MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH BUSINESS SCHOOL INTERNATIONAL BUSINESS MARKETING DEPARTMENT CASE STUDY REPORT GROUP 9 CASE 2 1 The Not So Wonderful World of Euro Disney Course nu[.]
MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH BUSINESS SCHOOL INTERNATIONAL BUSINESS -MARKETING DEPARTMENT CASE STUDY REPORT - GROUP CASE 2-1: The Not-So-Wonderful World of Euro Disney Course number: 22C1MAR50309605 Course name: Internaonal Markeng - EN Members of group 09 – Pink Organizaon Tran Ngoc Thien Kim - 31201020435 Le Thi Thao Trang - 31201024368 Ngo Thi My Hanh - 31201025745 Le Ngoc Yen Nhi - 31201024647 Ho Chi Minh City, October 26th, 2022 TABLE OF CONTENTS Case study Summary .2 1.1 The problems that caused Disneyland to fail in Paris 1.2.The problems that caused Disneyland to fail in Hong Kong 1.3 Disneyland's workaround and the result after Case study analysis according to individual opinions of our group 2.1.Problems that EuroDisney faced .5 2.2 Cultural differences between the United States and France .8 2.3 Evaluating the cross-cultural marketing skills of Disney 10 2.4 Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? In China? 12 2.5 Lessons learned from the faults of Disneyland 13 2.6 Recommended measures for Disneyland in Paris and Hong Kong 14 Case study analysis based on class answers 15 3.1.Discussion question 15 3.2.Discussion question 16 3.3.Discussion question 20 3.4.Discussion question 21 CONCLUSION .23 APPENDIX .23 Case study Summary 1.1 The problems that caused Disneyland to fail in Paris: Disney failed in both aspects: In culture and in international marketing Foreseeable factors: staffing problems, advert problems, and cultural differences ● Disney ought to have anticipated how the recession in Europe would alter the economic climate in France ● Given the amount of the investment and the number of jobs eventually reliant on the project's success, the relationship with the local government should have been handled with more care and delicateness ● Foreseeable events: 1992 Barcelona Olympics & World's Fair in Seville, Spain in 1992 Unforeseeable events: Gulf War in 1991, currency & airfare wars Unforeseen issues: The outbreak of the European recession, the 1991 Golf War, and rising interest rates were among the factors that management really couldn't see The downturn of the Franc currency on the global market was another external that had an impact on company and caused rivals to use other websites to attract customers These competitors represented the entire world at the Barcelona Olympics in 1992 and Seville in 1999 Controllable factors: ● ● ● ● Price: Expensive (should be cheaper to encourage attendance) Product: Mickey and Co (should be French cartoon characters) Promotion: American Culture (should be European culture) Channels of Distribution: Europe Uncontrollable elements Aspects of trade co have no control or influence over ● European recession in early 1990s & summer heat wave in 2003, competition, weather, government controls, etc ● Out of more than 200 other possible locations, Paris was selected for its more central location ● Dismal winter weather ● The different legal systems ● Foreign uncontrollable and Exchange rate 1.2 The problems that caused Disneyland to fail in Hong Kong: - Disneyland Resort Paris was on the verge of bankruptcy (2005) Visitors felt that the entrance price was still too high Complaints about too much focus on American rather than European film making Ecological disaster In Hong Kong, a lack of knowledge about the culture led to advertisement failure Hong’s’s guests lack knowledge of the American Disney characters Cultural differences and the inputs of ethnocentrism Disneyland Hong Kong also had some cultural missteps: A Disney ad in 2006 featured a family consisting of two kids and two parents China's government, however, limits most couples to just one child 1.3 Disneyland's workaround and the result after EuroDisney ● Change in Marketing: - Pay attention on differing tourist habits around the continent - Separating marketing office open in London, Frankfurt, Milan, Brussels, Amsterdam, and Madrid -> Change with tailoring advertising and packages to its own market - Price cut down 20% for park admission and 30% some hotel room rates - Special promotion for winter months Transformation in park’s name to be Disneyland Paris (October, 1994) Now it is called “Disneyland Resort Paris” ● Financial help The new Euro Disneyland brought nothing but debt in its first few years On March 14, 1994, The Walt Disney Company proposed a rescue plan to reduce debt At the heart of the project is the issue of rights to billion Francs ($1.25 billion), of which 51% will be guaranteed by 61 banks and the rest taken over by Walt Disney, which has a 49% stake in Euro Disneyland (Burgoyne, 2007) A rights issue is an offering that gives existing shareholders the right to buy shares, usually below market price, at a rate equivalent to their current ownership percentage ● Changing name In