Administración Intercultural Eurodisney Case

1. Using Hofstede’s 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.

Administración 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 Trompenaar’s 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 Guided-

Missile. The same goes for the responsibility of the individual. Due to the centralization and

hierarchical orientation, the superiors are in authority.

Therefor Trompenaar’s 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.

Administración 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.

Administración 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.