Disney Land in Europe

997 WordsOct 14, 20094 Pages
Question no. 1: What are some of the characteristics of multinational enterprises that are displayed by the Walt Disney Company? • They have to be responsive to different forces of home country and host country at the same time although Euro Disney do not have any big competitor as it was the largest amusement park opened in France but it failed to study accurately external environment, needs and wants of people, culture, price, policies, economic, social and legal issues. They should keep local employees rather brining from foreign countries. • They draw common pool of resources like financial, information, human both are shared by Euro Disney land with other Disney land’s in the world. • They link different business partners…show more content…
The company also shot a 360-degree movie about French culture. • It opened in Europe because many Europeans visit other Disneyland, so Disney officials were optimistic that opening in Europe would be more beneficial for them. • Later company studied their French culture and tries to modify themselves according to customer demand. • Adopt French culture i-e replaced burgers and Mickey mouse which reflect American culture. HR Strategies: • “Disneyland Paris” changed their HR policies in order to cope up with crises. • Employees objected to the pay rates and working condition. • Employees raised concern about variety of company policies ranging from personal grooming and speaking English in meetings, even if most people in attendance spoke French. • Their management was not good as of previous Disneyland’s working in other countries. • They also changed dress code. • They keep foreign employees for their working. Financial Strategies: • To overcome the bankruptcy situation (three years of heavy losses), in 1994 a major investor purchased 24.6 per cent (reducing Disney share to 39 per cent of the company injecting $500 million of much needed cash). • Disney waived its royalty fees. • Loan repayment plan is schedulized. • Arrange investors from French government. • Issued new shares. • Disneyland reported a slight profit in 1996 i-e (about $50 million annually); visitors are increasing with the passage of time. In the
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