...MICKEY GOES TO FRANCE: A CASE STUDY OF THE EURO DISNEYLAND NEGOTIATIONS Lauren A. Newell* In 1984, The Walt Disney Company (“Disney”) was riding the wave of success from its newest Resort,1 Tokyo Disney Resort (“Tokyo Disney”),2 which attracted 10 million guests3 in the first year alone,4 and its thoughts turned to further international expansion—this time, in Europe. After careful consideration of potential locations and preliminary negotiations with two European governments,5 Disney decided in 1984 to launch Euro Disneyland (“Euro Disneyland” or “EDL”)6 in Marne-la-Vallee, France. The ´ realities of opening and operating EDL in France were far different than Disney’s expectations when it began negotiations—so much so that the Resort narrowly escaped bankruptcy.7 For an “entertainment empire”8 like Disney, this was an unprecedented * Assistant Professor of Law, Ohio Northern University, Pettit College of Law; B.A., Georgetown University, 2004; J.D., Harvard Law School 2007. 1 As used herein, “Resort” refers to a Disney resort property, consisting of (unless otherwise indicated), Parks, hotels, all entertainment facilities, and the transportation systems that connect them. “Park” refers to a Disney theme park, including (unless otherwise indicated) the park grounds, rides, and attractions, and surrounding resorts, hotels, and other Disney-affiliated entertainment facilities. 2 Tokyo Disney was Disney’s third Park and first international venture, located in Tokyo, Japan. See...
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...CASE 21 The Not-So-Wonderful World of BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing, but the Disney response was that their views reflected...
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...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned the initial financing...
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...This paper will discuss the history and development of Walt Disneyland and Walt Disney himself. It will describe Walt Disney’s life and what gave him the idea to start such an amazing and magical kingdom. You will understand the reasons on why Walt decided to open up another park in the United States and then all over the world. Such an amazing park with so much history helps explain some of the secrets that Disneyland and Disney World posses. July 17, 1955 was the day the magnificent park was opened to the public. President Ronald Regan, not yet president at the time stood at the gates of Disneyland in Anaheim, California in front of thousands of children and their families introducing Walt Disney to everyone. Walt open the gates to what would soon be known as the Magical Kingdom where dreams come true. Walt christened his new park with these famous words, "To all that come to this happy place: welcome. Disneyland is your land. Here age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, the dreams, and the hard facts that have created America... with hope that it will be a source of joy and inspiration to all the world."2 Walter Elias Disney born on December 5,1901 in Chicago Illinois, he was one of five children, four boys and one girl. Walt started at a very young age with his love for drawing and art. At the age of seven Walt would draw pictures and sketches and would sell them to...
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...CASE 21 The Not-So-Wonderful World of EuroDisney*—Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! In April 1992, EuroDisney SCA opened its doors to European visitors. Located by the river Marne some 20 miles east of Paris, it was designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date—bigger than Disneyland in Anaheim, California; Disneyworld in Orlando, Florida; and Tokyo Disneyland in Japan. Much to Disney management’s surprise, Europeans failed to “go goofy” over Mickey, unlike their Japanese counterparts. Between 1990 and early 1992, some 14 million people had visited Tokyo Disneyland, with three-quarters being repeat visitors. A family of four staying overnight at a nearby hotel would easily spend $600 on a visit to the park. In contrast, at EuroDisney, families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including les hamburgers and les milkshakes. Staying overnight was out of the question for many because hotel rooms were so high priced. For example, prices ranged from $110 to $380 a night at the Newport Bay Club, the largest of EuroDisney’s six new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. Financial losses became so massive at EuroDisney that the president had to structure a rescue package to put EuroDisney back on firm financial ground. Many French bankers questioned ...
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...The Influence of Cultural Adaptation on Disney Theme Parks By 駱巧瑜Chaio-Yu, Lou 陳奎因Kuei Yin, Chen 楊凱智Kai-Chih, Yang 徐仁軒Ren-Xuan, Shiu Department of Applied English Ming Chuan University Kweishan, Taoyuan, Taiwan June, 2010 The Influence of Cultural Adaptation on Disney Theme Parks By 駱巧瑜Chaio-Yu, Lou 陳奎因Kuei Yin, Chen 楊凱智Kai-Chih, Yang 徐仁軒Ren-Xuan, Shiu A thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Arts in Applied English Approved by ________________ Chia-Chin Susan Sung, M.S. Chairperson of the Committee _______________ Chao-Chang Wang, Ph.D. Chairperson of the Department of Applied English Department of Applied English Ming Chuan University Kweishan, Taoyuan, Taiwan June, 2010 Abstract Disneyland is a fascinating worldwide industry, and also the most successfully run theme park in the world. When it comes to theme parks, Disney will be the first thing that comes to everyone’s mind. Because of the great success of Disney, researchers want to look into the reasons why it is so important and so attractive to the entertainment industry. For example, Disney’s Asian theme parks usually would apply local customs and festivals into their programs. And by doing so, it draws more local tourists to attend the events. Disney always pays attention to these cultural factors and uses them to its advantages. Plus,...
