Euro Disney Case Study

Question: Write about theEuro Disney Case Study. Answer: The theory of cultural dimensions proposed by Geert Hofstede comprises a framework used to understand cross-cultural communication in the organization and the effects of societys culture on their values. The model is essential for managers investing in a different country because considering cultural differences is a significant determinants for the success of the organization. Moreover, executives managing international companies explore various dimensions of culture because there are vital in understanding how to work in different countries and the approach that can be used in respect to cultural values(Hofstede, 2014). Euro Disneyland failed because they did not understand the cultural differences between the U.S. and French societies in the context of doing business. Cultural Differences between the United States and France The report uses Hofstedes four cultural dimensions to explain some of the significant cultural variation between the United States and France in the context of Euro Disneyland operations. The focus includes power difference, individualism, uncertainty avoidance, Masculinity/Femininity and Long-term Orientation in the two countries. Power Distance According to Hofstedes model, the power distance dimension examines the expectation and agreement by the less powerful in the organization that power is unequally distributed. This dimension focuses on analyzing the feeling of the members of the organization feelings on issues of unequal distribution of power. The lower the scores means that culture accepts and expect that there is a democratic share of authority and all are equals. On the other hand, when the score is very high, it reveals that the less powerful in the society agree to the prevailing conditions and understand the existence of hierarchical position(Hofstede, 2014). When this is applied in the context of France and US comparison, there is a total difference between the two countries. For instance, in France, there is high power distance, and this means there are hierarchical system and centralization of power in organizations. In such a situation, the superior members are inaccessible from lower positions and their authority in the company are obeyed without a question or debate. This means that power is unequally distributed in the French society and so in the organizations. However, in U.S, the approach and views about powers in the society are so much different because there are equal rights and the aspect of the hierarchy is a convention which means that superiors are accessible by everyone and there is a friendly environment created by the organization. Moreover, the center of leadership is not there, and power is distributed equally due to a weak authority distance(Chhokar, et al., 2013). Individualism This dimension makes focuses on the group situations as opposed to a single individual in the organization and society. In the Cultures characterized by individualism, the value and goals are personalized while societies with collectivism have needs and objectives are more valued compared to that of the individual. In the French society, the score is high because autonomy in the work environment is preferred as opposed to teamwork. In the U.S, the scores tend to be greater than that of France due to dominant individualistic culture that emphasizes on the self and close family members first(Hofstede, 2014). However, the U.S. seems to have high geographical mobility due to high preferences for Americans to do business in many countries and understanding the different cultures. Besides, the employees take initiatives and do not rely on management to guide on what to do. In Euro Disney case, there were problem with culture integration because French employees were not satisfied with Amer ican imparting their rules and culture on them. The reason for high level of resistance is due to the difference between American and the French. For example, the dressing code embraced by American is not acceptable in the French societies (Chhokar, et al., 2013; Hofstede, 2014). Masculinity and Femininity This dimension in the model intends to measures the value given to a particular culture. For example, in some cultures, masculinity is associated with assertiveness, ambitions, materialism and power. On the contrary, the feminine is viewed as people who like to emphasize the human relationships. The difference between sexes is considered differently in the organization because masculine tend to be ambitious and competitive as compared to masculinity(Hofstede, 2014). The French Society scores very low in this dimension due to emphasis on femininity and values for the quality of life in the society, competition but success is not that much visible. In the US, the culture is predominantly masculine where competition, achievement, and success are the core motivating elements. In Euro Disney case, the US failed to consider the effect of the dimension in the French culture because the male culture was emphasized and prevail on others which were contrary (Chhokar, et al., 2013; Tung Verbek e, 2010). Uncertainty Avoidance This dimension in the model evaluates the way in which organization deals with unknown situations likely to happen in the future. Example includes unexpected events such as workplace conflict and disruptive technological and organization changes. Cultures that scores very high are considered intolerant to the future events and uses rules and regulation to minimize the possibility the consequences of unknown happening. In contrary, those with low score embrace change when it happens(Tung Verbeke, 2010). Regarding this dimension, France has high scores of uncertainty and therefore the possibility of risks is managed through security and strict rules by the management. The US scores very low in this dimension because the management accepts uncertainty and not afraid of the unknown future. This means that Americans are more courageous to face risks and no complicated rules and laws applied to manage these possible uncertainties. This makes them accept new ideas and always willing to try something innovative without knowing the results(Hofstede, 2014). Long-Term Orientation This is the last dimension and it