MKTG445 Global Marketing ICA#4: Disney Environmental Scan Background: This case tells the story of the planning, construction and early days of management of a Disney theme park in France, Euro Disneyland and the new theme park, Disney Hong Kong. Assignment: Complete an environmental scan addressing trends that contributed to the performance of EuroDisney and Disney Hong Kong . Fill out both columns of the chart completely using your own words, business language, global marketing terms and definitions and analysis (explain "so what"). ENVIRONMENTAL SCAN ENVIRONMENTAL EURODISNEY TRENDS HONG KONG TRENDS FORCE ECONOMIC HISTORIC GEOGRAPHIC CULTURAL COMPETITIVE POLITICAL & LEGALCASE 2-1 The Not-So-Wonderful World of EuroDisney*-Things Are Better Now at Disneyland Resort Paris BONJOUR, MICKEY! Spills and Thrills Disney had projected that the new In April 1992, EuroDisney SCA opened its doors to European visi- theme park would attract 11 million visitors and generate over tors. Located by the river Marne some 20 miles east of Paris, it was $100 million in operating earnings during the first year of opera- tion. By summer 1994, EuroDisney had lost more than $900 mil- designed to be the biggest and most lavish theme park that Walt Disney Company (Disney) had built to date-bigger than Disney- lion since opening. Attendance reached only 9.2 million in 1992, land in Anaheim, California; Disneyworld in Orlando, Florida; and visitors spent 12 percent less on purchases than the estimated and Tokyo Disneyland in Japan. $33 per head. Much to Disney management's surprise, Europeans failed to If tourists were not flocking to taste the thrills of the new Euro- Disney, where were they going for their summer vacations in 1992? "go goofy" over Mickey, unlike their Japanese counterparts. Be- tween 1990 and early 1992, some 14 million people had visited Ironically enough, an unforeseen combination of transatlantic air- Tokyo Disneyland, with three-quarters being repeat visitors. A fam- fare wars and currency movements resulted in a trip to Disneyworld ily of four staying overnight at a nearby hotel would easily spend in Orlando being cheaper than a trip to Paris, with guaranteed good $600 on a visit to the park. In contrast, at EuroDisney, families were weather and beautiful Florida beaches within easy reach reluctant to spend the $280 a day needed to enjoy the attractions EuroDisney management took steps to rectify immediate prob- of the park, including les hamburgers and les milkshakes. Staying lems in 1992 by cutting rates at two hotels up to 25 percent, intro- overnight was out of the question for many because hotel rooms ducing some cheaper meals at restaurants, and launching a Paris were so high priced. For example, prices ranged from $110 to $380 ad blitz that proclaimed "California is only 20 miles from Paris." a night at the Newport Bay Club, the largest of EuroDisney's six An American Icon One of the most worrying aspects of new hotels and one of the biggest in Europe. In comparison, a room in a top hotel in Paris cost between $340 and $380 a night. EuroDisney's first year was that French visitors stayed away, they Financial losses became so massive at EuroDisney that the had been expected to make up 50 percent of the attendance fig- president had to structure a rescue package to put EuroDisney ures. A park services consulting firm framed the problem in these back on firm financial ground. Many French bankers questioned words: "The French see EuroDisney as American imperialism- the initial financing, but the Disney response was that their views plastics at its worst." The well-known, sentimental Japanese attach- reflected the cautious, Old World thinking of Europeans who did ment to Disney characters contrasted starkly with the unexpected not understand U.S.-style free market financing. After some acri- and widespread French scorn for American fairy-tale characters. monious dealings with French banks, a two-year financial plan was French culture has its own lovable cartoon characters such as Aste- negotiated. Disney management rapidly revised its marketing plan rix, the helmeted, pint-sized Gallic warrior, who has a theme park and introduced strategic and tactical changes in the hope of "doing located near Euro Disney. it right" this time. Hostility among the French people to the whole "Disney idea" had surfaced early in the planning of the new project. Paris theater director Ariane Mnouchkine became famous for her description of A Real Estate Dream Come True The Paris lo- EuroDisney as "a cultural Chernobyl." In fall 1989, during a visit cation was chosen over 200 other potential sites stretching from to Paris, French Communists pelted Michael Eisner with eggs. The Portugal through Spain, France, Italy, and into Greece. Spain