Euro Disney Startup And Adversities: Walt Disney
Startup and Adversities - Walt Disney, like many other corporation founders, faced adversity. Disney felt humiliated when trying to sell the idea of a Mouse as a mascot but in 1955 his dreams became reality when Disneyland opened in California. The park opened with inoperable rides and unfinished attractions, but his dream was a reality. Another adverse event for the company was the passing of the founder in 1966; the company was left in the hands of mediocre managers. In the text International Management (Luthans & Doh 251) two men were named for the company’s failures, Card [Cardon Walker] would listen but not hear, Ron [Ron Miller] would listen but not act; the company experience large profit loss; shares dropped from …show more content…
Disney was able to build Disney World in Orlando FL utilizing the California blueprints. It was later recognized that the three hotels in Florida were the most profitable in the United States. Once Eisner noticed the booming success in the hotels he invested more than $1 million dollars for more hotels, beach resorts, yacht clubs and Experimental Prototype Community of Tomorrow.
Disney Expansion Abroad – Disneyland and Disneyworld were receiving tourists from around the world and decided to plan to build abroad. In 1983 Tokyo Disneyland was open. Location - The place chosen to build is near Tokyo, the capital city and the most populated city in the world. They researched availability of transportation, accessibility and profitability when selecting sites. The business grew and eventually had more visitors than Its US counterparts. Disney invested the brand name only and no cash. They receive profits from sales, food and licensing …show more content…
Unlike the Tokyo deal, this time Disney kept 49 percent stake in the project, earning a compound return of 21 percent. Disney decided to maintain management control of the company. Disney receive the same 10 percent for admission fees and 5 percent on food and merchandise as in Tokyo but in France, it would receive management fees, incentive fees, and 49 percent of the profits.
Disney faced difficulties but with good managerial they were able to strive. Disney invested huge sums of money by hire the best managers to grow their businesses. When Disney decided to go globally they learn to be flexible for cultural differences. They hired host countries businessmen to make their business