order to adapt to European tastes and turn around continued losses and reported slumping attendance, Euro Disneyland was changed into Disneyland Paris ● Saving costs Disneyland Paris cut 950 administrative posts in order to hold down costs and increase revenues (Greenhouse, 1991) ● Promotion They also offer a lower-priced "After 5" evening entrance ticket Responding to complaints regarding high entrance fees and hotel prices, Disneyland introduced cut-rate entry and room rates for the off-season (Greenhouse, 1991) ● Expanding market Disneyland Paris tried to expand their market to countries near Europe, such as African countries Disneyland Paris also marketed it as one of many stops on a month-long European itinerary rather than a vacation destination for a period of time => Result : In 1996, Disneyland Paris became France’s most visited tourist attraction Disneyland Paris has been dedicated to change, employee empowerment, and cultural respect: + Disneyland Paris was able to make its first annual profit of $20 million (1995) + Disney changed the names of rides, decreased language barriers alongside its multilingual employees + They have also had a great emphasis on intercultural relations as well + The park now employs people from 92 different countries + The park has become widely accepted in France => These strategic changes provided Paris Disneyland with more competitive forces in the industry => Disney's true success lies in adapting to the surrounding culture of the French and Europe as a whole, being marketing oriented in finding success in customer satisfaction Disneyland HongKong ● Language: The majority of staff are locals They are not only outstanding performers, but also fluent in Chinese, Cantonese, and English They are capable of guiding guests from all around the world, particularly those from China who are unfamiliar with Disneyland ● Culture: The change of strategy at Hong Kong Disneyland is revolutionary Hong Kong's environment is completely different from the US To adapt to the Hong Kong environment, it is necessary to change the culture: + Following feng shui principles, + Hong Kong Disneyland tries to combine Chinese culture into the American theme park, such as the Chinese Gazebo and Mickey‟s Chinese gown + "Journey in the Forest" and "Festival of the Lion King" are two unique programs in Hong Kong Disneyland that are not merely duplications of other Disneylands + There are supplies of various types of food from Asian nations such as China, Thailand, the Philippines, India, and Singapore to avoid the food and beverage difficulties in Paris The menus are different on festivals ● Promotion: + Hong Kong Disneyland planners keep on consolidating operations Having a clear marketing strategy since the beginning + Disneyland not only offers many types of services in the park, but also varied advertising campaigns in various regions, in order to attract their target guests ● Advertisement: + Hong Kong Disneyland has complete and long-term plans of every project and activity + Disneyland takes the advantage of mass media and different celebrations to market the fascinating Mickey Mouse => The culture helped Hong Kong Disneyland become more familiar with local people, thus it can get more competitive forces Case study analysis according to individual opinions of our group 2.1. Problems that EuroDisney faced: a Culture: Euro Disney-An American Icon One of the most worrying aspects of EuroDisney's first year was that French visitors stayed away; they had been expected to make up 50 percent of the attendance figures A park services consulting firm framed the problem in these words: “The French see EuroDisney as American imperialism—plastics at its worst.” ● The French don't like Disney characters ○ The well-known, sentimental Japanese attachment to Disney characters contrasted starkly with the unexpected and widespread French scorn for American fairy tale characters French culture has its own adorable cartoon characters like Astérix, the Gallic warrior… ○ Hostility among the French people to the whole “Disney idea” had surfaced early in the planning of the new project Paris theater director Ariane Mnouchkine became famous for her description of EuroDisney as “a cultural Chernobyl.” In the fall of 1989, during a visit to Paris, French Communists pelted Michael Eisner with eggs The joke going around at the time was, “For EuroDisney to adapt properly to France, all seven of Snow White's dwarfs should be named Grumpy (Grincheux).” ● Spending habits of Europeans ○ For the tourists at Tokyo Disney at that time, a trip to the park for a family of four staying the night at a nearby motel might cost nearly $600 The same family doesn't want to spend $280 per day at Euro Disney just to enjoy the park's activities, which include hamburgers and smoothies Due to costly hotel room charges (from $340 to $380 per night in EuroDisney’s hotel), many people frequently wonder whether to stay the night ● American free markets vs European caution and