Running head: PayneABUS738001 PayneABUS738001 Human Resource Management and Employee Turnover BUS-7380 Qualitative Business Research Design and Methodology Week 1 Amenia Payne Dr. Lawrence Ness May 17, 2020 Introduction to Problem How an organization along with its performance is affected by human resource management (HRM) policies that play an important role in the organization for performance and growth of employees and organization is a widely discussed topic (Boudreau 1991; Jones& Wright, 1992; Kleiner 1990). Different sources contend that work rehearses that advance superior, for example, exhaustive representative enrollment and choice methods, motivator pay, and execution the executives frameworks, and broad worker inclusion and preparing, will in general upgrade the capacities of a company's present and future representative's information, aptitudes, inspiration, just as the maintenance of value workers (Jones and Wright, 1992; U.S. Division of Labor, 1993). The human asset strategies of the association will be in general assistance +7. The year 2006 was the year when HR managers noticed that were approximately 46% and considered employee turnover their top post priority in workforce and organization and that took the peak from 2012 that was 25% in that year. Society for Human Resource Management (SHRM) explained that it has different causes for lessening employee turnover ought to be imperative for any association that involves (1) employee turnover can turn out to be exorbitant rapidly, (2) undesirable turnover influences the presentation of any association, (3) as the accessibility of talented representatives diminishes, it will turn out to be progressively hard to hold looked for after workers. According to a study, it was analyzed that employee turnover can be too costly that annually it can shoot up to 200% of annual salaries that is a great loss for organizations caused mainly due to turnover. Now with these staggering figures, it is very difficult for organizations today to fully understand the concept of employee retention and turnover and how to decrease the overall process and how to handle turnover (Mayhew, 2019). Similarly, trained employees and loyal workforce of the organization get replaced with new employees that take additional time to get trained hence organizations face a loss of time along with loss of resources and money (Iqbal, 2010). Employee turnover should only be done when it is essential for any organization to replace existing employees with new talent and that will only be done when organizations know that this turnover will give benefit and growth to the organization (Meyer, 2011). Employee turnover has termed as a risky choice as it involves the major risks in any organization for current and future project implications by human resource management (Iqbal, 2010). An organization’s business strategic plans for execution should be contingent on current and potential employees. Throu.

1. Running head: PayneABUS738001
PayneABUS738001
Human Resource Management and Employee Turnover
BUS-7380 Qualitative Business Research Design and
Methodology
Week 1
Amenia Payne
Dr. Lawrence Ness
May 17, 2020
Introduction to Problem
How an organization along with its performance is affected by
human resource management (HRM) policies that play an
important role in the organization for performance and growth
of employees and organization is a widely discussed topic
(Boudreau 1991; Jones& Wright, 1992; Kleiner 1990). Different
sources contend that work rehearses that advance superior, for
example, exhaustive representative enrollment and choice
methods, motivator pay, and execution the executives
frameworks, and broad worker inclusion and preparing, will in
general upgrade the capacities of a company's present and future
representative's information, aptitudes, inspiration, just as the

2. maintenance of value workers (Jones and Wright, 1992; U.S.
Division of Labor, 1993). The human asset strategies of the
association will be in general assistance +7. The year 2006 was
the year when HR managers noticed that were approximately
46% and considered employee turnover their top post priority in
workforce and organization and that took the peak from 2012
that was 25% in that year.
Society for Human Resource Management (SHRM) explained
that it has different causes for lessening employee turnover
ought to be imperative for any association that involves (1)
employee turnover can turn out to be exorbitant rapidly, (2)
undesirable turnover influences the presentation of any
association, (3) as the accessibility of talented representatives
diminishes, it will turn out to be progressively hard to hold
looked for after workers. According to a study, it was analyzed
that employee turnover can be too costly that annually it can
shoot up to 200% of annual salaries that is a great loss for
organizations caused mainly due to turnover. Now with these
staggering figures, it is very difficult for organizations today to
fully understand the concept of employee retention and turnover
and how to decrease the overall process and how to handle
turnover (Mayhew, 2019). Similarly, trained employees and
loyal workforce of the organization get replaced with new
employees that take additional time to get trained hence
organizations face a loss of time along with loss of resources
and money (Iqbal, 2010). Employee turnover should only be
done when it is essential for any organization to replace
existing employees with new talent and that will only be done
when organizations know that this turnover will give benefit
and growth to the organization (Meyer, 2011). Employee
turnover has termed as a risky choice as it involves the major
risks in any organization for current and future project
implications by human resource management (Iqbal, 2010).
An organization’s business strategic plans for execution should
be contingent on current and potential employees. Through prior
research, it was noted that intentions were placed on answering

3. how can align human resource management practices with a
competitive strategy creates a competitive advantage? (Begin,
1991; Butler, Ferris, & Napier, 1991; Capelli & Singh, 1992;
Jackson & Schuler, 1995; Porter, 1985; Schuler, 1992; Wright &
McMahan, 1992). Human Resource practices for a better
strategic plan depend a lot on current and potential employees
like these two play an important part in defining a strategic plan
for any organization in order to have maximum output from
potential and current employees (Ozala, 2014). Human resource
management practices should be aligned with the strategic plan
that includes potential and current employees for a better
competitive advantage (Ongori, 2007). The following area talks
about a portion of the meanings of representative turnover. The
contemporary quickly changing business condition, described
by constrained furthermore, rare work showcase, profoundly
powerful purchaser inclinations, and developing rivalry, is a
huge test for most associations. In their endeavor to answer
these difficulties, the scholastic network and the rehearsing
chiefs persistently emphasize the utilization of methodologies,
which depend on the key capabilities and ability, gathered in the
human assets.
A theory regarding HR’s policies which are providing a direct
and financial contribution to the performance of the
organization. Sparse resources were found to support this
pragmatic theory. General HRM systems were excluded, with
the main focus being on individual HRM practices. These
practices imply a massive impact on organization’s business and
strategic planning because the policies or human resource
management are contingent on the workforce of the organization
and which are the only resource for any organization to carry
out success for the organization through human resource
policies (Meyer, 2017).
Research Statement
The purpose of this qualitative study is to focus on general
HRM systems rather than individual HRM practices. The

