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Presentation Transcript

Euro Disney: 

Euro Disney Todd Pula, Laura Ruszczyk, Brenda Trodler, David O’Quinn, Raymond Walker

Company Overview Todd Pula: 

Company Overview Todd Pula

Disney’s Claim to Fame: 

Disney’s Claim to Fame Innovator in the animated motion picture industry Leader in theme park entertainment Vertically integrated company Global competitor Operations in California, Orlando, Tokyo, and Paris

Disney’s Cycle of Success: 

Disney’s Cycle of Success Produce New Movie Market New Products & Services Customers Continue to Buy Products & Services

Euro Disney’s Competitors: 

Euro Disney’s Competitors Tourist Attractions Louvre Eiffel Tower Theme Parks Euro Disney does not have any direct theme park competitors in Europe

Slide6: 

Strategic Problem & Strategic Direction Analysis Laura Ruszczyk & Brenda Trodler

Strategic Problem Analysis: 

Strategic Problem Analysis Disney failed to effectively analyze the external environment in which it attempted to compete Disney did not recognize that economic and cultural differences existed between the U.S. and Europe Disney simply copied its operations from the U.S. and Tokyo to Europe

External Environment Analysis: 

External Environment Analysis Demographic Economic Political/legal Sociocultural Technology Global Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK

Euro Disney’s Problems: 

Euro Disney’s Problems Visitor Spending - European visitors did not spend as much as American visitors Result of exorbitantly high product, service, admission, and accommodation prices Visitors would spend most of their time riding the rides Cheaper to eat/stay in Paris than within the park French Economy - The value of the French Franc increased Cheaper for non-French visitors to travel to Orlando

Euro Disney’s Problems Cont’d.: 

Euro Disney’s Problems Cont’d. Cultural Imperialism - Disney failed to recognize the existence of cultural differences in Europe Made financial projections based on American vacationing habits Served American foods rather than local foods Refused to sell cigarettes/alcohol Required employees to act in ways that conflicted with their social customs

SWOT Analysis David O’Quinn: 

SWOT Analysis David O’Quinn Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK

Strengths & Weaknesses: 

Strengths & Weaknesses Strengths Strong reputation and brand name Ability to realize mistakes and to change Financially sound Phillippe Bourguignon Weaknesses Cultural imperialism

Opportunities & Threats: 

Opportunities & Threats Opportunities Learn more about local culture & customs Integrate local culture into theme park Customize employee standards to the reflect local culture Threats High prices Increasing value of the Franc Employee dissatisfaction

Solving Euro Disney’s Problems : 

Solving Euro Disney’s Problems Frenchman Philippe Bourguignon becomes President and Chairman Customizes the theme park to match the local culture

Euro Disney Update Raymond Walker : 

Euro Disney Update Raymond Walker

Outlook: 

Seven Additional screens added to Gaumont cinema. Highlight new seasonal events and focus on affordability of a visit. Strengthen the emphasis on the sale of transport inclusive packages Outlook

What’s New At Euro Disney: 

New Entertainment programs and special festivals. Opening of the Newport Bay Club. Commercial real estate development of land around Euro-Disney. A new suburban rail station. What’s New At Euro Disney

Five Year Financial Review: 

1997 1996 1995 1994 1993 Sales (in millions) $838 $772 $735 $709 $954 Net Income (loss) 38 40 40 (292) (869) (in millions) Avg # of employees 10,229 10,307 9,356 10,941 12,177 Five Year Financial Review

Slide19: 

Euro Disney Financial Update

Slide20: 

Financial Update Continued

Slide21: 

Thank You For Your Attention

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