Hong Kong Disney Case Study Summary

Satisfactory Essays
Disney/Hong Kong Case Negotiation

In negotiations between the Hong Kong government and Disney, we have established measures we would like to observe going forward. The most important matter included is job creation and economic boost to Hong Kong and the surrounding areas. Both parties (Hong Kong and Disney) can create value and gain favorable returns. Our negotiations are not limited and will be open to different plans. From a cultural perspective, negotiations with the Hong Kong government are much easier than mainland China’s government. Saving time, money, and starting the projects faster will allow Disney to realize their desired profits. The government of Hong Kong would like Disney to be fully involved with this project. A joint venture appears as the best option for this type of deal. With Disney and Hong Kong fully involved in day-to-day business operations, both parties would assume similar risks. Hong Kong provides a large work force and land to accommodate such a large company. On the other hand, Disney brings its expertise and management skills. As a joint partner, both entities can create a profitable business model. To keep consumer confidence high and competition low, Hong Kong would not allow any additional construction in regards to theme park attractions within the region. We would also like Disney to help ensure a favorable revenue stream for both parties by agreeing to not construct any additional theme parks in the region. We estimate about 25 years to realize true profits and consistent returns. After this period, terms of the arrangement between the Hong Kong government and Disney will be negotiable again. After phase 1 has been implemented and has proved to be successful, phase two of the project can also be negotiated. The government would like set benchmarks before phase two of the project can be completed. If Disney were able to provide desired investment amounts and attain certain benchmarks, expanding the attraction

You May Also Find These Documents Helpful

  • Better Essays

    A Case Study of Hong Kong Disneyland A look into The Walt Disney Company and the trials and tribulations of opening Hong Kong Disneyland Prepared and researched by: Amy Essenstein Brenda Carter Bill Sherman Hong Kong Disney Case Study Situational Analysis of The Walt Disney Company: Bill The Walt Disney Company has come along way from its beginnings as Disney Brothers Movie Studio making Alice comedies and cartoons starring a little mouse named Steamboat Willie. Today…

    • 3442 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Tuyen Tran BAD 345-03 9/9/2014 Hong Kong Case Study Hong Kong Disney land was an optimistic business idea that was supposed to further propel the Disney brand into the Asian market. After a successful operation in Tokyo Japan Disney thought that the Hong Kong market would follow suit. However, Hong Kong Disney was not the success Disney had hoped and was losing costumers and money early on and was not seeing any profits. Disney was not sure why locals and tourists were coming to their…

    • 1122 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Hong Kong Disney Case

    • 2475 Words
    • 10 Pages

    UNIT 2 CASE Study xi Unit 2 Case Study: Hong Kong Disneyland Margaret Taylor MGT 614: Global and Transnational Management Dr. Laura Mays Tiffin University May 26th, 2013 UNIT 2 CASE STUDY 1 Introduction The purpose of this paper is to analyze the management strategies of Hong Kong Disneyland ,and the issues that have arisen. Hong Kong an amusement park built by the Disney Corporation…

    • 2475 Words
    • 10 Pages
    Best Essays
  • Good Essays

    1. The main attraction within Hong Kong Disneyland is the park called Adventureland. It is the biggest of all the parks within Hong Kong Disneyland. It has many attractions, it features a large island area home to Tarzan’s tree house, which compares to the Rivers of America in the Magic Kingdom. It also has a popular “Festival of the Lion King” show. The park is made up of four themed parks which consist of Main Street, U.S.A, Adventureland, Fantasyland and Tomorrowland. The park also plans to expand…

    • 648 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Disney in Hong Kong

    • 1749 Words
    • 7 Pages

    proportion of Disney movies). With this positioning statement that applies to everyone regardless of geographic location (Chinese have dreams and can fantasize as much as Americans or Europeans), expansion into the international market may not seem to be a challenge for Walt Disney Company. However, in evaluating the past 4 years of attendance and operating figures of their newest park – Hong Kong Disneyland, it goes to show that the park performance is far from ideal. Why does the Disney magic not work…

    • 1749 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Hong Kong Disney

    • 1073 Words
    • 5 Pages

    Individual Case Analysis-1 Hong Kong Disney Mktg 412 Sales Management In the case entitled Hong Kong Disneyland (Ivey Management Services version, 2007) describes the global mega-entertainment corporation’s inability to achieve forecasts in attendance and profit for the facilities first two years of operation (2005-206). Further research has shown that Hong Kong Disneyland (HKD) first year of profit came in 2012 (Nip, Kang-Chung…

    • 1073 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Hong Kong Disney

    • 1153 Words
    • 5 Pages

    this case analysis I will first show the requirements the company had for its financing. Then I will provide an analysis of the main pros and cons for Chase in connection with the deal. Lastly I will show how both affected the pricing as well as the execution of the deal. In order to build the new Disneyland in Hong Kong a new non-recourse object, Hong Kong International Theme Parks Ltd (HKITP) was formed. While the owners supported the project with substantial amounts of equity Disney and Government…

    • 1153 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Hong Kong Disney

    • 1316 Words
    • 6 Pages

    three most important success factors in the theme park business? Well-defined vision: One of key success factors is Disney¡¦s vision that is giving eternal life to cartoon characters and creating a place where people can meet these life-size characters. This vision helps Disney to persevere to provide different kind of rides and tame entertainment to visitors. Obviously, Disney¡¦s heritage and traditions attract visitors worldwide. Balanced entertainment offering: A successful theme park should…

    • 1316 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Hong Kong Disney

    • 621 Words
    • 2 Pages

    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…

    • 621 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Hong Kong Disney

    • 330 Words
    • 2 Pages

    Hong Kong Disneyland One of the biggest complaints heard from visitors of Hong Kong Disney, is the size of the park. The vast majority of visitors believe that the park is too small. The capacity of the park is 30,000 visitors per day. HKD is the smallest among Disney theme park properties in the world. The park currently occupies just 55 acres and has only four “lands” – Fantasyland, Tomorrowland , Advertureland, and Main Street USA. Our first recommendation would be to expand the park. HKD…

    • 330 Words
    • 2 Pages
    Good Essays