4. qualitative study design will be used in which narrative data
will be collected and analyzed to show a statistical and
economical significance on productivity and turnover. This data
will represent that a firm’s performance will be advanced to the
degree of HRM practices when matched with its competitive
strategy. Qualitative data will be gathered exploring high-
performance work practices and their correlation to a firm
performance from randomly sampled employees at competitive
firms. The reason for using this form of data to generate data is
to develop an in-depth understanding of overall HRM systems.
Data will be then analyzed after collecting through various
organizations and will match the results of the organization
based on research questions and the output will be analyzed.
This qualitative study is purely based on the performance of an
organization that displays the policies of human resource
management.
Research Questions
1. How are productivity and turnover affected statistically
and economically, when general HRM practices are matched to
the company’s competitive strategy?
2. Why are the results highly debatable when the data is
pragmatic?

5. References
Iqbal, A. (2010). Employee Turnover: Causes, Consequences
and Retention Strategies in Saudi Organizations
https://www.researchgate.net/publication/215912138_Employee
_Turnover_Causes_Consequences_and_Retention_Strategies_in
_Saudi_Organizations
Meyer, D. (2011). The role and impact of HRM policy
https://www.researchgate.net/publication/43919695_The_role_a
nd_impact_of_HRM_policy
Ongori, H. (2007). A review of the literature on employee
turnover
https://www.researchgate.net/publication/209835787_A_review
_of_the_literature_on_employee_turnover
Ozola, I. (2014). The Impact of Human Resource Management
Practices on Employee Turnover
https://www.researchgate.net/publication/275537922_The_Impa
ct_of_Human_Resource_Management_Practices_on_Employee_
Turnover
Slavianska, V. (2012). Measuring the impact of human resource
management practices on employee turnover
https://www.researchgate.net/publication/264974819_Measuring
_the_impact_of_human_resource_management_practices_on_em
ployee_turnover
CONTACT US:
Shanghai Disney Resort, Media Relations
86 21 2060 4666
http://www.shanghaidisneyresort.com

6. WALT D ISNEY PARKS AND RESORTS
FA
C
T
S
H
E
E
T
Shanghai Disney Resort, the first Disney resort in mainland
China, will be a place where
friends and families can escape together to a whole new world
of fantasy, imagination,
creativity, and adventure. On opening day, the resort will be
home to the Shanghai
Disneyland theme park, two themed hotels – Shanghai
Disneyland Hotel and Toy Story
Hotel, Disneytown, a large shopping, dining and entertainment
venue, a Broadway-style
theatre, a Wishing Star Park and other outdoor recreation areas.
Shanghai Disneyland
will be a Magic Kingdom-style theme park featuring classic
Disney storytelling and
characters but with authentic cultural touches and themes

7. tailored specifically for the people
of China. Shanghai Disney Resort will have something for
everyone – thrilling adventures,
lush gardens where guests can relax together, and enriching
interactive experiences, all
with the world-class
guest service that Disney is
known for around the
globe.S H A N G H A I D I S N E Y R E S O R T
OPENING DATE: June 16, 2016
LOCATION: Pudong New District, Shanghai
LAND AREA: 963 acres
THEME PARKS: One RESORT HOTELS: Two
OVERVIEW
HISTORY OF DISNEY PARKS
As the father of two small girls, Walt Disney dreamed of a place
where parents and children could
spend time together in a safe, clean environment where their
imaginations could run free. In 1955,
in Anaheim, California, his dream became the first Disney
theme park, aptly named Disneyland and
with it, a new era in family entertainment began. Since then,
The Walt Disney Company has opened
resorts in Orlando, Tokyo, Paris and Hong Kong. Every new
location starts with a Magic Kingdom-style

8. park that shares essential elements from the original
Disneyland, including a central castle surrounded
by several highly themed “lands” which offer guests an
authentically Disney experience while remaining
true to the culture’s unique identity. When guests enter the
gates of a Magic Kingdom anywhere in the
world, they are transported into a world of imagination, fantasy
and adventure, where favorite Disney
characters come to life and guests of all ages become part of the
magic.
DESIGN PHILOSOPHY
Shanghai Disney Resort will be home to Shanghai Disneyland, a
Magic Kingdom-style theme park
that will welcome friends and families into a world of fantasy,
adventure, magic and thrills. Shanghai
Disneyland will include signature Disney experiences that
guests around the world know and love
as well as many exciting new elements tailored specifically for
the people of China and unique to the
Shanghai Disney Resort. Shanghai Disneyland will be
authentically Disney and distinctly Chinese.
CREATIVE OVERVIEW
Throughout Shanghai Disneyland, classic Disney characters and
storytelling will blend with Chinese
customs and celebrations to create a unique experience for
guests in Shanghai. The park will
consist of six themed lands: Mickey Avenue, Gardens of
Imagination, Adventure Isle, Treasure Cove,
Tomorrowland and Fantasyland, and each with their own
distinct attractions, entertainment and
immersive experiences. At the heart of the park will be
Enchanted Storybook Castle, our most
interactive Disney castle yet complete with entertainment,
dining and performance spaces. It will truly

