It has been quite long since Disney stopped being a trademark and turned into something more – a whole wide world of adventures for children and a specimen of the most brilliant marketing the world has ever seen. However, it seems that at present, Disneyland business is starting to shrink, mostly due to the unreasonable and half-baked CRM strategy which is currently applying. Taking a closer look at the way the Disneyland business is run, one can suggest an alternative to the current tactics.
It seems that at present, the key mission of Disney is to search for the tactics which will allow the company to provide the clientele with the services of the highest quality while making the prices more accessible.
As for the goals which Disney Company must pursue, these are the development of the technologies which will help make the services even better. As CIOinsight explains, “Clearly, the goal for now is to do more with less” (1). Indeed, Disneyland must remain the way people are used to see it; otherwise, the brand will lose its gimmick that attracts millions.
However, the prices must be lowered considerably. Splitting the given goal into several objectives, it is necessary to mention that maintenance of the equipment is the key objective. Speaking about the strategy which will help attract even more clientele and make people forget about the lack of comfort which they used to experience in Disneyland, one must admit that the company has chosen the strategy of shocking the viewers into paying attention and wanting to experience a visit to the Disneyland.
As CIOinsight said, “For now, the most visible manifestation of the new strategy is a 10 ½-inch-tall stuffed doll called Pal Mickey” (CIOinsight 2), which, supposedly “telling a secret” to the visitor, starts making sounds when the visitor approaches an ostensible amusement. However, the given idea seems rather questionable; rather than luring the children with new gimmicks, the company should have reconsidered its pricing policy and made sure that the technical maintenance is up to notch.
It is uneasy to nail down the exact moment when Disneyland stopped being that fun, yet one can suppose that the current situation with people losing their interest in Disney must have started at the point when the amusements in Disneyland started to seem less valuable than they are paid for. In the light of the above-mentioned, it can also be suggested that Disneyland should also feature new amusements.
It is hard to recommend efficient tactics to the company that has been a corporate giant for the entire epoch; however, when it comes to what piece of advice one could give to the company, it would probably be offering new amusements for kids and keeping the prices lower for adults to take their children to the Disneyland.
Hence, the further course of actions for the managers of the Disneyland can be structured according to the plan below. The short-term tactics can include numerous seasonal discounts for the visitors. Middle-term tactics can include developing the ways to inform the clients about new features beforehand (“They might send me an advance screening notice,” (CIOinsight 3), one of the visitors said), while the long-term tactics will include developing new amusements.
Therefore, it is obvious that the managers of the Disneyland need to change their tactics as for their CR management, as well as make a couple of changes to the management policy. Once the new tactics is applied, one is likely to observe changes for the best. Although it will take considerable time to reassure people that a travel to Disneyland will not end in another disappointment, the company will be on the right way and will definitely win the battle for clients.
In the recent past, international businesses have experienced massive growth. This has given precedents of international business expansion that have had substantial influence on further expansion. In this essay, we analyze the venture in international business by the Walt Disney Company (Disney) and the effects that initial involvement in international business have had on subsequent strategic decisions.
One of the greatest problems facing international businesses is the remodeling of their policies to suit different cultures. Walt Disney Company has not been an exception. Consider the Disneyland Resort Paris for example; the resort was under so much cultural pressure that it had to go against most of its policies for it to thrive in Paris.
To have a glimpse of how Paris culture affected the resort, consider the following facts: The resort altered its policy and served beers and wines in response to french drinking habits, the French government had to be sure that French language would dominate the park before allowing the establishment of the park, the dressing code of workers within the park was ruled out to be against French culture.
All these problems were caused by French vigilance to avoid cultural domination by Americans. The problems stated above had a lot of impact on the performance of the resort. Disneyland Resort Paris and its problems showed that cultural strictness and diversity can draw the thin line between the success and failure of an international company (Phatak, Bhagat, and Kashlak 3).
Tokyo Disney Resort, on the other hand, experienced substantial success attributed to the fact that Japanese are normally anxious to learn western culture. Therefore, implementation of resort policies was relatively easy and the Japanese were supportive of Disney culture. It can, thus, be argued that the Disney Culture did not clash with the culture of the Japanese. Thus, the setting up of the Tokyo Disney Resort was very instrumental in helping these two cultures learn from each other and share their strengths (Phatak, Bhagat, and Kashlak 5).
Expansion of businesses to venture in international markets faces a lot of political pressure and influence in host countries. This is evidenced by the lengthy negotiations that were characteristic of the agreements between Disney and the host governments. Consider the Tokyo Disney Resort for example; its development costs were paid by Oriental Land Co. This led to Disney’s failure to acquire ownership rights. Disney, therefore, only received royalties for the design and license of the idea (Phatak, Bhagat, and Kashlak 9).
In Paris, negotiations with the government ended after two and half years. Disney wanted ownership rights and therefore, it was made a partner in the project. The government helped in the establishment of the resort by providing cash and loans at low rates of interest. After the establishment of the resort, the French government still wanted to impose controls over the resort by incorporating a lot of French culture in it.
This is the main reason why the Disneyland Resort Paris performed poorly. It can, therefore, be argued that international businesses face a lot of problems stemming from political risk. This can potentially lead to company failure as seen in the Disneyland Resort Paris which was overwhelmed with political and cultural pressure (Phatak, Bhagat, and Kashlak 27).
After learning from its success in Tokyo and relative failure in Paris, and with a myriad of strategic advantages in Hong Kong, Disney expected to succeed in Hong Kong China.
The company claimed that there was a demand for Disney products in China. China had many strategic advantages to attract Disney. First, Chinese economy was flourishing and thus setting up the park in China was very strategic. Hong Kong became specifically strategic for the establishment of the Disney Park. due to its good infrastructure and international finance convenience.
This was because China was characterized with substandard infrastructure and inconvertibility of its renminbi currency. Another strategic advantage of setting up the third international Disney Park in Hong Kong was the presence of tourist attractions. These included Ocean Park, Victoria Peak, open-air markets, Repulse bay etc (Phatak, Bhagat, and Kashlak 12).
