Cultural misunderstandings in Disneyland Paris's early operations and expansion

Western Culture Clash Creates Roadblocks

Western Companies Imposing Western Culture

Western Culture Clash Creates Roadblocks for Disneyland Paris

Disneyland Paris failed to incorporate French cultural norms and values into the development of the European Disney theme park. By analyzing French tourism behavior, bringing French executives into the decision-making process, and respecting the value provided by French investors, Disneyland Paris would have experienced more stable growth and greater local acceptance. The French people, known for their tremendous pride in culture, heritage, and traditions, do not embrace changes to their habits. French ethnocentrism, combined with a distaste for the forcefulness used by American companies to spread Westernized culture, left Disneyland Paris, formerly Euro Disney, facing an uphill battle to gain acceptance.

Disneyland Paris Situation Analysis

Intent upon building a superior park environment that demonstrated the exquisite quality of the Disney brand, corporate leaders spent capital in ways that appeared excessive to the more conservative French investors. Misunderstanding the food and leisure habits of the French, Disneyland Paris failed to meet initial ticketing, food, and beverage revenue goals. Human resource management styles that neglected to incorporate French labor traditions resulted in increased operational costs. Overlooking the impact that cultural differences would have on the Disneyland Paris operation created constant challenges that have carried Disney in and out of bankruptcy discussions since the park's inception.

Financial Risk Management Culture

The risk of building Disneyland Paris was not solely Disney's responsibility. French investors, banks, and politicians all contributed to the project. Many local individuals and businesses considered the success of the project in their best interest. When Disney's U.S. executives were seen freely spending money to build lavishly and then simply tearing down structures that did not meet their satisfaction only to be rebuilt, French investors grew concerned (Wenhe, 2009). The lack of proper planning and frivolous spending had increased the investment risk beyond the French comfort level, which decreased the local support for the park.

Management Culture

The irregular work schedules based on fluctuations in park attendance that were typical in the United States were not acceptable under French law (Wenhe, 2009). The lack of research into French labor laws resulted in a considerable increase in operating expenses that exceed budgeted costs. Disney grooming and appearance mandates caused discord among French employees and were received as overbearing and dictatorial, thereby worsening the public image of Disneyland Paris.

Improving Success at Disneyland Paris

Taking a functionalist perspective to the cultural norms and values in France would allow Disney to make more objective decisions regarding the operation of Disneyland Paris. Acknowledging that ethnocentrism is as strong in France as it is in the United States and taking steps to achieve compromises that favor French culture would demonstrate the type of deference needed to improve cultural relations. By melding French culture and entertainment with the reputation, quality, and style of the Disney brand, Disneyland Paris would be a unique destination that better represented the targeted consumers.

By respecting the value of future investments made by the French partners and putting more effort into better structural and architectural planning for new additions to the park, Disney can demonstrate greater conservatism for the capital resources, thereby gaining more goodwill with French investors. "Cultural relativism stresses that different social contexts give rise to different norms and values" (Schaefer, 2008, p. 72). If Disney had subscribed to a perspective of cultural relativism in consideration of risk management, the company would have gained the benefit of the reduced costs associated with the more conservative approach to capital expenditures that are exhibited by the French.

Research is fundamental to future decision-making at Disneyland Paris. Instead of making decisions based upon statistical data from the United States parks, executives must analyze the behaviors of the local population. Noting that tourism travel and spending patterns vary considerably in Europe vs. The United States, Disney must be prepared to engage in different types of marketing programs and ticket pricing structures. Promoting more French managers up to the executive level and incorporating their input will contribute to creating a more acceptable working environment. Not only will French managers better understand the needs of the employees and customers, they will also be able to improve relations between the brand and the community (Walker, 1995).

Conclusion

Additional time for future planning and development will come with a price tag, but the expense will be less than the financial cost and the degradation of Disney's reputation resulting from the arrogance and frivolity of the original building, destruction, and rebuilding that occurred during the construction of the initial park. Catering to French tourists and visitors from other European nations will require Disney to modify its traditional park offerings, a difficult choice for such a stalwart brand; however, the benefits of cultural compromise will include greater loyalty and respect from local patrons. Inviting French managers into the executive circle will facilitate independence for Disneyland Paris, which will allow U.S. executives to refocus on building an international brand that can be embraced by many cultures.