Euro Disney

1 Executive Summary

The paper addresses that owing to misunderstand culture differ between United States and France, the Walt Disney failed at Euro Disney. The Walt Disney Company is one of the most famous companies all over the world. The first Disneyland was built in United States, and it is very successful. Tokyo Disneyland is the first oversea market the Walt Disney invests. Tokyo Disney created 4.6 billion of revenue and the net profit is $703.3 million in 1989.For the Walt Disney, Oversea market is high profit of potential market. The Walt Disney began to build Euro Disneyland in 1992, but they faced a lot of problems (Karadjova,G. 2009). According to its situation, the company's problems are discovered by using both Hofstede and trompenaars, which are the most models to analyze cultures differ between the United States and France. According to Hofstede, France have high uncertainty avoidance, high individualism, high power distance and low masculinity. United States is Guided Missile Culture and France is Eiffel Tower Culture, according to their situations, three mistakes are discovered, such as violating French labor laws and misunderstanding French labor laws and food norms. Last but not least, learning difference of culture between home country and host country is important. Culture effects organization, leadership and team. Recommendations from three aspects, organization leadership and team, are suggested, which can make company attain great success in the future and account more market share.

2 situation analysis

2.1 Hofstede Analysis

According to cultures differ; Geert Hofstede has created a cultural dimensions model (geert-hofstede). When people invest oversea market, they can take advantage of the model to analyze different culture between home country and host country.

United States France

Power distance 40 68

Uncertainty avoidance 46 86

Individualism values 91 71

Masculinity values 62 43

Source: From Hofstede,Geert H, Cultures and Organizations: Software of the Mind. Copyright © 1997 by the McGraw-Hill Companies

Power distance

Power distance is less powerful members in the organization to accept unequal distribution of power between managers and employees (Hofstede, G. 1997,P104). United States is low-power-distance country, but France has high power distance. They tend to be centralized power in the hand and have tall organization structures. Therefore, the French were confused a fact that Disney employed mangers born in the United Sates as senior managers in Euro Disneyland and they do not speak fluent French (Karadjova,G. 2009).

Uncertainty avoidance

France scores 86 on Uncertainty avoidance. The French strongly refuse changes to their traditional beliefs and institutions. Disney built euro Disneyland in Marne-la-Vallee, 20 miles east of Paris. It is well known that sugar beets and Brie cheese produced by Marne-la-Vallee's famers is famous before. Euro Disneyland was built based on imitating the theme parks in United States, they did not take into consideration French culture. French are aware of threat by ambiguity, so there were only 29% of visitors from French to visit euro Disneyland between April and September in 1992.If French want to experience culture of United States in Disneyland; they can go to Disneyland in United States. However, United States scores 46 on UA, American are more comfortable with ambiguities (Karadjova,G. 2009).

Individualism/collectivism

Both United States and French have high individualism, but the individualism in United States (91) is higher than in French (71). Executives from United States forced employees in Euro Disney to obey strict dress code, such as women keeping hair with natural color and man cutting short hair without beards or moustaches. Disney made dress code based on individualized and squeaky -clean image, which indicates USA's values. Therefore, French with high individualistic resist to work in euro Disneyland (Karadjova,G. 2009).

Masculinity/femininity

United States with 62 scores in higher on the masculinity than France with 43 scores, so they place emphasis on different aspects. America attaches importance to success and material possessions, but France has an important influence on caring for others and quality of life. French culture was not taken into account at euro Disney at the beginning. Michael Eisner, CEO of Walt Disney, said that they create the largest investment in france by American private company (Karadjova,G. 2009).

2.2 Trompenaars Analysis

According to Trompennars research, there are four cultural types in organizational culture, Family Cultures, Eiffel Tower, Guided Missile and Incubator Culture (Tian, F. 2009, P193).according to information (Tian, F. 2009, P193), United States has Guided Missile Cluture and France has Eiffel Tower Culture.

United States

(Guided Missile Culture) France

(Eiffel Tower Culture)

Attitude toward job According to the number of visitors, Disney arranges employees to work. In slack season, the employees can leave the job and in the peak season, the employees can come back, which is a necessary factor to create maximum profit in operation of company The France did not support flexible hours for their workers, job are fixed.

Attitude toward employee They focused on themselves; they think that they are professional. They think themselves as a part of group.

3 Managerial mistakes

In operating Euro Disneyland, the company failed based on lack of cultural awareness. They violated the French labor laws; misunderstand French labor law and food norms

Violation of French labor law

Disney Company is not only lacks of proper understanding o f the French labor laws but also, making a lot of strict rules, the company was accused of violation law in French. For example, employees (Cast Members) must obey to