The main source of competitive advantage for the Hong Kong Disneyland was the unique characteristic of Disney to integrate tourist attraction with professional business ideas. The fact that Hong Kong has numerous tourist attraction sites was also a substantial competitive advantage. As a matter of fact, Hong Kong is termed as a world-class tourist destination and thus Hong Kong was perfect for the third Disney Resort (Phatak, Bhagat, and Kashlak 17).
After establishment, Hong Kong Disneyland experienced its fair share of problems. It brought about prospects of potential growth for Disney from the onset and thus critics were not happy with it. Incidences of inefficiency in the park received a lot of media coverage since its establishment. This has led to confusion as to whether the park was successful or not.
International companies have experienced a lot of growth in the recent past. This has led to a lot of economic and cultural development of the host countries of these companies. On the other hand, the companies have been able to find large markets for their products and enjoy economic diversity of different countries.
The international expansion has also enabled the companies to enjoy more strategic options from the diversity of the business climates of different countries. International companies like Disney should thus solve their problems and continue expanding their businesses internationally.
Works Cited
Phatak, Arvin, Bhagat, Rabi, & Kashlak, Roger. International Management: Managing A Diverse and Dynamic Global Environment. New York. McGraw-Hill, 2006. Print.
Walter Disney and his life have always been a mystery even to the contemporaries, not to mention the researchers of the XXI century.
A creator, innovator, and genius, on the one hand, and a panic-stricken perfectionist, on the other hand, Disney had a number of issues, which were predisposed by the cringe inducting factors that Disney was exposed to throughout his entire life, which such theories as the Five-Factor Model of Personality, Intrapsychic Factors (Interpersonal Theory) and Neurobehavioral Dimensional Model may help define.
By taking a closer look at some of the peculiarities of the environment in which Disney lived at different stages of his life in, one can possibly define the source of the major disorders that Disney had, as well as spot the manifestations of these disorders in some of the works of the great animator.
As it has been stressed above, the research is going to be carried out with the help of such theories as the Neurobehavioral Dimensional Model, Intrapsychic Factors, which belong to the Interpersonal Theory realm, and to Five-Factor Model, which can be described as one of the subcategories of the Theory of Personality Disorder.
Granted that the theories listed above have been tested a number of times and are considered full-fledged basis for conducting significant researches nowadays, it is important to keep in mind that, according to Lenzenweger and Clarkin, first, a number of factors affecting the psychological development of an individual have not been defined, and, second, due to the unique reactions that an individual may display when coming into contact with certain factors (Lenzenweger & Clarkin, 2004), detecting the source of a certain psychological feature or disorder, or even a trait of character is quite problematic.
That being said, it can be assumed that the theories in question can possibly shed some light on how Disney’s personality was shaped and how the process of his personality development affected his art.
Walt Disney: A man who helped dreams come true (2010).
There is no secret that, fort the most part, the basis for the character features that most people acquire when they are well past their adolescence is usually created in the early childhood, when the impressions from the elements of everyday life are far too colorful to be forgotten.
After a careful examination of the environment in which Disney spent his childhood years, one will inevitably spot the points at which the key traits of the Disney that everyone knows and loves started to evolve.
According to what the existing sources say, Disney was born into a family of Elias and Flora Call Disney and their five children. Originally born in Chicago, Walter moved to Marceline (MI) soon after he was born. Developing love for nature and animals, he started drawing.
However, not everything went smoothly in the family of the Disneys. It turned out that Flora was suffering from a mental condition. When Walter was a teenager, his family suffered from fire (supposedly set by Flora), with Walt being the only survivor and sent to his uncle.
At the given point, one could observe the Five-Factor Model coming into motion, since the character traits predisposed by the aforementioned environment, in which Disney’s childhood and youth were spent, were finally developed by that point.
It is quite impressive that the FFM model, which is usually applied very loosely to a real-life example, since in most cases, the factors are far too numerous, or the effects of these factors vary too much in their intensity for the recipient’s character traits to correlate to each of the aforementioned factors to the same extent, in the case of Disney, the major events that caused specific character traits to develop are pretty easy to define.
As the existing sources say, Disney was known for his readiness to experiment, which he displayed since his childhood. However, weirdly enough, the experiences that he was eagerly awaiting could best be described as financial instead of artistic, though these experiences definitely had a sparkle of creativity in them; using his artistic skills, Disney was earning his first wages by selling his drawings to neighbors.
However, such qualities as the spirit of enterprise and ambitiousness, which his openness to experience spurred in young Disney would, later on, transform into artistic creativity and the ability to take risks, which a number of modern entrepreneurs should definitely look into.
For example, it was well known before Disney even started working on his first short that the character that he would focus on would be a bunny named Oswald. In fact, a few shorts released at the very beginning of his career featured Oswald. However, at some point, Disney decided to take chances with a brand new character, which little to no authors used before, i.e., a mouse.
The story of the character’s name, in fact, also represents Disney’s willingness to experiment, which manifested itself in his ability to take a piece of advice from a person whom he trusted; as the existing source say, first, the mouse was named Mortimer, yet Disney’s wife considered the name far too pretentious and suggested turning Mortimer into Mickey.
Walt Disney was a relatively conscientious man – for a businessman, at the very least.
One of the qualities that the given feature of his character manifested itself in, incredible ability to work long hours with no stop for a quick lunch or a short nap was one of the many factors that, ironically enough, predetermined the development of a further neurosis, as the analysis carried out with the help of the Neurobehavioral Dimensional Model will show in the next section of the research.
The key qualities that Disney’s relatively high conscientiousness rates produced concerned his devotion to his profession and the willingness to produce the works that could be considered as coming of age stories, as well as help children learn important life lessons while being entertained by his animated movies.
Ironically enough, being such an extrovert, Disney seemed to have little to no close friends; true, he had a number of business partners, a couple of rivals, and an entire army of fan all over the world, yet very few people actually knew what only close friends could know about him, like his favorite color, the dish that he hated most, etc.
