Course Coordinator –
IBS210 – The Principals of International Business
Due Date – 22 April, 2013
Word Count – 1031 words (excluding references)
Cultural Considerations of the Opening of Shanghai Disney
Shanghai Disneyland resort opening 2015 will have the biggest and tallest Cinderella castle in the world. The key players are the Chinese government, Disney, Shanghai Shendi Group and Mike Crawford, with the key event being the Chinese governments approval in 2009. The political, social considerations, education and economic environments are then explained. The context approach and dimensional approach are used to discuss the cultural considerations. The case will go on to discuss that while there are no current implications affecting the domestic and international business, it will tell of how Disney will benefit the Chinese economy, through growth in income, employment etc. It is recommended that Disney improve the cultural considerations through character costumes, food and by broadening their target market.
The essay will look at the case of Shanghai Disneyland and discuss key players. Events and discuss case context through an international context. It will continue to determine the case issues and the relevant theories used to develop solutions to understanding the cross-cultural understandings of culture. The essay will then show the implementations that domestic and international businesses face that operate within the theme park industry, and give recommendations to improve the cross-cultural understandings.
The Article looks at Disneyland opening in Shanghai in 2015 thanks to the Chinese governments approval on November 4, 2009 (Rapoza, 2013). The resort will compromise of two Disney hotels, 46,000 square meters for retail, dinning, entertainment venues, recreational facilities, a lake, parking and transport hubs (Rapoza, 2013). Shanghai Disney will have the biggest and tallest Cinderella’s castle in the world, will be interactive and called the Enchanted Storybook castle (Rapoza, 2013). Shanghai Disney sits on nearly 1,00 acres, and is three times bigger than Hong Kong Disney (Rapoza, 2013). The resort is budgeted at 24.5 billion Yuan ($3.7 billion) for the theme park and an additional 4.5 billion Yuan ($700 million) to build hotels and restaurant venues (Rapoza, 2013). Disney itself will own 43% of the property while the Shanghai Shendi Group will own the remaining 57% (Rapoza, 2013). Mike Crawford, Disney’s general manger states that ‘We are excited to see the resort development move into an intensive phase of construction’ and ‘We look forward to providing more updates in the future, as we reach key milestones’ (Rapoza, 2013).
Key players in the case are the Chinese government, who hope to improve the local economy. The Shanghai Shendi Group, Disney and Mike Crawford are excited to reach key milestones towards the opening of Shanghai Disneyland. Disney have used various initiatives to lead to the approval of Shanghai Disneyland, included are television, motion pictures and consumer products (Yang, 2012). Key events started with the Chinese government’s approval for Disneyland to be China’s first mainland resort on November 4, 2009 (Rapoza, 2013). Hong Kong Disneyland then recorded profits of $14.1 million (Rapoza, 2013). Shanghai Disney has revealed that there will also be two themed hotels, with the grand opening late 2015 (Rapoza, 2013).
In understanding culture it is imperative to understand the control of political, economic, educational and social variables (Kelley & Worthley, 1981). In China, political environments of both domestic and international companies operate under government control (Zhu & Xu, 2010). The Chinese government has been in talks with Disney for more than ten years, and has kept smooth communication (Zhu & Xu,...