9. be an attraction unto itself.
A 4.6 hectare (11 acre), one-of-a-kind, dynamic green space
will welcome guests to Shanghai
Disneyland and provide the perfect spot to view the parade or
the nighttime spectacular of magic and
light. It will also feature Chinese seasonal plants and flowers,
dramatic lighting and traditional music
to serve as a backdrop for vibrant Chinese cultural celebrations
and festivals, as well as opportunities
for art, creativity, exploration and discovery. The park will
consist of other large-scale entertainment
spaces, indoor and out, that will be used for various purposes
throughout the year.
INNOVATION AND TECHNOLOGY
Innovative technology has always been a hallmark of the Disney
vacation experience and Shanghai
Disney Resort will continue that tradition. The park will take
full advantage of advances in virtual
technology as well as new gaming and ride systems that will
fully immerse our guests in our attractions.
OWNERSHIP
The Walt Disney Company and Shanghai Shendi Group have
joined together to invest in Shanghai
Disney Resort. As part of the agreement, two owner companies
were formed with Shanghai Shendi
Group holding 57% of the shares and Disney holding the
remaining 43% of shares.
Shanghai Shendi (Group) Co., Ltd. is a state-owned company
approved by Shanghai Municipal
Government and registered on 8 August 2010. It is responsible
for collaborating with The Walt
Disney Company on the investment, development and operation

10. of Shanghai Disney Resort, while
also undertaking the development of the land, infrastructure
facilities and other associated industries
of Shanghai International Tourism and Resorts Zone.
BUSINESS/FINANCING
Shanghai Disney Resort will be financed with contributions
from Disney and Shanghai Shendi Group
proportionate to ownership. The Opening Day investment is ¥
34 billion yuan/US $5.5 billion.
The investment contribution will be split 33% debt and 67%
equity from each partner.
MANAGEMENT
As part of the agreement, a joint venture management company
was formed with Disney having a
70% stake and Shanghai Shendi Group having a 30% stake.
HIGHLIGHTS
CONSTRUCTION
The building efforts for Shanghai Disney Resort started in 2011.
During the impressive Groundbreaking
Ceremony on April 8, 2011, leaders from The Walt Disney
Company, Shanghai Shendi Group
and government as well as local community representatives and
media friends came together and
celebrated the beginning of the journey to create the exciting
Shanghai Disney Resort.
Construction of Shanghai Disney Resort continues and has
reached new heights. In May 2015, the
resort celebrated the topping out of its iconic central attraction

11. and new landmark of Shanghai, the
Enchanted Storybook Castle, with the installation of a
remarkable golden finial atop the tallest of the
castle’s eight towers.
While the castle has an authentic Disney Magic Kingdom
design, it also includes a special Chinese
element. The finial installed on the tallest tower is topped with
a golden peony -- the flower of China
-- placed atop a cascade of Disney stars shooting out toward the
heavens from the central spire,
evoking the optimism that, with belief and a little magic,
dreams really can come true. Another larger
golden finial installed on a separate tower of the castle includes
other unique Chinese elements
including traditional Chinese cloud patterns, peonies and
lotuses. This finial also features Magnolia
flowers, representing Shanghai, and a Disney crown
symbolizing Disney’s princesses.
A DISNEY PARK FILLED WITH “FIRSTS”
At the center of Shanghai Disneyland, the iconic Enchanted
Storybook Castle will be the first castle in
a Disney theme park that represents all the Disney princesses
Other “firsts” at Shanghai Disneyland will include:
• Adventure Isle, a mysterious land, with an ancient legend
about a native tribe, a giant, reptilian
creature, and the mighty Roaring Mountain.
• Voyage to the Crystal Grotto, an enchanting, new excursion
that celebrates classic Disney tales
of magic and imagination as it travels the waters of
Fantasyland, going underneath Enchanted
Story Book Castle for a finale never before seen inside a castle.

12. • Tomorrowland, a venue with an original design and new
attractions to celebrate the hope,
optimism and potential of the future, created especially for the
people of China.
• TRON Lightcycle Power Run, which promises to be one of
the most thrilling attractions at a
Disney park, with a twisting, turning track, high speeds, rich
storytelling and a breathtaking view
of Shanghai Disneyland.
• Garden of the Twelve Friends, where animals of the Chinese
zodiac are re-imagined as Disney
and Disney•Pixar characters.
• Treasure Cove, the first pirate-themed land at a Disney park,
leveraging innovative technologies
in the new Pirates of the Caribbean – Battle for the Sunken
Treasure and a stunt show spectacular
featuring Captain Jack Sparrow.
1ST/16
PARTNERSHIP
From the very start, The Walt Disney Company and Shanghai
Shendi Group have worked to
ensure all components of the resort are produced specifically to
appeal to Chinese guests and to be
authentically Disney. The same goal was given to the creative
teams who are collaborating on
designs that combine classic Disney stories with elements
unique to China.

