This paper presents a dual case study analysis examining strategic challenges and recommendations for two major corporations: General Electric (GE) and Euro Disney. For GE, the paper identifies five central strategic themes, three key concerns — financial uncertainty, organic growth viability, and organizational complexity — and offers recommendations for simplifying operations to support sustainable growth. For Euro Disney, the paper explores the park's early financial losses, competitive pressures, demand projections, and cultural obstacles faced in Northern France. Both cases are evaluated in terms of core competencies and actionable strategic recommendations aimed at improving long-term performance and stability.
In the General Electric case study, five central themes were identified to support GE in its effort to persevere and establish a long-term franchise. These themes included: building strong businesses; investing in services, innovation, and globalization; focusing on areas of potential opportunity; driving competitiveness through cost reduction; and remaining committed to its people.
Three key issues were identified regarding concerns about GE's strategies for future stability and growth. The first issue involved financial uncertainty stemming from the risks presented by a shrinking GE Capital. Questions arose about how cohesive the company was with respect to the relationship between its industrial and financial operations — particularly following the company's loss of its triple-A credit rating.
The second issue concerned the growth strategies under development at GE. Specifically, some critics questioned whether the proposed organic growth strategies, grounded in innovation and opportunity, would be capable of generating long-term profit growth comparable to what GE Capital had produced in the past.
The third issue involved the organizational complexity that resulted from pursuing business opportunities requiring high levels of coordination. These opportunities involved the development and sale of entire systems of services and products. This increased complexity made it difficult to implement new business developments effectively.
"GE's strengths and recommendations for sustainable growth"
A key recommendation for how GE might strategize differently would be to direct greater interest and effort toward the development of smaller, promising opportunities that show potential to evolve into larger ventures. By focusing exclusively on the development of whole systems, GE limits its ability to establish new growth engines. Rather than working only within complete industry systems, GE could return to developing specific components or aspects of those systems. This approach would help simplify operations, reduce organizational complexity, and potentially increase both profit margins and internal growth capacity.
Three key issues are present in the Euro Disney case study. The first is that in 1994, the Euro Disney theme park recorded a substantial loss totaling 1.8 billion French Francs. This prompted efforts to increase revenue and decrease expenses in order to avoid closure. Marketers sought to raise park attendance by launching an advertising campaign, introducing a new ride, and rebranding the park under a new name — Disneyland Paris.
The second key issue involved demand and competition. Financial projections for Euro Disney indicated strong market potential, supported by the large population living within proximity to the park and European vacation patterns that were considered conducive to theme park visits. However, significant competition existed in the form of other family entertainment destinations, as well as the cultural and historical experiences offered by numerous European cities.
The third key issue involved a range of challenges facing Euro Disney. These obstacles included the cold climate of Northern France, as well as several cultural difficulties. Among the cultural issues were opposition to the strong presence of American popular culture and inconsistencies in the recruitment and training of staff compared to practices at other Disney parks worldwide.
"Customer experience strengths and strategic direction"
Always verify citation format against your institution’s current style guide requirements.