...Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A) Q1. How should Chase have bid in the first round competition to lead the HK$3.3 billion Disneyland financing? 1.Three ways to approach this deal 1) bid to win, 2) bid to lose and3) no bid. Chase chose to bid to lose on the first round, but just enough to make it to the short list. Also, since Chase is one of Disney's relationship banks, Chase would not want to ruin this relationship by not bidding on their project. If Chase wanted to lead the competition from the first round, they should have made a bid that was more aggressive and aimed to win. This bid would have been closer to the desires of Disney, making them more appealing and increasing their probabilities of leading the financing. However, they chose to bid to lose, with just enough terms to get into the second round to "protect their reputation", but not to lead. The deal started to become more attractive with the possibility of Disney awarding a sole lead arranger mandate and with the increased potential for a successful syndication. At this point, after Chase made it through the first round, they decided on a more aggressive final proposal where they would be very close to meeting most of Disney’s demands in order to win the deal. 2. Standard Commitment Letter The standard commitment letter established by Chase for the Disneyland project would have the following terms: 1. HK$300 million loan. 2. 15-year maturity. 3. A provision...
Words: 2378 - Pages: 10
.......................................................................................................5 GENERAL OPERATIONAL UPGRADE ............................................................................................................5 CONCLUSION ............................................................................................................................................................6 APPENDIX ...................................................................................................................................................................7 LOSING MAGIC IN THE MIDDLE KINGDOM 2 1. Introduction Aiming to tap into the huge Chinese market, The Walt Disney Company created a joint venture with the Hong Kong government, where the former had a 43% stake and the latter a 57%...
Words: 3654 - Pages: 15
...Case Study 3: Hong Kong Disneyland November 26, 2013 1(A). Why was it important for Disney to work with the foreign governments where they want to open theme parks? While it may not always be a good idea for a business to work with foreign governments, it was the appropriate course for Disney to take. Certain aspects of the parks that were opened in Tokyo, Paris, and Hong Kong best evidence this. Tokyo, by every standard, is considered a success (Young & Liu, 2007). Its success led to the construction of a sister park, DisneySea. Regrettably, Disney opted to not take ownership of the park. By working with the government of Tokyo, Disney did not have to invest any capitol to open a park abroad. However, Disney forfeited exponentially higher profits for its equivalent in risk. Disney’s next venture, Disney Paris, was a collaboration with the French government. Similar to Disney Tokyo, it was important to work with the government for the purposes of immediate financial infusion. Unlike Tokyo’s government direct investment, the French government provided loans with interest rates (Young & Liu, 2007). The decision to work with the French government proved more important as construction costs went over by US$4 billion. This led to the French government restructuring Disney’s loan. It was crucial for Disney to work with the government of Hong Kong for several reasons. Like the previously mentioned Parks, Hong Kong helped financially. However, the scope...
Words: 760 - Pages: 4
...relationship banks, Chase was the third largest bank in the United States with more than $400 billion of assets and $175 billion of loans in 1999, and was a leader in the field of syndicated finance. In 1999, Chase was the lead arranger for 34% of total syndicated loans by dollar volume in the world’s largest market, the United States, compared to 21% for the next largest competitor.6 In the U.S. market for loans greater than $1 billion, its dominance was even more pronounced: it led 47.5% of the deals, three times more than its nearest competitor. Years of leading performance in the field of syndicated finance has led JPMorgan Chase a world’s well-known expertise in arranging large volume syndicated loans and thus significantly improved its returns as an underwriter, and its credit exposure as a lender, which reflect its high criteria of service. In addition to the great reputation, Chase has established relationships with many of the world’s famous companies and groups, which will bring it lots of business opportunities. It had over 400 professionals in its Global Syndicated Finance Group with offices in New York, London, Hong Kong, Tokyo, and Sydney. Each office had structuring and distribution teams. These abundant professional resources have been the solid foundation to sufficiently support Chase’s commissions all over the world. In its 30-person Hong Kong office, Matt Harris led structuring while Charles Pelham led distribution. As Matt Harris described it, “We have by far...
