European Culture B Shift The Operational Manner example essay topic

CASE STUDY: Labor Relations at Euro Disneyland -- J. Stewart Black Hal B. Gregerwen Introduction Disneyland is one of the best known and most highly visited recreation locations in the world. With this visibility and audience reach, the action of the Disney Company extends well beyond the boundaries of their theme parks. Not only is Disney a multi-dimensional entertainment conglomerate, but its profile gives it prominence that no other recreation manager has. Disney is often acknowledged as the premier visitor services organization, and it is partly this excellence that gives them stature and impact. However, once a foreign expansion experience, named Euro Disneyland did not prove to be the successful venture that had been anticipated by its creators.

Just a short time after the opening of the park in April 1992 reality proved to be not so magic. Euro Disney was much criticised, slipped into heavy losses and nearly went bankrupt. This failure experience gave us a good lesson on 'manage labor relation at cross-culture environment? The scope of this assignment is to explore the influence of cultural issues on the performance of Euro Disney. I will show that the neglected and cultural overlooked differences between Disney's traditional markets and Europe contributed to their problems.

Case Analysis Now we start analyze the case as following steps. Step 1: Problem / Decision Statement: Defined the major problem or decision facing management. To the current situation, Euro Disneyland in Marne-la-Vallee was facing a lot of problems: protests from all sides; employees management, different culture and customers; increased construction cost and piles of red financial statements, etc. But the major problem facing management is: How to intergrade cross-cultural problem into labor relation management in EuroDisney? Step 2: Situation Audit: Developed a synopsis and evaluation of the organization's current situation, opportunities and problems. Euro Disneyland executives hoped to attract 11 million guests a year, more than twice the number that visit the Eiffel Tower (Introducing Walt d'Isigny, 1992).

Half of the guests were excepted to be French. Euro Disneyland was confident that with its superior investment, professionalism and French government assistance, it would succeed. Indubitably, Disney was able to draw on decades of successful activity in the industry of theme parks. Thus they had lots of data available about guest attendance figures, spending patterns and guest behaviour. And it really had a lot advantages of the operation, such as location, support by government. However, on the other hand, despite careful planning, Disney had overlooked some important cultural issues for its European venture.

And this caused a series of conflicts between labor relations. Evaluation of the organization's current opportunities: Summarized the advantages as follows: ? Successful experience in other country? Ideal location of the park? A series of concessions from government? Bring benefits to European markets.

Marne-la-Vallee is located in an ideal geographic location since it was chosen for its central location in Europe, its proximity to the Paris region, which is densely populated and a popular tourist destination, and for its excellent accessibility by motorway, by rail and by air. Thus Euro Disney was looking at a huge market. Meanwhile, the France government had given EuroDisney a lot of concessions, which include: 7% VAT on ticket sales; permit subsidized loans; settle contractual disputes by a special international panel of arbitrators. On the other hand, the prices at Euro Disney, the prices of substitutes and the economic conditions in the target area as well as their expected change. Evaluation of the organization's Problems: Summarized the threats as follows: ?

The legality of Disney's ban of beards, moustache's, long hair, long nails and tattoos on employees was questioned.? Europeans didn't like long queuing at attractions, which was no problem in America or Japan.? Parking places for buses were too small and there were not enough restrooms for bus-drivers.? There were numerous labor disputes over long hours and poor pay. The relationship to workforce was perceived as too American by staff.?

On the other hand staff members has problems to converse with guests and were unsure which language to use.? Staff members lacked the American service mentality. Service quality was not as good as in the American parks. We can't deny that the current situation of Euro Disneyland is adjective. In 1993, about ten years after the decision of set up Euro Disneyland in France, the chairman of the land, Robert Fitzpatrick left his position citing a desire to start his own consulting firm. But actually, he was facing headaches for his operation.

Protests from Communists, intellectuals and farmers increased the difficulty of implying the project. They censured Euro Disneyland destroy their culture and cultivated land, as well as the job structure. Employees issue was also a big problem. The Walt Disney Company has been known for their strict construction and risk management requirements, which they wished to impose upon the French workers. Likewise, the Walt Disney Company had to cope with language barriers and an unfamiliar French legal framework derived from the Napoleonic code (Shapiro, 1989). These made these European very unsatisfied.

Furthermore, to add to the operation problem is the difference in employee acceptance of conditions of employment. In Orlando Cast Members are accustomed to and have learned to accept being sent home if they are not needed. However, in Paris, French Cast Members feel extremely irritated by and have a very difficult time accepting the inflexible scheduling (Gumbel & Turner, 1994). With the opening of Euro Disneyland on April 12, 1992, congested traffic conditions held up most of the visitors. By lunchtime the parking lot was less than half-full, suggesting n attendance level below 25,000. And at the same time, conflicts raised in queues because different cultures have varying definitions of personal space.

Many visitors complained that the park didn't meet the U.S. standard, suffering from long lines, poor service and operational glitches. Especially queuing is something most Europeans dislike. General Disney rules like the serving of no alcohol or dress and grooming codes for staff were seen as an insult to French and European culture. Euro Disney faced the difficult task to please not only guests in different ages but also from very different European cultures and mentalities. Thus, the Europeans did not have a positive "Disney experience" at their first visiting. On the other hand, construction delays and modifications yielded extra costs.