conservatism about financial ideas ○ Early advertising by EuroDisney seemed to aggravate local French sentiment by emphasizing glitz and size rather than the variety of rides and attractions Committed to maintaining Disney's reputation for quality in everything, more detail was built into EuroDisney For example, the centerpiece castle in the Magic Kingdom had to be bigger and fancier than in the other parks Expensive trams were built along a lake to take guests from the hotels to the park, but visitors preferred walking Total park construction costs rose by $340 million to FFr 16 billion as a result of all these add-ons Hotel construction costs alone rose to FFr 5.7 billion ○ EuroDisney and Disney managers unhappily succeeded in alienating many of their counterparts in the government, the banks, the ad agencies, and other concerned organizations A barnstorming, kick-the-door-down attitude seemed to reign among the US decision-makers: “They had a formidable image and convinced everyone that if we let them it their way, we would have all had a marvelous adventure.” ○ Many French bankers financing questions understood the initial financing, but Disney's response was that their views reflected the cautious, Old World thinking of Europeans who did not US-style free market After some acrimonious dealing with French banks, a two-year financial plan was negotiated Disney management rapidly revised its marketing plan and introduced strategic and tactical changes in the hope of “doing it right” this time b Economy: Stormcloud ahead Disney and its advisors failed to see signs of the European recession's end in the 1980s Other dramatic events included the Gulf War in 1991, which put a heavy brake on vacation travel for the rest of that year Price competition for plane tickets to Paris and currency devaluation suddenly made traveling to Disney World in Orlando, (USA) less expensive than traveling to EuroDisney in Paris (France) They made their effort to "compensate" their customers by discounting up to 25% for hotel costs c The political: Other external factors that Disney executives have cited were high-interest rates and the devaluation of several currencies against the franc EuroDisney also encountered difficulties regarding competition—the World's Fair in Seville and the 1992 Olympics in Barcelona were huge attractions for European tourists d Ethnocentrism Disney and Euro Disney executives applied their American corporate procedures, marketing plans, and ethnic beliefs with the expectation that a foreign nation would adopt and accept them This presented difficulties for Euro Disney's management because of ethnic differences and a lack of understanding of French culture Alcohol, entry and accommodation rates, hotel breakfast, staff, policies regarding house animals, and staffing challenges were some of the earliest concerns raised The Walt Disney Company had a commercial strategy that was similar to what they did in America and Japan, but this kind of global marketing was highly unacceptable in France Japanese culture would have been entirely distinct from other cultures 2.2 Cultural differences between the United States and France According to Hofstede’s Cultural Dimension Theory: ● Long-term orientation United State: Short-term Most Americans are not pragmatic because of their culture, although this should not be confused with the fact that Americans are exceedingly practical, as evidenced by the aforementioned "can do" attitude France: Long-term In societies with a pragmatic orientation, people believe that truth depends very much on the situation, context, and time They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results According to the index, in the US, Walt Disney is aware that the external environment may evolve quickly; hence they should be agile enough to deal with the changes to achieve a competitive advantage. In the US, traditions are respected and that old-age is seen as an unhappy time Moreover, leisure time is important and there is a tendency to spend money ● Indulgence vs the Restraint United States: The United States is known to be an indulgent society, as displayed by its scores for this dimension The nation is known for its “work hard and play hard” approach Individuals living in this society believe in going after their goals in an aggressive manner but also spend time relaxing and indulging in leisure activities France: France scores somewhat in the middle (48) when it concerns Indulgence versus Restraint This, in combination with a high score on Uncertainty Avoidance, implies that the French are less relaxed and enjoy life less often than is commonly assumed Indeed, France scores not all that high on the happiness indices Therefore, in the US, people might tend to go to the amusement park more than the French Disneyland enhances this feeling; “My business is making people, especially children, happy” ● Masculinity Vs Feminine United States: Masculinity A 2017 Pew Research Center survey found that about half of Americans (53%) say