Evaluate Disney’s decision to build a theme park in Europe.

Write 2 pages about EuroDisney case question

EuroDisney Case Questions

1. Evaluate Disney’s decision to build a theme park in Europe.

2. Explain why Disney chose to enter Europe through a combination of equity ownership, a licensing contract, and a management contract, as compared with its US theme parks (100% ownership) or with Tokyo Disneyland (pure licensing).

3. In what ways did Disney adapt to a French and European context? How effective was this adaptation? Should Disney have adapted more or less?

4. Advise (a) Philippe Bourguignon’s replacement on what further actions he/she should take to improve the financial viability of Euro Disney and realize its potential for shareholder return, and (b) Michael Eisner on how Disney’s interests in Euro Disney or Disneyland Paris can best be protected and furthered.

Requirements: 2 pages

Competitive Marketing Strategy How to AnalyzeaCaseAn Introduction to the CaseMethodUsing cases as aform of learning may benew ort not. The textbook has twelve chapters that present aspects of the strategic marketing planning process, and a large number of ÒstoriesÓ about companies called cases. These cases give you the chance to look at situationsfacing an organization, and after a systematic analysis, make recommendations that will produce a change in the results or outcomes. While you cannot be certain what that outcome will be, through the discussion and critique of your suggestions by fellow students and your professor, projections can be made about the foundation for the probable success of yourrecommendations.Cases, provide an opportunity to see assess a business issue or problem, and utilize the knowledge you have gained to this point to evaluate and make recommendations to enhance the performance of real organizations. This helps prepare you to use the business knowledge you haveacquired.Analysis FrameworksThis discussion to provided to givea framework to use in analyzing the cases found in your textbook. Such a framework is useful not only in analyzing cases in textbooks, but also in considering business situations described in publications such as The Wall Street Journal, Business Week, Fortune, and Forbes. In reality, most articles about companies in magazines and newspapers are mini-cases. The cases in your text tell stories, including facts, opinions, projections, results, expectations, plans, policies, and programs. As readers, structuringthe information through an analysis frameworks provide a means to accomplish thisend.The first benefit is that a framework provides comprehensive coverage of the topics and issues involved. Without a framework, the analyst may overlook some issues. For example, a person might not consider the various effects of the economic environment facing the organization at a given point intime.Recommendations made without this consideration may not be appropriate, and they mayevenlead to the failure of the organization. Another benefit of a framework is ease of communication. When everyone uses a similar framework to analyze cases, the terms each person uses person have similar meanings. This is a huge advantage in discussing cases in and outside of class. A final benefit is consistency of analysis. A framework provides a blueprint to approach situations consistently every time. This is a great aid in getting started and conducting the analysis effectively and efficiently. Using the framework repeatedly will make you very proficient withit.Analyzing Cases in Marketing7/21/231

In fact, experience shows that students continue to use this framework in their jobs long after graduation. They continue to get these benefits, and in times of crisis, the framework gives them something to rely on in dealing with difficultsituations.The Seven-Step Case AnalysisFrameworkÐhow to find better success/outcomes1.No one can analyze a case after reading it only one time, or even worse, doing the analysis during the first reading of the case. You should read through the case once just to get an understanding of the nature of the case. During the second reading, you can begin to structure and classify the issues as they appear. A truly comprehensive case analysis will probably require at least threereadings.2.DonÕt get trapped into thinking the ÒanswerÓ to the case is hidden somewhere in the case text. There is never a single answer to a case just as there is never a single marketing strategy that is appropriate for all situations. Each case is unique. Looking for tricks or shortcuts is not appropriate.3.Make an effort to put yourself in the shoes of the decision maker in the case. The use of role-playing as part of the analysis can be very useful. It helps you gain some feeling for the perspective of the key parties at the time the case took place. After you have done several analyses, you will likely come up with your own additional procedures or guidelines that assist you with thisprocess.Step 1: SituationAnalysisThe material presented in a case is much like the communications we have in our daily lives. Usually our conversations involve the selection of a topic and then the discussion of that topic, and so it is with cases. The problem is that we end up with bits and pieces of information that by themselves are not very useful, but once organized, can be quite valuable in our assessment of the situation. The first step in the framework helps you organize the pieces of information into more useful topicblocks.The process of assessing a situation is widely accomplished through the use of SWOT Analysis (strengths, weaknesses, opportunities and threats). The issues and procedures involved in SWOT Analysis are fully explored in Chapter 4 of yourtext.Looking at an organizationÕs strengths and weaknesses is the first half of Step 1. This involves looking at the organizationÕs internal environment. Strengths are those aspects of the internal environment that can help the firm address a present problem, issue, or opportunity, while weaknesses are negative factors or deficiencies that do not allow the firm to reach its full potential. One topic that should be addressed is the content and appropriateness of thecurrentAnalyzing Cases in Marketing7/21/232

