Differences between France and American Disney Companies - Case Study Example

Running Head: CASE STUDY ANALYSIS Title Insert Name Tutor Date Euro Disneyland Case study Introduction Euro Disneyland was opened in Paris in 1992 as the first to be opened by Disney out of America. The management of the park was later taken up by Euro Disney S. C. A. Although at the moment the volume of visitor traffic to the company and its popularity has grown tremendously, this has not been the case in the past years. Euro Disney was criticized and made to look controversial because of the name it was given and the way the American culture was impacting on the surroundings in France. Consequently the company incurred huge losses financially. The first dimension developed was power or distance. It is used to refer to the level of inequality existing and accepted by people in a given society with people who have power and those who have no power. The US has power distance score of 40 that happens to be lower than world average by 27%. America is a society with low power distance and has a flatter structure of organization with just few supervisors at work meaning employees have the freedom to make independent decisions Reekie, Allen, & Crook, (1991).When the PD is low it shows that power is dispersed well and it is shared. In such a society, people look at each other as equals. On PDI scores France has 68 points which means it is 24% higher compared to world average. In France as a society with high power distance there is more centralization and there is a tall hierarchical structure of organization with many supervisors giving orders to those people at lower levels. A high score on power distance is an indication that people in a society are at home with unequal power distribution and that everyone understands his place within the system. The second dimension is individualism (IDV) which is about how strong the people’s ties in a community are. When the score for IDV is high then the connection between people is low. I When the IDV is low then the group cohesion is low with high levels of respect and loyalty in the group Gordon, Kingston (1996). The group is bigger with people being responsible for the welfare of others. America has the highest individualism score standing at 91. On the other hand that of France is 71 and goes beyond the world average by 65%. In America people are less concerned about the welfare of others. France is the opposite. The level of cohesion among people is higher and they tend to mind the welfare of the members of their society The third dimension is that of masculinity (MAS) which refers to the level with which a society values the roles played differently by females and males. America leans more on masculinity than France. The score for MAS in the US is 62 which happens to be above the world average score by 24%. Therefore America has a lot of value placed on success, material possessions and money (Forman, 1998).The degree of gender differentiation is higher than that of France. A considerable portion of power structure and society is dominated by males with females being in submission. In France the masculinity score is lower at 43 and under the world average by 14%. The level of differentiation is lower and gender discrimination is not so pronounced. Treatment between males and females is equal in every societal aspect as opposed to the American way Luthans, (2008). Uncertainty or avoidance index (UAI) refers to the level of anxiety felt by members of a society while in unknown or uncertain situations. A country like France scores highly on UAI when compared to the United States. This is an indication that France works harder to avoid ambiguity than the US. In the United States novel events and differences are valued. Rules and regulations are few and people are free to get their own truth. France does not tolerate uncertainty and ambiguity as the United States does. In the US people take bigger risks and are lesser rule oriented than in France. The UAI score for the United States is 46 since people are not keen on avoiding uncertainty and ambiguity like the French Guergana & Bahaudin (2009). Long Term Orientation (LTO) is a bout the degree at which a nation values traditions and values that are long standing as opposed to those that are short term. When the LTO score is high it is important to avoid losing face and to perform when one has social obligations. In the United States the scores for Long Term Orientation are lower compared to France. This is an indication that Americans have no value for long term tradition as opposed to the French. Trompenaars’ research Universalism versus particularism raises the question of which one between relationships and rules is important. France and America are different because in France, rules and regulations are held dearly and people are particularistic. In America, relationships are considered more than rules. There is more liberty and people are free to decide on their own. 92% of people in America fall under universalism. The second orientation is individualism versus collectivism. America is contrasted with France because in America