most people in our society these days look up to men who are manly or masculine, with women more likely than men (62% vs 43%) About two-thirds of men who say society looks up to masculine men (68%) say this is a good thing; a narrower majority of women (56%) say the same France: Feminine This may be implied by its well-known social security system (securité sociale), 35-hour workweek, five weeks of annual vacation, and emphasis on quality of life However, French culture as a model has another distinctive quality The workingclass scores are masculine, whereas the upper-class scores are feminine According to the index, in the US, employees are highly competitive; each of them is motivated to outperform their counterparts These individuals are driven by success and are not afraid to show off their success Behavioral Insights of French French demonstrate a capacity to easily adjust traditions to new circumstances, a high predisposition to save and invest, thriftiness, and persistence in getting things done Contrary to popular belief, French people are less relaxed and less likely to enjoy life French behavior pays greater attention to the bigger picture, especially when it comes to relationships with coworkers They also place high importance on life's quality and purpose 2.3 Evaluating the cross-cultural marketing skills of Disney? 2.3.1 Overview After seeing the strategies that Disney employed in various parts of the world, it is clear that they need to more research into their market and the potential risks of entry They tried to show these folks how to have a good time, but they didn't realize that different cultures have different ideas about what is enjoyable and practical As they were already familiar with the iconic Disney characters, Japan appreciated the "U.S experience," yet it is obvious that each culture responds to things differently The ideas of high and lowcontext societies are strongly related to this When it comes to expressing their ideas, the Japanese are renowned for being more reserved 10 Additionally, it wasn't acknowledged that the French and Americans have different cultures, therefore changes had to be made Later, restaurant seating was increased and meals were offered with alcohol The French are very unionized and quite socialized in a political sense, so the belief that the society operated similarly to that of America was just incorrect The French have a stronger cultural affinity for liberty and independence than the Americans They think they created the ideas, and the Americans stole them to use in their constitution 2.3.2 Frenchman Philippe Bourguignon’s strategies In 1993, Frenchman Philippe Bourguignon took over as CEO of EuroDisney and successfully led the company back to profitability He changed the name to Disneyland Paris, reduced the cost of park admission and lodging rates, and overhauled the marketing strategies With the addition of new thrilling parks like the Walt Disney Studios, which combines Disney entertainment with the history and culture of European filmmaking, Disneyland Paris has continued to grow its theme park in the twenty-first century 2.3.4 Marketing Strategy in Hong Kong Disneyland The competing forces perspective is used to develop language and cultural strategies Disneyland had to adapt to the local context when it decided to enter the Hong Kong market First and foremost, Disneyland needs to speak the same language as Hong Kongers Hong Kong residents would not be able to fully appreciate Disneyland if they did not speak the language there Additionally, the culture made Hong Kong Disneyland more familiar to the locals, which allowed for the development of stronger competitive pressures The development of the other strategies—cooperation, government assistance, promotion, and advertising—is based on the strategic conflict perspective Since Hong Kong's entertainment sector is so well-known, there are many different techniques used there Hong Kong Disneyland needs strategies to conflict with other entertainment groups 11 if it is to thrive in such a complex environment Because of Tokyo Disneyland, the collaboration between Disneyland and regional businesses is a good way to create a winwin situation Hong Kong Disneyland became more powerful than other theme parks or amusement parks because of government assistance Advertising and promotion allowed Hong Kong Disneyland to surpass its rivals in market share Hong Kong Disneyland established these strategies, which might conflict with others and adapt to the changing market, even though other competitors must have their own strategies that may have an impact on the entire business Hong Kong's environment is very dissimilar from that of the US A shift in culture is required to adapt to the Hong Kong environment Furthermore, the adjustment must be made quickly to be implemented before Hong Kong Disneyland opens 2.4. Why did success in Tokyo predispose Disney management to be too optimistic in their expectations of success in France? In China? Why