Operations Management - Essay Example

Download file to see previous pages This is mainly due to the extraordinary resilience of Disney during economic difficulties. During the last world recession towards the end of the last decade, Disney reported extraordinary profits for a company during such a tough economic time (chase & Tansik, 1983). In 1992 Disney opened up a new destination in Paris. This was after much analysis and lobbying behind the scenes on the location of the continental Europe branch. Two choices to be considered for the location were Spain and France (Cox, Blackstone & Schleier, 2003). After much analysis and consultation the Disney management decided to locate their new park in Paris France. Despite having unsuitable weather for a park such as a Disney, Paris had all the qualities of a promising market (Flynn, et. Al 1990). Paris was centrally placed in the European continent. This position made it easily accessible to many European citizens eager to experience Disney magic. However as it turned out the project almost watered down to oblivion from its opening and was still performing dismally as late as 2006 (Flynn, et. Al, 1995). Despite various administrative and structural changes in the company Paris Disney park is yet to pick up (Fuchsberg, 1992). This paper is going to look at operation management issues facing Disney, and ways in which through various theoretical explanations the operational problems can be dealt with. The Walt Disney Company founded in 1923 has been credited for its creativity, quality of services and customer oriented service, culminating to high levels of satisfaction in Disney’s clientele. It is this good legacy that prompted Disney to open up a new destination in Paris given the interest it evoked among Europeans (Goldrat, 1984; Gupta et al., 2000). Due to this, the company opened its Paris destination in 1992. Reports from different analysts and the media were highly optimistic that the breakthrough by Disney into the European market would be easy and fast. Policy of the existing Disney parks was projected to aid a lot in the venture (Goldratt, 1992; Goldratt, 1994). These factors and the overall goal of Disney of maximizing exposure and growth worldwide were projected to lead Disney through this period. Disney is also a unique family entertainment park since its services are enjoyable for people (Goldratt, 1997; Goldratt & Cox 1984). In Disney parks, different areas are themed around various areas which contain different attractions and rides which are not as scary as other rides in other parks making them acceptable to people of all ages (Goldratt et al 2000; Heizer & Render 2008). The first detrimental operational issue in Disney is the conformity of its basic setup, despite the huge regional difference in all its parks locations (Hackman & Wageman, 1995; Krajewski, 2007). All its parks from Florida to Tokyo are similar in their basic setup. The setup is basically based on American methods and style which may be alien to international customers. The company had opened a Tokyo Disneyland in 1982 which was a great success. The success was reinforced by huge appetite for American themes in Japan. As it would be seen in Europe, different markets portray different appetites for American inspired themes. Europeans were resentful and critical to the introduction of American culture on their continent (Meredith et al 1989). At the opening of Disney Euro the French government played a very big role. Porter’ ...Download file to see next pagesRead More