Analyzing Cases in MarketingHow toAnalyze aCasemarketing plan. Is the marketing plan current? Do the key parties understand and utilize it? Was it developed with input from all levels of the organization? The organizationÕs financial condition may also present strengths and weaknesses. Is it in a solid position, and does it have, or can it acquire, needed funds at a reasonable cost of capital? Other possible strengths and weaknesses might include managerial expertise, human resources, product reputation and customer loyalty, patents and trademarks, age and capacity of production facilities, channel relationships, and promotional programs (sales force, advertising program, publicity, and sales promotion efforts). These are all issues that we want to consider in terms of both the present state of the firm and identifiable trends.Students assessing a case situation see the importance of considering the organizationÕs internal environment fairly naturally. The aspect of SWOT analysis that gives students the most difficulty is the external environment where all opportunities and threats reside. These are issues that exist outside the boundaries of the firm. All opportunities and threats will exist at their present levels even if the organization in question does not exist. Technology, competition, the macroeconomic environment, regulation, and social and cultural trends are all issues that affect the success of an organizationÕs strategies, but the organization has only limited influence onthem.Because the power to affect the external environment significantly is usually absent, management must view the factors and forces present in the external environment as issues to be considered, but not usually controlled. Managers should take steps to minimize the exposure to threats and to take full advantage of the opportunities. You might think of opportunities and threats as currents in a river. It is much easier to find a river whose currents will help take you where you are going than to try to make headway going against the force of theriver.You may get hung up on several points when conducting a SWOT analysis. First, while a factor will usually fall into only one of the four categories, this is not always the case. A factor can be both a strength and a weakness, or an opportunity and a threat. For example, excess capacity in a factory would be a weakness from a production efficiency standpoint. But, it could be a strength if the firm is looking to introduce a new product because it will not have to build a newfactory.The second and more serious issue is the difficulty in identifying opportunities. There is a tendency to confuse opportunities with possibilities. Something the company might do, such as franchise its operations in an effort to expand, is not an opportunity. The mention of the organizationÕs name in the opportunity is a clear indication that it is not an issue from the external environment. Both threats and opportunities would be present even if the organization did notexist.Third, if your professor asks you to update the case material, you must be sure to get an explanation of what it means to update a case. Updating a case means locating additional information about the case situation at the time the situation actually took place. Thus, if a case situation took place in late 2003, updating that case would involve gathering information that was published in 2003 or earlier. Using more recent information sources can bias your strategy recommendations and conclusions.7/21/233