does Disney continue to make mistakes in Hong Kong? Disney's overconfidence with their projects and continued presence in the French and Chinese markets is a result of the enormous success in Tokyo The Japanese have a pre-existing love for Disney characters, and they are pleased that the wonderful American entertainment experience is introduced to their country That is the primary reason Because of the instantly positive response in Japan, Disney was certain that the same response would be received positively in other areas In Paris (France): According to several internet sources, more than two million of Western European tourists visit Walt Disney World in Florida and Disneyland in California each year As a result, Disney has expressed a desire to develop a theme park in Europe, particularly in Paris, which is regarded as a prime tourist attraction and a center of European's culture and style Initial favourable circumstances, such as a convenient location, weather similar to Tokyo, encouragement from the French Government, etc., boost Disney's expectations for its EuroDisney project (with predictions indicating that in its first year of operation, the park will draw 11 million people and bring in more than $100 million in income) However, they did not take into consideration the issues that suddendly occurred Disney made a mistake when it entered the French market as well as the European market since cultural concerns have always been seen as a highly delicate subject when approaching 12 new markets The managers' subjective attempts to equate American culture with French culture resulted in numerous waves of local protests, which helped shape the public's hatred of Disneyland A prime example of cultural implantation is the requirement that employees overcome their conflicts toward the traditional culture in order to always smile and treat park visitors politely The Disney corporation also actively lobbied for a greater "local cultural scene" and brought American pop culture to France Another example is that people are uninterested in Disney characters or the way the French drink alcohol beverage at lunch, and so on These seemingly unimportant problems but these have led to Disney's failure in the French market In Hong Kong (China): With the same Asian nation as Japan and Tokyo Disney's positive tourist response, Disney's managers plans to construct another theme park on this continent Since China is one of the most powerful nations in Asia, they have chosen it as the location for the Disneyland theme park Disney aims to avoid the same management and cultural failures in China that occurred at Disneyland Paris “Disney has learned that they can’t impose the American will-or Dissney’s version of it-on another continent” “They’ve bent over backward to make Hong Kong Disneyland blend in with the surruondings” In order to integrate with local traditions from the start, Disneyland Hong Kong chose to use feng shui in its design and construction For instance, they decide on an auspicious day for the opening, perform a good luck ritual, try to maintain the balance of the five elements, decide where to set the gate, move the cash registers, and place the stones in various locations that are important to guarantee the park's prosperity, etc But the company only attracted slightly more than million visitors in its first year, falling short of its target of 5.6 million, and the second year was equally dismal, with a reduction in visitor numbers of about 30% from the year before forecast The criticism that the park was too tiny, similar to those found in China, and the unexcitement for those who were not familiar with the Disney's characters were two things that Disney did not foresee As can be observed, tourists' lack of familiarity with Disney characters has created a special obstacle in China It appears that the business overestimated how well-known Disney tales and characters were in this "nation of billions of people." As a result, visitors to Disneyland Hong Kong have been confused, which makes the park is less alluring 2.5 What can be learned about marketing from the faults and responses of Disneyland in Europe and Hong Kong? 13 - Even within the same country or region, multinational corporations should target markets precisely because traditional culture gives different people varied levels of control In order to create a breakthrough and expand, multinational corporations should entirely rely on thorough market research They should employ the "point to an area" model According to this case study, families are the target market that Hong Kong Disneyland is looking for There have been several changes made to Hong Kong Disney in order to give it Chinese features: it's not so much American theme park as Mickey Mouse coming to China For example, the cast members are extremely diverse, understand various cultures, and, in many cases, speak three languages (riders can choose form English, Mandarin, or Cantonese on the Jugle River Cruise) In addition, Disney