University Case Study: Euro Disney's French Debacle

This case study analyzes the Euro Disney's failure to generate profitability in Paris, attributing the problem to a lack of understanding and consideration of French culture. The analysis identifies key issues such as high prices, disregard for local customs, and operational errors, including the policy of not serving alcohol. The report explores alternative strategies Euro Disney could have adopted, emphasizing the importance of market research, cultural sensitivity, and the implementation of local management. The best alternative is deemed to be an operational plan involving French managers and cultural diversity. The case highlights the significance of planning and understanding cultural differences in international business, with the conclusion that Euro Disney's failure was primarily due to a lack of adaptation to the French market and customer preferences. Lessons learned include the value of financing control and integrated assumptions.

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Management
Name of the Student
Name of the University
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Introduction
Euro Disney, which is considered to be the new theme park failed drastically in
generating profitability for their first time in Paris as it failed in attracting the different
visitors. For the different visitors, it was being seen that the theme park was highly expensive
and it ignored the French culture highly. Euro Disney tried to take loans as well as investment
along with increased attributes, however, Euro Disney had a tough time in France initially as
there were few operational glitches which affected the French culture.
For instance-The case was related to the Walt Disney organization’s policy of not
serving alcohol in the parks in Florida as well as Tokyo. In the report, the main aim and
objective is to understand the different problems and issues which have been described in the
case in case of Euro Disneyland in France. Moreover, the best alternatives and the lessons
learnt on dealing with diversity will be included for better understanding of scenario.
Analysis of Identification of Problem and Main Issues Described in Case
The case of Euro Disneyland assists in analysing the deficient in of cultural hub as
well as consciousness of the concept that was the globalization of the respective company
named Disney land Corporation. The different issues and problems which were faced by Euro
Disneyland was similar to the multinational corporations which have been unsuccessful in
implementing the diverse or cross-cultural strategies and management aspects. In addition,
the company failed to a great extent in implementing the French culture and due to this, they
created the environment that was unacceptable by the culture of European people (Yu, 2017).
Moreover, the cultural difference between USA and France was completely ignored
by Euro Disneyland and as the consequence; the various regional food of America was
properly implemented for making the Euro Disneyland culture much like them (Rijkers,

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2016). Additionally, the training and development was the other problem which impacted
Euro Disneyland as providing training to the ones who have been hired within 12 months was
considered to be the great challenge. The big challenge which was faced by Euro Disneyland
was related to the implementation of the “have a nice day” attitude among employees and
greeting customers with smile. However, the main problem was arising which was the
staffing related aspects that the company Euro Disneyland found was the Look of Disney,
dress code of Disney that was the rigid code and well-scrubbed. Therefore, due to the
American culture and etiquettes, the company failed to survive in France (Littaye&Ghez,
2019).
The cultural operational errors were the other major problem or issue for Euro Disney
which affected the performance as well as attendance of Disney. The not serving of alcohol
created amazement of the different customers in France as it is the normal aspect for French
people.
Analysis of Alternatives to Euro Disney for Resolving Mistakes
From the analysis of the problems, it can be seen that there are different alternatives
which should have been adopted by Euro Disney for resolving the different mistakes. Euro
Disneyland should have taken the overall control of management related resolution along
with analysis of the different problems as well as concerns which are mainly based on the
own practice in other places (Lam& Lim, 2016). Therefore, there is essential requirement of
understanding along with appropriate planning for reducing gap in cultural differences which
can be acknowledging characteristics as well as attitudes of national Europeans in working as
the French culture for accomplishing successful results.
The respective organization or the theme park needs to implement the different
European kind of approaches for managing the different preferences of the customers who

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are based in French or in other country. Market Analysis and Research are the two most
important alternatives which could be developed as it will be providing them a brief idea on
the different cultures and happenings as each country has their own individualism. Disney
lacked the appropriate information regarding culture of French and preferences of
customers(Grayson&Sheikholeslami, 2017). In such scenario, the analysis of market is the
key element which could have been implemented in order to understand the appropriate
aspects which could be able to understand the preferences of customers in France.
Development of proper alternativesis the second step which can be undertaken by
Euro Disneyland for development of alternative plans. Disney became blind after they
received huge success in Japan and they did not stop considering the previous experiences
and due to the same, it impacted their performance (Bruner, Langdon& Campbell, 2017). If
the business plan was made considering the different uncontrollable factors which was
around them, it could have been appropriate for them in benefitting success.
Analysis of the Best Alternative
From the analysis of the different alternatives, it can be seen that the best alternative
which can be playing a avital role in improving growth of the business isOperational Plan
wherein while opening the new business in the new market of France, the main ideal was to
put the key French Managers for dealing with staffs and French Chairman along with HR
managers (Boga&Efeoğlu, 2017). Those managers who have the experience and know-how,
how to deal with the different staffs with executives and investors, decision-making is the key
element which should be implemented for becoming quick and efficient in making the
business plan successfully. The Cultural Diversity is the best model which will be best fitted
in the respective scenario as it will be helping them in learning from one another and it helps
in facilitating collaboration as well as cooperation.

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Reviewing and Assessing Effects of Solution and Lessons Learnt on Dealing with
Diversity
Therefore, till the respective phase, the respective organization are having various
problems as there was no plan which was being made by them and it impacted the growth of
the company. The lessons learned is that the planning is the concrete element which should
be implemented by the company while starting their business in a new region or country as
the cultural differences can crop up and it can be the complete failure for the business
(Ariëns, 2017).
The application of the potential needs along with understanding cultural differences in
the business plan is necessary element for deciding to start the business. In addition, value of
financing control is the other lesson, as in every business, integrated assumptions and valuing
the managing of menaces needs to be reviewed accurately and it will be capable of solving
problems as well as concerns in the business successfully (Ariëns, 2017).
Conclusion
From the above analysis, it can be inferred that the overall business of Euro
Disneyland was not becoming stable and efficient in France due to the cultural differences.
The major criticism which was faced by the company Euro Disneyland was the fact it was not
French or international made approach. Therefore, it was highly unsuccessful in satisfying the
different needs of the European customers as well. Euro Disneyland failed in initial stages as
there was lack of planning and proper knowledge regarding working or opening new business
in any other market. The case of Euro Disneyland may be considered to be the cross-cultural
lesson for the students or the business person which intends for working in the foreign
environment.

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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.
Boga, S., &Efeoğlu, I. E. (2016). A Case Study on Cross-Cultural Differences: A Failure
Story. In International Business: Concepts, Methodologies, Tools, and
Applications (pp. 1103-1142). IGI Global.
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.
Lam, J. S. L., & Lim, J. M. (2016). Incorporating corporate social responsibility in strategic
planning: case of ship-operating companies. International Journal of Shipping and
Transport Logistics, 8(3), 273-293.
Littaye, A., &Ghez, D. (2019). Disneyland Paris. Aldebaran Publishing.
Rijkers, D. D. (2016). An American in Paris: The Hyperreality of America as Presented in
Disneyland Paris.
Yu, I. H. (2017). Investigating the poor financial performance of Disneyland Paris.