joke going around at the time was, "For EuroDisney to adapt prop- thought it had the strongest bid based on its yearlong, temperate, erly to France, all seven of Snow White's dwarfs should be named and sunny Mediterranean climate, but insufficient acreage of land Grumpy (Grincheux)." was available for development around Barcelona. Early advertising by EuroDisney seemed to aggravate local In the end, the French government's generous incentives, French sentiment by emphasizing glitz and size rather than together with impressive data on regional demographics, swayed the variety of rides and attractions. Committed to maintaining Disney management to choose the Paris location. It was calculated Disney's reputation for quality in everything, more detail was that some 310 million people in Europe live within two hours' air built into EuroDisney. For example, the centerpiece castle in the travel of EuroDisney, and 17 million could reach the park within two Magic Kingdom had to be bigger and fancier than in the other hours by car-better demographics than at any other Disney site. parks. Expensive trams were built along a lake to take guests from Pessimistic talk about the dismal winter weather of northern France the hotels to the park, but visitors preferred walking. Total park was countered with references to the success of Tokyo Disneyland, construction costs were estimated at FFr 14 billion ($2.37 billion) where resolute visitors brave cold winds and snow to enjoy their in 1989 but rose by $340 million to FFr 16 billion as a result of all piece of Americana. Furthermore, it was argued, Paris is Europe's these add-ons. Hotel construction costs alone rose from an esti- most-popular city destination among tourists of all nationalities. mated FFr 3.4 billion to FFr 5.7 billion.Cases 2 The Cultural Environment of Global M al Marketing EuroDisney and Disney managers unhappily succeeded in in a 350-seat restaurant [at some of the hotels]. The lines were alienating many of their counterparts in the government, the banks, horrendous. And they didn't just want croissants and coffee, they the ad agencies, and other concerned organizations. A barnstorm- wanted bacon and eggs." ing, kick-the-door-down attitude seemed to reign among the U.S. In contrast to Disney's American parks, where visitors typically decision makers: "They had a formidable image and convinced stay at least three days, EuroDisney is at most a two-day visit. En everyone that if we let them do it their way, we would all have a ergetic visitors need even less time. One analyst claimed to have marvelous adventure." One former Disney executive voiced the "done" every EuroDisney ride in just five hours. Typically many opinion, "We were arrogant-it was like "We're building the Taj guests arrive early in the morning, rush to the park, come back Mahal and people will come on our terms." to their hotel late at night, and then check out the next morning before heading back to the park. STORM CLOUDS AHEAD Vacation customs of Europeans were not taken into consider- ation. Disney executives had optimistically expected that the ar- Disney and its advisors failed to see signs at the end of the 1980s rival of their new theme park would cause French parents to take of the approaching European recession. Other dramatic events in- their children out of school in mid-session for a short break. It cluded the Gulf War in 1991, which put a heavy brake on vacation did not happen unless a public holiday occurred over a weekend. travel for the rest of that year. Other external factors that Disney Similarly, Disney expected that the American-style short but more executives have cited were high interest rates and the devaluation frequent family trips would displace the European tradition of a of several currencies against the franc. EuroDisney also encoun tered difficulties with regard to competition-the World's Fair in one-month family vacation, usually taken in August. However Seville and the 1992 Olympics in Barcelona were huge attractions French office and factory schedules remained the same, with their emphasis on an August shutdown. for European tourists. In promoting the new park to visitors, Disney did not stress the Disney management's conviction that it knew best was dem- entertainment value of a visit to the new theme park; the emphasis onstrated by its much-trumpeted ban on alcohol in the park. This was on the size of the park, which "ruined the magic." To counter rule proved insensitive to the local culture, because the French are this, ads were changed to feature Zorro, a French favorite, Mary the world's biggest consumers of wine. To them a meal without Poppins, and Aladdin, star of the huge moneymaking movie in verre de rouge is unthinkable. Disney relented. It also