Analyzing Cases in MarketingHow to Analyze aCaseFinally, you are accustomed to the material in a textbook containing accurate information that should be believed and remembered. However, in some cases, you will find statements of opinion that are often biased by a personÕs motives and position in a firm. The organizationÕs CEO who has just recently given approval to the firmÕs strategic plan might say, ÒThis is an excellent mission statement that will effectively direct our firmÕs efforts for the next decade.Ó Is this really true? It might be, but it will be up to you to determine what is fact as opposed to someoneÕs opinion. Opinions will need to be assessed in your case analysis to determine their accuracy.Step 2: Assumptions and MissingInformationAs with life, it is neither possible nor realistic for cases to contain all the information a decision maker might wish to have available. Usually a decision maker has only bits and pieces of information. He or she must either fill in the gaps, or make the decision that the information is not critical, fairly predictable, or simply too costly and time-consuming to justify collecting for the decision at hand. A marketing manager might want to know the history of competitive reactions to price cuts by his firm. This information may be present in company files. It also might be available from trade sources or other noncompetitive channelmembers.Following the seven-step framework, in step two you will list important information not contained in the case, why that information might be useful, and how you might go about acquiring it. This is more than just a wish list. The items included here should considered thoroughly. The list should contain pieces of information that would help shore up or fill gaps in your SWOT analysis. Some of the materials may be available from secondary sources, suchasU.S. Department of Commerce reports, the Bureau of the Census, or trade publications such as Sales & Marketing Management Magazine. Internal records will contain much of the needed strength/weakness information, such as employee turnover or historical saleslevels.Some of the information that is not available can be addressed through assumptions. One might assume that if information about the firmÕs advertising budget were not available, it would be equal to industry averages. The same assumptions might be made for other costs and revenues. It is critical that these assumptions be realistic and clearly identified before and during the case analysis. This list should contain only those items that will be truly useful in enhancing the quality of the decisions made. It should not be a list of things that would be interesting to know. The quality of your analysis will depend on your coverage of the framework, the depth of your analysis, and the degree to which you can defend yourrecommendations.Step 3: Statement of The Problem(s)The identification and clear presentation of the problem(s) or issue(s) facing the company is the most critical part of the analysis framework. Only a problem properly defined can be addressed. Define the problem too narrowly, or miss the key problem all together, and all subsequent framework steps will be off the mark. Getting a clear picture of the problem is one major benefit derived from SWOTanalysis.7/21/234

Analyzing Cases in MarketingHow to Analyze aCaseThe process of identifying problems is similar to the one people go through with their doctors. A nurse or assistant comes in to conduct a strength and weakness assessment on you. Your vital signs are taken and you are asked about any symptoms you may be experiencing. Symptoms are observable manifestations or indications that a problem may be present. Symptoms are not the problem themselves. If you have a temperature of 103 degrees, that is a symptom. If the medical staff were to pack you in ice for several minutes, that reading would probably approach 98.6 degrees. Would that make you well? It might make your condition worse! The doctor uses the information collected from you, with knowledge of the viruses and diseases that are present in the external environment, to identify what has led to your high fever. The doctor will attempt to diagnose the real problem, then prescribe treatment from a set of feasible alternatives (make recommendations about what steps will help solve the problem) and provide you with a prognosis (an indication of the things you can expect to occur as you arerecovering).The case analysis process is similar to the doctorÕs analysis and treatment of a patient in several basic ways. First, symptoms are the most observable indication that a problem exists. Many students are very quick to start treating the symptoms found in a case, as opposed to digging deeper to find the underlying problem(s). A symptom may be that sales are down from previous periods. If this is how you define the problem, your answer might be to cut the price. This might be an appropriate step, but not based on the analysis to this point. Sales might pick up, but will this reaction make the company healthier? This is a clear case of prescription without adequate diagnosis.The most important question in the identification of any problem is ÒWhy?Ó The Why question should always be asked after a potential problem has been proposed. To illustrate, pinpointing the problem associated with the sales decline in our previous example might progress likethis:The problem is that sales havedeclined.Why have salesdeclined?Sales have declined because there are too many sales territories that are not assigned to a salesperson.Why are so many sales territoriesunassigned?Sales territories are unassigned because sales force turnover has doubled in the pastyear.Why has sales force turnoverdoubled?Turnover began to increase over a year ago when the sales force compensation plan was altered in order to reduced variableexpenses.When you can no longer devise a meaningful response to the Why? question, you have probably found the problem. In this instance, the problem statement mightread:The current sales force compensation plan at XYZ Company is inadequate to retain an acceptable percentage of the firmÕs salespeople, resulting in lost customers and decreased sales.7/21/235

