Case study for Euro Disney theme park

Case study for Euro Disney theme park Euro Disneyland a theme park is a subsidiary of the Walt Disney Company located outside Paris, France, and has experienced numerous criticisms from its opening. The major problems are Included their budget control, human resource cost, cultural issues, marketing, communication, and convention business.

Budget The Walt Disney Company wanted to build a state of the art, as near to perfect as possible, theme park. In order to meet tans goal ten company Truculently attempted lid and rebuild, with no regard for the “bottom-line” construction cost. European Recession Euro Disneyland executives and advisors failed to see the signs of the approaching European recession. The recession caused French and European disposable incomes to shrink, causing families to think twice about taking an expensive trip to Euro Disneyland.

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Operational Errors There were numerous errors made regarding the overall operation of Euro Disneyland.

For example, from its American experience the Walt Disney Company thought Monday would be the light day for guests and Friday a heavy one and allocated staff accordingly. In reality the reverse was the case. In fact to this day, the company still struggles to find the right level of staffing at a theme park where “… The number of visitors per day in the high season can be 10 times the number in the low season”.

HER costs Before the opening of Euro Disneyland executives had estimated labor cost would be 13% of their revenues. This was another area where the executives were wrong in their assumptions. In 1992 the true figure was 24% and in 1993 it increased to a whopping 40%. These HER cost percentages increased Euro Disneyland debt. Cultural Issues Although European public acceptance of the theme park itself has not been a problem for Euro Disneyland there has been a different type of cultural clash.

An example of a cultural error is the Europeans approach to vacation time.

The Europeans prefer a few longer holidays rather than several short breaks. CONCLUSION A move by any company to any foreign market should not be made without an extensive, in-depth study based on exhaustive research into every aspect of the economy, laws, culture, climate, interests, customs, life-style habits, geography, work habits, Just to name a few. The list could go on and on with one area leading to another.