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...Europeans are huge on their culture and remembering where they came from and when Disney brought in a theme park with American ideas most locals did not want anything to do with it. It was too flashy, with the glitz of a theme park but it lacked the variety and originality they craved. French people also already had their favorite original characters they were used to, such as Asterix, they did not grow up watching Mickey Mouse so they should not be expected to flock to the opening of Disney characters like Americans would. When building Hong Kong Disney they learned from their mistakes and were sure to make this theme park more culturally acceptable. They went the extra mile to make sure that this park would reflect the Chinese principles. Unfortunately, this did not bring them success. They spent most of the budget on focusing on bringing the Chinese culture with Disney that they slacked off on the size and amenities they are so well known for offering. They blended in with every other theme park that Hong Kong had to offer. The Chinese did not even know about Mickey Mouse until a few years ago when Disney was no longer banned so they were not accustomed to Disney characters. Disney is usually known as a place you can go to escape, a magical world to be a kid again and in this park they did not bring that with them. 2) I feel like there are many fingers to point when it comes to who to blame with the...
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...Disney together with his staff members achieved more than 950 citations and honors globally. They also participated in academy awards and they won 48Academy awards and 7Emmys through the various competitions they participated in. Disney also won personal awards during his lifetime after the great job he did tirelessly in order to achieve what he had aspired for. The awards included: university degrees from Harvard, Yale, University of southern California and UCLA. He also won the Medal of Freedom from the Frances Legion of Honor and officer d’Academie decorations. In addition, he won the Thailand Order of the crown, the Brazil order of Southern Cross furthermore he won the Mexico’s order of Aztec Eagle and finally the Showman of the World award from the National association of theatre...
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...As a comeback, the threesome quickly came up with a character named Mickey Mouse and created animated shorts, the most popular by-far being Steamboat Willie, which was the first cartoon ever to integrate music, voice, and animation effects into a humorous storyline. Disney’s animation studio took off in 1929 with the creation of Silly Symphonies, which were cartoons featuring Mickey Mouse and the whole gang. After eight more years of creating cartoons and gaining popularity, Disney released the full-length animation Snow White and the Seven Dwarfs. This movie brought in 8 million dollars, and allowed Disney to springboard into creating Walt Disneyland and other movies that are considered “classics” today, like Fantasia, Cinderella, and Peter...
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...S HONG KONG DISNEYLAND w 907M13 Michael N. Young and Donald Liu wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2007, Ivey Management Services Version: (A) 2007-08-27 September 12, 2006, marked the one-year anniversary of the opening of Hong Kong Disneyland (HKD). Amid the hoopla and celebrations, media experts were reflecting on the high points and low points of HKD’s first year of operations, including several controversies that had generated some negative publicity. At a press conference and interview to discuss the first year of operations, Bill Ernest, HKD’s executive vice-president, acknowledged that the park had learnt a lot from its experiences and that the problems had made it stronger. Ernest also announced that HKD attendance...
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...internationally in 1967 when the franchise opened a restaurant in British Columbia. The next international McDonald’s opened in Costa Rica the same. From there, the chain spread steadily: over a six-month period in 1971, Golden Arches popped up on three new continents, as stores launched in Japan, Holland and a suburb of Sydney. McDonald’s was next introduced to South America in 1979 when a store opened up in Brazil. Four year after opening its next international restaurant in Casablanca, Morocco it opened it franchise in Belarus making it spread to its 100th nation. Throughout all these nations McDonald’s menu varies. What is offered at each restaurant depends on the location and what the people they are serving like. For example in France Le Royal Deluxe is the second biggest seller, it is a mustard-topped burger. At some Asian locations serve fried shrimp in a Big Mac roll, while McDonald's in India don't serve beef at all, relying instead on burgers made from veggies, rice and beans. Even though all these different options are offered at different McDonald’s some people...