Analyzing Cases in MarketingHow to Analyze aCaseThe problem statement should be briefÑalmost always one or two sentences. It should be to the point, and it should provide a clear indication as to what must be addressed to improve the performance of theorganization.Given this problem statement, our first reaction, to work on the symptom of reduced sales by cutting prices, would clearly not solve the problem. When we work on symptoms, the symptom may go away, but the problem will always manifest itself again with the same symptom, or a related one. Cutting prices would enhance sales, but would it be profitable? And, with an understaffed sales force, could the firm serve customers at a level that would keep them satisfied?It is often said, and very true: a problem well defined is a problem half solved. This is certainly the situation when performing caseanalyses.Step 4: Development ofAlternativesOnce we have the problem clearly and succinctly defined, we are in a position to develop a set of strategic alternatives that have a reasonable potential to solve the problem. A key problem students face in this step is that they generate a laundry list of a dozen fairly detail-oriented items. These items have a lot more to do with the tactics of implementing a strategy than with presenting alternative strategies from which we will make our selections. Going back to the sales force example above, the list may include ideas suchas:¥Take candidates through a more rigorous interviewprocess¥Lengthen the trainingprogram¥Give every salesperson a companycar¥Offer both individual and regionalbonuses¥Increase company contribution to the retirement program for each year ofemployment¥Conduct an employee-evaluation training program for the firmÕs salesmanagersWhile these may all be good ideas, they are not strategic alternatives. The term alternative suggests an either/or situation. From the list above, you might include several items in your recommendation section. Strategic alternatives should identify basic directions the firm might go with the sales force support of itsproduct.One alternative is always the status quo. You must understand that this is not a means of avoiding a decision. If recommended as the next step, it is a conscious decision, based on a careful evaluation, that the present strategy in use, perhaps with some tactical modifications, is the best course of action in the currentsituation.Besidesthestatusquo,youshouldusecreativethinkingtocomeupwithseveraltrulystrategicalternatives.Forourpresentexample,oneoptionmightbetoeliminatetheexternalsalesforceandstartusingamanufacturerÕsrepresentativenetworktoselltothefirmÕscustomers.Anotheralternativewouldbetousedirectmarketing,withaninsidesalesforcetomarkettheproduct.Another possible option is to reemphasize the sales force with a more effectivesales7/21/236

Analyzing Cases in MarketingHow to Analyze aCasemanagement program, including better selection, compensation, evaluation, and recognition of the sales force.Frequently, the underlying problem facing the organization is the failure to have a current, widely used, well-developed marketing plan. If the analysis indicates this to be the case, conducting a comprehensive strategic market planning process should be one of the alternatives listed. This is one of the few options that might be selected in combination with some other alternative.Step 5: Evaluation of Alternatives &RecommendationsOnce you have developed a set of realistic alternatives, it is time to do a thorough evaluation of each of the options. Three major criteria should be used in this evaluation process. First, how well does the alternative address the problem or issue as stated in Step 3? Closely related to the first criterion is the consistency of the alternative with the organizationÕs mission statement, as well as its ability to assist in achieving the planÕs stated goals and objectives. These issues are addressed in Chapter 2 of your textbook. Clearly, for an organization whose mission includes providing the most innovative health care products to doctors, nurses, and patients, a low cost/price competitive organization model would beinappropriate.This does not mean alternatives that are not consistent with the present plan should never be selected. It does indicate that part of the evaluation for such alternatives must address the complete modification of the organizationÕs strategic plan. Likewise, an objective of increasing profit margins from 15% to 25% is not consistent with the alternative of becoming a low-price provider. The deletion, or at the very least modification, of this aspect of the plan must be considered in evaluating thisalternative.For each alternative, you should make an effort to estimate and evaluate the cost and revenue implications of the option. Probable income statements, under corresponding stated assumptions, should be included for each alternative. Exhibit 1 provides an example of just such an assessment. Costs are certainly easier to calculate than revenue projections, but an effort must be made to do both. To conclude simply that developing a new innovative product line for the organization, without any discussion of the costs and benefits involved, or in what year each is likely to occur, is an incomplete and unrealistic approach to case analysis. You should use what you have learned from your accounting and finance courses when you conduct caseanalyses.Look at any financial information you are given in the case, or that you can acquire, as a key resource in conducting youranalysis.The final criterion is an important one that relates to the feasibility and probable success of each alternative: How well do the alternatives coincide with the key findings from the SWOT Analysis you conducted in Step 1? In other words, how well does each alternative match up with the internal and external environments of the organization? Does the organization have, or can it realistically acquire, the human and financial resources required by each alternative? Building additional capacity to increase volume as the low-price provider is probably not a reasonable alternative for an organization in great financial difficulty. Conversely, for a firm withlimited7/21/237

