Reference no: EM133293499

Case Study Disney

Disney University

Background

In 1984 the Walt Disney Company made the decision to build a theme park in Europe by 1992. It wanted to build a large, state-of-the-art theme park causing some difficult budget decisions. Many of the scope changes were made by Michael Eisner, Disney's long-standing CEO. Eisner viewed Euro Disney as a potentially profitable revenue generator for decades since Disney would hold the monopoly in entertainment in Europe.

Disney looked at approximately 1200 locations in Europe but eventually selected a site 20 miles from Paris, hoping to capitalize on the enormous visitor potential from tourists already traveling to Paris and the proximity of hundreds of millions more within a six-hour drive. It was estimated that 11 million would visit the first year and 16 million per year by the turn of the century. This was important because due to the high technology nature of building such a theme park, there would have to be sufficient cash flow to fund the constant improvement and growth required. Disney had high hopes for Euro Disney given that Tokyo Disneyland was deemed a success and much of Euro Disney was modeled similarly.

Euro Disney University

Just as in the United States, Disney set up a Disney University to train approximately 20,000 employees and cast members who applied for jobs at Euro Disney. The training was designed to enforce the Disney culture and policies and procedures that had worked well for decades. The training was to be completed before the park opened. Employees were expected to be bilingual or trilingual and were required to attend training sessions conducted by Disney University on behavior codes and how to talk to park guests. The company stressed that all visitors be treated as guests rather than customers.

There were rules on facial hair (none), dress codes, covering tattoos, limited makeup and jewelry, moderate hair coloring, and appropriate undergarments. The French saw this as an attack on their individual liberties.

There were and are strict rules regarding sharing behind-the-scenes Disney information and no photography in backstage areas. When gates are open, anything seen behind them is to be considered part of the Disney magic. Therefore, crews and characters must be ready even between performances.

The Impact of Culture Clashes

Unlike Tokyo Disneyland, the Europeans were not as enamored by an American-style theme park and were unwilling to brave cold and snow. The Japanese were open to American food, clothing, and gift shop items. The Europeans were not interested in American culture in a significant way.

To standardize products on the park, Euro Disney utilized few local or regional suppliers, which limited the benefit to the local economy.

Europeans saw Euro Disney as a day excursion rather than a resort, spend less than anticipated,and overwhelmed the food services by eating lunch strictly at 12:30 pm, unlike the American scattering for mealtimes. Europeans consider their food options healthier but were unable to obtain those options.

The word Euro as in Euro Disney, did not have the same meaning in Europe. The financial denomination was called Euro. A US equivalent name in the US would be similar to Dollar Disney. Disney did change the name in 1994 to Disneyland Paris.

The price of admission was $280 per person and much too high for a day trip.

Wine and alcoholic beverages were banned, so meals were not enjoyed. The ban on smoking wasconsidered insensitive.

Results

Eventually, the losses were so great that Eisner had to restructure the loan and sell 24% to Saudi Prince Al-Waleed and many other investors. Now considered profitable, attendance in 2007 was 14 million per year compared to Tokyo Disneyland at 17.5 million annually.

After many years, the actual outcome has improved but let's use the events in this case study to decide on a major intervention that might have eliminated some of these problems. So many mistakes were made. Focusing on Human Resource Development, what should have occurred in the planning stages? What interventions could fix this?

ROLES: Instructor/Facilitator

We have an outline and part of it is how your role tie in with the issue. My role is Instructor. please provide me as soon as possible.

Outline Headings: You may have more than these, but you must have at least these.
I. Introduction
II. Situation
A. Problem
B. Why is it a problem?
III. Intervention
A. Identify the specific roles involved as it relates to your issue/problem
1. Role 1 name
2. Role 2 name, etc.