To be more exact, Disney tended to be extravert when it came to discussing everything but himself; as soon as the latter topic was touched upon, his introversion was being pushed to the breaking point, where it bordered reclusion.
As a result, in accordance with the basic principles of the Five-Factor Model, Disney has clearly developed such skills and the ability to communicate his idea clearly, the skill of being a good listener, as well as the ability to take an active part in a conversation.
However, Disney clearly used these skills only to be able to integrate into the bohemian society of the United States and was not striving for communication with the people surrounding them.
In spite of the fact that he was not quite open to communication in the generally accepted meaning of the word, Disney seemed to have developed high tendency to empathize with other people, which must have stemmed from the fact that he needed compassion himself, having obvious family issues since childhood. As a result, Disney was often considered a man with a very big heart – and he clearly was.
Being a kid at heart, he would empathize with children, especially; as one of Disney’s contemporaries, Jimmy McDonald, recalled, “He had a great understanding for the youngsters…” (Disney History Institute, n. d.). In fact, the Disney History Institute provides a tape recording with McDonald reminiscing on one of the cases when Disney’s appreciation for children and young people was outpouring:
Once… they had all the storyboards around and dialogue written underneath so Walt could see it and give it the go ahead. The storyboard director was out there with his little baton and said, ‘At this point narrator will say, “When all the kids get a new bike…”.
And Walt jumped up, and said, “No! We won’t get close to that. We’ll just say when the kids get a bike, because there will be too many kids in this world that will never get a bike.” (Disney History Institute, n. d.)
Sadly enough, along with being extremely creative, Disney was highly exposed to various irritants, which resulted in numerous neuroses.
To top it all, many of his childhood fears have not been vanquished as time passed, but, instead, were piling up until they were released in the shape of numerous fears. It is quite peculiar that, in contrast to other features of his character, neuroticism and the resulting phobias stemmed from Disney’s later experiences.
It is remarkable how the given model not only represents the way in which Disney’s past affected his present and future, but also addresses the issues that shaped Disney’s character as an adult.
To be more exact, the change of environment, which occurred as Disney’s childhood ended and he had to enter the adult world triggered a change in the FFM model, therefore, affecting Disney’s character. As the recent data shows, several breakdowns that Walt Disney had in his adult life were the result of intense and extremely hard work with unbelievably short deadlines.
A very common myth says that Disney was afraid of mice, which is also very peculiar, considering the fact that his main character and the icon of the Disney production is a mouse. However, as credible sources explain, the given statement does not hold any water – in fact, it is historically documented that Disney owned a pet mouse.
However, another peculiar rumor about what Walt Disney feared, the statement regarding Disney’s uncontrollable fear of falling ill appears to be true. The given fact makes it clear that, no matter how hard Disney tried to repress his childhood fears, they still came back in the weirdest shapes possible, altering his life to the point where his genius bordered insanity.
When it comes to analyzing the events that led to Disney’s death, the fact that Disney neglected one of the basic rules of healthcare comes to the forth. The man who was obsessed with blocking the way for numerous bacteria and viruses to his organism died of smoking-induced lung tumor.
Although at first glance, the given fact shatters the Neurobehavioral Dimensional Model implications to pieces, on a second thought, one must admit that the given fact aligns with the basic postulates of the theory perfectly well. Indeed, if considering smoking as one of the few outlets for Disney’s unceasing stress, it can be assumed that smoking was used by Disney as an affiliative reward that would help him bring the stress level down.
With all due respect to Walt Disney’s life and the incredible power of his imagination, when watching his greatest creations, one must admit that, for the most part, these characters were the projections of Walter’s insecurity onto the big screen.
When analyzing the given characters, one might notice a pattern of Disney’s issues development based on the qualities that his characters represented; and, seeing how, for the most part, the leading characters portrayed by Disney displayed their qualities through interaction with other characters, it can be assumed that, with the help of the former, Disney managed to convey the issues that he faced when coming into contact with other people.
Walt Disney and Mickey Mouse.
Being the “punching bag that laughs,” Mickey Mouse can be seen as Disney’s alter ego; however, it is worth keeping in mind that the given character replaced a much more violent Oswald, the Rabbit character.
In fact, the early sketches of Mickey Mouse wee not very child-friendly, either. Therefore, it can be assumed that, by introducing the character of Mickey to the audience, Walt Disney was trying to give vent to his aggressive feelings.
The first full-length animated movie to be featured in the U.S. period, this is Disney’s doubtless triumph.
However, when looking at the characters closer, one will be able to spot the fact that Snow White’s childhood had a lot in common with the one of Disney – both were orphans, both had to put up with the difficulties of adoption, and both knew exactly what they wanted, Snow White singing, “I’m wishing (I’m wishing) for the one I love to find me (to find me) today (today)” (Disney & Hand, 1937) and Disney saying, “All our dreams can come true if we have the courage to pursue them” (Bickford, 2013, p. 56).
Of the very few male leading characters featured in the animated movies of the Golden Disney Era, Peter Pan must have been the essence of what Disney always wanted to be – a child at heart with the wildest imagination and the opportunity to play as much as he wanted. It can be assumed that Peter Pan was a dream of the childhood that Disney never had.
The entire world has no room for hatred spilled on Walt Disney by thousands of feminists for creating this character. Indeed, Cinderella is pretty bland, and there is hardly any character development throughout the entire movie. She wants a handsome prince, does nothing to achieve her goal, and then, a fairy godmother comes out of nowhere to grant her wishes.
However, as much flawed as the given character is, thinking that there is nothing more to her that the blandness that allows every single girl to associate herself with the given character means ignoring Disney’s famous quote saying that Cinderella “believed in dreams, all right, but she also believed in doing something about them.
When Prince Charming didn’t’ come along, she went over to the palace and got him” (Fisher, 2012, n. p.). The given specifics of the character displays the exact same pattern as the one that Disney preferred in building his relationships with the rest of the world; likewise, he preferred to grab the bull by the horns and handle the obstacles that life put in front of him.
Disney’s education is a perfect proof for his consistence and efforts; in spite of a dropout in his teenage years, Disney managed to not only get the basic knowledge and skills, but also graduate from three Universities instead of one, i.e., UCLA, the Harvard University and Yale (Wasko, 2013, p. 1948).