Certainly, this worsen Disneyland's financial conditions. Criticisms on the Disney Company's operation leaded to the poor relationship between local residents and employees, and consequently, the financial state of the company was unsatisfied. Thus, Why Euro Disneyland would be immersed in such an awful situation? Because the Walt Disney Company executives were determined to adhere to American philosophies, they did not thoroughly investigate all aspects of the European environment. These operation plans made the Europeans feel aggressive. And the poor relationship between local residents and employees is the source of poor operation.

Step 3: Alternatives two stages: first, prepare an initial list of alternatives which includes all the actions that you feel could be appropriate; second, refine your list and combine similar actions. Follows are the alternatives which includes all the action that feel like be appropriate: a) Learn thoroughly of the European culture. b) Shift the operational manner to suit the Europeans c) Downsizing. d) Crate favorable public praise among local residences. e) Build good labor relationships. Then, let's interpret these alternatives in details: Without doubt, the essential task of mercantile operation is profit. So we must rescue EuroDisney out of the loss situation.

But in order to settle this problem lots of relevant efforts must be made. Cultural misunderstanding is the basic problem EuroDisney faced. So overcome the cross-culture is the essential task of current situation; find the gap between the two countries? culture, then shift their Americanism management style to European style; the enormous size and quality of the theme park required high capital outlay, and meanwhile, it also increased the conflicts between EuroDisney and local farmers. So, downsizing can be the project that kills two birds with one stone; The other two alternatives can be settled following launch above three projects: with the shifts of the managerial and operational style to become more Europeanism, the protests from both employers and local residents may be dissolved.

And on the other hand, Downsizing not only can abate the financial crisis but crate favorable public praise among local residences. Step 4: Critical Issues The single most important critical issue in most decisions is profitability. So to the EuroDisney the most basic objective is to improve its financial deficits. There is a significant difference between Europeans visiting a Disney park during their America trip and Europeans planning for a short-break-holiday within Europe. The latter ones do not like to be over-American ised. They do not like queuing and paying a fortune for a Mickey-mouse souvenir.

And? if they are French? they want their glass of wine for their meals. So, if the EuroDisney wants to attract more French visitors, the essential task is to build suitable marketing structure for the European visitors. Here is a list of critical issues: ? Downsizing the theme park? Cost cutting on daily operation? Special service for local residents?

Reform the employ system. Step 5: Analysis of Alternatives to select the course of action for the firm Alternative 1: Learn thoroughly of the European culture. Pros: 1. Avoid misunderstanding of the Euro-culture.

2. More Europeanism management and operation styles. 3. More suitable layout of the park. 4.

Increased customer satisfaction. Cons: 1. Waste of time 2. Understanding barrier between American and Europe Alternative 2: Shift the operational manager suit for the European Pros: 1. The capability of diversity management. 2.

More Local visitors, more revenue. 3. Satisfactory service and equipment. Cons: 1.

Change some of the Disney Traditional Code. 2. Increased labor cost. 3. Can't be consistent with its international standard. Alternative 3: Downsizing Pros: 1.

Cost efficient. 2. Save the capital outlay. 3.

Abate the conflicts between local farmers. 4. Improve the bad publicity. Cons: 1.

Depreciation's in Disney image. 2. Limited future development. Step 6: Recommendations address what specific actions should be taken and why. We have seen that, despite careful planning, Disney had overlooked some important cultural issues for its European venture. Disney's major mistake was to misjudge how the Europeans would define the market it would operate in.

Europeans have another attitude towards the American dream than the Americans and the Japanese. This was the most important cultural difference that was not taken for serious. Follows are some recommendations on overcoming the cross-culture barriers of the labor-relation management in the EuroDisney. Fully understand the European culture: The French are very proud of their history and their heritage. They see themselves as "la grande nation? Any action that seemed to attack its culture would be rejected toughly.

The EuroDisney should set aside a group of people survey carefully of the Euro-culture. From its history to politics; from arts to literature; from population to geographic; from social status to life-style? every aspect should be concerned. Then, they should compare these elements with those of their own. Outline the significant difference to be available for redesign working, such as more indoor activities; more emphasis on themes drawn from European sources.

Shift the management and operation style to suit with European: Use the information collected from cultural comparative, change some code in EuroDisney's management system first. Adjust the work-hour structure and the strict appearance code become more acceptable; change the method of training employees to be more ardor and friendly; and improve the labor relation by communication, motivation, or other managerial skills. Then shift the operation manners to become more suitable: more Europeanism shows associated with its literature or art background; enlarge the parking place; shift the both items of entertainment and the service of hotels to suit for one-day-trip; avoid queues. These elements influence the customer satisfaction directly, and only adjust these elements to be accepted by those European, it would be possible that the assumption of 11 mm visitors could be achieved. Downsizing: Give up the expand project, and decrease the dimensions of current theme park. Constructional expenses had become the largest outlay.

It became a heavy burden for current Disneyland. Downsizing could save a large amount of expenses and help to the financial recovered. On the other hand, downsized the size of the park also could liberate local farmers from plight. The farmers could go on hold their land, and their negative opinion toward the Disneyland would be amended.

In the field of International Human Resource Management: the human resource professional often is involved in determining the optimum site for a business and is responsible for many other aspects of an international expansion, such as cultural evaluation of the site, employee selection, training, development, compensation, and evaluation. So, to today's trend of globalization, geocentric management style will become more and more popular. Manage employees in such a geocentric environment this require the managers have cultural sensitivity skill. With the increase of multinational business in variable countries, human resource management in these businesses should intergrade cultural elements into labor relation management. It has become more and more important in today's HR management. Reference Bright, R. (1987).

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