Administracin Intercultural

Eurodisney Case

1. Using Hofstedes four cultural dimensions as a point of reference, what are some of the main
cultural differences between the United States and France?
The first remarkable difference between France and the United States is regarding the power
distance of each country. The U.S. citizens are less likely to accept inequality, whereas in France the
acceptance of inequality, concerning a score of 68, is much higher compared to a score of 40 in the
States. Taking a look on the second cultural dimension of Hofstede, Individualism, it can be said that
the extent of how individualistic both societies are, are more similar. The United States have a very
high score of 91, while the French society reaches a score of 71. Besides the fact that both societies
are quite individualistic, Masculinity is not so prevalent. The U.S. has a score of 62, France a score of
43. The last of the four Hofstede dimensions is the Uncertainty Avoidance. This aspect might include
the greatest cultural difference between both countries. While the U.S. have a score of merely 46
points, France comes to 86 points.
These results are underlined by some main differences regarding the culture of both countries.
Americans do not like to skirmish around. Decisions are supposed to be taken fast and eligible
without too much preparation. On the other side French seek a decision-making approach including
accurate preparation and research. This is also reflected in the dimension of Uncertainty Avoidance
and the incidents in the case. While the French were much more critical and quizzical, the U.S.
trusted fully in their optimism.
While in France most decisions are made on the hierarchical summit, in the U.S. the decision making
takes place on several stages. People often take more responsibility and are much more often
accountable for their actions. This aspect is reflected in the dimension of power distance. Tightly
connected to this aspect is also the dimension of Individualism. The American way of going forward
with their decisions bothered the French. Besides that, the strict rules for the employees regarding
their abilities, dress code and appearance were also a barrier. They did not only see their French
values and liberty rights endangered, they were also disappointed that a formerly mostly French
project (employing mostly people from France) would turn into a project including employees from
many other European countries.
The last dimension Masculinity lead the Americans to a way of acting that did not involve the French
culture enough. In France success is not that important in comparison to the United States. This
overrunning of the French culture was resented by the French.

Administracin Intercultural
Eurodisney Case
In fact, regarding the score, Power Distance and Uncertainty Avoidance and Power Distance are the
only two dimensions with huge differences between the countries. Nevertheless, even though the
two countries seemed to be on the same track regarding Individualism and Masculinity, small
anomalies in the score can also mean greater cultural differences.

2. In what way has Trompenaars research helped to explain cultural differences between the
United States and France?
Trompenaar developed a model of four different cultures. These should imply how people in
different countries behave and how organizations are set to be. Thereby he outlines four different
dimensions: Person vs. task and centralized vs. decentralized. Dependent on the extent these
dimensions apply, organizational culture can be categorized into four different styles: Incubator
(fulfilment oriented), Guided Missile (project-oriented), Eiffel Tower (role-oriented) and Family
(power-oriented).
In general the U.S. organization culture can be attributed to the Guided-Missile. This contains that
people are supposed to act efficiently, taking the focus away from the how to get there to the
result. The relevance of the process drops, while the main focus is on the result of the task. The
circumstances have to be highly decentralized, in order to give the employee responsibility for his
task and let him act freely. This is possible because in the end only the outcome matters, for which
the employee is also accountable.
The French organizational culture can be described as belonging to the Eiffel-Tower group. The
circumstances are more centralized and hierarchical. In addition the focus is set on the task and the
process. Everybody has a specific role within the system and an analytical way of approaching
problems is very important. The accountability is not given in the same extent as in the GuidedMissile. The same goes for the responsibility of the individual. Due to the centralization and
hierarchical orientation, the superiors are in authority.
Therefor Trompenaars research does not only explain the cultural differences, it can also help to
connect the dots of different organizational cultures. It helps to see how organizations in different
countries operate. This knowledge can prevent companies from rushing into other countries, the
way the Americans did it with Disney in Paris. The research combines several dimensions (as
mentioned above) and combines them into categories. By involving several factors in his research the
classifications become more precise. The results are highly useful for doing business with other
countries and should not be ignored.

