Case Analysis of Hong Kong Disneyland Table of Contents Overview 1 Service Concept 2 Current Issues 3 Analysis 5 Recommendation 7 Overview Hong Kong Disneyland was opened in September 2005 through a joint venture between the Walt Disney International and Hong Kong government. Disney has been on an international expansion since it first opened its park in 1980 in Japan and China being the most lucrative market‚ Disney decided to open the park in Hong Kong after selecting the city
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first year‚ Disneyland in Hong Kong were 400‚000 short of its target of 5.6 million projected visitors Estimated attendance: 2008: 7.1 million Actual attendance: 8.2 million In order to attract more visitors‚ the park has announced to add four new attractions‚ apart from the already-announced it’s a Small World‚ in 2008. 2.) Did Disney realize the projected income from the J.V.? Hong Kong Disneyland Resort is owned by a joint venture company‚ Hong Kong International Theme Parks Limited
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McDonald’s is one of the largest chain of fast food enterprises in the world. Nowadays‚ McDonald’s brand has more than 31‚000 fast-food restaurant‚ located in 121 countries and regions. McDonald’s restaurant industry has become the world’s most valuable brands. However‚ McDonald’s face a big problem about business sales in Hong Kong. First of all‚ people are increasingly aware of fast foods harm human health‚ resulting in a decline in sales of McDonald’s fast food. Most people think that McDonald’s is
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1. How would you value the Hong Kong Disneyland project from the perspective of Walt Disney? The valuation of Hong Kong Disneyland from the perspective of Walt Disney is done by taking the following assumptions: Cost of Capital = 9.52% Cost of Government Debt = 8.19% Cost of Commercial Bank Debt = 11.36% Cost of Equity = 12.3% (10 year average) Inflation = 7.31% (10 year average) Gross margin = 37% Operating Cost = 22% Variable Management Fee = 5% With the above assumptions the FCF
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debated. While some businessman welcome the scheme that likely enhance the economy in Hong Kong‚ normal citizens complain that mainland tourists handicap their daily lives and deteriorate the tension between Hong Kong and mainland. A number of economists advocate the economic strength of The Individual Visit Scheme. Tourism is of utmost importance in Hong Kong since Tourism is one of the four pillar industries in Hong Kong along with financial services‚ trading and logistics‚ and professional services
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Case Analysis of Hong Kong Disneyland Analysis for Disney’s losing market share due to operational issues Hong Kong is a set of islands‚ which are outside the Mainland China. The culture in Hong Kong differs from the mainland due to its rule from the British. Hong Kong was a prime tourist destinations for a large number of people from the mainland‚ as a result Disney focused on people from mainland‚ the local residents and international tourists. The local residents were infamous for their low
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ace memory and this experience is supposed to last during the whole voyage to the park. Peripheral Q2. What are the three key considerations for Disney when choosing mode of entry in foreign market? Risk: The risk factor for any investment is very important. Disney should conduct detailed analysis on the total estimated debt it expects to bear and cost of building the whole amusement park and resorts. It is not preferable for Disney to bear the risk and cost of a new theme park only by itself
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Submission Date: 21 March 2013 Based on the Hong Kong’s cultural traits of Geert Hofstede’s research‚ Hong Kong has high level of power distance index‚ medium level of masculinity‚ low level of uncertainty avoidance index and low level of individualism. I partly agree with the results. I only agree the first three of cultural traits of Hong Kong and I think Hong Kong is more likely to be medium level of individualism. About the power distance index‚ Hong Kong has high level result is quite proper.
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In 1836‚ the Chinese government undertook a major policy review of the opium trade. Lin Zexu volunteered to take on the task of suppressing opium. In March 1839‚ he became Special Imperial Commissioner in Canton‚ where he ordered the foreign traders to surrender their opium stock. He confined the British to the Canton Factories and cut off their supplies. Chief Superintendent of Trade‚ Charles Elliot‚ complied with Lin’s demands in order to secure a safe exit for the British‚ with the costs involved
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Hong Kong Disneyland The Disney Company envisioned it being a great idea to introduce its resort to the huge market in China by opening up a Disneyland park in Hong Kong. The Chinese people have an interest in the American culture‚ and they want to connect with the global popular culture so in theory it sounded like a great idea. It turns out that HKD has not been the success that many predicted it would be. This is can be contributed to how well Disney was able to translate its strategic assets
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