Euro Disneyland

Euro Disneyland

Introduction

Many of the issues Disney had from the start related to cultural differences between the United States and France. The Americans have strict appearance codes while the French impose dress code regulations such as keeping hairline at such level or limiting the use of beautification products for female employees. While still in Japan, Disney had managerial conflicts with Japanese counterparts. The same desire to incorporate Disney culture to all the Disney parks across the world saw the company in a financial crisis when implementing the Euro Disneyland project in France. Several cultural differences, such as the use of alcohol, employee standards, park designing, languages to be used, and managerial capacities.

Main problematic issues

Euro Disneyland investment project had severe cultural problems between the American company management team and the French authorities and people. These ranged from the alcohol ban, appearance code, violation of the law, Fitzpatrick insult of the French communist party, hiring rows, change of state administration, and Antoine Guervil’s mother-tongue mess. Among others, these cultural clashes were responsible for Disney to record losses, the resignation of chairman Robert Fitzpatrick and the realization of profits later during their nullification. For instance, Antoine Guervil, an employee who stood in front of the Cheyenne Hotel that has 1000 capacity rooms, had mother tongue influence (Luthans & Doh, 2012). Whenever he said ‘Howdy,’ it sounded like ‘Audi’ and provoked French Renault-sponsors of Euro Disneyland for promoting a German carmaker.

Cultural conflicts were evident in Eisner’s efforts to enforce the Disney doctrine on the French investment was unsound. Managerial efforts to ensure that Euro Disneyland takes shape like those of America and Japan was a mistake. French people have a strong taste for culture.  It was vivid following the lifting of the bans such as on alcohol and strict regulations on dress code and the wearing of rings. These sentiments when the state administration hands saw pressure amounting to ensure local cultural taste implicated on the investment (Ariëns, 2017). Had chairman Robert Fitzpatrick not resigned, the Euro Disneyland would be a boondoggle. Perhaps the managerial misunderstandings and the yearning to extend the culture of the company to the French people led to the claim by critics ‘American neoprovincialism’ a notion that stirred extreme dislike for the park. These cultural disagreements were the main problematic issues in the Euro Disneyland investment project.

Definition the problem

Plenty of information makes it understandable that cultural clashes were the primary cause of the near-failure of the massive foreign investment on French soil. For instance, upon the grant of approximately five thousand acres, Euro Disneyland management banned alcohol in the Park. On the contrary, the French culture believes that taking wine with meals is a God-given right. Such a cultural stand was a substantial backlash to Euro Disneyland. Euro Disneyland had a management that determinedly imposed an American theme on foreign investment (Luthans & Doh, 2012). Later on, upon a change of the administration, Bourguignon lifted the ban on alcohol, which led to increasing tourists to the park, realizing profits after many years.

Employment standards

Perhaps following the company doctrine, Euro Disneyland management circulated a handbook that had stipulations on employment standards such as acceptable clothes, jewelry, and hairstyles. It was a nagging issue to many French employees, and Stephane Baudet, a potential trumpeter, rejected a job since he would have to cut his ponytail. Euro Disney’s management insisted against a ruling banning their squeaky-clean employment standards. It was a cultural struggle. Disney’s culture versus the French culture. Other demands by the employment handbook guide were that men had had to keep their hair above the ears, and the collar and tattoos are to get covered (Vallas, & Christin, 2018). Women as well had restrictions that exceeded men that compounded on regulating their beautification and perpetrated male chauvinism.

Ads in English

During the erection of the first ads to bid work, the management used the English language leaving the French firms of both small and medium-size feel foreigners in their own country. It was one of the many struggles in the words of Robert Fitzpatrick to ‘break the French ancient cultural aversions.’ On a different occasion, Eisner made an extra demand of $8-10 million for a movie about the French culture (Luthans & Doh, 2012). Despite this, he once made ordered thirty-five fireplaces for hotels personally, abusing managerial powers conferred to him. It was a cold cultural war between the company and the French people.

Labor contentions

Labor practices was another ground for the continued cultural disagreements. The conservative administration in power demanded of Disneyland to hire French nationals for the over 25,000 jobs. On the country, Disney cared not for the high unemployment the resident area they were in suffered. Disney pushed for its employment strategy to ensure European nationals had their representation in the company (Yu, 2017). An agreed settlement was employment offered for citizens of other European nationals who could speak French as well.