Therefore, the characters created by Disney reveal a lot about his character and psychological issues. Being a projection of his childhood problems onto the cartoonish reality, they could be seen as a coping mechanism.
Apart from inspiration and incredible lust for life, Disney acquired a number of fears under the influence of the environment that he was exposed to in his youth and adult life.
At the given point, the theory of Neurobehavioral Dimensional Model is going to be used in order to arrange the constraints that played the most important part in shaping Disney’s personality, as well as the incentive or anxiety that these constraints resulted in. As Depue explains, the process of behavioral change occurs in accordance with the following pattern:
Depue, R. A. (2009). Figure 1. A multidimensional model of personality disturbance. In Depue, R. A. Genetic, environmental, and epigenetic factors in the development of personality disturbance. Development and Psychopathology, 21, p. 1033.
As it has been mentioned, the life of a great animator, though definitely exiting, was incredibly intense, which led to the development of a neurosis and, therefore, affected his behavior considerably.
Despite the fact that Disney was not afraid of mice, as the popular urban legend says, it must be admitted that the great artist did have a number of phobias, with the credit of the greatest of them going to the phenomenon known as bacteriophobia.
Washing his hands thoroughly every moment when a piece of soap and a towel were in the vicinity, Walt Disney soon became famous not only as the creator of Mickey Mouse, but also as one of the most psychotically neat people in the studio.
As the existing historical records show, Disney was literally obsessed with cleanness, as well as a bunch of other American celebrities, such as Elvis Presley, Frank Sinatra, etc.: “Afflicted with OCD as was Howard Hughes, Walt Disney, Frank Sinatra and Donald Trump, he [Elvis] brushed his teeth over and over” (Landrum, 2007, p. 54).
As one might have noticed, Landrum goes as far as claiming that Disney suffered from an OCD, i.e., an obsessive-compulsive disorder. While the given statement might be seen as quite a stretch, it is still necessary to keep in mind that bacteriophobia was not the only reason for the animator to wash his hands for no obvious reasons; as Landrum states, for Disney, it was the means to get rid of the stress that he was constantly under.
The aforementioned fact reveals another facet of a nearly psychotic mind that Disney was at the time when he reached the peak of his success. With the fear of getting ill and suffering the following failure as a professional, Disney was clearly under two neural constraints, the latter clearly being the dominant one.
As a result, his rate of rejection sensitivity was dangerously high, which led him to another threat of a nervous breakdown. In other words, with a Multidimensional Model of Personality, the psychological pressure that Disney was under could be depicted in the following way:
Figure 2. Genetic, environmental, and epigenetic factors in Walt Disney’s personality disturbance.
The given scheme shows explicitly that Disney was affected by two stress factors, one of which (the fear of bacteria and contracting a virus) was induced by another one (the fear of receiving negative critical responses and failing as a creator and animator).
It could be argued, naturally, that the given disturbances did not bother Disney as a professional – quite on the contrary, these aspects of his personality made him excel in every single work that he crafted, turning each of his fairytales into an animation masterpiece.
However, casting a single glance at Disney’s personal life and phobias that his life was literally filed with, one will inevitably realize that his animation was practically the only field that offered him a moment of relief.
According to the results of the given assessment, Disney did have a number of issues concerning his psychological evolution, and most of these issues were detected with the help of the Neurobehavioral Dimensional Model, Five-Factor Model of Personality and Intropsychic Factors.
It could be argued, though, that what has been discovered or proven after the given models have been applied is only the tip of the iceberg and that Walt Disney’s personality was far more complex and curious than what has been detected and analyzed with the help of the models and theories in question.
However, as far as the application of the given models goes, the given research shows clearly that they can be used efficiently as the means to locate the sources of a person’s psychological issues.
Despite his image of an audience-pleasing sentimentalist with an edge and a creator of heartwarming family movies, Walt Disney definitely had his cupboard full of skeletons. It could be argued, of course, that the fears of his were the defining factor in his creativity, seeing how most of Disney feature-length movies and shorts incorporate similar features and elements.
Analyzed from several perspectives, Disney’s personality appeared to be influenced greatly by certain disorders, such as several acute phobias and neuroses, which were induced by several outside factors that Walt Disney was exposed to as a child, adolescent and adult, as explained by the theories of five factors, intrapsychic factors, and neurobehavioral dimensional model, and which shaped Disney’s life and career, making him one of the weirdest, most mysterious and by far the most creative people of the century.
Reference List
Bickford, J. (2013). American comeback. Las Vegas, NV: American Comeback Publishing.
Depue, R. A. (2009). Figure 1. A multidimensional model of personality disturbance. In Depue, R. A. Genetic, environmental, and epigenetic factors in the development of personality disturbance. Development and Psychopathology, 21, p. 1033.
Depue, R. A. (2009). Genetic, environmental, and epigenetic factors in the development of personality disturbance. Development and Psychopathology, 21, p. 1031–1063.
Disney History Institute. Compassionate Walt. A memory of Jimmy McDonald. Web.
Disney, W. (Producer), & Hand, D. (Director) (1937). Snow White and the seven dwarfs [Motion picture]. Burbank, CA: Walt Disney Productions.
Fisher, R. (2012). Not another dating book: A devotional guide to all your relationships. Minneapolis, MN: Biblica, Inc. Web.
Landrum, G. N. (2007). Paranoia and power: Fear and fame of entertainment icons. New York City, NY: Morgan James Publishing.
Lenzenweger, M. F. & Clarkin, J. F. (2004). Major theories of personality disorder. New York, NY: Guilford Press.
Why Disney needs to work with the foreign governments where they want to open theme parks?
Working with foreign governments will help the company to excel. The government controls the policies and regulations of a country, and businesses must ensure that they obey the policies. When a company has a partnership with a foreign government, it receives adequate support. In this case, the policies are developed to support such a company. The strategy also helps to understand the government policies where businesses establish their subsidiaries. A project that the government supports is accepted by the citizens easily compared to a project that has no government support. In this regard, government leaders represent the people, and they trust them. Therefore, any decision that the government makes is respected by the citizens. Citizens couldn’t reject the HKD because the government was a major stakeholder (Young & Liu n.d.).
