The implication for the failure of the European Disney
From the aspect of organization’s value creation model
As learning from the class, business value may be created by Labor practice improvements, Human Rights initiatives, and Environmental improvements. For the European Disney, it does not satisfy these three things. In the Labor practice improvements, because of influence for the traditional mindset of Disney, the appearance of employees should observe the rules by the company strictly. For example, the men’s hair needs to be cut shorter which cannot touch the ear. Besides, the males are forbidden to have beard and their tattoo cannot be shown. Females can only use the minimal makeup and not allow their hair dye. In addition, Disney only offers the 50 lounge for drivers and more than 2000 of them need to rest. All of these above worsen the labor practice, which lower the motivation for the employees leading the value of Disney decreasing. For the human right, Disney makes a big mistake. Without doing the research, they consider culture of the European as they thought and do not offer the breakfast and alcohol drink which irate the French. These details in reducing the human right weaken the value of Disney gradually. Another important factor to increase the business value is to improve the environment and Disney fail to do this neither. When building the Disney, they explore the farmer’s land and pollute the environment. Thus, it is not good for them to gain the reputation in public and lose their business value. Overall, the reason Disney cannot increase its business value to attract more customers is that they do not adapt their corporation culture to the Europe and make adjustment according to it. They only repeat their style like in the Japan and USA in Europe. Although this decision can lower the investment risk, it does not create enough profit to cover the cost. Another important reason is the governance. Before building up the Europe Disney, some employees point out that there exits some culture conflicts between the Europe and US which hindering the success of it. But the directors do not pay attention to it and use the inaccuracy prediction to prove it reasonably. Because the broad of directors lack the clear objective of choosing the site which is whether to earn profit or just enter in the Europe market. This lead to an unclear task appoint to the management and implement. Lacking of valuating risk, the direction of strategies make it hard to enhance competitiveness resulting in harming the value of Disney and failing to survive in the Europe market. From the failure of the Europe Disney, we can learn from it to avoid the same situation happen again. The implications are present in the follow: Firstly, multinational operation must pay attention to culture management. When facing the new problems and culture, we cannot be arrogance and followed the old rules. As we know, French are sensible and the directors of Disney are imperious and prodigal. The director of Disney’s opinionated attitude makes people disgusted which hinder implementing the plan and operation. Hence, effective cross-cultural management is the key to the success of enterprise competition in the international market. Disney's transnational operation process highlights that understanding culture differences, to overcome cultural conflict and conducting effective cross-cultural management are important in transnational operation of enterprises. In transnational operation, if the enterprise lacks of cross-cultural communication, management knowledge and skills, cultural conflicts will affect their work efficiency, and increase the enterprise internal friction. We can see it clear from the graph below:
Secondly, entering the new market, the directors of company should make appropriate price and deal with relationship for different companies in different areas to avoid them compete with each other. At that time, there are few theme...
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