realized that most Chinese people are unfamiliar with the majority of its stories and characters To compensate for it, Disney has built up the mystery around the Disney vacation experience by running promotion throughout the year For instand, the “Stay and Play for Two Days” promotion was created mainly to give mainland tourists a chance to experience the park for a longer period - Multinational corporations should consider the significance of the impact of cultural differences on marketing in light of the new multi-cultural environment They should adopt an objective attitude toward the cultural variations in consumer demand and behavior and respect them, completely giving up any prejudice and discrimination based on culture Furthermore, while planning to enter the market of a target country, multinational corporations should be efficient at identifying and exploiting the points of communication and collaboration between various cultural groups After all, whether a company can integrate into the local cultural and social environment is the primary factor for success Multinational corporations should increase their sensitivity and adaptation to varied cultural environments - Multinational corporations should capitalize on the competitive benefits of cultural differences and develop international marketing The main demand drivers of various competitive strategies can also be the goals of global cultural diversity Launching cultural promotional campaigns and highlighting the target market's exotic culture and cultural variety helps open the market quickly on the global stage Enterprises should work to create cross-cultural "two-way" communication channels, adapt to the host country's cultural environment and values, and implement their localization strategy to ensure that it is well received by the local government, local partners, customers, and other relevant stakeholders In addition to aiding in cultural integration, effective cross-cultural communication can also build a harmonious internal and external human environment that is conducive to corporate management 14 2.6 Recommended measures for Disneyland in Paris and Hong Kong - For many travelers to visit, they must first be familiar with Disney characters To raise awareness, particularly in the Chinese market at the time, the corporation must promote additional tales and characters using a variety of media, including films, comics, advertisements, toys, etc - Disney needs to create more characters and stories that are more relevant to the European and Chinese markets to increase locals' positive perceptions of Disney characters After this, Disneyland can draw more visitors, particularly locals - The company must offer a variety of incentive packages, such as combo tickets to the park and two nights at the hotel, which will reduce the price by 30% (perhaps approaching the cost of the entrance ticket and one night at the hotel) As a result, the hotel will be able to attract more new customers and provide the best conditions for them to enjoy its services When they are satisfied, the likelihood of them returning is very high - Add new tourist destinations to Hong Kong Disney wants to differentiate itself from other Chinese theme parks Disney's parks are now more competitive as a result - Plan numerous extraordinary and significant events to draw in new guests and boost the proportion of return visits - It is essential to go through the culinary and cultural barriers of the period, such as offering breakfast and alcoholic drinks at lunch at the Disneyland Paris hotel Case study analysis based on class answers: 3.1 Discussion Question Question 1: Do you believe that the company should have allowed Euro Disney to close in 1994 because of its financial headaches? Give the Reasons Based on the answers, all groups believe that the Walt Disney Company should not close Euro Disney despite the huge financial loss Instead, the company should give EuroDisney a chance and find the mistake to fix The main reason the groups give is that Disneyland in Paris is an attractive market as Paris is the most popular tourist destination in Europe according to the mentioned case study Therefore, Disney should not give up this market but must find a way to fix the mistake by changing its business strategy, and carefully studying the culture of Europe, especially the French When some groups were asked one more question: “Do you think EuroDisney would have encountered the same problems if a location in Spain had been selected?” Two groups gave opposing answers One group argues that Disney will still make the same 15 mistake when opening the park in Spain instead of Paris because the mistakes Disney made are all related to cultural misunderstandings in Europe, and these mistakes were entirely foreseeable and controllable, but Disney still let it happen and made serious mistakes before they could see the problem This proves that from the beginning, Disney did not carefully study the culture of Europe and underestimated