had to success. A print ad campaign at that time featured Aladdin, relax its rules on personal grooming of the projected 12,000 cast Cinderella's castle, and a little girl being invited to enjoy a "magic members, the park employees. Women were allowed to wear red- vacation" at the kingdom where "all dreams come true." Six new der nail polish than in the United States, but the taboo on men's facial hair was maintained "We want the clean-shaven, neat and attractions were added in 1994, including the Temple of Peril, tidy look," commented the director of Disney University's Paris Storybook Land, and the Nautilus attraction. Donald Duck's birthday was celebrated on June 9-all in hopes of positioning branch, which trains prospective employees in Disney values and EuroDisney as the number 1 European destination of short culture. EuroDisney's management did, however, compromise on duration, one to three days. the question of pets. Special kennels were built to house visitors" Faced with falling share prices and crisis talk among share- animals. The thought of leaving a pet at home during vacation is holders, Disney was forced to step forward in late 1993 to rescue considered irrational by many French people. the new park. Disney announced that it would fund EuroDisney Plans for further development of EuroDisney after 1992 were until a financial restructuring could be worked out with lenders. ambitious. The initial number of hotel rooms was planned to be However, it was made clear by the parent company, Disney, that it 5,200, more than in the entire city of Cannes on the Cate d'Azur. "was not writing a blank check." Also planned were shopping malls, apartments, golf courses, and In June 1994, EuroDisney received a new lifeline when a mem- vacation homes. EuroDisney would design and build everything ber of the Saudi royal family agreed to invest up to $500 million itself, with a view to selling at a profit. As a Disney executive com- for a 24 percent stake in the park. The prince has an established mented, "Disney at various points could have had partners to share reputation in world markets as a "bottom-fisher," buying into po- the risk, or buy the hotels outright. But it didn't want to give up the upside." tentially viable operations during crises when share prices are low. "From the time they came on, Disney's Chairman Eisner and The prince's plans included a $100 million convention center at Euro Disney. One of the few pieces of good news about EuroDisney President Wells had never made a single misstep, never a mistake, is that its convention business exceeded expectations from the never a failure," said a former Disney executive. "There was a ten- beginning dency to believe that everything they touched would be perfect." The incredible growth record fostered this belief. In the seven MANAGEMENT AND NAME years before EuroDisney opened, they took the parent company from being a company with $1 billion in revenues to one with CHANGES $8.5 billion, mainly through internal growth. Frenchman Philippe Bourguignon took over at EuroDisney as CEO in 1993 and was able to navigate the theme park back to prof- Telling and Selling Fairy Tales Mistaken as- itability. He was instrumental in the negotiations with the firm's sumptions by the Disney management team affected construction bankers, cutting a deal that he credits largely for bringing the park design, marketing and pricing policies, and park management, as back into the black. well as initial financing. Disney executives had been erroneously Perhaps more important to the long-run success of the ven- informed that Europeans don't eat breakfast. Restaurant breakfast ture were his changes in marketing. The pan-European approach service was downsized accordingly, and guess what? "Everybody to marketing was dumped, and national markets were targeted showed up for breakfast. We were trying to serve 2,500 breakfasts separately. This new localization took into account the differingPart 6 Supplementary Material tourists' habits around the continent. Separate marketing offices The root of Disney's problems in EuroDisney may be found were opened in London, Frankfurt, Milan, Brussels, Amsterdam, in the tremendous success of Japan's Disneyland. The Tokyo Park and Madrid, and each was charged with tailoring advertising and was a success from the first day, and it has been visited by millions packages to its own market. Prices were cut by 20 percent for park of Japanese who wanted to capture what they perceived as the ul- admission and 30 percent for some hotel room rates. Special pro- timate U.S entertainment experience. notions were also run for the winter months. Disney took the entire U.S. theme park and transplanted it in The central theme of the new marketing and operations