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Disney Paris Presentation: MBA

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by

Bobby Johnson

on 11 February 2015

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Transcript of Disney Paris Presentation: MBA

Politics
Economic
Society / Culture
Technology
Environment
Legal Socialist Republic
Francois Hollande - President
Jean-Marc Ayrault - Prime Minster
Slow reform
Suspicion of capitalism PROS
Great infrastructure, health care, industrialized, educated,
One of world’s largest recipient of FDI
IP protection / innovation
CONS
Economic crisis
Restrictive labor regulations
High unemployment rate
Trade Barriers
High Taxes for rich and big firms Wine / Food / Sophistication
Long Holidays
Family/Friend-centric
Deeply Imbedded Traditions / Culture
Business Relations: Cultivated / Critical
Greater Power Distance but uprisings are common
Collectivist society, but personal individualism
Low masculinity – strong labor rights / health care / education
Uncertainty avoidance – very high! regulations /planning / slow change
Long Term Orientation – Like US, firms are driven by quarterly earnings PESTEL Matrix Structure Advantages

Structure designed an strategic approach to meet the local needs
Communication is enhanced both laterally & vertically

Disadvantages
Added overhead cost
A multitude of sub-groups going their own way Economic Society / Culture Politics Management / Governance Merci Initial U.S. insensitivity to French culture
Disregard for priority of wine culture
Corporate ban on alcohol in parks
Site for Disneyland Paris was originally used for Brie production
Monetary focus was off-putting
American egocentrism
Potential Organizational and Managerial Challenges Cultural Capitulation… Name change to Disneyland Paris
Downsized to reduce costs
Cut-rate tickets/rooms/evening admission
Marketed as one of many stops in Europe
Set max work week / flexible work schedule Power Distance:
Local staff confused by autonomy
Poor language skills of US front-line managers Individualism:
Strict, American-based dress code: “Disney Look” External Factors
Both instrumental in firm growth
and strategic direction of firm Iger:
Globally Focused Adaptation Eisner:
Growth Focused American Hubris European Habits and Preferences:
Set eating times = long lines, long waits= dissatisfied customers
Seasonal attendance = Overstaffing, sporadic attendance Possibly it’s greatest competitive advantage
Disney name speaks for itself
Euro location Ideal
More visits than both the Eiffel Tower and Louvre combined Brand Equity Business Strategy Park Timeline Politics
Economic
Society / Culture
Technology
Environment
Legal Socialist Republic
Francois Hollande - President
Jean-Marc Ayrault - Prime Minster
Slow reform
Suspicion of capitalism PROS
Great infrastructure, health care, industrialized, educated,
One of world’s largest recipient of FDI
IP protection / innovation
CONS
Economic crisis
Restrictive labor regulations
High unemployment rate
Trade Barriers
High Taxes for rich and big firms Wine / Food / Sophistication
Long Holidays
Family/Friend-centric
Deeply Imbedded Traditions / Culture
Business Relations: Cultivated / Critical Economic Society / Culture Politics Hofsted's Cultural Dimension PART I
Disneyland Paris Strategy, Organizational & Human Capital PART II Chief Executive Officer Production Marketing Finance Human Resources France United States Parks & Resorts VP, Parks & Resorts US CEO Euro Disney S.C.A Cooperative Philosophy

Disney Euro S.C.A
French Commision Nationale Informatique et Libertes
Local Community

Ethical Code of Conduct/ Internal Controls

Steering Internal Control
Financial Disclosure Control
Conflicts of Interest
SOX Compliance Global economic / Euro crisis
Tax increases for big firms / rich
Competition Eisner Iger Centralization Decentralization vs. PART III Possibly it’s greatest competitive advantage
Disney name speaks for itself
Euro location Ideal
More visits than both the Eiffel Tower and Louvre combined Brand Equity Benefits
Created Economies of Scope
Increased Market Power
Rise in Barriers to Entry
Mitigates Uncertain Future Cash Flows
Spreads Risk over Multiple Segments Diversification CEO Comparison The Magic of Diversification Studio Entertainment
Theatrical market, home entertainment, t.v., music group, theatrical productions
Consumer products
Merchandise licensing
Publishing
Retail
Interactive Media
Games
Online Media Networks
Cable Networks
ESPN, Disney Channel, ABC Family, SOAPnet
Broadcasting
Domestic Broadcast Network, TV Production, Domestic TV Stations)
Parks and Resorts
Walt Disney World, Disneyland, Aulani, Paris, Hong Kong, Shanghai, Tokyo, Vacation Club, Cruise Line Company Overview Possibly it’s greatest competitive advantage
Disney name speaks for itself
Euro location Ideal
More visits than both the Eiffel Tower and Louvre combined Brand Equity Name change to Disneyland Paris
Downsized to reduce costs
Cut-rate tickets/rooms/evening admission
Marketed as one of many stops in Europe
Set max work week / flexible work schedule Cultural Capitulation… Operational Challenges Decentralization
Management Line manager autonomy Emphasis on employee hiring,
training and investment. Cast Members to Geocentric International Mentality From Egocentric International Mentality Combination of relevant industry experience
and expertise with diverse personal and professional background.
High Compensation 2 Sr VPs
7 VPs Top Management Eisner vs Iger International Mentality
Full transcript