13. CAST MEMBERS
Shanghai Disney Resort provides all Cast Members (the term
used for Disney employees) with special
training to help them deliver welcoming, world-class service to
all guests. The development of Shanghai
Disney Resort will continue to generate many great employment
opportunities for Chinese talent at all
levels. To learn more about career opportunities at Shanghai
Disney Resort and to apply, please visit
our website at: www.shanghaidisneyresort.com
COMMUNITY
As we build the new world full of fantasy, imagination and
adventure, the Shanghai Disney resort is
also committed to being a valuable community partner and an
active corporate citizen in Shanghai
and China. The resort’s corporate social responsibility mission
is to promote the happiness and
well-being of kids and families and inspire them to join us in
making lasting positive change in their
communities.
Through the Disney VoluntEARS program, Shanghai Disney
Resort Cast Members have already
started to volunteer locally. The resort is also working with
local non-profit organizations and
government officials to address key community needs which
align with Disney’s corporate citizenship
and philanthropic goals – strengthen community, conserve
nature, live healthier and think creatively.
In the fourth year of the “Adopt-A-Garden” organic farming
program, local primary school students to
work alongside Cast Members to grow their own organic school
garden while learning about
the importance of food safety and environmental stewardship.

14. To strengthen family bonds and encourage parents to spend
meaningful time together with their
children, the resort’s VoluntEARS host “Disney Reading
Together” storytelling sessions on a regular
basis for young readers and “Family Play” imagination
playground activities for migrant families. The
resort has also introduced a “Community Beautification
Program” which leverages the resort’s
expertise in creativity and design to beautify the local
community, including a unique inspired “it’s a
small world”-themed activity room in the Shanghai Children’s
Medical Center and Disney Reading
Corner in the Shanghai Pudong Library.
Shanghai Disney Resort also supports local children’s hospital
orphanages. VoluntEARS pay weekly
visits to the hospital and periodic visits to orphanages to show
Disney cares and bring happiness to
children in need. Shanghai Disney Resort promotes the
importance of safety with “Disney Wild About
Safety” community program. Special Chinese language
animated educational videos and interactive
activities – “Safety Smart About Fire” and “Safety Smart in the
Water” – were introduced to local
children to educate them on the importance of fire and water
safety.
Shanghai Disney Resort has developed a Safety, Health,
Environment, International Labor Standards,
and Security (SHEILSS) program to enhance the working and
living conditions of the build site
construction workers. A village concept named Magnolia
Village has been established to create a
sense of community for the workers. Regular Disney movie
nights, singing and Chinese calligraphy

15. activities, leadership visits and key Chinese festival
celebrations with construction workers at their
villages are organized.
CONTACT US:
Shanghai Disney Resort, Media Relations
86 21 2060 4666
http://www.shanghaidisneyresort.com
BONJOUR, MICKEY!
In April 1992, EuroDisney SCA opened its doors to European
visi-
tors. Located by the river Marne some 20 miles east of Paris, it
was
designed to be the biggest and most lavish theme park that Walt
Disney Company (Disney) had built to date—bigger than
Disney-
land in Anaheim, California; Disneyworld in Orlando, Florida;
and Tokyo Disneyland in Japan.
Much to Disney management’s surprise, Europeans failed to
“go goofy” over Mickey, unlike their Japanese counterparts. Be-
tween 1990 and early 1992, some 14 million people had visited
Tokyo Disneyland, with three-quarters being repeat visitors. A
fam-
ily of four staying overnight at a nearby hotel would easily
spend
$600 on a visit to the park. In contrast, at EuroDisney, families
were
reluctant to spend the $280 a day needed to enjoy the attractions
of the park, including les hamburgers and les milkshakes.
Staying
overnight was out of the question for many because hotel rooms

16. were so high priced. For example, prices ranged from $110 to
$380
a night at the Newport Bay Club, the largest of EuroDisney’s
six
new hotels and one of the biggest in Europe. In comparison, a
room
in a top hotel in Paris cost between $340 and $380 a night.
Financial losses became so massive at EuroDisney that the
president had to structure a rescue package to put EuroDisney
back on fi rm fi nancial ground. Many French bankers
questioned
the initial fi nancing, but the Disney response was that their
views
refl ected the cautious, Old World thinking of Europeans who
did
not understand U.S.-style free market fi nancing. After some
acri-
monious dealings with French banks, a two-year fi nancial plan
was
negotiated. Disney management rapidly revised its marketing
plan
and introduced strategic and tactical changes in the hope of
“doing
it right” this time.
A Real Estate Dream Come True The Paris lo-
cation was chosen over 200 other potential sites stretching from
Portugal through Spain, France, Italy, and into Greece. Spain
thought it had the strongest bid based on its yearlong,
temperate,
and sunny Mediterranean climate, but insuffi cient acreage of
land
was available for development around Barcelona.
In the end, the French government’s generous incentives,
together with impressive data on regional demographics,
swayed

17. Disney management to choose the Paris location. It was
calculated
that some 310 million people in Europe live within two hours’
air
travel of EuroDisney, and 17 million could reach the park
within two
hours by car—better demographics than at any other Disney
site.
Pessimistic talk about the dismal winter weather of northern
France
was countered with references to the success of Tokyo
Disneyland,
where resolute visitors brave cold winds and snow to enjoy their
piece of Americana. Furthermore, it was argued, Paris is
Europe’s
most-popular city destination among tourists of all nationalities.
Spills and Thrills Disney had projected that the new
theme park would attract 11 million visitors and generate over
$100 million in operating earnings during the fi rst year of
opera-
tion. By summer 1994, EuroDisney had lost more than $900
mil-
lion since opening. Attendance reached only 9.2 million in
1992,
and visitors spent 12 percent less on purchases than the
estimated
$33 per head.
If tourists were not fl ocking to taste the thrills of the new
Euro-
Disney, where were they going for their summer vacations in
1992?
Ironically enough, an unforeseen combination of transatlantic
air-
fare wars and currency movements resulted in a trip to
Disneyworld

