Critical Analysis of Euro Disneyland's Challenges and Solutions

This report presents a critical analysis of the Euro Disneyland case study, examining the challenges Disney faced when opening the theme park in France. The report identifies key problematic issues, including cultural differences, government relations, and inaccurate visitor predictions. It evaluates the mistakes made by Disney in managing the operations, such as overlooking cultural nuances and overestimating initial visitor numbers. The analysis proposes alternative solutions, with a focus on localization of the park to better align with French culture. The report also highlights the lessons Disney learned from this experience, emphasizing the importance of respecting cultural diversity, making accurate financial predictions, and adapting to local preferences. The conclusion underscores the significance of understanding cultural differences for successful international business ventures and the importance of strategic planning.

Running Head: CRITICAL THINKING CASE STUDY: EURO DISNEYLAND
Title: Critical Thinking Case Study: Euro Disneyland
Student’s Name:
Teacher’s Name:
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2CRITICAL THINKING CASE STUDY: EURO DISNEYLAND
Abstract
In this report, the scholar had provided answers to some questions regarding the problems
faced by Euro Disneyland while operating in France. The root causes of the problems are
evaluated and suggestions for their mitigation are duly provided. Finally, lessons learned from
the failure of Disneyland in this country are mentioned.

3CRITICAL THINKING CASE STUDY: EURO DISNEYLAND
Table of Contents
Introduction......................................................................................................................................4
Main Problematic Issues in the Case...............................................................................................4
Mistakes Made By Disney While Managing Euro Disney Operations...........................................4
Ways of Disney’s’ Mistake Resolution...........................................................................................5
Best Alternative Solutions and Reason for Its Selection.................................................................6
Lessons Learned by Disney through its Experience While Dealing With Diversity......................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

4CRITICAL THINKING CASE STUDY: EURO DISNEYLAND
Introduction
In this report, the scholar had provided answers to some questions from the case study of
Euro Disneyland. The issues Disney had faced while opening Euro Disneyland in France, due to
cultural differences is mains theme of the report. After finding the reasons, some alternative
solutions are suggested among which the best one is selected.
Main Problematic Issues in the Case
The main issue, which was problematic for Euro Disneyland before it was made, is that
the government was signing with Disney to give away a big area of farmland for Euro
Disneyland. The farmers had continued to farm in those areas for centuries and were unsure
about what occupation they would take after the farmland is taken. Moreover, the labor
federation of France was also communist-dominated, and they doubted whether the Disneyland
will create job opportunity or not. The intellectuals of France started to protest against it and said
that they are Americanizing the place and making the children consumers too (Grayson &
Sheikholeslami, 2017). On the other hand, the government was unable to take the side of its
citizens because they it to be a profitable deal of the century. Though many positive benefits
were expected from Euro Disneyland, in reality, it had to face many lows, such as rotten eggs
pelting at a news conference. Moreover, the expectation of a large number of visitors made them
reduce the price largely, but due to low footfalls, they had faced loss.
Mistakes Made By Disney While Managing Euro Disney Operations
One of the greatest mistakes which Disney probably made was the prediction of probable
visitors in the first years of its operation. They predicted around 10 to 11 million visitors in the
year, and that is why the price of hotels and restaurants is reduced largely. Finally, occupancy

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was registered to be around 40 percent, which made them face greater losses. The CEO of Walt
Disney Company was very enthusiastic about the project and thought that Disney is the first
American company to make private investment in France which is a great achievement so far
(Yu, 2017). However, after the first development phase, Disneyland had planned a second phase
which required great investment. The company was searching for potential financial sources, and
until they were able to find it, they drained the cash reserves of Disney, which is considered
another great mistake. The culture of France is in many ways different from that of America, and
while starting its operation, Disney completely overlooked it. As a result, the locals of France
protested that Euro Disneyland is more US pop culture, and it should be reduced while
incorporating local French culture.
Ways of Disney’s’ Mistake Resolution
In order to solve the problem, Disney would have to set a goal regarding what it wants
from Euro Disneyland or how they would like the park to perform. The performance they
expected from Euro Disneyland at France was not even half met, because the footfall was less
than 40 percent, than what was expected. The cause behind this huge gap between the actual and
expected footfall is cultural difference of America and France. According to the Business
Problem Solving Model, after the problem is defined and measured, its root causes are found and
the goals to be met are established, the next step is to find the alternative strategies to solve the
problem (Ariëns, 2017). In the case of Euro Disneyland, the CEO could have conducted more
research about the culture of France before opening Disneyland there. Other than that, they could
have also tweaked the themes of the park and make is more French, so that more children and
local people find it relatable to their culture. Moreover, when they were selecting France over

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Spain due to more customer base, they could have alternatively selected Spain considering the
good weather there, which could have attracted customers from other nearby countries as well.
Best Alternative Solutions and Reason for Its Selection
In the previous section, the scholar had provided some solutions for the correction of
mistakes made by Disney before and while opening Euro Disneyland. Among the solutions, the
one alternative which seems the best is the localization of Disneyland. It would have required
more rigorous research from the side of Disney, which would have taken much time. However,
after considering the needs and wishes of the local people, if Disney would have come in
negotiation with the local government, then they would have created a better image for its brand
(Bruner, Langdon & Campbell, 2017). This brand image would have transformed into more
people liking Disneyland and thus visiting the place in a larger number and in more number of
occasions. The appearance code which was extremely strict should have been made less strict so
that people there could be more at ease while visiting Euro Disneyland. The intervention of the
French government could improve the situation further.
Lessons Learned by Disney through its Experience While Dealing With Diversity
There are a few lessons, which Disney could have learned from the experience they had
at Euro Disneyland, during its opening, and also before its opening. At first, the company should
have learned to respect the cultural diversity of other countries. If they had understood the
mindset of French people, they could have dealt with them better. Secondly, the company should
have learned to make better predictions, especially in the case of finance (Koehler, 2017). If they
had done so, then they would not have reduced the hotel and restaurant price and had made
significantly more profit. Thirdly, predicting the number of visitors should be done with great
care while taking in account multiple factors, lack of which had resulted in a difference of 60

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percent in the expected and actual footfall of visitors in the first year of the opening of Euro
Disneyland. Fourthly, they should have learned not to make such strict rules for employee
appearance at a theme park like Disneyland, because it takes away the rights of the citizens of
France regarding individual liberty.
Conclusion
From the questions answered about Euro Disneyland in the report, it can be concluded
that the financial and other failures faced by the company in France are due to the lack of
understanding of cultural differences. It helped the company learn lessons such as respecting the
culture of others and making better predictions for the future to make better profits.

8CRITICAL THINKING CASE STUDY: EURO DISNEYLAND
References
Ariëns, M. G. B. (2017). Here You Leave Today and Enter the World of Yesterday, Tomorrow,
and Fantasy." An analysis of Disneyland Anaheim, Disneyland Paris, and Geert
Hofstede's Dimensions of National Cultures.
Bruner, R. F., Langdon, J., & Campbell, A. (2017). Euro Disneyland SCA: The Project
Financing. Darden Business Publishing Cases.
Grayson, L. E., & Sheikholeslami, G. (2017). Euro Disney or Euro Disaster? Darden Business
Publishing Cases.
Koehler, D. (2017). The Mouse and the Myth: Sacred Art and Secular Ritual of Disneyland.
Indiana University Press.
Yu, I. H. (2017). Investigating the poor financial performance of Disneyland Paris.