explores the time horizon in a particular society. Cultures that value short-term orientation are bent to traditional methods and take the time to form relationships. Long-term orientation focuses on the future more than anything. Both are based on attitudes focusing on the results and the reward obtained. France has a very low score in this dimension because the members are focused on short-term goals and obliged to guidelines and norms in the business environment. Similarly, the US has low scores because of short-term focus and expectation of fast results in the environment, committed to traditions of doing things and fulfilling the social obligations (Hofstede, 2014; Chhokar, et al., 2013). Contribution of Trompenaars Research Trompenaars research assists substantially in explaining cultural conflicts among both the USA and France. Trompenaars research can be used to understand the conflicts between France and the USA using the four categorizations. The first includes Universalism versus Particularism and focuses on the essential of rules and relationships. Individualism versus Communitarianism seeks to understand whether we function as individuals or group. Besides, Specific versus Diffuse concentrates on the way human separate the work and private lives and lastly Achievement versus Ascription explore whether members of the organization has to prove themselves to receive recognition (Hofstede, 2014; Tung Verbeke, 2010). Based on Universalism versus Particularism, there is a belief that rules, policies, and regulations are universal and therefore can be used across the globe without the need for modification. In the French society, there is a perception regarding the rules and regulations of the culture which are not similar to others(Tung Verbeke, 2010). The company management was motivated by the necessity of the success of its three theme parks and failed to realize the distinct culture of the French society which required a different approach to that of the U.S(Chhokar, et al., 2013). In regard to Individualism versus Communitarianism, a communitarian society is evident in France and the Americans can be said to be an individualistic society. This is because French work as a team and social relations are mutual which is different in the U.S because of people high-value individualism. Americans rank positions in the organizations and workers while the French society does not do that. In Specific versus Diffuse can be used to understand the difference between the USA and France. In the US, the culture is seen as distinct national cultures where decision arrives from a negotiation while in France the culture is treated as implicit in the national context and decisions and command are based on discussion between involved parties. Lastly, the Achievement versus Ascription can be used to understand two differences between the countries. In the American society, there is a huge focus on performance and division of labor while the French culture stresses on the factors pr esent in their history (Chhokar, et al., 2013; Tung Verbeke, 2010). Mistakes made by Euro Disneyland In the case study, numerous mistakes were made when setting Euro Disney entertainment in Europe and especially in France. The company made a mistake of not understanding the cultural differences between U.S and France. The management imposed the US culture in France without considering the impact likely to be caused. For instance, breakfast was not served at the park, and this is one of the valued traditions in French culture. Besides, no alcoholic beverages were not served in the park, and this was contrary their culture because the peoples in the country values alcohol such as wine when taking the main meals. Others such as the dress code went contrary to those accepted by the French culture in the organizations. The U.S took French entertainment culture for granted and thought it would be similar to theirs. This led to the wrong allocation of staff and resources because the peak days in France was not the same in US Disney Land. As such, there few employees in crowded days and many employees in those days which were not busy and this affected profitability. Besides, there were many car parks which remained empty because people used public means of transport. Recession signs were not heavily considered, and the company set high-profit expectations in the new Euro Disney. In the end, the park failed to realize the expected revenue target due to the small sale of tickets. This was also because the price of the tickets was quite high. The mistake was costly, and the Euro Disney failed to realize expected revenues and instead made losses. Lessons Learned From the Failures From the case study, a number lessons can be extracted. First, when setting a business in another country, culture should be given a thorough consideration and not taken for granted. A project which can realize high success in U.S can record failures in other nations due to sharp cultural differences. Therefore, Cultural factors are central to the success of the business and disregarding others traditions can be destructive to the organization. Besides, the success of a company project is dependent on the unity of the group more specifically the executive and its resolve to deal with emerging workplace issues that create satisfaction among employees. Conclusion In conclusion, for every organization to be successful in a different social setting, the management should have a general understanding of the culture of the environment in which they want to set the operations. This should have been the case for Euro Disney when setting operations in France. The point to understanding the cultural issues is through market research, and cultural assessment understands the local people cultural values such as tradition and customs. The whole cultural clash realized by Euro Disney can be squarely blamed on the effects of cultural conflict of U.S and French societies. Bibliography Chhokar, J., Brodbeck, F. House, R., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. New York. NY: Routledge. Hofstede, G., 2014. Hofstede's Cultural Dimensions: Understanding Workplace Values Around the World. s.l.:Mind Tools Ltd. Tung, R. Verbeke, A., 2010. 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