the impact of culture, so even if Disney did not choose Paris as the location and chose Spain, even if Spain’s culture is more receptive, Disney still makes the same mistakes The other group gave the opposite opinion that it is possible that Disney in Spain will not make the same serious mistakes as Paris, the first reason is that Spain has more pleasant weather than Paris as in the mentioned case, so it may be there are more tourists and they will stay at the hotel in Disneyland to enjoy the weather here, and the second reason is that each country, each region will have different cultures, habits, and behaviors so people's reaction to Disney's entertainment model will be different Therefore, Disney will face different obstacles when operating in Spain, depending on the reaction of people in that area Comment on the group’s answer : To the main question, the answers of the groups are the same: Disney should not close EuroDisney in Paris because this is a lucrative market, and needs to correct mistakes in strategy But when they were asked additional questions, we noticed the difference in the understanding and analysis of the problem of question of each group Although there are two groups giving opposing opinions, if you consider many aspects of the problem, both opinions are convincing Although the two points of view contradict each other, both answers have in common that Disney makes cultural mistakes As we can see, these cultural errors are completely predictable and controllable, it is just because Disney did not some research and try to understand the cultures in Europe and France in the first place They underestimated the impact of culture and they had to pay a huge price in order to see the source of the problem 3.2 Discussion Question 2: Question 2: Applying Hofstede's Cultural Dimension Theory, point out the cultural differences between France and America After generating all answers from groups, we have the results of classifying dimensions of the theory: Dimensions Power Distance Cultural differences between France and America US: Low score on Power Distance France: High score on Power Distance Individualism Vs Collectivism US: High in individualism France: High in individualism Masculinity Vs Feminine US: High score on Masculinity 16 Uncertainty avoidance Pragmatism (long-term orientation) Indulgence vs Restraint France: High score on Feminine US: Low score on uncertainty avoidance France: High score on uncertainty avoidance US: Short-term (Americans are not so practical) France: Long-term (French are very pragmatic) US: a typically indulgent society France: Restraint Below is the group's response to compare with the whole class's ideas: Power distance: US: Low In contrast to Eastern nations, the population here exhibits a considerably greater sense of individualism Moreover, The American premise of “liberty and justice for all.” France: High France scores fairly high on Power Distance Children are raised to be emotionally dependent, to a degree, on their parents This dependency will be transferred to teachers and later on to superiors It is, therefore, a society in which a fair degree of inequality is accepted Power is not only centralized in companies and government, but also geographically => The Walt Disney Company is headquartered in the United States Therefore, In the US, the structure of the organization is more democratic rather than autocratic, and employees are encouraged to pitch in their thoughts and ideas There is less fear among employees for their bosses, and a conducive environment is prevalent to enhance idea generation and collaboration (Explain the cultural values and working environment of Disneyland) => In the US, parents encourage their children to actively experiment This means that in the theme park, children are encouraged to ride the attractions and explore the scenery Children, therefore, decide what to do, what to eat, and where to go (Explaining customer behavior in Paris) Individualism Vs Collectivism: US: High in individualism Cultural anthropologists have discovered that American parents' primary objective is to help their children become independent and self-reliant They just think of their own family France: High in individualism Children also believe in the importance of family, endorsing the desire to have children and giving more importance to their future family than in other Western European countries (Alsaker & Flammer, 1999) 17 => Disneland’s American culture teaches employees to consider themselves to be more independent and self-reliant (Explain the cultural values and working environment of Disneyland) => Walt Disney was thus an Individualist He believed that the park’s visitors should be treated equally and he taught his employees to be customer-friendly at any time (Explaining customer behavior in Paris) Masculinity Vs Feminine US: Masculinity A 2017 Pew Research Center survey found that about half of Americans (53%) say most people in our society these days look up to men who are manly