The Hong Kong government-financed some of the projects of the company. For example, the company developed an infrastructure to enhance its operations. The contract between the HKD and the government required the government to improve and create infrastructure while the HKD provided the plans. HKD also developed real estates and designed the structures. The developmental services were done by DKD (Young & Liu n.d.).
The company wanted to understand the culture of the people by working with foreign governments. Culture is a complex aspect that requires time to understand. In understanding the culture of a foreign country, a company should work with the people in that country. Therefore, working with foreign governments helps the company to be incorporated into the culture. This strategy helps avoid cultural conflict with the people in a foreign country (Young & Liu n.d.).
The governments developed infrastructure to support the Disney Company. There was a need to collaborate with the government so that the necessary structures could be established. For example, the Hong Kong government spent about $7 million to acquire and develop premium land (Young & Liu n.d.).
Does it help to have a foreign country as a partner in the venture? Why or why not.
Yes. Having a foreign country as a partner in the venture helped people to accept the products. This strategy also improved understanding of the culture of the products of the company. The strategy also improves the relationship between the company and the country. The government supports such a company so that it can perform well (Young & Liu n.d.).
International norms of behavior and why the Chinese do not understand them, and why is this important for a successful Hong Kong Disney?
The international norm of behavior is that a company that plans to invest in a foreign country should understand the culture of that country. The HKD established operations in Hong Kong without a full understanding of all the cultural aspects. For example, the company did not understand that the Chinese take a long time to eat than the Americans. The company created a few seats in the dining parks, and this created a lot of congestion. The company had to expand the size of the dining park to enable many people to get a space (Young & Liu n.d.).
Understanding the culture of the people is important for the company to be successful. The culture defines how people behave and provides a guideline on how things should be done. Understanding the culture will help the company avoid conflicts with the local people. Understanding the culture of the people will improve the performance of the company because appropriate products will be developed. Matching the cultural needs of the people to the products designed by a company attracts many customers (Young & Liu n.d.).
Two issues challenging Hong Kong Disney’s current operation and what I would recommend to Disney to solve those challenges?
The company has experienced challenges in working with the government. Officials from the Hong Kong government are alleged not to have transparency when working at Disneyland (Young & Liu n.d.). To solve this challenge, the company should establish stringent measures to ensure that there are no loopholes in the management process. The management team can liaise with the government to ensure that appropriate measures are established to control all transactions. The government can establish laws to protect the company.
The company also had the challenge of managing the capacity of the park. The HKD had a bad start, and the management invited about 30,000 people daily. The number was high, and the queue time was long. The park experienced a lot of pressure in managing a large number of people who were visiting (Young & Liu n.d.). I recommend that the company should do a proper analysis of any strategy before it is implemented. This will help avoid the confusion that was experienced during the initial stages of the HKD.
For its next expansion project, what country and the city would you recommend as the next Disneyland?
For the next expansion project, I would recommend that the company should establish a Disneyland in South Africa. The company has not penetrated the African market, which has high potential. South Africa has a good economy and has neutral politics. Also, South Africa is a favorite tourist destination for many people all over the world.
Reference
Young, M. N. & Liu, D. (n.d.). Hong Kong Disneyland. Web.
Culture plays a critical role in the functioning of any organization. It impacts customer behavior, their preferences, and expectations from a particular product or service. For this reason, planning an expansion or aiming at entering a new country, a company should acquire an in-depth understanding of local peculiarities to adapt its offerings to existing demands. If knowledge of culture is unsatisfactory, the risk of failure increases. The case of Euro Disneyland is analyzed from this perspective, as the insufficient consideration of French culture contributed to the inability to meet the desired goals. It will be analyzed using the Decision Matrix and Hofstede’s dimensions of culture to understand the central problems associated with the project.
Figure 1. Decision Matrix
Variables
Challenges
Weighting
Availability
Meeting the local vision
Attractiveness
Score
Total
Score
Total
Score
Total
Food
5
2
10
1
5
1
5
Drinks
5
1
5
1
5
1
5
Personal space
4
1
4
1
4
2
8
Working culture
3
2
6
1
3
1
3
Entertainment culture
5
3
15
1
5
1
5
Total
40
22
27
Differences in the U.S. and French Cultures
The differences in mentalities peculiar to various nations can become a critical element preconditioning the effectiveness of a particular project and its popularity among the target audience. The case of Euro Disneyland shows that the inability to consider these alterations is critical as it might deteriorate the planned outcome. For this reason, applying Hofstede’s cultural dimensions, it is possible to outline the major differences between the USA and France.
First, the individualism/collectivism dimension should be applied. It shows the degree of independence peculiar to various society members and the importance of group interests. Comparing the two cultures, France has always been an individualist society (Hofstede et al., 2010). The traditional approach to upbringing a child presupposes making him/her emotionally independent from the group and acting as a single person. People prefer to focus on their own visions and values, avoiding some group demands or popular concepts.
In the USA, collectivist societies prevail and impact the mentality of people. They feel belonging to a part of the group, ready to share their feelings and emotions with other representatives, and they welcome emotional cooperation with others. For this reason, places such as Disneyland provide them a perfect opportunity to socialize and feel a part of a particular group, which is not critical for French people (Luthans & Doh, 2017). These differences should be considered when planning a new venture to avoid failure.
The second dimension is uncertainty avoidance demonstrating the degree to which people are ready to accept unexpected events or plan their future. For France, the high levels of uncertainty avoidance are peculiar. It indicates that the nation is not ready for surprises or radical changes in r daily activities. They prefer to have a certain schedule and follow it as a part of their everyday life (Hofstede et al., 2010). For this reason, little attention to breakfast in Disneyland distracted French people from it. They view this meal as a fundamental one and have specific traditions associated with it.