people are more individualistic than in France. The society in France tends to be communal, functioning in a group and in a collective manner. On the third dimension being neutral is contrasted with being emotional. Comparing the French and the Americans we find that the French are more emotional while Americans are neutral Forman (1998). The fourth dimension, specific versus diffuse brings out another difference. The French being strict and more specific are different from the Americans who are more liberal and diffuse in their undertakings. The fifth dimension is achievement versus ascription. In France people are more accustomed proving themselves in order to get status while the Americans would be free to receive it. The sixth dimension which is sequential versus synchronic refers to things being done one in its own time or all at once Lainsbury (2000). The French differ from the Americans because they are stricter with rules and therefore orderly. Americans have less order and therefore do many things at once. Finally there is the internal versus external control whereby the question of controlling the environment or being controlled by it comes up. The French being more cautious with life do control their environments while he Americans being less strict is controlled by what happens around them. Three mistakes Euro Disneyland made a number of cultural mistakes in France which were antagonistic to the French culture. The first mistake was about the foods. For one the management could not allow alcohol to be served in its parks. They were misled to believe that in Europe people do not eat breakfast sitting down .As a result they reduced the size of their restaurants before they opened their doors. After opening there were so many people looking for breakfast Luthans (2008). The management also failed to realize that Europeans has a particular set time for eating which was about 12: 30 pm. On the other hand Americans can easily be at home wandering in the park with lunch. Lines were very long and to add to the problem wine could not be served with lunch. It therefore became hard for the company to hire staff for the two or one busy lunch time hour. Another mistake was in the times of vacation. Europeans would not take their school going children for vacation at mid session like the Americans. Europeans like to have long but few holidays instead of taking many short breaks. The company was determined to make the Europeans follow the American ways but this was a fruitless plan. Finally the company introduced a dress code that was not received well by Europeans. They banned moustaches, beards and long hair. This was typical of American families but in it they insulted the Traditions of French families. Many French refused to work for the company because of this Guergana & Bahaudin (2009). Three lessons First of all, Euro Disney’s executives were supposed to try their level best and adapt to the low masculinity levels of France such as friendliness, cooperation, decision making in groups, conservation of the environment and freedoms for employees. Secondly they could have done a feasibility study on the eating habits of the Europeans and be sure to lay down strategies to follow them before opening their doors. Finally it was futile for the Americans to try to impose the family traditions common in America such as the dress code to the Europeans. They could have allowed them to follow their preferences. Conclusion In conclusion the paper contains an analysis of the Euro Disney Company and the differences between France and America based on two sets of dimensions. Euro Disney failed in the beginning because of failing to pay attention to cultural diversity. Businesses being established in other countries must be established on the basis of respect and recognition of the culture of the host nation. This will ensure harmony and acceptance of the business in the host country. References Luthans, D. (2008) International Management: Culture, Strategy, and Behavior, 7th Ed, New York: McGraw Hill.pp229-238 Reekie, W. D., Allen, D. E., Crook, J. N. (1991), The economics of modern business, Oxford: Blackwell Publishers   Lainsbury, A. (2000). Once Upon an American Dream: The Story of Euro Disneyland. University Press of Kansas Forman J., 1998, Corporate Image and the Establishment of Euro Disney: Mickey Mouse and the French Press. Technical Communication Quarterly, vol 7 No. 3 p247-58 summer 1998 Hassi, A. Storti, G.; 2011, Organizational training across Cultures: Variations in Practices and Attitudes; Journal of European Industrial Training, v35 nl p45-70 2011. Guergana K., Bahaudin, M. 2009; Strategic Human Resource Management and Global Expansion Lessons from the Euro Disney Challenges in France International Business & Economics Research Journal (IBER); Vol 8, No. 1 (2009); The Clute Institute. Imagineers (1998). Walt Disney Imagineering: A Behind the Dreams Look At Making the Magic Real. Disney Editions. Gordon C., Kingston P. 1996 The Business Culture in France, Butterworth-Heinemann Mark, S., Skinner, D & Lewicki R.,2010 Organizational Trust, A cultural Perspective, Cambridge University Press. Read More