ap- Japan. It worked because of the Japanese attachment to Disney preach is that people visit the park for an "authentic" Disney day characters. Schools have field trips to meet Mickey and his friends out. They may not be completely sure what that means, except that to the point that the Disney experience has become ingrained in t entails something American. This approach is reflected in the Japanese life. In the book Disneyland as Holy Land, University transformation of the park's name. The "Euro" in EuroDisney was of Tokyo professor Masako Notoji wrote: "The opening of Tokyo first shrunk in the logo, and the word "land" added. Then in Octo- Disneyland was, in retrospect, the greatest cultural event in Japan ber 1994 the "Euro" was eliminated completely; the park was next during the '80s." With such success, is there any wonder that called Disneyland Paris; and now Disneyland Resort Paris. Disney thought they had the right model when they first went to In 1996, Disneyland Paris became France's most visited tourist France? The Tokyo Disney constitutes a very rare case in that the attraction, ahead of both the Louvre Art Museum and the Eiffel number of visitors has not decreased since the opening. Tower. In that year, 11.7 million visitors (a 9 percent increase from the previous year) allowed the park to report another profit. 2005-Bankruptcy Pending THEME PARK EXPANSION IN THE In early 2005, Disneyland Paris was on the verge of bankruptcy. The newest park attraction at Disneyland Paris, Walt Disney Stud- TWENTY-FIRST CENTURY ies, featured Hollywood-themed attractions such as a ride called "Armageddon-Special Effects" based on a movie starring Bruce With the recovery of Disneyland Paris, Disney embarked on an ambi- Willis, flopped. Guests said it lacked attractions to justify the tious growth plan. In 2001 the California Adventure Park was added entrance price, and others complained it focused too much on to the Anaheim complex at a cost of $1.4 billion, and Walt Disney American, rather than European, filmmaking. Disney blames other Studios Theme Park was added to Disneyland Paris. Through agree- factors: the post-9/1 1 tourism slump, strikes in France, and a sum- ments with foreign partners, Disney opened Disney-Sea in Tokyo mer heat wave in 2003. The French government came to the aid of and Disneyland Hong Kong in 2006, and plans are underway for a Disneyland Paris with a state-owned bank contribution of around theme park in Shanghai scheduled for 2014. $500 million to save the company from bankruptcy. A decade after being slammed for its alleged ignorance of A new Disneyland Paris CEO, a former Burger King execu- European ways with EuroDisney, Disney is trying to prove its got- tive, introduced several changes in hopes of bringing the Paris ten things right the second time around. The new movie-themed park back from the edge of bankruptcy. To make Disneyland Paris park, Walt Disney Studios adjacent to Disneyland Paris, is de- a cheaper vacation destination, the CEO lobbied the government signed to be tribute to moviemaking-but not just the Hollywood to open up Charles de Gaulle airport to more low-cost airlines. kind. The Walt Disney Studios blends Disney entertainment and Under his direction, Disneyland Paris created its first original attractions with the history and culture of European film since character tailored for a European audience: the Halloween-themed French camera-makers helped invent the motion picture. The "L'Homme Citrouille," or "Pumpkin Man." He has also introduced park's general layout is modeled after an old Hollywood studio a one-day pass giving visitors access to both parks in place of two complex, and some of the rides and shows are near replicas of separate tickets. He is planning new rides, including the Tower of Disney's first film park, Disney-MGM Studios. Rather than cel- Terror, and other new attractions. If these changes fail to bring in brating the history of U.S. Disney characters, the characters in the millions of new visitors, Disney and the French government might new theme park speak six different languages. A big stunt show once again be forced to consider dramatic measures. features cars and motorcycles that race through a village modeled Even though French President Jacques Chirac called the spread after the French resort town of St. Tropez. of American culture an "ecological disaster" and the French gov- Small details reflect the cultural lessons learned. "We made emment imposes quotas on non-French movies to offset the influ- sure that all our food venues have covered seating," recalling that, ence of Hollywood and officially discourages the use of English when Euro Disney first opened, the open-air restaurants offered no words such as "e-mail," Disneyland Paris was important