Euro Disney: The first 100 days

Group-1
 Aditi Thapar (271121)
 Daksh Khanna (271133)
 Subham Bhattacharya (271170)
 Sajal Sharma (271181)
 Vanshika Rawat (271173)
 Vatsalla Khanna (271174)

NAME OR LOGO
Key Facts
○ The idea of a European theme park and resort complex had been germinating within Disney since 1980s

○ Disney felt that the success of the Tokyo park proved the international appeal of the concept

Where would Euro Disney be located?

○ The original bidding process involved Germany, Spain, France and others

○ Spain and France were considered most seriously for the project, which would provide more than 30,000 jobs
for the host country
• Advantage of Spain: Weather
• Advantage of France: Central Location
The final project was developed on a site 1/5th the size of Paris and to the West of it
Reasons for choosing France:

○ Easy access to the site by European Population

○ Highly popular vacation destination

○ Contractual Concessions made by the French Government

NAME OR LOGO 2
Goals for Euro Disney
○ Euro Disney was 49% owned by The Walt Disney Company and 51% owned by a separate company
called Euro Disney S.C.A. which traded on the French Bourse

○ All shares were initially offered to the European investors

○ The initial target was to attract 11million visitors in the first year and achieving an operating income of
$373 at April 12, 1992 exchange rates

○ The company planned Phase-2 of the Euro Disney Project which would include a Disney-MGM Studios
Park and an additional 13000 hotel rooms opening in 1996

○ Euro Disney President Robert Fitzpatrick predicted that Europe would become as important to the future
success of Disney as America

Failure of Euro Disney

○ Till July 1992, the attendance was 3.6 million

○ Shares of Euro Disney dropped 2.5% capping a 31% loss since opening the park

NAME OR LOGO 3
Problem Identification
Key Problem Problem Breakdown

Self Reference Inconsistency

Project Employee Theme Style
Criterion Forecasting
Ticket Pricing
Relayed Issues Mixing
with French
Culture

Defined as an unconscious reference to

Under promised Long hours and Mixture of
one’s own cultural values, experiences Targets chaotic pace American,
No Wine
allowed Inside
and knowledge as a basis for decisions. •11 million visitors (High attrition
French, the park
That is to say that one’s own culture or European
•$373 million operating Rate)
themes
company knows the best how to do income
Less Number
things (citeman.com). No of Restaurants
accommodation
for staff
Long Waiting
Queues
Grooming
Practices

NAME OR LOGO 4
Alternatives
1 Promotion : Marketing of the Park 2 People : Align French Culture with staff
management
• Marketing of the Park to achieve desired attendance • Follow “Think Globally, Act Locally” concept of team management
• More focus to increase winter attendance of the parks (low and training
bookings for October, November and December) • Train and groom ‘cast members’ in accordance with the European
• Marketing the park using emotional appeal Culture (avoid following American methods of team management)
• Improved HR Policies (reduced working hours, non monetary
incentives, employee grievance cell etc)

Physical Evidence : Making the park

3 Process 4 ‘culturally fit’
• Making the park experience more close to “self”
• It aims to solve the problem of long queues
• Seamless blend of European and American cultures in the park
• Digitisation of crowd management process could help (Token design was required
system)
• Adding adequate number of restaurants, wine shops, local
music, local food etc

NAME OR LOGO 5
Decision criterions for analysing and evaluating
alternatives:

Cost Analysis

Decision
Criteria
Alignment
with strategic Time
intent of Analysis
organization
NAME OR LOGO 6
Analysing and Evaluating alternatives:
Alternatives/Decision Making Cost Analysis Time Analysis Alignment with strategic
criteria intent of organization

1. Align French culture with High cost in designing employee Additional time needed so as to Blending the country’s cultural
staff management training activities which are in implement the changes and bring values with their experiences
program sync with different culture it to life. Also, training the cast would only help them achieve
members based on the culture their overall goal of “making
would take time. people happy”.
2. Process Improvement Cost involved would range from Medium level of time involvement Process improvement would add
low to medium, based on the would be required in identifying, to the overall experience of the
level of digitization company wish analysing, evaluating and guests and would help company
to opt for implementing the best methods achieve their overall goal.

3. Change in marketing Initial cost would be high, as Time would be needed to Changing the strategy as per the
techniques they would have to design a new implement a new strategy. It culture, would only make the
plan altogether. However, with would require proper assessment potential customers aware and
time, this cost is most likely to of the market and a detailed satisfied, thereby fulfilling the
reduce. marketing plan. goal.
4. Making the park Re-constructing some parts of Interior would be designed Designing the park basis the
“culturally fit” the park would lead to additional keeping in mind the likes and needs of the people would add to
cost. However, in long run it dislikes of local people. the goodwill. So, they would be
would prove to be beneficial. Therefore, a proper analysis willing to visit the park more
would be needed. often.

NAME OR LOGO 7
Selecting the preferred alternative:
We are selecting the following alternative:

Alternative/Decision Making Cost Analysis Time Analysis Alignment with strategic

criteria intent of organization
Making the park “culturally Re-constructing some parts of Interior would be designed Designing the park basis the
fit” the park would lead to additional keeping in mind the likes and needs of the people would add to
cost. However, in long run it dislikes of local people. the goodwill. So, they would be
would prove to be beneficial. Therefore, a proper analysis willing to visit the park more
would be needed. often.

• This alternative has been selected as it aligns with our action plan, and solves the main problem
• For an organization to grow and attract customers, it needs to cater according to the culture of that
particular place
• The personal connection can be developed only when people are able to get experiences based on their
expectations

NAME OR LOGO 8
Developing an Action Plan
Finding the right mix between Disney Employee training practices and French work life
Step 1 preferences
• Find the right motivational tools for French work force
• Design grooming standards as per French Culture
• Re design uniforms as per French Standards
• Provide Cost effective housing solutions to employees
• Negotiate with labour unions

Step 2 Blend the French cultural values into Disney’s delivery of experiences
• Partner with famous local restaurants and food chains and incorporate them within the park
• Consumer perception of price quality ratio is key in service delivery thus adopt an overall pricing model as per consumer’s perception
• Install points of alcohol sale and consumption within the park
• Entertainment shows should be bilingual i.e. in both English and French

Step 3 PR campaign (Most Important)

• Build relationships with French and other European journalists
• Do damage control with press releases
• Launch off-park activations throughout France and other key territories of European market
• Involve French workforce and locals in PR campaigns
• Use social media to boost PR with paid influencers

NAME OR LOGO 9
Thank You