18. in Orlando being cheaper than a trip to Paris, with guaranteed
good
weather and beautiful Florida beaches within easy reach.
EuroDisney management took steps to rectify immediate prob-
lems in 1992 by cutting rates at two hotels up to 25 percent,
intro-
ducing some cheaper meals at restaurants, and launching a Paris
ad blitz that proclaimed “California is only 20 miles from
Paris.”
An American Icon One of the most worrying aspects of
EuroDisney’s fi rst year was that French visitors stayed away;
they
had been expected to make up 50 percent of the attendance fi g-
ures. A park services consulting fi rm framed the problem in
these
words: “The French see EuroDisney as American imperialism—
plastics at its worst.” The well-known, sentimental Japanese
attach-
ment to Disney characters contrasted starkly with the
unexpected
and widespread French scorn for American fairy-tale characters.
French culture has its own lovable cartoon characters such as
Asté-
rix, the helmeted, pint-sized Gallic warrior, who has a theme
park
located near EuroDisney.
Hostility among the French people to the whole “Disney idea”
had surfaced early in the planning of the new project. Paris
theater
director Ariane Mnouchkine became famous for her description
of
EuroDisney as “a cultural Chernobyl.” In fall 1989, during a
visit
to Paris, French Communists pelted Michael Eisner with eggs.
The

19. joke going around at the time was, “For EuroDisney to adapt
prop-
erly to France, all seven of Snow White’s dwarfs should be
named
Grumpy (Grincheux).”
Early advertising by EuroDisney seemed to aggravate local
French sentiment by emphasizing glitz and size rather than
the variety of rides and attractions. Committed to maintaining
Disney’s reputation for quality in everything, more detail was
built into EuroDisney. For example, the centerpiece castle in the
Magic Kingdom had to be bigger and fancier than in the other
parks. Expensive trams were built along a lake to take guests
from
the hotels to the park, but visitors preferred walking. Total park
construction costs were estimated at FFr 14 billion ($2.37
billion)
in 1989 but rose by $340 million to FFr 16 billion as a result of
all
these add-ons. Hotel construction costs alone rose from an esti-
mated FFr 3.4 billion to FFr 5.7 billion.
-So-Wonderful World of
EuroDisney * —Things Are Better Now at
Disneyland Resort Paris
*The Offi cial name has been changed from “EuroDisney” to
“Disneyland Resort Paris.”
cat2994X_case2_019-046.indd 20cat2994X_case2_019-
046.indd 20 8/27/10 2:05 PM8/27/10 2:05 PM
Cases 2 The Cultural Environment of Global Marketing
in a 350-seat restaurant [at some of the hotels]. The lines were

20. horrendous. And they didn’t just want croissants and coffee,
they
wanted bacon and eggs.”
In contrast to Disney’s American parks, where visitors
typically
stay at least three days, EuroDisney is at most a two-day visit.
En-
ergetic visitors need even less time. One analyst claimed to
have
“done” every EuroDisney ride in just fi ve hours. Typically
many
guests arrive early in the morning, rush to the park, come back
to their hotel late at night, and then check out the next morning
before heading back to the park.
Vacation customs of Europeans were not taken into consider-
ation. Disney executives had optimistically expected that the ar-
rival of their new theme park would cause French parents to
take
their children out of school in mid-session for a short break. It
did not happen unless a public holiday occurred over a
weekend.
Similarly, Disney expected that the American-style short but
more
frequent family trips would displace the European tradition of a
one-month family vacation, usually taken in August. However,
French offi ce and factory schedules remained the same, with
their
emphasis on an August shutdown.
In promoting the new park to visitors, Disney did not stress
the
entertainment value of a visit to the new theme park; the
emphasis
was on the size of the park, which “ruined the magic.” To
counter
this, ads were changed to feature Zorro, a French favorite, Mary
Poppins, and Aladdin, star of the huge moneymaking movie

21. success. A print ad campaign at that time featured Aladdin,
Cinderella’s castle, and a little girl being invited to enjoy a
“magic
vacation” at the kingdom where “all dreams come true.” Six
new
attractions were added in 1994, including the Temple of Peril,
Story book Land, and the Nautilus attraction. Donald Duck’s
birthday was celebrated on June 9—all in hopes of positioning
EuroDisney as the number 1 European destination of short
duration, one to three days.
Faced with falling share prices and crisis talk among share-
holders, Disney was forced to step forward in late 1993 to
rescue
the new park. Disney announced that it would fund EuroDisney
until a fi nancial restructuring could be worked out with
lenders.
However, it was made clear by the parent company, Disney, that
it
“was not writing a blank check.”
In June 1994, EuroDisney received a new lifeline when a
mem-
ber of the Saudi royal family agreed to invest up to $500
million
for a 24 percent stake in the park. The prince has an established
reputation in world markets as a “bottom-fi sher,” buying into
po-
tentially viable operations during crises when share prices are
low.
The prince’s plans included a $100 million convention center at
EuroDisney. One of the few pieces of good news about
EuroDisney
is that its convention business exceeded expectations from the
beginning.
MANAGEMENT AND NAME
CHANGES

