The case highlights that the business opened its first theme park in 1955 in California with the icon character of Mickey Mouse. In 1983, the part expanded its roots to the international market by opening part in Tokyo, Japan. These expansions led them part to Paris, France, and finally in Hong Kong in 2005. However, the critical issues that have been discussed in the case are cultural differences and social issues. The case explains that the global expansion for any company is a tricky business and organizations have to overcome political, legal, social, economic, and cultural barriers. The company through its experience of cultural difficulties in France learned that the company has to embrace local culture. While its appearance and themes would be standardized, but it has to bring variations in it cuisine, trends, event, and many other things according to the local cultures (Aswathappa, 2005). Disney wrongly predicts the sales and attendance of visitors, the company did not consider the maturity of location, as the company did not realize at the time of opening parks that those sites did not fit well with citizens.
Cultural issues that Walt Disney had to face when it attempted to open theme parks outs side the United States.
When the company decided to expand its roots internationally through opening the theme park in other countries as it opened in the United States the company had to face difficulties the company at first failed in understanding cultural differences. The first cultural issue the company faces in France when it opened its theme park in Paris in 1992. During the construction of the park, may French citizens were in opposition to the park opening, the labor union of the country protested against park opening because they did not like to have American symbol and icon to become a focal point in the country. The company passed the fourth floor of all hotels because in Hong Kong the cultural belief is that the fourth number is bad. The company had to face the issue in France on the sale of shark fin soup. People believed that the company did not consider climate during their expansion. The company did not consider the cultural issues, they rather considering the philosophies of Hong Kong and Paris, sent their employees to those courtiers with American philosophies (Ferrell, Hirt, and Ferrell, 2009).
The way Disney will ensure the success in China it initially faced in Hong Kong and France
The company faced cultural and social difficulties in France and Hong Kong. The business has gained immense experience from its old expansions regarding the handling of the cultural and social issue. For ensuring the success of the park, the organization will make sure that it opens bigger part as compared to the one it opened in Paris and Hong Kong and the park will be aligned with Chinese cultural preferences. The company will make sure that it take all cultural beliefs into consideration while building the theme park in China. After facing cultural difficulties in France and Hong Kong, the company is in a better position of expanding its roots in China and handle legal, cultural, and social issues that may arise. The company will not rely on Mickey Mouse only, but bring characters that are more familiar to Chinese in the part. For ensuring success, the company will train employees for adopting new cultures and respect the views, beliefs, and make changes in park accordingly (Ferrell, Hirt, and Ferrell, 2009).
Decision on expanding business or focusing on existing as CEO
As a chief executive officer, I will prefer to focus on existing parks and pay attention towards cultural factors. The case repeatedly reported the cultural and social issues and did not present that either these cultural and social issue were resolved or not. Therefore, for making, the existing parks more profitable and bringing them in line with cultural believes the company will make more efforts and enhance its profitability from existing expansion. The company through focusing on existing parks will improve its image as culturally diverse and culturally and socially responsible company. Through this way, everyone can relate his or herself with the park and enjoy the quality time. For the further expansion of Disney theme park the best market according to me is China, because the population of China is big, which means more people to target for Disney and therefore more visits. Opening a theme park in China will be a good investment and bring healthy returns for the business. However, for making a success of the park mandatory, the company will deploy its experience that it gained from its other expansions. The business will not rely on Mickey Mouse only but will bring more character in theme park Chinese are familiar with them. China has a rising economy that will allow people to spend on vacations that will result in enhanced visits to theme parks and therefore, the profitability of the company (Focus Economy, 2016).
References
Aswathappa, A. (2005). International Business. McGraw-Hill Education.
Ferrell, O.C., Hirt, G.A., and Ferrell, L. (2009). Business: A Changing World. McGraw-Hill Education
Focus Economy. (2016). China Economic Outlook. Retrieved May 27, 2016, from http://www.focus-economics.com/countries/China
