Brady Shiplet

International Management

January 25, 2010

Disneyland Paris Case

1. What issues are at the heart of the Euro Disney’s problems? Why?

First, the team decided on an extravagant theme park that spared no expense. This assumption
resulted from lavish overly-optimistic forecasts. There was no need for spending the excessive
capital.

Second, the team incorrectly assessed cultural differences. Many problems could have been
avoided with better research.

Third, the team incorrectly assessed the economic environment. The parked open as a recession
was beginning.

a. How could Disney have avoided some of the problems with the new theme park?

The main problem stems from poor planning. The team should have spent more time assessing
the market. The economic, cultural, and expense problems could have been avoided

a. Do you predict Euro Disney will continue to be profitable? Why or why not?

I believe Euro Disney will continue to be profitable. There were initial start up problems, but
the park started making a profit the very next year. I believe the management team may have
been too optimistic in planning, but many of the mistakes have been fixed. With continued
successful strategic planning, the park should prove to be worth the investment.