Disney Case Study
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The Walt Disney Company has the difficult problem of having to manage rapid growth and maintain that growth in order to satisfy stockholders and analysts. Although the company has foundered at several times during its long history (during the 1950s and late 1970s, for example), it has always managed to return not only to its previous level of success, but to reach new levels. Currently, the company is grappling with a foray into the European theme park market where it is coming to terms with the vastly different expectations that Europeans have with respect to theme parks and their employment. This research explores the issues at EuroDisney and how the company can overcome them.Different companies have different corporate cultures, but the corporate culture which has evolved at Disney is one of an autocratic, if benign, leader who is able to engender tremendous loyalty and results from his employees. In the beginning of the company, that leadership was provided by Walt Disney, who fostered a family atmosphere, but who was nonetheless a creative and sometimes stern taskmaster. Disney pioneered the concept of theme parks (as opposed to amusement parks), but used the power of television to promote the concept. Disneyland became world famous not simply because it was the first park of its kind to feature a tiein to movie characters, but also because of the television program which beamed images of the park and its founder into the living roo
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ged the fortunes of the Disney Company.
Just as Walt had opened up new frontiers with the theme park concept and with fulllength animated features, the new Disney management sought to expand the company's participation in the motion picture industry. It entered into licensing deals and into situations where it shared the profits of films for the first time in its corporate history, and increasingly emphasis was placed on the team concept. The organization was going through yet another transformation.
The opening of EuroDisney provided the first real trial of the new management team's acumen with theme park and international operations, however, and the team has not performed well in this arena. The company opened its French theme park to less than expected crowds, and the perceived expense of the park led to visitors spending less than originally projected, with the result that the company suffered financial losses. However, Disney was protected from the worst of these losses through its creative financing arrangement (although it has a far greater stake in EuroDisney than in the Japanese theme park), which helped cushion it somewhat.
Perhaps the greatest surprise to the management team is the resentment of French workers
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Approximate Word count = 1549
Approximate Pages = 6 (250 words per page)
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