Euro Disney Case Study: Exploring the 1992 Cultural Disaster

This case study analyzes the Euro Disney disaster of 1992, focusing on the cultural differences that contributed to its failure. It explores the issues arising from a lack of understanding of French culture, including language barriers, dietary preferences, and vacation habits. The assignment examines how the imposition of American business practices, such as restrictions on alcohol and breakfast arrangements, alienated French visitors. Furthermore, the study highlights the importance of market research and the adaptation of business strategies to local cultural norms. The case study also discusses the impact of these failures on the financial performance of Euro Disney and provides insights into risk management and the importance of understanding the target market's preferences. It offers a comprehensive overview of the causes of the Euro Disney failure and the consequences of neglecting cultural sensitivity in business operations.

Running Head: EURO DISNEY DISASTER
EURO DISNEY DISASTER
Name of the Student
Name of the University
Author Note

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EURO DISNEY DISASTER
Greetings to the audience:
Good morning everyone. Today we have gathered here to delve deep into the case study
of Euro Disney disaster 1992 and observe the Euro Disney incident from cultural aspects. All
through these presentation slides I have highlighted the consequences and causes behind Euro
Disney disaster along with the steps could be taken to prevent the issue.
Title slide:
Title: Cultural Problems Encountered By Euro Disney in the Year 1992 And The Consequences
Euro Disney Case Study:
Euro Disney, the subsidiary of Walt Disney Company, opened a theme park in France, in
the year 1992, with the hope of earning equal success similar to the Disneyland in California.
Euro Disney in the country of France became a failure and the company incurred a total loss of
amount $1 billion (Newell 2013). This can be attributed to the inability of the company to offer
the savor of French culture to the French visitors.
Root causes of the failure:
Operations managers of Euro Disney implemented American risk management
techniques in the environment France. Firstly they did not focus on the language barriers,
between American as well as French culture. French language was not used to draw the attention
of the visitors at the time of promotion of Euro Disney Park. Secondly, the company forcefully
imposed its policy of not offering alcohol to the visitors in France, following its treatment to the
visitors in California Florida, and Tokyo (Newell 2013). This astonished French visitors, as,
French people usually have a glass of wine during lunch (Grayson et al. 2017). Thirdly, due to

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the inadequate knowledge about the breakfast norms of the people of France, Disney assumed
like the people of America French people did not sit down at the time of having breakfasts. As a
result of this, Euro Disney downsized their restaurants before the opening of Euro Disneyland
and after the park was open for the visitors, restaurants were flooded with customers (Grayson et
al. 2017). French people, who actually preferred to have their breakfast in a calm and quiet
atmosphere following the table manners; were highly dissatisfied with these faulty arrangements.
Fourthly, it can be said that there was a lack of understanding and research on the targeted
customers’ taste and preferences, for which Euro Disney made fruitless attempts to transform the
approaches of the Europeans towards vacation (Grayson et al. 2017). Europeans do not want
their children to enjoy vacation in the midst of a session, but Americans have no issue to enjoy
mid-session vacations with their children. Again, unlike Americans, Europeans prefer longer
holidays. However Euro Disney did not focus on the likes and dislikes of European visitors at the
time of offering discounts for a visit which resulted into a substantial decline in the number of
visitors.
Greetings: Thank You.

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Reference:
Grayson, L.E., Sheikholeslami, G., Grayson, L.E., Sheikholeslami, G. and Rubenstein, F., 2017.
Euro Disney or Euro Disaster?. Darden Business Publishing Cases, pp.1-14.
Newell, L.A., 2013. Mickey Goes to France: A Case Study of the Euro Disneyland
Negotiations. Cardozo J. Conflict Resol., 15, p.193