1. What did Disney do wrong in its planning for Euro Disney?
Accordingly, during the time Disney came in to the picture as it never did a single misstep, never a mistake or not even have such failure as said by former Disney executive and the tendency that everything goes perfect until such time that certain problems hit Euro Disney in such aspects and that Disney may have certain indications that at some point there was something wrong in planning the Euro Disney since the management then, were not able to deliberately consider certain outcomes as well as the pros and cons that reflects Disney’s external factors that goes with careful planning and decision making of every intricate details. Thus, Eisner was obsessed with maintaining Disney’s reputation for its quality and was convinced by the designers that Euro Disney would have to brim in competing with great monuments and cathedrals of Europe. There were mistakes on the project plans as for instance, Disney has allowed companies built hotels to house visitors and that Disney merely collected royalties from the park and not having equity ownership stake.
The business performance was not that great and stable and it does not have ample assumption to the European market and there has been severe European recession as well as high interest rates and strong French currency value. The initial plan in a way, was not comprehensive and accurate in providing solutions to the arising Disney problems, it does not go with the standards of changes ideals and concepts as the application was typical in details and methods were more of Disney fashion and that exhaustion was evident and somewhat the planning for location was not at the right value in considering the availability of potential tourists within Europe and there was different in dealing to the climate conditions that was not conducive for running and building such theme park. There were also shortcomings with Disney’s financial planning indicating that Euro Disney was just a cornerstone of a huge real estate development plan. Meanwhile, on the positive side, the key financial success was that Euro Disney would tightly control the design and build everything and then sell of the completed properties for a large profit. Aside, culture differences was visible and that Europeans in some stance don’t like the fact that there has fakeness implication of the Disney leading the process to a more serious Euro-Disney problems and management issues.
2. What recommendations would you make to Disney to deal with the problems of Euro Disney?
It is imperative to provide series of recommendations in order for Disney to deal with certain problems of Euro-Disney as discussed in the following points.
There is a need for Disney to take control of the management decisions and analyzing issues and problems based on their own practice and not to use some team to analyze the problem and have it presented that is way outside the management and business principles and context and to give more direction and substance to the designated management functions resulting to a more organized and systematic business environment and better workforce. Thus, there is also the imperative need to understand and execute appropriate plan of actions that will bridge the gap of culture difference such as knowing what are the characteristics and attitudes of the European people in terms of the nature of business considering what will work on both sides and achieve good marketing strategies that would have connection to promotion and advertising process.
The fact that marketing issues was present, it may be proper for Disney to consider programs that will cater to resolving such issues and probably focus on useful market tactics such as by having promo discounts for families on weekends and that there is a need to achieve good operations management by means of implementing strategies that fit in to the European culture and planning more ways on how to make business better despite of business conflicts thereunto. Thus, adjusting operations not just on summer months and maybe change the approach from seasonal to a whole year round basis. Furthermore, in lieu to the environment and location factors, Disney can choose such locations that have strong sales magnet, something that sales and profits are manageable and that possibly, Disney can opt for transfer of Euro-Disney location considering that all aspects of costs and expenses have to be minimal and does not overspend the resources and the need for a justifiable budget is important as high risks within the management and its process may be evident any time. Moreover, Disney can implement and apply flexible labor systems that will be adaptable to the situation, and is accepted by the French laborers and thus, the need also to cut down costs and manage risks and small changes properly to have balance of business.
The financial and initial business plan must undergo precise review and probably Disney can use procurement strategies such as changing the structure and context of the planning process into a modern channel of communication and have the avenue for updating resources and market approaches and have it linked to the trends of global market and be in control of situations such as having the right competition strategy and be able to act out several activities that will convinced customers to choose them over the other parks like for example, free rides for every purchase of a maximum of three tickets and others.
3. What lessons can we learn from Disney’s problems with Euro Disney?
There are several lessons that we can learn from Disney’s problems with Euro Disney. For one, the lesson to always have precise business planning before deciding on the actual process of the project, and be able to plan it in a more convenient way and that applying all the possible needed and necessary updates to the organization and execution of the business plan is critical and denotes appropriate marketing as well as operations decision making processes that must be strategically driven.
Then, the value of finance planning control is also a lesson and that in every aspect of business operations, integrated assumptions relating to financial issues must be alleviated and that the value of managing market risks has to be in proper phasing and that, every business environment factors has to be precisely reviewed and should be equipped with positive thinking and right business motivation in order to resolve issues and conflicts that are a part of business and from there everything flows within the cycle – a business paradigm that is flexible and dynamic that knows how to bend with the blows.
Credit:ivythesis.typepad.com
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