Euro Disney Case Study: Cultural and Management Challenges

This case study analyzes the challenges faced by Euro Disney, focusing on cultural differences between the United States and France using Hofstede's model and Trompenaar's research. The assignment identifies three key operational mistakes, including poor management, inadequate staffing, and cultural errors, such as failing to understand French cultural norms. It also highlights three crucial lessons the company needed to learn, emphasizing the need for a better understanding of European culture, improved employee management, and realistic planning. The study underscores the importance of adapting business practices to local cultural contexts for international business success. The analysis includes references to relevant books and journals to support the findings.

Euro Disney Case Study

TABLE OF CONTENTS
1. Hofstede's model four cultural dimenions as point of referance and Main cultural difference
between USA and France.......................................................................................................1
2. Support of Trompenaar's research in determination cultural difference ...........................2
3. Three mistakes made by Euro disney in operations management......................................2
4. Three lessons company required needs to learn with diversity..........................................3

1. Hofstede's model four cultural dimenions as point of referance and Main cultural difference
between USA and France.
Having an extreme understanding of differnet cultural in different country is important in
internationa business France and us also have important cultural differences thoug they are both
western culture organization. It is cultural dimensional model which is used in this report to
determine the concepts of case study and point of refrance. Below given are four cultural
dimension of Hofstede's model like:
 Power distance: It is one of the four dimensions that indicates the cultural differences
among the US and France. It is index measures the extent to which lower class of the
society accept the ruling by the leaders of the society ie is not equal delegation of powers
(Minkov and Hofstede, 2012). In USA, this index is very low in comparsion with the
country france. Futher, presently the equality between the social levels is very much
greater. It is also analysed that People in France also feels like they are foreigners in
their own country when they gives advertisements for job bids in English language.
Further, most of the supervisors in Disney were American who were not good in
speaking French.
 Uncertainity Avoidance: It deals with the tolerance of the society for the ambiguity as
well as uncertainity which ultimately termed as the individual's serch for truth. People OF
france posses strong uncertainity avoidance because they are always desire to look
expression and risk (Rienties and Tempelaar, 2013). As per case study analysis, 29% of
visitors from france have visited to the Euro disney land when it was opened in its first
year. Americans who are considered as opposite from them and considered as more
tolerant of opinions have perfomed differently and became more Unemotional as well as
meditative.
 Individualism: Naother important dimension provides an understanding of the people to
always look mainly after ownselves and also its family persons. In both countries,
individualism is up to extent level. Through implementation strict code of appearance,
for example Male short hairs as well as Banned beared, people of France feel insulted
about their own traditions.
 Masculinity: As per the case study, society with the more maculanity places high values
of success and funds. US have posses very high masculanity on the other hand France
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has very low. Culture of France was not considered as priority for the Disney at when it
was started in America.
2. Support of Trompenaar's research in determination cultural difference
With referance to case study, the Trompenaar has determined the difference in culture by
using following methods like:
 Universalism and Particularism: Nationsbased Universalitic culture usually provides
more focus on formal rules rather than relationship (Bakir and et.al., 2015). Author has
said that USA is more Universalistic as compared to France because they always ignore
culture of different nations. On contrary to this, people of France based on particlularism
culture as they provide more focus on relationships rather than traditional rules.
 Neutral and emotional: From the analysis, it is recognised that Neutral culture is not
effective culture in which the emotions of people are held in check. Individual's does not
express their emotions maintain secrecy. Whereas Emtional culture people express there
feeling closely. Trompenaar's research states that both France and US are emtional
countries.
 Specific ad diffuse: Culture in which the people posses a large public space abd they
also other people to share the space is considered as specfic culture. American always
shows a strong dividation between their work and private life. Diffused culture contains
space whose size is similar in both private as well as public. Review of Author stated that
France consits of diffuse culture where the working life as well as personal life is closely
and carefully preserved by individuals.
3. Three mistakes made by Euro disney in operations management.
Operations management has been considered as important for every company as its helps to
manage businessand achievement of growth (Voigt, Buliga and Michl, 2017). As per case study,
the three major mistakes which are done by Euro disney is mentioned above:
 Lack of management: Major mistake that leads to the company towards failure was its
wrong self assessment which has emerged by taking incorrect decisions by
management. Walt disney organization is owner high property in Euro disney land due to
which major decisions where takn by Americans people who does not have an
understanding of French culture.
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 Appropriate staff: Next fault which is done company was not hiring appropriate staff at
workplace as they does not have proper staff management. They face problems in their
peak days due to which their workers face problem of high work load. Further, disney
land's continuous rising demand related to dresses and appearance along with the other
problems has created poor employee relations.
 Cultural Errors: With referance to case, there are lot of mistakeshave been made by
management of Walt disney which has affected the French culture. Moreover, the policy
of not providng the Alcohol has caused conflict and there is only one glass one wine was
served lunch. They have also failed to proper service according to Euro culture. Most of
the food parlours consist of American theme which was not developed according to the
habits as well as time of European culture.
4. Three lessons company required needs to learn with diversity
As per case study, three lessons needs to have been learned by the company which are as
follows: Better analysis of European culture: It is considered that the management of
organization needs to be aware about the preevious culture of Europe and according
which to they will be able to change their settings and resturants (Karadjova-Stoev and
Mujtaba, 2016). They also need to consider the habits, life style and culture of people of
France in order to provide them satisfaction. They need to act globally but require to
think locally. Employee management: They need to manage their employees by hiring qualified
employees at workplace from diversified culture so that they can handle people of
different culture. Also manage the responsibilities at work so that there work load in peek
time of Holidays will be managed.
 Development of realitic planning: Further, company does not posses the knowledge and
experience of dealing in market EU, they more forward by taking an assumption that
their first phase will meet their expectation but it was considered as risky for them to
gamble undertake. Without having experience of EU market in operating them park.
Company will face challenges.Thus, company needs to build an experience first then
need to start their second phase.
REFERENCES
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Books and Journals
Minkov, M. and Hofstede, G., 2012. Hofstede’s fifth dimension: New evidence from the World
Values Survey. Journal of cross-cultural psychology. 43(1). pp.3-14.
Rienties, B. and Tempelaar, D., 2013. The role of cultural dimensions of international and
Dutch students on academic and social integration and academic performance in the
Netherlands. International Journal of Intercultural Relations. 37(2). pp.188-201.
Bakir and et.al., 2015. A preliminary investigation of the reliability and validity of Hofstede’s
cross cultural dimensions. In Proceedings of the 2000 Academy of Marketing Science
(AMS) Annual Conference (pp. 226-232). Springer, Cham.
Karadjova-Stoev, G. and Mujtaba, B.G., 2016. Strategic human resource management and
global expansion lessons from the Euro disney challenges in France. The
International Business & Economics Research Journal (Online). 15(3). p.79.
Voigt, K.I., Buliga, O. and Michl, K., 2017. Making People Happy: The Case of the Walt
Disney Company. In Business Model Pioneers (pp. 113-126). Springer, Cham.
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