Disney Case Study

Main Body

1) Mistake of Disneyland Paris

Disneyland is earning good revenues but before some times it was failed to run its business successfully. In the fourteen year history it is found that there have been many ups and down in the resort in the year of 2005 the company was declared as bankrupt.

Wrong Marketing Strategies

As it is found that Disney decided to expand its business in many more countries to get high success. It opened its venture in the Europe, it has used the American management style there (Newell, 2013). It did not focus on the culture of the nation and used predefined strategies as per its home nation. When it entered into the French then also cited firm has used the same strategy. Disneyland Paris failed to realize that companies have to adopt different strategy for different countries. It just photocopy its operations in different locations. By this way it had to face many unforeseen issues and Disney was not prepared to handle such circumstances. Wrong strategies was the main mistake of the Disneyland Paris and due to this it failed to run its business in many nations. That has given the firm huge financial loss and even reputation of the organization got down that time (Delaney, 2016).

Poor assumption was another mistake of Disneyland Paris. As project managers expected to attract 11 million people in the theme park. As due to poor market research cited firm failed to identify the main factor that is currency movement. Ignorance of this element was the major mistake of the resort. Due to economy downturn people avoid to travel in Paris. Apart from this, authorities were assuming the French people will take interest in the theme park and they will frequently visit the place (Bulatova and Ul'chickij, 2015). but this assumption was failed because French had its resentment and they have their own love in the country.

Wrong Advertisement is the another mistake of the Paris resort. As Disneyland Paris has advertised its resort by em phasing on the size and glamour rather than rides and attractions. As French people wanted dine with wine but Disney outlawed alcohol there (Skyrius and et.al, 2016). That is why the whole assumption was failed and it has created problems to the company and due to lack of knowledge and research it failed to earn profit in that years.

Poor Service Delivery and American Icon was another mistake of the Disneyland Paris. As it was focusing on the spreading the Euro culture in the entire world. So it was building and designing the resort as the Euro culture. As Europeans do not take breakfast so it has made its resort accordingly and there was no arrangement of breakfast. It was creating problem for the visitors and their interest got down. They become negative towards the Paris resort that has given huge financial loss to the company (Torc'h, 2015).

Ignorance to Budget is another mistake made by the Disneyland Paris due to this it has faced huge loss between 1992 to 2006. Walt Disney company was assuming to build a high class theme parks across the world and it has spent much amount in the construction without assuming the return over its investments. Approx it has invested 300000 funds more than its budget, that created problems later when it failed to earn profit over it (Chira, 2014). As it bought 700000 square meter land for office space but due to real market inoculations cost of the purchasing has increased to great extent and management did not give attention on this point.

Operational errors was another mistake of Disneyland Paris. It was assuming that Monday will be light day and Friday will be heavy day and accordingly it has hired its staff members in the resort. But actual was just opposite and due to this it failed to serve quality services to the guests. Apart from this it has not hired skilled people in the organization and that is why company was unable to perform better at that time (Massey, 2015). As it involved computer stations in the resort but it was assuming that guests will not stay in the hotel for whole day. But there were many guests that was spending whole day in the hotel. So it was unable to meet their expectation at that time (Walt Disney Company's, Euro Disneyland Venture, 2006).

2) Improvements

Disneyland Paris had made many mistakes between 1992 to 2006, but it was required to make some improvement in the operations management strategies of the organization. That can help the firm in enhancing its revenues and improving its brand image. The first improvements should company make that it should make proper strategies of marketing. It needs yo first concentrate on the cultural difference and according the cultural belief of particular place, it should advertise its resort (Daniels, 2015). It can help in attract more visitors towards the brand. In addition to this Disneyland Paris management should plan the activities first and needs to do market research by this way currency situation, fluctuation will be foretasted and according they have allotted budget. By this way there would not be any situation of over budget. Controlling must be there, managers need to monitor the activities time to time so that immediate changes can be made before facing huge loss (Harcourt, 2015).

Company starts giving training to its staff members so that they can deliver quality service to the guests. By this, visitors will feel comfortable and will like the resort, they will give positive feedback to others as well. It will help in increasing revenues of the organization, By this way it will be able to minimize operational errors. Assumptions needs to be based on real facts and figures. Hypothetical assumption always give negative results to the organization so Disneyland Paris should focus on previous history, economy condition, preference of population etc. By this way it would be able to get accurate results to the cited firm. If Disneyland Paris focused at that time on such maters then it could be able to reduce its mistakes and it could be able to earn more profit rather than bankrupt (Case Study: The Not-So-Wonderful World of EuroDisney, 2017).

Conclusion

From the above report it can be concluded that ignorance of culture, poor marketing strategies and over budget were the main mistakes of the Disneyland Paris. It was just due to poor assumption so these issues can be resolved with the help of operational management strategies. Training to staff and planning, controlling can help in improving its situation and in gaining optimistic results to the company.

References

• Bohas, A., 2016. A Vulnerable Civilisation of Leisure. In The Political Economy of Disney (pp. 101-140). Palgrave Macmillan UK.
• Bulatova, K. and Ul'chickij, O. A., 2015. THEORY AND HISTORY OF ARCHITECTURE, RESTORATION AND RECONSTRUCTION OF HISTORICAL AND ARCHITECTURAL HERITAGE. Scientific Herald of the Voronezh State University of Architecture & Civil Engineering. 25(1).
• Chira, R. G., 2014. About SF and Fantasy through Artificial Intelligence.Caietele Echinox. (26), pp.345-359.
• Daniels, G., 2015. XXI Olympiad: Montreal 1976, Lake Placid 1980 (Vol. 19). Warwick Press Inc..
• Delaney, L. J., 2016. Cross-Cultural Learning. In Exporting (pp. 451-461). Apress.
• Harcourt, B. E., 2015. Exposed: desire and disobedience in the digital age. Harvard University Press.
• Massey, H., 2015. The Great British Recording Studios. Hal Leonard Corporation.
• Newell, L. A., 2013. Mickey Goes to France: A Case Study of the Euro Disneyland Negotiations.
• Skyrius, R. and et.al., 2016. Factors Driving Business Intelligence Culture. Issues in Informing Science and Information Technology. 13.
• Torc'h, L., 2015. Revenue Management and it impacts on its actors in the hospitality industry.

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