For the U.S. people, the low rates of uncertainty avoidance are typical. It means that they prefer to avoid planning and are ready to engage in new activities without preliminary preparation. They can also welcome surprises and unusual or unexpected events. The daily routine can be easily changed as there are no necessary traditions. In such a way, the difference between these two parameters shows that U.S. and French individuals might have different visions on how the work of such entertainment areas should be organized, which also preconditions the need for a special approach.
The power distance dimension demonstrates the degree to which people are ready to accept that individuals are not equal. For the French society, the strict hierarchy is peculiar as the culture scores high power distance (Hofstede et al., 2010). Citizens agree that any community is unequal, and there are various opportunities available for different classes. Under these conditions, it is critical to act within the current group and obey the existing regulations. This factor also impacts the readiness to follow the rules outline in specific guidelines.
For U.S. citizens, the lower power distance is peculiar. People are ready to struggle for similar or equal opportunities for each other and consider themselves a part of a tolerant society with similar chances available for all people. This difference between cultures can be seen in how managers work with clients and employees. In such a way, there is a big difference between the USA and French culture as they have a different vision of how to behave in various situations presupposing observation of particular laws or readiness to engage in multiple processes.
Finally, the Masculinity/Femininity dimension indicates how people see competition, achievement, success, and the need to be a winner. For France, low scores regarding this dimension have always been typical (Hofstede et al., 2010). It means that they do not view career, achievement, and recognition as the final goal of their work; instead, they prefer to appreciate other values, such as enjoying life, having tasty good, and drinking good wine (Luthans & Doh, 2017). These ideas do not presuppose strong competition and the need to struggle with others. It means that French people do not appreciate activities or games with a powerful competitive element, which should be considered when organizing various projects, such as Euro Disneyland.
For the USA, the dominance of masculine values can be reported. People belonging to this culture accept rivalry, struggle and appreciate achievement as the major determinant of success. For this reason, they are ready to engage in processes that demand much effort to win and acquire a better position. They might sacrifice comfort to the ability to move further and enter a new level of their development. Under these conditions, French and U.S. culture are different, and the application of the Hofstede’s main dimensions help to acquire the improved vision of these differences and the role they play in the functioning of companies.
Three Major Challenges
Analyzing the case of Euro Disneyland, it is possible to outline the three major mistakes made by the company, which resulted in poor outcomes and unwillingness of French people to visit it. First, little attention was given to the local culture, precisely food habits. The company’s policy prohibiting alcohol in the park was unacceptable for French people who usually have a glass of wine for their meals. It shows that the company did not collect data about potential customers’ habits and failed to alter its policy to adapt to a new market. Moreover, the little attention to serving breakfast, which is viewed as one of the main meals by Europeans (Luthans & Doh, 2017). Disney was not ready to prepare an appropriate menu and failed to satisfy clients’ needs during the initial days. It became an issue affecting the image of the park and the attitude of local people to it.
Another problem is linked to the false vision of French entertainment culture. Disney’s manages built their strategies on the idea that the USA and France have similar ideas of how to spend free time. For this reason, most staff and resources were allocated on Fridays with low attention to Mondays, which turned out to be a great mistake and preconditioned the inability to satisfy clients during the busiest hours. Additionally, most Europeans considered such theme parks a place for one-day excursions, meaning that luxurious hotels built by Disney were mainly empty (Luthans & Doh, 2017). The company thought that families would spend at least four days in the area; however, only a few visitors acted this way. In such a way, the poor understanding of the entertainment culture preconditioned the failure in managers’ expectations and the inability to follow the initial plan.
Finally, Disney failed to create an appropriate working culture. The company introduced the same demands to appearance as it used in the USA. However, for French people with their unique views on fashion, style, and clothes, it was unclear and posed a significant difficulty. Moreover, working in the entertainment sphere in the USA presupposes constant smiling and being polite to all visitors of the park (Luthans & Doh, 2017). For most French employees, it was an unusual practice, and it preconditioned high turnover rates (Luthans & Doh, 2017). At the same time, numerous specialists from the USA were hired to work in Disneyland in France. It was considered a threat to the local labor force, its skills, and the ability to perform complex tasks. In such a way, these three central challenges introduced the additional complexity in managing the theme park and adapting its functioning to the local needs.
Conclusion
Altogether, the case of Euro Disneyland shows the critical importance of culture and how it might affect a certain business project. Any company planning the extension and operations in new countries has to collect data bout the peculiarities of local people, their mentalities, tastes, values, and attitudes. It will help to determine the attractiveness of a new project, conclude whether the available resources suffice, and create a strategy that takes into account all cultural aspects. Using Hofstede’s dimensions, it is possible to acquire the relevant data about a state and select among products and services that will help to fulfill the needs of the local population. Otherwise, the project might fail, and the target audience will not appreciate it.
Challenges of managing a large, global team of employees
Managing over one thousand cast members is a challenge for Disney Report Paris because of discordant pay. Workers from one part of the world may have to relocate to a different region.
They could object to payments received in target countries. Likewise, cast members in, say China, may object to pay differences between themselves and employees in the US. Unionization can compound this problem as unions would be quick to identify those differences.
It is sometimes difficult for human resource personnel to understand the rules of administration in one particular country. Therefore, managers may make mistakes that could cost the company thousands of dollars.
A case in point was the issue of payroll back pay encountered in Japan during the month of January 2010. Investigations revealed that Disney’s human resource personnel were not aware of company policies concerning off-clock work.
It was for this reason that the firm had to pay $433,000 for back wages. Ignorance about company policies is bound to arise in such large firms.
Disney Resort Paris hires cast members instead of typical employees (Jackson et. al., 236). Their aim is to hire persons with personalities that suit the organization’s culture. It takes a rigorous process to get the right individuals.
This consumes resources within the company especially in the global context. Sometimes, certain cast member expectations may not be in tandem with the cultural factors prevailing in that target country.
Even other human resource practices in the organization may not match those of another country. Japanese employees have a collectivist culture, in which individuals expect their organizations to take care of them by offering lifetime employment.
Conversely, western workers are individualistic and do not exhibit much company loyalty. Human resource managers must alter their practices in order to accommodate these cultural differences.
