational business, if the enterprise lacks the knowledge and skill of the cross-boundary management, the cultural conflicts may occur.

a) Explain the two (2) issues and problems that can potentially happen due to the cultural mismatch. 

b) Discuss two (2) strategies to help company overcoming the cultural conflict with the host country.