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...entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products. This executive summary summarizes the issues surrounding The Walt Disney Company based on its globalization efforts into a multinational corporation, its business power related to the exportation of “American imperialism”, its business ethics related to its theme parks and resorts, and its corporate governance problems under former CEO Michael Eisner. Many blame these kinds of changes in company values and mission to Michael Eisner. Globalization efforts made by The Walt Disney Company would prove costly when it made bad decisions based on naïve assumptions of the cultural acceptance of Mickey Mouse into Japan and France. Tokyo Disneyland emerged as the most profitable theme park, but with TWDC having no stake in the company; and Disneyland Paris, backed heavily by TWDC, had to be restructured only after two years of opening. Domestically, theme park safety had been compromised, all in the name of profit. An embittered declaration for Eisner’s resignation came in 2003 by ousted board member Roy E. Disney, nephew of Walt and last remaining active family member at TWDC, and his trusted friend, Stanley Gold, who resigned the board. Ultimately, Roy Disney helped lead a Disney shareholder revolt that arguably contributed to Eisner’s departure from the company with nearly 45% of shareholders disapproval of Eisner. Table of Contents Introduction...
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...painting and selling pictures to neighbors and family friends. In 1911, his family moved to Kansas City, where Disney developed a love for trains. His uncle, Mike Martin, was a train engineer who worked the route between Fort Madison, Iowa, and Marceline. Later, Disney would work a summer job with the railroad, selling snacks and newspapers to travelers. Disney attended McKinley High School in Chicago, where he took drawing and photography classes and was a contributing cartoonist for the school paper. At night, he took courses at the Chicago Art Institute. When Disney was 16, he dropped out of school to join the army but was rejected for being underage. Instead, he joined the Red Cross and was sent to France for a year to drive an ambulance. EARLY CARTOONS When Disney returned from France in 1919, he moved back to Kansas City to pursue a career as a newspaper artist. His brother Roy got him a job at the Pesmen-Rubin Art Studio, where he met cartoonist Ubbe Iwerks. From there, Disney worked at the Kansas City Film Ad Company, where he made commercials based on...
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...to Europeans in April 1992 near river Marne, 20 miles East of Paris. It was the biggest and most lavish theme park that Walt Disney had built bigger than any of its Disney parks around the world. The location was chosen over 200 potential sites in Europe from Portugal through Spain, France, Italy and Greece. Disney Management expected Europeans to receive the theme park in the same behavior that their Japanese counterparts for Disneyland-Tokyo did for Mickey Mouse and other famous Disney characters but, in 1992, amount of visitors reached only 9.2 million and spent 12% less on purchases than the estimated $33 per head, and the projected attracting 11 million visitors and operating of S100 million during the first year of operation became a loss of $900 million by summer of 1994 since opening. Development Crisis looms and rescue was put on October 1994. The park's name was officially changed from Euro Disney to "Disneyland Paris", in order to more closely link the park with the romantic city of Paris, and to disassociate itself with the poor reputation that has become linked with the phrase "Euro Disney". The tide turnaround in 1996, Disneyland Paris became the most visited tourist attraction in France with 11.7 million (increase 9% from the previous year), being one of Europe's leading tourist destinations. Later entering Hong Kong, although, Disney was determined not to make the same cultural and management mistakes in China that had plagued Disneyland Paris, they don’t predict...
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...princesses? From the wonderland, from the castle , from forest and from sea? With the dancing black mouse, they called mickey with his friends Donald Duck with Daisy Duck and Goofy with Pluto, but in the end you will ask yourself who is the one behind those moving cartoon characters it’s Mr. Walt Disney, Familiar isn’t? Disneyland I guess, you know about the famous land in HongKong that is full of Disney characters. Mr. Disney born on December 5 1901 in Chicago, his family settled in a village. At 1909 Walt attended in New Park School of Marceline, Walt Completed the second grade at Kansas and at school he met Mr. Walter Pfeffer who came from family of the catre aficionados. After 2 years, Wakt start to had a job that is selling newspaper , for 6 years walt sells newspaper, he wake up at 4am in the morning until evening, he found the work exhausting and he often received bad grades.Most of time you can consider Mr. Walt as a businessman , in 1917 his family acquired shares in the O-Zell jelly factory. He began as freshman at Mckinley Highschool he became the cartoonist for the school newspaper , drawing patriotic topics on World War I, And with hope to join the army Mr. Walt drop out of Highschool at the age of sixteen but he was rejected for being underage , afterwards Mr. Walt and his Friend joined the Red Cross and Mr. Walt becomes an ambulance driver in France for almost a year. As he comeback in his hometown, he seek for a job, but Mr. Walt is always failed to had a job...
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