Economic factors also affect the implementation of HR because economic models shape human resource practices. In countries where economic liberalism applies, human resource practices may be such that they prioritize productivity concerns over staff welfare. Therefore, staff cuts may be more palatable in these environments.
Conversely, in countries with socialist economic models, HR personnel may sacrifice efficiency at work for consistent employment. Disney Resort deals with these differences perpetually. It must try to find a middle ground where it prioritizes both economic needs and welfare concerns.
Management model for retrenchment program
The planned changed model would be quite suitable to the management of change during and after retrenchment of staff. The first aspect of this model is the exploration phase. Companies participate in the exploration phase by gaining awareness of the need to change.
They need to establish the need for external assistance and where to get this assistance. The second phase in the model is the planning component. At this point, one must gather information in order to rectify problems in the organization.
Change goals as well as action plans are critical at this stage. Disney Resort is under recession, it needs to let go of ten percent of its employees. It needs to explore new job descriptions, training opportunities as well as communication strategies.
Effective organizations must have an action phase in which they implement what they had planned in subsequent phases. Arrangements are necessary in order to see the fruition of results. Additionally, the process must also include evaluation of action steps.
These may include provision of feedback. The latter step is critical in preventing missteps in the future. Disney Paris’ action plan will consist of the firing of workers. It also involves creation of new job descriptions, schedules and communication of this information.
The final phase is integration where the company stabilizes changes through an integral program. This phase is designed to eliminate the need for additional support for change activities in a company.
Administrators reinforce new behavior through adequate communication, establishment of reward systems and the use of feedback. Managers must seek ways for improving their outcomes continually and training their employees to measure these changes and determine ways of developing.
Disney Paris may encounter resistance during the implementation and integration phase. Managers can deal with this problem by opening communication channels between themselves and employees. Constant communication on the need to change and how it will occur can dissipate mistrust of the organizations.
It is likely that many of them will oppose the need to do extra work for the same pay. Managers in the company need to foster participation in the creation of project plans. The organization needs to garner buy-in from these individuals by making them part of their long term strategy.
They ought to work on morale by providing strong development plans. Managers must also assure employees of the value that they bring into Disney Paris Resort. The latter components will be part of the integration phase.
Major management challenges in Disney’s future
International expansion for the organization might present certain unique challenges. The organization is likely to face different communication systems. These differences between structures and tools for business may lead to confusion and data discrepancies.
Therefore, the organization will need to establish systems that take into account different data formats as well as languages. Their systems must also make room for differentials in currencies. Some countries may be unenthusiastic about the use of technology, and this could create gaps in communication.
Disney can overcome these inconsistencies by conveying its expectations to foreign partners in those countries. It needs to follow a transparent method of business communication. Furthermore, infrastructural set ups may be necessary in target countries.
Competition from several other global players may also put excessive pressure on Disney. Different organizations in the US are eyeing the international market. It is likely that they may target countries that Disney has also selected.
This organization could deal with such pressure by carrying out its processes in a cost effective way. Such an approach would allow them to offer seamless services at affordable prices. Eventually, many of them may become more competitive.
Global expansion may also present cultural challenges to the organization. The company may be experiencing these clashes today, but further expansion may increase them. Disney will need to prepare for intense cross cultural work.
It needs to create diverse cross border teams in its current establishments. Furthermore, it should build trust between these groups so that they can learn to work with even more divergent members.
Cross border teams tend to be creative and would provide the company with immense opportunities to improve. Issues of reduced performance in these target countries are unlikely to arise if Disney prepares beforehand.
Works Cited
Jackson, Susan, Randall Schuler, Steve Werner. Managing human resources. NY: Cengage Learning, 2011. Print.
It is worth noting that Disneyland parks are functioning in such countries as the USA, France, Japan, and China. In Shanghai, the park consists of a theme park, resort hotels, a shopping and entertainment district, and a leisure park. Moreover, a special subway station was built to ensure that visitors could reach the place easily. Such a developed structure is typical for all Disneyland parks and resorts. The purpose of this paper is to analyze the US and Chinese markets and discuss the major similarities and differences between them.
Micro and Macro Environments
To analyze the environment, it is necessary to decompose the internal and external factors that affect the company in the host and foreign markets. In terms of the microenvironment, it is essential to stress that the company has a brand name, which is known all over the world (Shanghai Disney Resort, n.d.). Also, the enterprise has a broad product portfolio, which focuses on popular characters and famous fairy-tales (for instance, Marvel heroes, characters from Pirates of the Caribbean).
One of the important similarities between the markets is that the parks are always multi-generation and family-oriented. However, the difference lies in the way this orientation should be regarded given the fact that many Chinese families have one child. In particular, the target consumer of the company are children, and China is a country in which the Walt Disney Company may introduce various educational games for families with a single child (Morrison, 2014). Moreover, the market in Shanghai may be characterized as a promising one given the growing middle class and the rise of popularity of Disney characters in the country.
One-Child Policy
However, one of the differences between the environments of the two countries is also related to the one-child policy applied throughout China (Lasky, 2017). In the US, there are no initiatives restricting the number of children a family may have, and citizens tend to bring all their children to the park. In the host country, the enterprise benefits greatly from such an environment since the main consumer group is minors. Therefore, it has an opportunity to diversify the services provided to tailor the needs of underage visitors. In China, a policy exists that allows citizens to have only one child or two children in rare cases.
This has imposed a certain degree of complexity on the operation of Shanghai Disneyland (Lasky, 2017). In particular, the foreign market has to create a strong intergenerational appeal. The park needs to offer entertainments designed and suitable for older visitors to ensure that parents can have a good time in the park apart from visiting the locations aimed at entertaining their children.
Apart from that, the policy also affects the characteristics of the visitors, which is important for the business strategy. In comparison to the US, as well as to other countries, in the Chinese market, the average age of clients is higher (Lasky, 2017). In the American market, the company caters children in a special way since it is their main customer group. Meanwhile, in China, the enterprise has to consider the interests and peculiarities of older visitors since families almost always have one child, and the needs of parents also need to be tailored. This is one of the major challenges faced by the company in the foreign environment.