22. Frenchman Philippe Bourguignon took over at EuroDisney as
CEO in 1993 and was able to navigate the theme park back to
prof-
itability. He was instrumental in the negotiations with the fi
rm’s
bankers, cutting a deal that he credits largely for bringing the
park
back into the black.
Perhaps more important to the long-run success of the ven-
ture were his changes in marketing. The pan-European approach
to marketing was dumped, and national markets were targeted
separately. This new localization took into account the differing
EuroDisney and Disney managers unhappily succeeded in
alienating many of their counterparts in the government, the
banks,
the ad agencies, and other concerned organizations. A
barnstorm-
ing, kick-the-door-down attitude seemed to reign among the
U.S.
decision makers: “They had a formidable image and convinced
everyone that if we let them do it their way, we would all have a
marvelous adventure.” One former Disney executive voiced the
opinion, “We were arrogant—it was like ‘We’re building the
Taj
Mahal and people will come—on our terms.’ ”
STORM CLOUDS AHEAD
Disney and its advisors failed to see signs at the end of the
1980s
of the approaching European recession. Other dramatic events
in-
cluded the Gulf War in 1991, which put a heavy brake on
vacation
travel for the rest of that year. Other external factors that
Disney

23. executives have cited were high interest rates and the
devaluation
of several currencies against the franc. EuroDisney also encoun-
tered diffi culties with regard to competition—the World’s Fair
in
Seville and the 1992 Olympics in Barcelona were huge
attractions
for European tourists.
Disney management’s conviction that it knew best was dem-
onstrated by its much-trumpeted ban on alcohol in the park.
This
rule proved insensitive to the local culture, because the French
are
the world’s biggest consumers of wine. To them a meal without
un verre de rouge is unthinkable. Disney relented. It also had to
relax its rules on personal grooming of the projected 12,000 cast
members, the park employees. Women were allowed to wear
red-
der nail polish than in the United States, but the taboo on men’s
facial hair was maintained. “We want the clean-shaven, neat and
tidy look,” commented the director of Disney University’s Paris
branch, which trains prospective employees in Disney values
and
culture. EuroDisney’s management did, however, compromise
on
the question of pets. Special kennels were built to house
visitors’
animals. The thought of leaving a pet at home during vacation is
considered irrational by many French people.
Plans for further development of EuroDisney after 1992 were
ambitious. The initial number of hotel rooms was planned to be
5,200, more than in the entire city of Cannes on the Côte
d’Azur.
Also planned were shopping malls, apartments, golf courses,
and
vacation homes. EuroDisney would design and build everything

24. itself, with a view to selling at a profi t. As a Disney executive
com-
mented, “Disney at various points could have had partners to
share
the risk, or buy the hotels outright. But it didn’t want to give up
the
upside.”
“From the time they came on, Disney’s Chairman Eisner and
President Wells had never made a single misstep, never a
mistake,
never a failure,” said a former Disney executive. “There was a
ten-
dency to believe that everything they touched would be
perfect.”
The incredible growth record fostered this belief. In the seven
years before EuroDisney opened, they took the parent company
from being a company with $1 billion in revenues to one with
$8.5 billion, mainly through internal growth.
Telling and Selling Fairy Tales Mistaken as-
sumptions by the Disney management team affected
construction
design, marketing and pricing policies, and park management,
as
well as initial fi nancing. Disney executives had been
erroneously
informed that Europeans don’t eat breakfast. Restaurant
breakfast
service was downsized accordingly, and guess what?
“Everybody
showed up for breakfast. We were trying to serve 2,500
breakfasts
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25. Part 6 Supplementary Material
The root of Disney’s problems in EuroDisney may be found
in the tremendous success of Japan’s Disneyland. The Tokyo
Park
was a success from the fi rst day, and it has been visited by
millions
of Japanese who wanted to capture what they perceived as the
ul-
timate U.S entertainment experience.
Disney took the entire U.S. theme park and transplanted it in
Japan. It worked because of the Japanese attachment to Disney
characters. Schools have fi eld trips to meet Mickey and his
friends
to the point that the Disney experience has become ingrained in
Japanese life. In the book Disneyland as Holy Land ,
University
of Tokyo professor Masako Notoji wrote: “The opening of
Tokyo
Disneyland was, in retrospect, the greatest cultural event in
Japan
during the ‘80s.” With such success, is there any wonder that
Disney thought they had the right model when they fi rst went
to
France? The Tokyo Disney constitutes a very rare case in that
the
number of visitors has not decreased since the opening.
2005—Bankruptcy Pending
In early 2005, Disneyland Paris was on the verge of
bankruptcy.
The newest park attraction at Disneyland Paris, Walt Disney
Stud-
ies, featured Hollywood-themed attractions such as a ride called

26. “Armageddon—Special Effects” based on a movie starring
Bruce
Willis, fl opped. Guests said it lacked attractions to justify the
entrance price, and others complained it focused too much on
American, rather than European, fi lmmaking. Disney blames
other
factors: the post-9/11 tourism slump, strikes in France, and a
sum-
mer heat wave in 2003. The French government came to the aid
of
Disneyland Paris with a state-owned bank contribution of
around
$500 million to save the company from bankruptcy.
A new Disneyland Paris CEO, a former Burger King execu-
tive, introduced several changes in hopes of bringing the Paris
park back from the edge of bankruptcy. To make Disneyland
Paris
a cheaper vacation destination, the CEO lobbied the government
to open up Charles de Gaulle airport to more low-cost airlines.
Under his direction, Disneyland Paris created its fi rst original
character tailored for a European audience: the Halloween-
themed
“L’Homme Citrouille,” or “Pumpkin Man.” He has also
introduced
a one-day pass giving visitors access to both parks in place of
two
separate tickets. He is planning new rides, including the Tower
of
Terror, and other new attractions. If these changes fail to bring
in
millions of new visitors, Disney and the French government
might
once again be forced to consider dramatic measures.
Even though French President Jacques Chirac called the spread
of American culture an “ecological disaster” and the French
gov-