Administracin Intercultural
Eurodisney Case

3. In managing its Euro Disneyland operations, what are the three mistakes that the company
made? Explain.
The Management made three capital mistakes regarding the Euro Disney Project in France.
First of all the company was way too optimistic regarding the operations of the Park. In comparison
to Japan, where the United States is very popular, in Europe there is a slight anti-American
movement. Disney movies and merchandise are even often seen as toys / movies for less intellectual
people. The Management totally overestimated the number of people willing to go to the Park.
Reducing the prices already imposes that the Management went a totally wrong way in its strategy.
This mismanagement lead to a downfall (or not even creation) of profitability and let the share-prices
decrease. Therefor the first big mistake was a miscalculation of the financial aspects. They assumed
that Disney land would attract not only French people, but also lots of German, Spanish, British and
Benelux citizens. A day-drive is lots of travel for a German person. In the USA due to the adaption to
long distances, this might not seem far. This is totally different in Europe. A German family would
usually not drive 10 hours just to go to Disneyland. The mobility is completely different.
A second mistake was assuming that the entertainment industry is the same as in the United States.
As mentioned before Europeans have different habits regarding consumption on this sector than
people in the USA. Even within Europe the cultural differences are great. The Management
miscalculated the degree of capacity utilization and thereby made the Disney experience very
aggravating for people. People in Europe do have different expectations than the Americans. The
medieval-example in the text embodies this problem perfectly. While in some cases the
entertainment-gusto was adapted, Disney failed to go through with essential changes in other
sectors.
The third and worst mistake was that the Management did not adapt to the French culture well
enough. People may go to Disneyland to get an American experience, but if they are in France they
also expect the experience to involve segments of the local culture. The initial prohibition of alcohol
is a grave mistake in a line with ignoring the importance of breakfast at the park. The strict dress
codes and unusual habits employees should show were taken as an attack on French culture. By
mostly employing Americans for top positions the company failed to get together with experienced
French managers, who certainly know the market in Europe better. This mistake was countermanded
way too late. Overrunning the French culturally and legally could only end badly.

Administracin Intercultural
Eurodisney Case
4. Based on its experience, what are the three lessons the company should have learned about
how to deal with diversity? Describe each.
The first and most obvious lesson that can be learned in this case is that companies should always
put a lot more focus on the cultural differences. In most cases simplification and parochialism do not
work. In complex industries a general cultural approach cannot be successful because global
preferences mostly do not exist on a global stage. Disney should have taken the cultural differences
more into account. Such problems can be approached by a broader intercultural knowledge and by
employing more locals in the top management.
The second lesson is that not only cultural aspects are different, but also the ways to target a specific
market. The image people had regarding Disneyland was quite negative from the beginning. By
working closely with the government and thereby only looking after advantages this relationship can
provide (e.g. expropriation of land), Disney forgot to concentrate on the consumer. The negative
occurrences in the phase before the opening, gave the whole project a bad aftertaste. It is a rule that
the customer is king. Therefor it should be analyzed more accurately (also be informed about how
the customers mobility is like) what the consumer wants. Disney failed to adapt their project to the
French/European market and therefor dropped a lot of bricks. Disney did not only target the market
wrongly they also scaled down their potential market by analyzing the market poorly. This led not
only to a poor suiting product; it also led to financial problems due the overestimation of revenues.
This can be avoided by accurate and precise market research and by developing a totally suitable
product.
The third lesson that can be learned is that marketing does also play a significant role. All the bad
incidents previous to the opening were already signs for the bad start Disney would have. To be
successful you need to minimize resistance against your project by making concessions and adapting
totally to the expectations and wishes the locals have. An open way of communication is essential
and does not also avoid bad press, it can also make you better and more open for changes.
Consistent change is a competitive advantage and can increase revenues. The open communication is
the corner stone for that. It provides a good relationship with the locals and it can give you the right
ideas about how to improve. It is all about listening and acting.