Mickey - Group (n°2)Camille TAPER, Alexy MIGUEL, Bryan RATAJCZYK, Philippe De POSCH
Summary• There were 3 (but unsuccessful) amusement parks in France• The Disney Company wanted to open a EuroDisney in either France or Spain – Best offer was for France, close to Paris – $4.4 Billion project• The Tokyo franchise and the USA parks were working so well that they wanted to open one in Europe• The one they opened in France did not work as well as they had expected (only 50.000 people instead of the 500.000 on the opening day) because it did not follow the local needs• In 1994 they started the modifications to European-ise, and an investor that injected $500 million• From 1996 started making profit• In 2002 getting losses again due to fall in tourism and travel
Question 1: What are some of the characteristics of multinational enterprises that are displayed by the Walt Disney Company?• They have activities in many countries – Amusement parks - Investments from other – Production of toys places – They have clients from many different countries• They have a common strategyFor linking together the affiliates
Questions 2: Why did Disney take an ownership position in the firm rather than simply licensing some other firm to build and operate the park and settling for a royalty on all sales?• By having an ownership position in the firm, they have more access to the company benefits• They can also more strongly manage operations and make the decisions• If they were leasing some other firm to build an operate the park they would be less vulnerable but they gain less if the company were to be productive• The other firm could also slightly change their image since they would have more access to the operation system of the company
Question 3: in what way did Euro Disneyreflect the strategic philosophy of Walt Disney as a multinational enterprise? • They are willing to adapt to local needs • They romanticised their name by referring to “Paris” • The investment came from private investors, banks, and by Walt Disney Company, as well as governments
Question 4: Did Disney management conduct an external environmental analysis before going forward with Euro Disney? Explain.• In the beginning they did do an analysis – where would it be more profitable for them? – but it did not consider the local needs. They did not do an environmental analysis – proof is that they had many difficulties with their Disney Culture (eg: the non-alcohol rule within the park; and restaurants) and thus they had to change a lot afterwards• After their financial difficulties they realised that it was necessary and changed things such as the alcohol rule and the restaurants with different cuisine “Bella Note” = Italian.