Words: 4739 - Pages: 19
...Hong Kong Disneyland – Case Discussion MSBC650 – Integrated Marketing Communication Hong Kong Disneyland Outline of Discussion Plan I. Overview a. Hong Kong 1997 – 1999 b. Disneyland i. America ii. France iii. Japan c. Disneyland in Hong Kong II. SWOT Analysis a. Strengths i. Appeal to Chinese culture ii. Communications conducted in three different languages b. Weaknesses i. Crowd control problem ii. Replaced chief in less than five months after opening iii. Poor working conditions c. Opportunities i. Growing population of youth and growth of middle class ii. Hong Kong economy had a notable rebound in 2004 d. Threats i. Ocean Park competition ii. 2,000 theme parks built in China between 1994 and 1999 III. Questions a. HKD had mechanisms in place to adapt to local Hong Kong culture, yet these means appeared to be ineffective. Why? What areas, in terms of Cultural adaptation, still need further improvement? b. What can HKD do to alleviate the problem of Chinese guests often not knowing the norms of international behavior when traveling abroad? c. Identify two issues challenging HKD’s current operations, and propose corresponding solutions. d. What would be some foreseeable challenges if Disney...
Words: 1806 - Pages: 8
...based on size and local regulations, hot weather, and high ticket prices. Cultural barriers happened such as the decision to serve shark fin soup, a local favourite, greatly angered environmentalist. For example, the decision to serve shark fin soup, a local favourite, greatly angered environmentalists. It is different in Europe as they have more choices for food because there are more countries in European group. Disney guests in Europe faced problems getting too closed or pressing around those who left too much space between themselves and the person in front. But it’s quite normal in Asian countries due to their population Hong Kong Disneyland only has 16 attractions and one classic Disney thrill ride, Space Mountain, compared to 52 at Disneyland Resort Paris. Weather in Europe tends to be cooler and their currency is higher than Hong Kong currency so people probably find the ticket cheaper. 2) Cultural variables influence the location choice of theme parks around the world because they are important factors to determine whether the parks will become successful or not. To locate a theme park they have to think whether people in the country will like this kind of theme park and will go for them or is it suitable for this county to locate this theme park. People who built the theme park needs to account the factor that whether it is easy for people in that country to adapt new things. 3) I would recommend nowhere in Asia because there might be a lot of theme park...
Words: 383 - Pages: 2
...SWOT analysis of Disneyland Hong Kong Theme Park Strengths: Hong Kong Disney Theme Park has its incredibly strong brand awareness is its powerful strength. As a child I had willingly been instructed with the brand and can even recognize the distinct calligraphy associated with the brand. It has no surprise because BusinessWeek has ranked Disney as the 8th most recognizable global brand. A recognizable brand such as Disney increases consumer trust and indicates the company’s advanced and successful marketing. Another reason for Hong Kong Disney Theme Park strength is that they offer customers high quality products,services,and secure and safe recreation facilities.For instance,in theme park, Baby centres provide clean facilities where you can prepare formulas,warm bottles,nurse,or even change diapers. For a small fee, you can also buy some baby products at these location. You will also find changing tables in almost all of the public restrooms in the theme park. Weaknesses: One of Disney’s weaknesses is their limited target audience. Disney primarily targets to families with younger children. This is especially true with regards to their theme parks. The use of animated characters and a family friendly atmosphere in their global theme park does not exactly appeal to a mature audience. It can be a huge and strong weakness for disney theme park because mature audience actually accounts for a lot of percentage. The other one reason of weakness of disney is that their innovative...
Words: 779 - Pages: 4
...Euro Disney had a very hard initial experience in France. Due its lack on accurate informationabout the French and European preference and culture, further on their inability on forecastingexternal problems and inability on controlling both controllable and uncontrollable forces,Disney acquired a huge debt. Instead of analyzing and learning from its potential customersDisney chose to make assumptions, turned out that most of those assumptions were wrong.Disney made wrong assumptions in many areas as well. In the cultural area for example itassumed that customers would be ok not having wine to drink, turned out customers wereastonished but the decision of breakfast was another cultural mistake, but in the opposite way.Disney assumed that French customers would want to eat French breakfast while they wantedAmerican one. Operational errors were also committed for Disney, for example Disney assumedthat Monday would be a light day and Friday a heavy day, so they arrange the staff accordingly,turned out to be the opposite and Disney had a big problem with that. Another assumption suchas optimistic assumption about attendance was also made. If Disney had conducted a primaryresearch and learned from their potential customers, French and Europeans, they would haveforecasted those mistakes and prevented them from happening. Also if Disney had controlledbetter the controllable forces, price and promotion for example, they would have a betterinitial experience. Disney could have followed...
