Intercultural Communication in the Workplace: Disney Case

Introduction

As the world continues to experience globalization driven by numerous technological advancements, intercultural communication has become an important element in today's working environments. Intercultural communication is critical because workplaces are currently made up of people from diverse backgrounds, races, ethnicities, and cultures. Understanding intercultural competence and communication is therefore vital, since it helps promote effective communication in the workplace. Such understanding also helps in addressing the various intercultural issues that may arise in the working environment from time to time. When intercultural communication issues are resolved effectively, organizations are better positioned to enhance productivity and cohesion.

Intercultural Communication in the Workplace

Intercultural communication is an important aspect for organizations and companies involved in international business. These companies need to consider the complexities of intercultural communication as part of enhancing effective communication and productivity. Some of the major ways for such firms to address intercultural communication difficulties include developing knowledge of potential customers and understanding the cultural influences that shape those customers' expectations ("Intercultural Communication," 2007). These two factors are critical before an organization can convert potential customers into actual customers. Failure to understand the cultural differences between the organization and its global customers can result in business failure even before operations are fully established.

A prominent example of an intercultural communication issue between a company and its customers is Disney. The firm was quite successful in opening theme parks in Japan and the United States, and this success led it to assume that building a EuroDisney theme park in France would be similarly straightforward. While the assumption was not entirely wrong, the company made several significant cultural mistakes in the development of EuroDisney — mistakes that began even before construction started.

First, Disney offended the French by using lawyers to negotiate construction contracts and related agreements, a practice the French associate with distrust. Second, the company enforced strict dress code regulations for its workers based on the standards used at its American parks. Third, Disney instituted American norms and prohibited the sale of alcohol in the EuroDisney theme park. Finally, the organization did not anticipate that Europeans would expect sit-down breakfasts, and it overestimated souvenir sales at the new park. These cultural mistakes reduced Disney's potential profits, as they were offensive to the local population and alienated the very customers the company sought to attract.

Diagnosing the EuroDisney Communication Breakdown

The intercultural communication issue that undermined EuroDisney's profitability involved two major parties: Disney Company and the French public. The problem originated from Disney's failure to understand its local customers in France, as the company instead sought to replicate the business strategies that had worked in other countries. While the project had the potential to generate several billion dollars in revenue, it fell short of expectations because it created significant friction with the French public. The procedures that had proven successful in American theme parks were simply incompatible with French culture (Gunn-Graffy, 2007).

The French are widely known as a proud people who are quite sensitive about their culture. Many French citizens view other cultures — especially American culture — as potential threats to their own way of life. Disney's business approach, by contrast, was rooted in American culture, relying on highly systematized operations management and human resource strategies. This was most evident in the company's imposition of American standards of morality, behavior, and dress on all of its employees. As the French felt affronted by Disney's insensitive and overbearing attitude, the development of EuroDisney generated not only deep cultural friction but also serious intercultural communication failures.

Several specific actions compounded the problem. The use of lawyers in negotiations signaled distrust, because the French typically engage lawyers only as a last resort in such discussions. The imposition of American dress codes, moral standards, and behavioral expectations was perceived as an attack on French culture and identity. The assumption that Europeans would not want sit-down breakfasts resulted in crowded dining rooms and unsatisfied customers. The ban on alcohol sales was an insult to French cultural norms, where wine with a meal is a routine part of daily life. Finally, contrary to Disney's projections, Europeans do not typically engage in large spending sprees while on vacation, which contributed to the failure of souvenir sales.

Conclusion

The development of the EuroDisney theme park is a clear example of an intercultural communication issue in the workplace brought about by cultural differences. This issue was rooted in both verbal and non-verbal communication problems and reflects the broader assumptions that American businesses often bring to international ventures. Disney failed to consider cultural differences when developing its business strategy for EuroDisney. The corporation applied a negative infiltration strategy and demonstrated a lack of cultural sensitivity in its approach to building and operating the park. These missteps contributed to significant losses of time and money, and Disney's reputation was substantially damaged as a result.

As a remedy, corporations entering new markets must carefully consider the culture and values of the local people in all of their business ventures. As the Harvard Business Review has noted, rigid corporate assumptions often obstruct successful adaptation in new environments. Similar to the lessons from Disney's experience, multinational corporations must recognize that they are not distinct or separate entities functioning outside of physical, cultural, and social environments — they operate within them, and their success depends on respecting that reality.

References

Gunn-Graffy, C. (2007, May). When in Rome, Beijing or Brussels: Cultural considerations of international business communication. Retrieved from Boston College website: http://www.bc.edu/content/dam/files/schools/cas_sites/communication/pdf/thesis07.gunn-graffy.pdf

"Intercultural Communication." (2007). Fast Facts 2007. Retrieved June 25, 2012, from