Further Aspects
The company has chosen different locations to situate parks in the US and China. In the US, the site is located almost in the center of the city. However, in Shanghai, the park has been built in Pudong. This is the eastern part of the city, and it may take citizens up to several hours to get to the place (Tschinkel, 2018). Given that residents are still getting acquainted with the Disney world and its characters, this location ensures a greater immersive experience, which is not necessary for the host market.
Notably, there are other challenges to be considered as applied to the foreign market. The company mainly focuses on standardization of processes across its theme parks. However, the Walt Disney Company has had to adapt its strategy to the local needs and requirements (Alon, Jaffe, Prange, & Vianelli, 2017). For example, some of the characters of popular movies and fairy-tales have to wear Chinese costumes and clothing. In addition, the company has had to adapt its practices to local traditions and celebrations to make the activities in the park distinctly Chinese.
One of the major differences between the US and Chinese parks are festivals and celebrations held there. The Disneyland park in the foreign market has to organize special events to celebrate the Chinese New Year to address the local needs of its clients. Another example is the absence of a Chinese version of Main Street USA (signature opening land), which can be observed in other parks across the world as well. In Shanghai, the company had to modify its strategy and introduce the Gardens of Imagination, which allude to the Chinese zodiac and gardens (Tschinkel, 2018). This peculiarity may be regarded as an opportunity for diversification to create value for the customers.
Fierce competition among Chinese theme parks is another threat experienced in the foreign market (Ji, Li, & King, 2016). In the US, the company has a strong brand image. In Shanghai, there are other theme parks with a solid reputation, which are direct rivals of the Walt Disney Company. Given the location of the site, it is possible to assume that not all consumers are aware of Shanghai Disney. Moreover, it is quite likely that the park will not be accepted by all citizens. There are other scenic spots in the area (such as Happy Valley), which reflect Chinese culture better and are already known and loved by the clients.
Figure 1. The data showing an increase in interest expense (The Walt Disney Company, 2017, p. 26).
Importantly, it is yet not clear whether the park will cover the operating costs. According to the company report, the investment “may have short-term returns that are negative or low” (The Walt Disney Company, 2017, p. 17). As shown in Figure 1 above, the company also experienced an increase in interest expense. However, it can be assumed that this regional park may become a significant branding experience given the challenges and possibilities the Chinese market has revealed (Alon et al., 2017). A significant opportunity, which is also one of the major differences as compared to the US market, is the nature of the Chinese entertainment market. At present, it is mainly lead by media conglomerates, which means that an international competitor of such scale will specify the industry’s direction in the region.
Restrictions
One of the major threats associated with the opening of Shanghai Disneyland is laws and regulations applied in the region (Alon et al., 2017). In the host country, the rules of leading a business in the entertainment industry are not that strict as in China. Apart from safety regulations, which the company has to follow, and cultural differences that make it hard to predict the behavior of customer groups, China also imposes specific legal restrictions on foreign enterprises. For instance, the company has faced censorship of almost all media channels and digital platforms. Therefore, it is difficult for Shanghai Disneyland to advertise itself and carry out any marketing activities.
Joint Venture, Legal and Economic Aspects
It is crucial that the company had to follow specific legal requirements imposed by the authorities to be able to open a park in Shanghai. Operating in China implies increased government reliance for any foreign business, which is another major difference between the two markets. The authorities require all foreign companies to establish joint-owned ventures. In particular, at present, the city government is the owner of 57% of the assets, and the remaining 43% belong to the American company Walt Disney (The Walt Disney Company, 2017).
At the same time, 70% of the share in the management company belongs to the American side and the rest – to the city authorities. In terms of investment, according to various sources, from 3.5 billion to 5.5 billion dollars were spent on the construction of the park (Levine, 2016). The approach has allowed the Chinese government to maintain the communist regime in the country while, at the same time, the state may still actively cooperate with global players in the international market.
Mode of Entry
The mode of entry employed by the company was indeed creative. As it comes from the discussion of the macro-environment, the entertainment industry is heavily regulated and censored by the country authorities (Ji et al., 2016). Initially, the Walt Disney Company was unable to get into the foreign market due to media restrictions. However, the enterprise is known for their original approach and strategies, so they have decided to enter the Chinese market through educational programming. Children are the company’s main customer group, and the education industry is not intensely regulated in the country; for that reason, Disney English was introduced (The Walt Disney Company, 2017). Through this program, the company was able to address the needs of their main clients and receive all the necessary approvals.
It may be assumed that the strategy was aimed at reaching long-term goals. Disney English allowed the enterprise to enter the foreign market and create a cultural presence as well (Levine, 2016). In the US, children know and love Disney movies and characters such as Mickey Mouse. The similar nostalgia could not be observed in the market of Shanghai. Disney English was utilized as a tool to get into the hearts of minors. Therefore, a creative approach and orientation at long-term goals are the main features of the company’s global strategy. It has also allowed the Walt Disney Company to build the required relationships with the government and comprehend the peculiarities of the foreign market.
Concluding Points, Implications, and Recommendations
Thus, it can be concluded that the micro and macro environments of the host and foreign markets are different. The company had to modify its global strategy to address the realities and peculiarities of the Chinese culture. The main implication of the analysis is that multinational corporations should adapt to the cultural setting of each particular region. It is crucial to be able to coordinate the marketing plan and approach in accordance with the foreign environment. One of the recommendations to maintain the leadership position is to accommodate local attitudes. The company needs to reverse its policies if necessary in order to comply with local requirements. In this case, it will be able to create the same cultural presence as it has done in the host country.
References
Alon, I., Jaffe, E., Prange, C., & Vianelli, D. (2017). Global marketing: Contemporary theory, practice, and cases (2nd ed.). New York, NY: Routledge.
Ji, M., Li, M., & King, B. (2016). Incremental effects of the Shanghai free-trade zone—An Internet informed assessment of Hong Kong’s tourism competitiveness. Journal of China Tourism Research, 12(1), 24–41.