Words: 1607 - Pages: 7
...Favorite Location When I was growing up it was a family tradition to go on vacation once a year. I decided when I had kids, I would continue that tradition. One of my favorite places to visit was the Magic Kingdom in Orlando, Florida. This family vacation was my favorite, because all twelve of my family members when with us. It was one of the most memorable experiences of my life. What made it even more exciting were the expressions on my two son’s faces when they saw the characters for the first time. The car ride to Florida was very long, so we decided to make several stops at several roadside attractions, including museums and parks. The kids were starting to get board at the museums, so we made up a game and tried to make learning about the past fun and exciting. One of our stops was at South of the Border. Everyone bought a sombrero from the gift shop and then went on the big sombrero ride. I did not know we had to take a paddle boat to the park. I have a fear of boats so I held on to the pole in the middle of the boat. My sister and husband grabbed my son’s hands, so they did not get lost in the crowd. When the paddle boat began to move, I closed my eyes until we arrived at the other side of the lake where the Magic Kingdom was located. It only took about five minutes but it seemed longer to me. The Magic Kingdom was my favorite part of our vacation. As soon as we walked in through the gates, we heard all different Disney songs. While walking on Main...
Words: 423 - Pages: 2
... November 9, 2010 What? In the short term, Hong Kong Disney need to minimize the amount of guest allowed into the park on a daily basis to reduce capacity. In the long term, Hong Kong Disney needs involve China in more of their management operations and decision making. Why? Short Term: It was clear that there was a capacity problem during the 4 weeks of testing prior to the grand opening of Hong Kong Disney. During the test run, they invited 30,000 individuals per day to visit the park to test the rides and attractions. For example, on September 4, 2005, approximately 29,000 local visitors went to the park. The average queuing time was 45 minutes at the restaurants and more than two hours for the rides. In addition, customers also complained that the park was too small. Hong Kong Disney only has 22 attractions; 18 fewer than the other Disney theme parks, making the capacity level much smaller and the lines much longer for each attraction due to overcrowding. Furthermore, Hong Kong Disney introduced a new discounted, one-day ticket that can be used at any-time during a six month period. However, they did not take into consideration specific holidays such as the Lunar New Year. The influx created a major problem when the park could not accommodate additional guests. The steel gates were locked and guests were understandably upset. Long Term: Hong Kong Disney had tried to use the mistakes during the opening in Paris as a learning experience...
Words: 744 - Pages: 3
...parade premiered on 18 January 2011 as part of "Celebration in the Air", celebrating the 5th anniversary of the Hong Kong Disneyland. The parade replaced Disney on Parade, which had been running since the park's opening. Steve Davison, producer of World of Color in Disney California Adventure Park, said that he was working on a parade for the 5th anniversary celebration. Disney in the Stars[edit] Fireworks over Sleeping Beauty Castle Main article: Disney in the Stars Disney in the Stars is a nightly fireworks show based on Fantasy in the Sky at other Disney parks. Fireworks and pyrotechnics are coordinated to orchestrated classic Disney musics such as "A Whole New World". The show premiered on 12 September 2005 at the park's inaugural ceremony. Paint the Night[edit] The Paint the Night parade debuted on September 2014.It is a successor of the Main Street Electrical Parade. It's the very first time ever Walt Disney Parks and Resorts created fully LED parade, also features seven original floats containing over 740,000 individual lights. It is an interactive parade. David Lightbody, Director of Entertainment and Costuming of Hong Kong Disneyland Resort, said that the creative team spent over 2 years and developed over 1,000 scenic and lighting designs to ensure the parade. Park celebrations[edit] The "Thank you for visiting" sign Hong Kong Disneyland has organised entertainment and a number of shows as part of the festive celebrations to attract more visitors,...
Words: 361 - Pages: 2
...com/magazine/content/11_17/b4225021233719.htm By Ronald Grover, Stephanie Wong, and Wendy Leung April 14, 2011 In 2005, Disney opened Hong Kong Disneyland. In 2011, Disney opened a Disney Resort in Shanghai. In both situations sociocultural forces took a tool on how Disney was to do business. The opening of Hong Kong Disneyland was a huge eye-opener of Disney. The quickly realized their mistake by not considering the cultural of the surrounding area. They aimed the vacation spot at the typical Orlando vacationer. Disney also underestimated how many visitors would show up and how long they would linger. The result was devastating. There was inadequate seating and food supply to satisfy the average family and culture. There were too few rides. This resulted in drones of crowds being turned away and a lost of over $92 million. The small Hong Kong Disneyland was an experiment to see if smaller parks would work, and it did not. Disney took that experiment and did an analysis before the opening of its’ Shanghai Disneyland Resort. Chinese nationals were added to the “Imagineering” team to help develop a sociocultural friendly park. The location in Shanghai is within a three-hour’s drive of 300 million people. They took that data and projected that the growing Chinese middle class would spend $200 billion annually on leisure travel in 2015. Thus Shanghai’s resort was built about 50 percent larger than the Hong Kong’s resort. To display that they had done their homework, Disney made huge changes. On the groundbreaking...
