Business Development Case Study: Euro Disney's Expansion Failure

This case study analyzes the Euro Disney's expansion into Europe, focusing on the cultural differences between the United States and France, using Hofstede's cultural dimensions and Trompenaars' framework. It highlights the business model failures, particularly in relation to ignoring French cultural norms, such as cuisine preferences and staff courtesy. The study points out mistakes in the park's layout and lack of cultural adaptation. Recommendations include blending with the host culture, avoiding overextension, and respecting local sentiments. The case study emphasizes the importance of considering cultural factors when managing multinational enterprises to ensure success in international markets. The case study provides insights into how Disney's approach, successful in other locations, faltered due to a lack of cultural sensitivity, ultimately leading to significant business challenges.

Running head: EURO DISNEY CASE STUDY
EURO DISNEY CASE STUDY
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................4
Anser to Question 4.........................................................................................................................4
References........................................................................................................................................5

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Answer to Question 1
The cultural comparison between United States and France using Hofstede`s four cultural
dimensions are given as follows:
Power Distance
The Power distance index elaborates the extent to which the powerful members of an
institution and the less powerful members in a country tend to accept and except the power
which is distributed among the different country members (García-Sánchez, Rodríguez-Ariza
and Frías-Aceituno 2013). France has a score of 68 in this Index, which means that the power in
the country is centralized. In the United States, the score is at a low of 40, which means that the
power in States is not centralized.
Individualism
This index refers to the amount of interdependence a society has amongst its members. In
France, the score is 71 and in the United States, the score is 91. This means that the people in
France are quite dependent on one another whereas the people in the United States are not.
Masculinity
The particular dimension indicates how the society is driven by achievement, completion
and success. The score of France in this index is 43, which mean that the culture is relatively a
Feminine one and for United States, it is 62, which means that the society is driven by
competition (Minkov and Hofstede 2014).
Uncertainty avoidance

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This index is driven by the fact ho a society tends to deal with the uncertainty with
respect to the future of the organization. With a score of 46, the people in the United Stets are
open to new ideas and concepts. France has a score of 86 in the index and hate surprises.
Answer to Question 2
As the multinational enterprises have been expanding, it has become extremely important
for any business enterprise to keep into mind the cultures of the various organizations, which
they deal with. According to the theory which has been suggested by Fons Trompennars, if the
cultural differences of the country are understood in a better manner, that shall help in
understanding of the reality in a better manner (Ferraro and Briody 2017). Fons Trompenaars
provides frameworks, which helped in comparison of the cultures of United States and France,
and in simple terms, it can be stated that the culture of France is sophisticated and restricted.
They do not like uncertainty and are extremely particular about their work. On the other hand,
the people in United States are open to new ideas and do not feel that the future is uncertain.
They have progressive approach to life, which is reflected by their manner.

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Answer to Question 3
With respect to managing Euro Disney, land the company made the given mistakes:
 It did not consider the business model of the park.
 The cuisine was not kept in mind (Chhokar, Brodbeck and House 2013). The French are
used to having wine with their meals, which as not implemented in France keeping in
mind the anti-drinking policy used in the parks worldwide.
 The staff as not courteous enough according to the visitors. The French are stated to be
very sophisticated who greet one another with respect. The staff failed to serve the
consumers.
Answer to Question 4
Recommendations:
 The park followed the same layout in all parks, which should not have been the case.
Disney should make sure that there must be hints of their own culture in parks around the
world. They should blend with the host culture.
 When the companies need to diversify, they should not over extend their operations. The
Disney land at Europe as over confident and hurt the sentiments of the nationals.
 They failed to take equity in their earlier country in Tokyo, but they did so in Europe.
They assumed that doing so in both the countries would have been helpful but this was
not the case.

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References
Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the
world: The GLOBE book of in-depth studies of 25 societies. Routledge.
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Taylor &
Francis.
García-Sánchez, I.M., Rodríguez-Ariza, L. and Frías-Aceituno, J.V., 2013. The cultural system
and integrated reporting. International Business Review, 22(5), pp.828
Minkov, M. and Hofstede, G., 2014. A replication of Hofstede’s uncertainty avoidance
dimension across nationally representative samples from Europe. International Journal of Cross
Cultural Management, 14(2), pp.161-171.