27. ernment imposes quotas on non-French movies to offset the infl
u-
ence of Hollywood and offi cially discourages the use of
English
words such as “e-mail,” Disneyland Paris was important to the
French economy. In light of France’s 10 percent unemployment
at
the time, Disneyland Paris is seen as a job-creation success. The
company accounted for an estimated 43,000 jobs and its parks
at-
tracted over 12 million visitors a year, more than the Louvre
Mu-
seum and the Eiffel Tower combined. By 2008 Disneyland Paris
was experiencing increases in park attendance, and the
turnaround
appeared to be working.
DISNEY’S GREAT LEAP INTO CHINA
Disney’s record with overseas theme parks has been mixed.
Tokyo
Disneyland is a smash hit with 25 million visitors a year, and
Disneyland Paris, opened in 1992, was a fi nancial sinkhole
that just
now is showing promise of a turnaround. Disney was
determined
tourists’ habits around the continent. Separate marketing offi
ces
were opened in London, Frankfurt, Milan, Brussels, Amsterdam,
and Madrid, and each was charged with tailoring advertising
and
packages to its own market. Prices were cut by 20 percent for
park
admission and 30 percent for some hotel room rates. Special
pro-
motions were also run for the winter months.

28. The central theme of the new marketing and operations ap-
proach is that people visit the park for an “authentic” Disney
day
out. They may not be completely sure what that means, except
that
it entails something American. This approach is refl ected in the
transformation of the park’s name. The “Euro” in EuroDisney
was
fi rst shrunk in the logo, and the word “land” added. Then in
Octo-
ber 1994 the “Euro” was eliminated completely; the park was
next
called Disneyland Paris; and now Disneyland Resort Paris.
In 1996, Disneyland Paris became France’s most visited tourist
attraction, ahead of both the Louvre Art Museum and the Eiffel
Tower. In that year, 11.7 million visitors (a 9 percent increase
from
the previous year) allowed the park to report another profi t.
THEME PARK EXPANSION IN THE
TWENTY-FIRST CENTURY
With the recovery of Disneyland Paris, Disney embarked on an
ambi-
tious growth plan. In 2001 the California Adventure Park was
added
to the Anaheim complex at a cost of $1.4 billion, and Walt
Disney
Studios Theme Park was added to Disneyland Paris. Through
agree-
ments with foreign partners, Disney opened Disney-Sea in
Tokyo
and Disneyland Hong Kong in 2006, and plans are underway for
a
theme park in Shanghai scheduled for 2014.
A decade after being slammed for its alleged ignorance of
European ways with EuroDisney, Disney is trying to prove its

29. got-
ten things right the second time around. The new movie-themed
park, Walt Disney Studios adjacent to Disneyland Paris, is de-
signed to be tribute to moviemaking—but not just the
Hollywood
kind. The Walt Disney Studios blends Disney entertainment and
attractions with the history and culture of European fi lm since
French camera-makers helped invent the motion picture. The
park’s general layout is modeled after an old Hollywood studio
complex, and some of the rides and shows are near replicas of
Disney’s fi rst fi lm park, Disney-MGM Studios. Rather than
cel-
ebrating the history of U.S. Disney characters, the characters in
the
new theme park speak six different languages. A big stunt show
features cars and motorcycles that race through a village
modeled
after the French resort town of St. Tropez.
Small details refl ect the cultural lessons learned. “We made
sure that all our food venues have covered seating,” recalling
that,
when EuroDisney fi rst opened, the open-air restaurants offered
no
protection from the rainy weather that assails the park for long
stretches of the year.
On the food front, EuroDisney offered only a French sausage,
drawing complaints from the English, Germans, Italians, and
everyone else about why their local sausages weren’t available.
This time around, the park caters to the multiple indigenous cul-
tures throughout Europe—which includes a wider selection of
sausages.
Unlike Disney’s attitude with their fi rst park in France, “Now
we
realize that our guests need to be welcomed on the basis of their
own
culture and travel habits,” says Disneyland Paris Chief

30. Executive.
Disneyland Paris today is Europe’s biggest tourist attraction—
even
more popular than the Eiffel Tower—a turnaround that showed
the
park operators’ ability to learn from their mistakes.
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Cases 2 The Cultural Environment of Global Marketing
To compensate for the lack of awareness of Disney characters
and
create the mystique of a Disney experience, Disney launched
nu-
merous marketing initiatives designed to familiarize guests with
Disneyland. One of the fi rst buildings upon entering the park
ex-
hibits artwork and fi lm footage of Disney history, from the cre-
ation of Mickey Mouse through the construction of Hong Kong
Disneyland. Tour groups are greeted by a Disney host who
intro-
duces them to Walt Disney, the park’s attractions, characters,
and
other background information. For example, the character Buzz
Lightyear explains Toy Story and the Buzz Lightyear Astro
Blaster
attraction.
Even though there were complaints about the park size and
the unfamiliarity of Disney characters, there were unique
features
built with the Asian guest in mind that have proved to be very
popular. Fantasy Gardens, one of the park’s original features,