Words: 516 - Pages: 3
...1. What factors contributed to EuroDisney’s poor performance during its first year of operation? What factors contributed to Hong Kong Disney’s poor performance during its first year? The first year for EuroDisney was disastrous due to several bad decisions taken by the management as well as some external factors. The primary reason for the failure was its high cost. Hotel rooms at the park were charging rates comparable to luxurious hotels. People found it cheaper to fly to Disney World Florida and get an additional benefit of enjoying the weather. Hong Kong Disneyland faced different issues. Firstly, people were not familiar with the characters since Disney was banned for 40 years in China. The park was small, with just a few rides compared to other Disneyland's, therefore customers were not interested. Despite these issues, it fared better since it incorporated a lot of Chinese culture. 2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong KongDisney, or the parent company, Disney? Many of these factors were foreseeable such as the cross cultural ignorance, world fair in Sivelle and Barcelona Olympics in 1992 that attracted more tourists, ban on alcohol consumption despite the fact that French cannot have meal without wine and difference in Attitude of American tourists/parents and European ones. Controllable elements include mistaken assumptions, pricing policies and initial pricing. Also, early advertising...
Words: 457 - Pages: 2
...effectiveness and impact of his/her leadership. Allan Zeman Group members: Wong Sze Wai 201225217H Chow Tung Ying 201223209H Cheung Ka Wai 201226233H Wong Yan Kei 201323061H Fung Yuen Wai 201323059H Ng Bing Yam 201223018H Table of Contents Background 3 Speech 4 Behaviour 5 Actions 6 Effectiveness and Impact 9 Conclusion 11 Bibliography of references 12 Background Allan Zeman was born in Germany in 1949. His father passed away when he was seven years old. He went to Hong Kong when he was nineteen. He went to Hong Kong because of his garment business. He has already earned around 100 thousand. Since 1981 he found out that Hong Kong only have numbers of hotel and restaurant but don’t have some special characteristics of western restaurant, therefore he decided to build up some restaurant which is for people to relax. The restaurant is named California. In that time, it’s a creative idea. Not only start his business in Hong Kong, also bought a building in Tokyo. It is also restaurant. in this few years, he starts his bar in Shanghai, which is likely and same as Lan Kwai Fong. He plans to enter the market in Beijing. In this past few years, more western restaurant and bar entered this place –Lan Kwai Fong. He was named as ‘Father of Lan Kwai Fong’. More people to come to Lan Kwai Fong, and become the famous attractions. He always said that ‘Think out of the box’. In 2003, Mr Allan Zeman became CEO of Ocean Park. Ocean Park is the...
Words: 2924 - Pages: 12
...New problems The Disney management style came in for substantial public criticism as early as the pre-opening stage. The fact that the park was operated as a private company—by the Hong Kong International Theme Parks Ltd.—using public funding from Hong Kong’s coffers furnished further grounds for public dissent. Several incidents occurred within the two months prior to the September opening, attracting criticism from local artists, journalists, and legislators and paving the way for the park’s first public apology. First, a Financial Times journalist criticized Hong Kong Disneyland’s management style, calling Disney’s first theme park in China “the scariest place after North Korea.”1 Then, a month before the official opening, local artist Daniel Wu, who was filming on site at the park, complained to the media of the arrogant and disrespectful attitude of Disney’s U.S. staff and vowed never to return.2 After the theme park opened, some of Hong Kong Disney’s work practices incurred further protests from the Hong Kong people. For example, the park’s character performers complained that they were overworked and underpaid. A spokesperson for the newly formed staff union stated that workdays of more than 12 hours and inadequate rest breaks had overwhelmed many workers, causing work-related injuries, such as joint and muscle strain. In response, Vice-President of Entertainment Lauren Jordan claimed that “there are a few cast members who have found this work to be less rewarding than...
Words: 260 - Pages: 2
