International Business Collaboration: Euro Disneyland - Case Study Example

Case: Euro Disneyland Introduction The main aim of this paper is evaluate cross cultural differences and how they affect international business collaboration. Foremost, based on the Euro Disneyland case study, this paper will highlight the cultural differences between France and the United States using Geert Hofstede’s theory on cultural dimensions. Secondly, based on the findings depicted in the Euro Disneyland case study, this paper will critically analyse and discuss the performance of Euro Disneyland when it comes to the management of their operations. In this case, the mistakes made by the management of the company will be highlighted and subsequently this paper will provide insights on what measures should have been taken so as to avoid or address these mistakes. France and the United States In reference to Hofstede theory there are five key dimensions of national culture. They include; Power Distance Index (PDI), Masculinity, Uncertainty Avoidance Index (UAI), Long-Term Orientation (LTO) and Individualism. These dimensions can be used to effectively examine the cultural differences between France and US (Piepenburg, 2011). According to Hofstede, Power Distance Index (PDI) refers to the extent in which the less powerful members of a particular organization or society accept the unequal distribution of power. France’s PDI is higher than in the US. As evident in the case study, decision making when it comes to the structuring and establishment of Euro Disneyland in France was estranged from local officials. It is evident that in France inequalities are accepted and power or authority is centralised. Inequalities in France are accepted and power is centralised to a great extent. Unlike France, the PDI in the US is lower since values of equality and impartiality are upheld in governance and other aspects. Leadership and management practices in American society are more participative in nature than in France (Black & Hal, 2005). When it comes to the individualism index, the US has an individualistic culture whereas France has a more collectivism culture. According to Hofstede, the individualism index refers to the extent in which society reinforces individualism by looking after themselves and their family or either collectivism by belonging into groups that look after their interests in exchange for loyalty (Piepenburg, 2011). As apparent in the case study, the French value more the interests of the community rather than those of individuals hence the establishment of Disneyland was protested mainly because it was considered as a tool that would promote individualism (Black & Hal, 2005). Based on Hofstede’s sentiments, masculinity is a cultural dimension that touches on gender roles and mainly refers to the way in which a particular society is driven by masculine values such as success, completion and assertiveness (Hofstede 2001). Americans have a masculine culture, their culture is more driven by the need for success and financial achievement rather than quality of life. For instance, the establishment of Disneyland in Orlando and California received a positive reception from Americans since it promised substantial financial and material benefits like, foreign exchange and employment opportunities. In contrast to these masculine values, the French culture can be describe to be more feminine than masculine. French people tend to value quality of life more than masculine values such as success and competition. Hence, despite of the financial rewards that Euro Disneyland promised, its establishment was protested since it was considered a “slippery slope” that would impede the quality of life in France by promoting individualism, consumerism and causing noise pollution and traffic congestion(Black & Hal, 2005; Piepenburg, 2011). In addition to this, uncertainty avoidance is another cultural dimension proposed by Hofstede that showcase the cultural differences between France and the United States. Uncertainty avoidance refers to the extent in which members of a society feel threatened by unknown or ambiguous situations. The uncertainty avoidance in France is to a great extent higher than in the United States. As a result, the French often try to create certainty through scrupulous structures, rules, planning, expertise and detail. The have a need for details, background and contexts. Due to a high uncertainty in the French culture, it became difficult for them to easily embrace the establishment of Euro Disneyland. Conversely in the United States, there is some degree of acceptance of uncertainty thus most Americans are quick to embrace new ideas and try out new experiences (Black & Hal, 2005; Piepenburg, 2011). Critical analysis of Euro Disneyland performance in managing their operations Euro Disneyland’s performance in managing their operations was generally characterised by many oversights that involve the use unsuitable cross-cultural management strategies. In managing their operation, the company failed to incorporate or put into account important aspects of the French culture. The company failed to align its management practices to the French culture and as a result the establishment of Euro Disney in Marne-la-Vallee was considered as an instrument for cultural imperialism. In this case, some of the oversights made by the company include; using a layout that dominantly has an American theme, imposing an alcohol ban in the theme park, imposing a strict appearance code and dominantly incorporating American foods in the restaurant menus. These practises evidently, are not in line with the French culture. For instance, the French consider drinking of wine as a “God given right” thus imposing an alcohol ban in Disneyland contravened with the practices of their culture. Similarly, the imposition of a strict appearance code contravenes with the French culture that highly upholds individual and collective liberties. By implementing these practices, the French felt that Euro Disney was an instrument of cultural imperialism (Black & Hal, 2005). Following the establishment of Euro Disney in Marne-la-Vallee, much protest was levelled against the company for imposing cultural imperialism. To some extent these protests, gave the company a negative public image. Hence, the attendance during the opening day of Euro Disney was half of what was expected. Therefore, it was essential for the company to employ appropriate public relations strategies in order to redeem its image and develop a positive public image. Nevertheless, the company failed to use effective public relations strategies. From Hofstede’s standpoint the French culture is epitomised by feminism value, collectivism and a high uncertainty avoidance index. The company failed to tap into these cultural dimensions when it comes to developing a positive public image. Instead of using public relations strategies that would epitomise feminism values and collectivism the company employed public relations strategies that do not represent the French culture. For example, the company launched a PR campaign that saw over 400 children from the local community attending a Mickey Mouse birthday party for free and Disney land in Florida. This campaign was viewed as a form of seduction and manipulation (Black & Hal, 2005). Additionally, in managing its operations, Euro Disney failed to involve people from the local community in its leadership and management roles. The company assigned top management jobs to US expatriates. As a result, the company failed to employ effective cross-cultural management practise. It also failed to identify with the French culture and meet the needs of the local people. Recommendations In order to avoid or address the various oversights made by Euro Disneyland in managing their operations, it is foremost essential for the company to understand and appreciate the various dimensions of the French culture. Subsequently, it is important for the company to incorporate the French culture into the decisions made in the course of its operations. In this case, the French culture should dictate the management practices used by the company. In order for the company to develop a positive public image within the French culture, they should be able to portray appreciation for the French culture by adhering to their conventions on food, appearance code and work hours. Moreover, when it comes to public relations, the company should tap into key dimension of the French culture such as feminism value, collectivism and a high uncertainty avoidance index in order to develop a positive public image. Hofstede’s sentiments on the dimensions culture can help the company to understand various aspects of cultural diversity and how they can effectively use effective cross-cultural management practices (Hofstede, 2001). For example, the company should initiate public relations campaigns that promote Euro Disney as a platform showcasing the French culture and heritage. Lastly, the company should ensure that French nationals take over the day to day running of Euro Disney. It is important to involve people from the local community in the day to day running of Euro Disney mainly because they have a deep understanding on the cultural prerequisites and needs of the local people. This will in turn help the company to meet the needs of the French market and develop a positive public image. References Black, S. & Hal, G. (2005). Euro Disneyland. In Phatak, A., Bhagat, R. & Kashlak, R. International management: managing in a diverse and dynamic global environment. New York: McGraw-Hill/Irwin, Case study pp. 170 – 181. Hofstede, G. (2001). Culture consequences: comparing values, behaviours, institutions and organizations across nations. London: Sage. Piepenburg, K. (2011). Critical Analysis of Hofstede’s model of cultural dimensions: To what extent is his finding reliable, valid and applicable to organizations in the 21st Century? Munich: GRIN Verlag. Read More