Assignment

Chapter: 04 & 05
Submitted To:
Mr. MD Humayan Kabir
Course Teacher
Intermediate Financial Accounting
Submitted By:
Shadman Sakib Khalili
Student ID. 1!"
M#A $rogram
1
st
#atch

May 1%& %1"
De'artment o( Finance ) #anking
*ahangirnagar +ni,ersity
Dhaka& #angladesh
What Do You Think Motivated Disney To Set Up Parks Abroad,and
What Might Be The Pros And Cons From The Standpoint Of The Walt
Disney Company?
The Walt Disney Company has always looked for ways to reach a broad audience.
In the theme park division of the company this means providing services that
eliminate (or at least try to) the worries of every day stresses. This being said one of
the main reasons Disney Theme Parks were opened abroad were for the
convenience of family that could not afford the expense of flying to the U.S to enjoy
the Magic of Disney. Opening a theme park abroad brought with it a variety of Pros.
One being mentioned above. It has also had it share of Cons one of the biggest
being foriegn government red tape with regulations,safety, copyrights, and many
many more. The pros definately out weigh the cons or why else would they continue
to open theme parks
What do you think motivated Disney to set up parks abroad and what might be the pros and
cons from the standpoint of the Walt Disney Company?
Increasing market shares may have been one of the prime motivation of Disney. Aside
from this, they will acuire greater profit. !owever, there is also the possibility that
the host country may not support Disneyland as greatly due to cultural clashes
especially if it was not properly researched and this will lead to losses instead of the
forecasted profit.
Why do you suppose Disney made no financial investment in "apan, one of #$%& million in
'rance, and then one of over #(&& million in !ong )ong?
It was Disney*s first time e+panding outside the ,- and so they were hesitant on
taking on the risk. Instead, they assisted in the planning and charged royalties. .he
success of .okyo Disneyland gave them the needed confidence for Disneyland /aris.
.heir main interest however was tapping into Asia and with the additional motive to
make peace with China, they were willing to invest a greater amount in Disneyland
!ong )ong.
What factors in the e+ternal environment have contributed to Disney*s success, failure, and
ad0ustments in foreign theme park operations?
.he "apanese adapt well to the ,- culture so it was a good idea to replicate
Disneyland California for .okyo Disneyland.
/aris has the largest population, is the most visited 1uropean country, and has the
largest consumers of Disney products. 2ut the problem arose because it somehow
threatened the preservation of the 'rench culture and the winter season drops sales so
they struggled to adapt to the needs of the 'rench.
3astly, !ong )ong is the most visited country in Asia as the largest tourist destination
with $& million visitors per year with better infrastructure than mainland China. It also
paved the way for an alliance with China.
-hould Disney setup a park in -hanghai? If so, what types of operating ad0ustments might it
make there?
It seems that it would not be as beneficial for Disney to set up another theme park in
-hanghai. It may hamper their relationship with !ong )ong since it may reduce their
visitors for !ong )ong Disneyland. Also, since China is a communist country, it may
be hard to penetrate. 2enefits of setting up a Disney Channel or taking advantage of
the 4&&5 olympics is only short6term and because of the one6child policy, there aren*t
so many kids who will en0oy Disneyland.