Produce alternatives

Rather than imposing regulations such as on the designing of the park, where Eisner refuted the installation of gangster and speakeasies images claiming they were extremely harmful despite designers to claim that Europeans loved the prohibited areas. Disney management should have let the requested prohibited area be since, in business, it meant drawing customers provided the legal bounds were not outrun. Some of the ethical concerns would be that under 18 years old, barred from such an area (Kinnear & Nonyane, 2016). Regulating entrance would prove that the park focuses on providing entertainment at a widened range of taste.

Pushing for a company or American culture in the foreign land to extents that investment worth billions was becoming a waste, is not wise of management. Already the Europeans were flying to the Disney World in Florida, United States. It, therefore, a waste of resources to short-circuit the revenue for Florida Parks (Smith & Mayorga-Gallo, 2017). Euro Disneyland management should have created a perfect blend of all European cultures with a lean on the French culture to revive the cultural sensitivity and loyalty by both the government and the people.

On the contrary, the management could have regulated the extent of the depiction of the gangster and speakeasies images rather than doing away with them altogether. Such a consideration would cut through balance on morality and the desires the Europeans have. It would promote the tourist base locally and attract many foreigners. Fitzpatrick’s statement, in defending the dressing standards, ought to have avoided saying that the French had had their grip tight on communism while communist countries such as Russia had lost touch (Peng, Van Dyne, & Oh, 2015). Such a statement stirred cultural jealous among the people and state attention to the company bureaucratically.

Best solution

Bourguignon’s take-over and change of managerial practices was the best solution ever. However, the emerging woes of the leading contractors’ claim of dues for the further work and the prospects of losses impacting negatively the prices for the stock demand a quick move. Suitable solutions include removing all cultural barriers that the American managerial team strives to put in place. These include the design, employment standards, use of language, and blending European cultures (Luthans & Doh, 2012).  On the financial issues, revisit the contracting regulations. Negative fiscal balances will change in a short period, and the cost of stocks will rise.

Effects of the solution

Lifting these bans would open doors for increasing European tourists to the park. Having a mix of the European cultures would provide the American people an attraction to cross the Atlantic Ocean and tour the culture-rich Euro Disneyland in France. An increasing number of tourists, both local and foreign, will boost the financial position of the company, trust with major banks, and stocks at the different stock exchanges (Luthans & Doh, 2012). In return will have their equity rising by the day, and the multicultural between the several Disney parks will increase tourist numbers as they will strive to have a look of both sides.

Conclusion

Despite the cultural differences that almost tore down the massive investment by a foreign company in France, the new Euro Disney management in place is well in progress towards recovery.  Lifting of the ban on the use of alcohol in the park, among other cultural tensions, has paved the way for more growth. However, the best solution is straightening out managerial practices such as contracting construction firms to avoid unfounded financial claims and incorporating European cultures to enhance diversity. These changes will lead to a surge in tourist numbers and the rising of the company stocks.

References

Luthans, F., & Doh, J. P. (2012). International Management: Culture, strategy, and behavior. New York: McGraw-Hill.

Ariëns, M. G. B. (2017). Here You Leave Today and Enter the World of Yesterday, Tomorrow, and Fantasy.” An analysis of Disneyland Anaheim, Disneyland Paris, and Geert Hofstede’s Dimensions of National Cultures.

Vallas, S. P., & Christin, A. (2018). Work and identity in an era of precarious employment: how workers respond to “personal branding” discourse. Work and Occupations, 45(1), 3-37.

Yu, I. H. (2017). Investigating the poor financial performance of Disneyland Paris.

Kinnear, A., & Nonyane, O. (2016). Sustainability through understanding: on the cover-feature. HR Future, 3(1), 34-35.

Smith, C. W., & Mayorga-Gallo, S. (2017). The new principle-policy gap: How diversity ideology subverts diversity initiatives. Sociological Perspectives, 60(5), 889-911.

Peng, A. C., Van Dyne, L., & Oh, K. (2015). The influence of motivational cultural intelligence on cultural effectiveness based on study abroad: The moderating role of participant’s cultural identity. Journal of Management Education, 39(5), 572-596.