Impact of Cultural Differences on EuroDisney Essay -- International Bu

Impact of Cultural Differences on EuroDisney Until 1992, the Walt Disney Company had experienced nothing short of success in the thought park business. Having successfully opened parks in California, Florida and Tokyo, it only seemed consistent to open hotshot in Europe. When word of this got out, officials from many European countries offered Disney pleas and notes indictments to work the Disney magic in their hometown. In the end only one city was chosen and it was Paris, France. That was the first of many decisions that led to a truly unsuccessful first step of EuroDisney. Many factors contributed to EuroDisneys poor performance during its first a few(prenominal) year of operation and many of these factors could devote been e rattling(prenominal)eviated if the proper factors would have been looked at previously.The first problem with EuroDisney was that Paris was the town chosen to be this parks home. It was chosen because of demographics and subsidies and b ecause the French judicature made Disney an offer it could not refuse. nigh 17 million people live less than a ii hour drive from Paris and another 310 million can evaporate there in the same time or less. The French government offered the company more than $1 billion in various incentives, all in the expectations that the project would create 30,000 French jobs. The land came at low prices, cheap loans were made available, and a dedicated high-speed TGV and suburban railroad track link was also offered by the French. France gave Disney an offer they could not refuse. Overlooking the over-valued franc, lousy weather, French people not being known for their hospitality and nonchalant anti-American demonstrations by angry farmers because French agricultural subsidies had been cut, Paris was be quiet chosen to be home of EuroDisney. Foreign uncontrollables in Paris in regards to economic forces, legal forces, competition, and culture can be held accountable for EuroDisne ys misfortunes. In opening in the summer of 1992, Europe was entering into a very bad recession and this caused income from catering, merchandise, including souvenirs and foods, and hotels to be way below what was expected. High intimacy rates also caused many currencies to devaluate against the franc leading to more pecuniary difficulties for EuroDisney. In negotiations with France, lawyers were used excessively. This rigid legal approach was offen... ... country and the skirt countries to know. Possible problems should be noted and handled before opening day of the beginning park and expectations should be realistic. EuroDisney was faced with many challenges after its doors opened in 1992 and if all the proper steps would have been taken before opening day, many of these challenges could have been eliminated beforehand. Cross-cultural literacy is required to do successfully do business in any country and making decisions based on assumptions should be avoided a t all costs. Disney assumed Europeans would vacation like the American and Japanese that they would be happy to stay away for several years at a theme park. But middle-class Europeans try to evolve away from it all on their vacations by going to the beach or the mountains, and EuroDisney lacked that kind of appeal. The challenges surrounding EuroDisney forced Disney to realize many things, most significantly it made Disney realize that it is imperative to understand all cultural differences that they go forth encounter when doing business in a foreign country and it is exceedingly unlikely that Disney will see this kind of failure again anytime in the near future.