Euro Disney Todd Pula, Laura Ruszczyk, Brenda Trodler, David O’Quinn, Raymond Walker 5/12/2019

Company Overview Todd Pula 5/12/2019

Disney’s Claim to Fame Innovator in the animated motion picture industry Leader in theme park entertainment Vertically integrated company Global competitor Operations in California, Orlando, Tokyo, and Paris 5/12/2019

Disney’s Cycle of Success * 07/16/96 Disney’s Cycle of Success Market New Products & Services Produce New Movie Customers Continue to Buy Products & Services 5/12/2019 *

Euro Disney’s Competitors Tourist Attractions Louvre Eiffel Tower Theme Parks Euro Disney does not have any direct theme park competitors in Europe 5/12/2019

Strategic Direction Analysis Strategic Problem & Strategic Direction Analysis Laura Ruszczyk & Brenda Trodler 5/12/2019

Strategic Problem Analysis Disney failed to effectively analyze the external environment in which it attempted to compete Disney did not recognize that economic and cultural differences existed between the U.S. and Europe Disney simply copied its operations from the U.S. and Tokyo to Europe 5/12/2019

External Environment Analysis Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Demographic Economic Political/legal Sociocultural Technology Global 5/12/2019

Euro Disney’s Problems Visitor Spending - European visitors did not spend as much as American visitors Result of exorbitantly high product, service, admission, and accommodation prices Visitors would spend most of their time riding the rides Cheaper to eat/stay in Paris than within the park French Economy - The value of the French Franc increased Cheaper for non-French visitors to travel to Orlando 5/12/2019

Euro Disney’s Problems Cont’d. Cultural Imperialism - Disney failed to recognize the existence of cultural differences in Europe Made financial projections based on American vacationing habits Served American foods rather than local foods Refused to sell cigarettes/alcohol Required employees to act in ways that conflicted with their social customs 5/12/2019

SWOT Analysis David O’Quinn Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” SWOT Analysis David O’Quinn 5/12/2019

Strengths & Weaknesses Strong reputation and brand name Ability to realize mistakes and to change Financially sound Phillippe Bourguignon Weaknesses Cultural imperialism 5/12/2019

Opportunities & Threats Learn more about local culture & customs Integrate local culture into theme park Customize employee standards to the reflect local culture Threats High prices Increasing value of the Franc Employee dissatisfaction 5/12/2019

Solving Euro Disney’s Problems Frenchman Philippe Bourguignon becomes President and Chairman Customizes the theme park to match the local culture 5/12/2019

Euro Disney Update Raymond Walker 5/12/2019

Outlook Seven Additional screens added to Gaumont cinema. Highlight new seasonal events and focus on affordability of a visit. Strengthen the emphasis on the sale of transport inclusive packages 5/12/2019

What’s New At Euro Disney New Entertainment programs and special festivals. Opening of the Newport Bay Club. Commercial real estate development of land around Euro-Disney. A new suburban rail station. 5/12/2019

Five Year Financial Review 1997 1996 1995 1994 1993 Sales (in millions) $838 $772 $735 $709 $954 Net Income (loss) 38 40 40 (292) (869) (in millions) Avg # of employees 10,229 10,307 9,356 10,941 12,177 5/12/2019

Euro Disney Financial Update 5/12/2019

Financial Update Continued 5/12/2019

Thank You For Your Attention 5/12/2019