or masculine, with women more likely than men (62% vs 43%) About two-thirds of men who say society looks up to masculine men (68%) say this is a good thing; a narrower majority of women (56%) say the same France: Feminine This may be implied by its well-known social security system (securité sociale), 35-hour workweek, five weeks of annual vacation, and emphasis on quality of life However, French culture as a model has another distinctive quality The working-class scores are masculine, whereas the upper-class scores are feminine => In the US, people usually impulsive shopping such as having many short breaks => Since France has a somewhat feminine culture Their lifestyle is very modest and simple, which can be seen in the way they spend their vacation as well as the way they spend money on entertainment needs Because of their simple lifestyle, they usually don't spend much and will often spend long holiday vacations rather than impulsive shopping or having many short breaks like Americans This explains why the French don’t stay at Disneyland hotels or they don't use overnight packages Uncertainty avoidance US: a low-to-moderate uncertainty avoidance culture As a result, the people have a more Universalist approach to rules and laws, not feeling that there is so much unknown territory to account for with legislation (Hofstede Center, n.d.b, p.1) Citizens tend to accept change easily and are typically welcoming of new ideas and innovative products France: high on Uncertainty Avoidance Surprises don't appeal to the French Planning and structure are necessary They prefer to get all relevant information before meetings and negotiations As a result, the French are skilled in creating complicated systems and technology in stable environments, as seen in the development of nuclear power plants, fast trains, and the aviation sector => In the US, they are more likely to come up with innovative ideas and new processes for business operations 18 => This means that the U.S is curious about the unknown Those things that are different spark a sense of curiosity As Walt Disney said: “When you’re curious you find lots of things to do” This also means that people accept Disney’s imagination more easily However, Cultures that are Uncertainty-Avoiding believe that time is expensive; “time is money” Long-term orientation US: Short-term Most Americans are not pragmatic because of their culture, although this should not be confused with the fact that Americans are exceedingly practical, as evidenced by the aforementioned "can do" attitude France: long-term In societies with a pragmatic orientation, people believe that truth depends very much on the situation, context, and time They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results => In the US, they are aware that the external environment may evolve quickly; hence they should be agile enough to deal with the changes to achieve a competitive advantage => In France, traditions are respected and that old-age is seen as an unhappy time Moreover, leisure time is important and there is a tendency to spend money Indulgence vs Restraint US: The United States is known to be an indulgent society, as displayed by its scores for this dimension The nation is known for its “work hard and play hard” approach Individuals living in this society believe in going after their goals in an aggressive manner, but also spend time relaxing and indulging in leisure activities France: France scores somewhat in the middle (48) when it concerns Indulgence versus Restraint This, in combination with a high score on Uncertainty Avoidance, implies that the French are less relaxed and enjoy life less often than is commonly assumed Indeed, France scores not all that high on the happiness indices => Therefore, in the US, people might tend to go to the amusement park more than the French Disneyland enhances this feeling; “My business is making people, especially children, happy” => In France, The French not attach too much importance to the need for entertainment Like the Pragmatism index above, the French are very practical, so they will value more practical needs such as eating, living, and dressing So they will often spend more on food products or services, fashion, furniture, or serving their work Comment on the groups’ answer: All four groups gave the same answers as we suggested This is a question that emphasizes theory and is not critical, so the answers of 19 ... 12 2.5 Lessons learned from the faults of Disneyland 13 2. 6 Recommended measures for Disneyland in Paris and Hong Kong 14 Case study analysis based on class answers 15 3 .1. Discussion... TABLE OF CONTENTS Case study Summary .2 1. 1 The problems that caused Disneyland to fail in Paris 1 .2. The problems that caused Disneyland to fail in Hong Kong 1. 3 Disneyland''s... Unforeseeable events: Gulf War in 19 9 1, currency & airfare wars Unforeseen issues: The outbreak of the European recession, the 19 9 1 Golf War, and rising interest rates were among the factors that management