to the protection from the rainy weather that assails the park for long French economy. In light of France's 10 percent unemployment at stretches of the year. the time, Disneyland Paris is seen as a job-creation success. The On the food front, EuroDisney offered only a French sausage, company accounted for an estimated 43,000 jobs and its parks at- drawing complaints from the English, Germans, Italians, and tracted over 12 million visitors a year, more than the Louvre Mu- everyone else about why their local sausages weren't available. scum and the Eiffel Tower combined By 2008 Disneyland Paris This time around, the park caters to the multiple indigenous cul- was experiencing increases in park attendance, and the turnaround tures throughout Europe-which includes a wider selection of appeared to be working. sausages. Unlike Disney's attitude with their first park in France, "Now we realize that our guests need to be welcomed on the basis of their own DISNEY'S GREAT LEAP INTO CHINA culture and travel habits," says Disneyland Paris Chief Executive. Disney's record with overseas theme parks has been mixed Tokyo Disneyland Paris today is Europe's biggest tourist attraction even Disneyland is a smash hit with 25 million visitors a year, and more popular than the Eiffel Tower-a turnaround that showed the Disneyland Paris, opened in 1992, was a financial sinkhole that just park operators' ability to learn from their mistakes. now is showing promise of a turnaround. Disney was determinedCases 2 The Cultural Environment of Global Marketing not to make the same cultural and management mistakes in China To compensate for the lack of awareness of Disney characters and that had plagued Disneyland Paris create the mystique of a Disney experience, Disney launched nu- Disney took special steps to make Hong Kong Disneyland merous marketing initiatives designed to familiarize guests with culturally acceptable. "Disney has learned that they can't impose Disneyland. One of the first buildings upon entering the park ex- the American will-or Disney's version of it-on another conti- hibits artwork and film footage of Disney history, from the cre- ment." "They've bent over backward to make Hong Kong Disney ation of Mickey Mouse through the construction of Hong Kong land blend in with the surroundings." "We've come at it with an Disneyland. Tour groups are greeted by a Disney host who intro- American sensibility, but we still appeal to local tastes," says one duces them to Walt Disney, the park's attractions, characters, and of Hong Kong Disneyland's landscape architects. other background information. For example, the character Buzz Desiring to bring Disneyland Hong Kong into harmony with Lightyear explains Toy Story and the Buzz Lightyear Astro Blaster local customs from the beginning, it was decided to observe feng attraction. shui in planning and construction. Feng shui is the practice of ar- Even though there were complaints about the park size and ranging objects (such as the internal placement of furniture) to the unfamiliarity of Disney characters, there were unique features achieve harmony with one's environment. It is also used for choos- built with the Asian guest in mind that have proved to be very ing a place to live. Proponents claim that feng shui has effects on popular. Fantasy Gardens, one of the park's original features, was health, wealth, and personal relationships. designed to appeal to guests from Hong Kong and mainland China The park's designers brought in a feng shui master who rotated who love to take pictures. At five gazebos, photo-happy tourists the front gate, repositioned cash registers, and ordered boulders can always find Mickey, Minnie, and other popular characters who set in key locations to ensure the park's prosperity. He even chose will sign autographs and pose for photos and videos. Mulan has the park's "auspicious" opening date. New construction was often her own pavilion in the garden, designed like a Chinese temple. begun with a traditional good-luck ceremony featuring a carved Mickey even has a new red-and-gold Chinese suit to wear. Restau- suckling pig. Other feng shui influences include the park's orienta- rants boast local fare, such as Indian curries, Japanese sushi, and tion to face water with mountains behind. Feng shui experts also Chinese mango pudding, served in containers shaped like Mickey designated "no fire zones" in the kitchens to try to keep the five Mouse heads. elements of metal, water, wood, fire, and earth in balance. All in all, Hong Kong Disney is Chinese throughout. It's not so Along with following feng shui principles, the park's hotels have much an American theme park as Mickey Mouse coming to China no floors that are designated as fourth floors, because 4 is considered