31. was
designed to appeal to guests from Hong Kong and mainland
China
who love to take pictures. At fi ve gazebos, photo-happy
tourists
can always fi nd Mickey, Minnie, and other popular characters
who
will sign autographs and pose for photos and videos. Mulan has
her own pavilion in the garden, designed like a Chinese temple.
Mickey even has a new red-and-gold Chinese suit to wear.
Restau-
rants boast local fare, such as Indian curries, Japanese sushi,
and
Chinese mango pudding, served in containers shaped like
Mickey
Mouse heads.
All in all, Hong Kong Disney is Chinese throughout. It’s not
so
much an American theme park as Mickey Mouse coming to
China.
The atmosphere is uncomplicated and truly family oriented. It is
possible to have a genuine family park experience where six-
year-
olds take precedence. However, early advertising that featured
the
family missed its mark somewhat by featuring a family consist-
ing of two kids and two parents, which did not have the impact
it
was supposed to have, because China’s government limits most
couples to just one child. The error was quickly corrected in a
new TV commercial, which the company says was designed to
“forge a stronger emotional connection with Mickey.” The
revised
ad featured one child, two parents, and two grandparents
together
sharing branded Disney activities, such as watching a movie and

32. giving a plush version of the mouse as gifts. “Let’s visit Mickey
together!” says the father in the commercial, before scenes at
the
park set to traditional Chinese music.
Many other aspects of the park have been modifi ed to better
suit its Chinese visitors. The cast members are extremely
diverse,
understand various cultures, and, in many cases, speak three
lan-
guages. Signs, audio-recorded messages, and attractions are also
in several languages. For example, riders can choose from
English,
Mandarin, or Cantonese on the Jungle River Cruise.
Disney runs promotions throughout the year. For example, the
“Stay and Play for Two Days” promotion was created mainly to
give mainland tourists a chance to experience the park for a
longer
period of time. Because many Chinese tourists cross into Hong
Kong by bus, they arrive at Disneyland mid-day. With this
promo-
tion, if a guest stays at a Disneyland hotel and purchases a one-
day
ticket, the guest is given a second day at the park for free.
Special Chinese holidays feature attractions and decorations
unique to the holiday. For the February 7, 2008, New Year holi-
day (the Year of the Rat), Disney suited up its own house
rodents,
Mickey and Minnie, in special red Chinese New Year outfi ts
for
its self-proclaimed Year of the Mouse. The Disneyland Chinese
New Year campaign, which lasts until February 24, features a
logo
with the kind of visual pun that only the Chinese might
appreciate:
the Chinese character for “luck” fl ipped upside-down (a New
Year

33. not to make the same cultural and management mistakes in
China
that had plagued Disneyland Paris.
Disney took special steps to make Hong Kong Disneyland
culturally acceptable. “Disney has learned that they can’t
impose
the American will—or Disney’s version of it—on another conti-
nent.” “They’ve bent over backward to make Hong Kong
Disney-
land blend in with the surroundings.” “We’ve come at it with an
American sensibility, but we still appeal to local tastes,” says
one
of Hong Kong Disneyland’s landscape architects.
Desiring to bring Disneyland Hong Kong into harmony with
local customs from the beginning, it was decided to observe
feng
shui in planning and construction. Feng shui is the practice of
ar-
ranging objects (such as the internal placement of furniture) to
achieve harmony with one’s environment. It is also used for
choos-
ing a place to live. Proponents claim that feng shui has effects
on
health, wealth, and personal relationships.
The park’s designers brought in a feng shui master who rotated
the front gate, repositioned cash registers, and ordered boulders
set in key locations to ensure the park’s prosperity. He even
chose
the park’s “auspicious” opening date. New construction was
often
begun with a traditional good-luck ceremony featuring a carved
suckling pig. Other feng shui infl uences include the park’s
orienta-
tion to face water with mountains behind. Feng shui experts also
designated “no fi re zones” in the kitchens to try to keep the fi

34. ve
elements of metal, water, wood, fi re, and earth in balance.
Along with following feng shui principles, the park’s hotels
have
no fl oors that are designated as fourth fl oors, because 4 is
considered
an unlucky number in Chinese culture. Furthermore, the opening
date was set for September 12, 2006, because it was listed as an
auspicious date for opening a business in the Chinese almanac.
But the park’s success wasn’t a sure thing. The park received
more than 5 million visitors in its fi rst year but short of its
targeted
5.6 million, and the second year was equally disappointing with
attendance dropping nearly 30 percent below forecasts. Many of
those who came complained that it was too small and had little
to
excite those unfamiliar with Disney’s cast of characters.
Disneyland is supposed to be “The Happiest Place on Earth,”
but Liang Ning isn’t too happy. The engineer brought his family
to
Disney’s new theme park in Hong Kong from the southern
Chinese
city of Guangzhou one Saturday in April with high hopes, but
by
day’s end, he was less than spellbound. “I wanted to forget the
world and feel like I was in a fairytale,” he says. Instead, he
com-
plains, “it’s just not big enough” and “not very different from
the
amusement parks we have” in China. Hong Kong Disneyland
has
only 16 attractions and only one a classic Disney thrill ride,
Space
Mountain, compared with 52 rides at Disneyland Paris.
After the fi rst year’s lackluster beginning, Disney
management

35. introduced fi ve new attractions and added “It’s a Small World,”
the
ride made famous at the fl agship Disneyland in Anaheim,
Califor-
nia. A variety of other new entertainment offerings were due in
2008.
Guests’ lack of knowledge of Disney characters created a spe-
cial hurdle in China. Until a few years ago, hardly anyone in
main-
land China knew Mickey Mouse and Donald Duck even existed.
Disney characters were banned for nearly 40 years, so
knowledge
of Disney lore is limited. China was the fi rst market where
Disney
opened a park in which there had been no long-term relationship
with attendees. It was the Chinese consumer who was expected
to
understand Disney, or so it seemed. Chinese tourists unfamiliar
with Disney’s traditional stories were sometimes left bewildered
by the Hong Kong park’s attractions.
cat2994X_case2_019-046.indd …