The atmosphere is uncomplicated and truly family oriented. It is an unlucky number in Chinese culture. Furthermore, the opening possible to have a genuine family park experience where six-year- date was set for September 12, 2006, because it was listed as an olds take precedence. However, early advertising that featured the auspicious date for opening a business in the Chinese almanac. family missed its mark somewhat by featuring a family consist- But the park's success wasn't a sure thing. The park received ing of two kids and two parents, which did not have the impact it more than 5 million visitors in its first year but short of its targeted was supposed to have, because China's government limits most 5.6 million, and the second year was equally disappointing with couples to just one child. The error was quickly corrected in a attendance dropping nearly 30 percent below forecasts. Many of new TV commercial, which the company says was designed to those who came complained that it was too small and had little to "forge a stronger emotional connection with Mickey." The revised excite those unfamiliar with Disney's cast of characters. ad featured one child, two parents, and two grandparents together Disneyland is supposed to be "The Happiest Place on Earth," sharing branded Disney activities, such as watching a movie and but Liang Ning isn't too happy. The engineer brought his family to giving a plush version of the mouse as gifts. "Let's visit Mickey Disney's new theme park in Hong Kong from the southern Chinese together!" says the father in the commercial, before scenes at the city of Guangzhou one Saturday in April with high hopes, but by park set to traditional Chinese music. day's end, he was less than spellbound. "I wanted to forget the Many other aspects of the park have been modified to better world and feel like I was in a fairytale," he says. Instead, he com- suit its Chinese visitors. The cast members are extremely diverse, plains, "it's just not big enough" and "not very different from the understand various cultures, and, in many cases, speak three lan- amusement parks we have" in China Hong Kong Disneyland has guages. Signs, audio-recorded messages, and attractions are also only 16 attractions and only one a classic Disney thrill ride, Space in several languages. For example, riders can choose from English, Mountain, compared with 52 rides at Disneyland Paris. Mandarin, or Cantonese on the Jungle River Cruise After the first year's lackluster beginning, Disney management Disney runs promotions throughout the year. For example, the introduced five new attractions and added "It's a Small World" the "Stay and Play for Two Days" promotion was created mainly to ride made famous at the flagship Disneyland in Anaheim, Califor- give mainland tourists a chance to experience the park for a longer nia. A variety of other new entertainment offerings were due in period of time. Because many Chinese tourists cross into Hong 2008. Kong by bus, they arrive at Disneyland mid-day. With this promo- Guests' lack of knowledge of Disney characters created a spe- tion, if a guest stays at a Disneyland hotel and purchases a one-day cial hurdle in China. Until a few years ago, hardly anyone in main- ticket, the guest is given a second day at the park for free. land China knew Mickey Mouse and Donald Duck even existed Special Chinese holidays feature attractions and decorations Disney characters were banned for nearly 40 years, so knowledge unique to the holiday. For the February 7, 2008, New Year holi- of Disney lore is limited. China was the first market where Disney day (the Year of the Rat), Disney suited up its own house rodents, opened a park in which there had been no long-term relationship Mickey and Minnie, in special red Chinese New Year outfits for with attendees. It was the Chinese consumer who was expected to its self-proclaimed Year of the Mouse. The Disneyland Chinese understand Disney, or so it seemed Chinese tourists unfamiliar New Year campaign, which lasts until February 24, features a logo with Disney's traditional stories were sometimes left bewildered with the kind of visual pun that only the Chinese might appreciate: by the Hong Kong park's attractions. the Chinese character for "luck" flipped upside-down (a New YearPart 6 Supplementary Material tradition), with mouse ears added on top. Inside the park, vendors 7. Now that Hong Kong Disney is up and running, will hawk deep-fried dumplings and turnip cakes. The parade down the Shanghai development benefit from the Hong Kong Main Street, U.S.A, is joined by the "Rhythm of Life Procession," experience? featuring a dragon dance and puppets of birds, flowers, and fish, 8. Now that Disney has opened Hong Kong Disney and begun set to traditional Chinese music. And of course there's the god of work on the Shanghai location, where and when should it wealth, a relative newcomer to the regular Hong Kong Disneyland go next? Assume you are a consultant hired to give Disney gang, joined by the gods of longevity and happiness, all major fig- advice on the issue of where and when to go next. Pick three ures in Chinese New Year celebrations. The Hong Kong park lost more than $170 billion in each locations and select the one you think will be the best new location for "Disneyland X." Discuss. of the last two years. However, plans to increase the capacity of the park 23 percent are going forward, with the new attrac- 9. Given your choice of locale X for the newest Disneyland, tions to open in 2014. There are broader implications for Dis- what are the operational implications of the history of ney from the performance of the Hong Kong theme park than Euro Disney and Disney Hong Kong for the new park? just its financial health. From the outset, executives at the busi- ness's Burbank headquarters viewed Hong Kong Disneyland as This case was prepared by Lyn S. Amine, Ph.D., Professor of Marketing and Inter- a springboard to promote av reness of the Disney name among national Business, Distinguished Fellow of the Academy of Marketing Science, and the mainland Chinese population and cement ties with Beijing. President, Women of the Academy of International Business, Saint Louis University, The next theme park is set for Shanghai, and the last thing they student Carolyn A. Tochtrop, Saint Louis University, as a basis for claw want is a "turkey" in Hong Kong that would undermine their discussion rather than to illustrate either effective or ineffective handling of a situ- whole China strategy. The new $3.6 billion park in Shanghai ation. The original case appearing in prior editions has been edited and updated to reflect recent developments. 3 scheduled for completion, also in 2014. Disney will hold a Source: "An American in Paris," Hasiness Meek, March 12, 1990, pp. 60 61, 64; 43 percent stake there. Asahi Shimbun, " Tokyo Disney Prospers In Its Own Way," Asahi Evening News, April 22, 2003; Chester Dawson, "Will Tokyo Embrace Another Mouse? " Hasiness. Wick September 10, 2001; "Euro Disney Gets Its Rights Issue Thanks to Underwait- QUESTIONS ing Blanks but Success in Balance," Ewoweek, February 11, 2005; "EuroDisney's Prince Charming ?" Business Week, June 13, 1994, p. 42; "Saudi to Buy is Much is 1. What factors contributed to EuroDisney's poor performance 24%% of EuroDisney," The Wall Street Journal, June 2, 1994, p. A4; Bernard J. Wall- during its first year of operation? What factors contributed to son, "The Mouse That Roared Back," Orange County Reginer, April 9, 2000, p. 1; Hong Kong Disney's poor performance during its first year? "Disney Applies Feng Shui to Hong Kong Puck," AP Online, June 27, 2005; Michael Schuman, "Disney's Great Leap into China," Three, July 11, 2005; Michael Schuman, 2. To what degree do you consider that these factors were (a) "Disney's Hong Kong Headache," The, May 8, 2006, "A Bumpy Ride for Disneyland foreseeable and (b) controllable by EuroDisney, Hong Kong in Hong Kong: Despite Fixes, Some Observers Say Troubles Could Follow company Disney, or the parent company, Disney? to Shanghai," The Washington Fast, November 20, 2006; Dikky Sinn, "Hong Kong Government Unhappy with Disneyland's Performance," AP Worldstream, December 3. What role does ethnocentrism play in the story of 4, 2007; Elaine Kurtenbach, "Reports: Shanghai Disneyland May be Built on Yangtze EuroDisney's launch? Island; City Officials Mum on Talks," AP Worldstream, December 4, 2007; Lauren Booth, "The Wonderful World of Mandarin Mickey . . ." The Independent on Sunday, 4. How do you assess the cross-cultural marketing skills of July 22, 2007; Mark Kleinman, "Magic Kingdom Fails to Cast Its Spell in the Middle Disney? Kingdom . . . The Sunday Telegraph (London), February 25, 2007; Paula M. Miller, "Disneyland in Hong Kong," China Hasiness Review, January 1, 2007; Jeffrey Ng. 5. Why did success in Tokyo predispose Disney management to "Hong Kong Disneyland Seeks New Magic," The Wall Street Journal, December 19, be too optimistic in their expectations of success in France? 2007; Geoffrey A. Fowler, "Main Street, K.K ; Dimey Localizes Mickey to Boost In China? Discuss. Its Hong Kong Theme Park," The Wal Street Joarnal, January 23, 2009; "A Chinese 6. Why do you think the experience in France didn't help Makeover for Mickey and Minnie," The New York Times, January 22, 2005; "Mickey in Shanghai," Business Meek, November 16, 2009, p. 6; Chester Yung, "Hong Kong Disney avoid some of the problems in Hong Kong? Says Loss at Theme Park Shrank " The IFall Sveer Journal, January 20, 2010, p. B4