Analyzing Cases in MarketingHow to Analyze aCasehistory and investment in research and development, becoming the innovative leader in the industry will not be possible in the nearterm.The external environment, in terms of the economy, competition, regulation, and cultural trends, will have a major impact on the pro forma revenue projections you make in this step. Any alternative that adds pollution to the environment will not be well received today. Often, alternative analyses assume the competition is an inanimate object. Thinking that competitors will stand still while you steal their customers with a new marketing strategy is not at all realistic. Part of the evaluation of alternatives, and making projections about their potential success, is to use the assessment of the external environment to make assumptions about what key competitors will do. You must remember that as one company is setting a course for the future, most of its effective competitors are doinglikewise.The recommendation portion of this step is often included as a separate phase in the case analysis framework. We include evaluation with recommendation because, if the former is done well, the latter should be a natural continuation of the process. The alternative chosen is the one that stands up best in terms of all three criteria: consistency with mission, goals and objectives as stated or as modified, strongest probable financial performance, and harmony with the internal and external environments of the organization. With a thorough evaluation, the recommended alternative should be a natural move. This does not mean that two alternatives will never be close in terms of their attractiveness, but usually one will be a better match for the organization as a whole.One more note: Become accustomed to making recommendations in the face of unknown economic or competitive conditions. While you will be able to know some things for certain (such as gross domestic product or consumer spending), no one can possibly predict all future events. As long as your evaluation is thorough, and your assumptions are clearly stated and reasonable, your recommendations will bejustified.Step 6: ImplementationThis step has historically been omitted from the strategic planning process. However, in modern strategic planning, implementation has become so critical that we devoted all of Chapter 11 in your textbook to its discussion. Implementation includes actions to be taken, the sequencing of marketing activities, and a time frame for their completion. A timeline, like the one shown in Exhibit 2, can be a very useful tool in directing the implementation discussion. Students are often very optimistic in terms of the time needed to carry out certain tasks. However, small things, like the development of a questionnaire and the collection and analysis of data, can take several weeks, if not months. Be careful to provide reasonable amounts of time for eachstep.It is frequently noted that Americans are great innovators, while the Japanese are great implementers. In U.S. organizations, the selection of the alternative to be pursued is often made on a majority-rules basis. If ten people are on the decision-making team, and six speak in favor of introducing a new product line and four speak against it, a decision to introduce the new line is the likely result. Under this system, six people leave the room with their reputation on the line to make the decision work, but what about the other four? Will they be committed to theproject?7/21/238

Analyzing Cases in MarketingHow to Analyze aCaseThis can cause serious problems in implementing the selected alternative. Contrast this process with the traditional decision-making process in Japanese organizations, where an alternative is not chosen until everyone agrees that it is the appropriate course of action. The selection process is much more time consuming, and often requires compromises that can make the selected alternative less distinctive. On the plus side, everyone leaves the process agreeing that the selected course of action is best. With everyone working together, implementation becomes a much easierprocess.This aspect of the decision-making process makes internal marketing a critical issue that you must address in your discussion of the implementation phase. Who will be the critical players in carrying out the plan? Are they likely to be naturally in favor of the selected alternative? What can be done to get them on board? Giving more people, particularly frontline personnel, more input during the decision-making process will be a plus here. Top-down planning often creates resistance in the implementation phase. Part of the problem with some strategic plans is that the frontline employees, those people who are most likely to come in contact with suppliers and customers, feel that the plan Òhanded downÓ is not realistic given what they know about the day-to-day working environment. They may feel that management is out of touch. Getting their input early and late in the planning process can go a long way toward easing the implementation of the selected alternative.In all instances, it is very difficult for employees to market the firm and its products as planned until the plan has been marketed to them. Internal marketing plays a major role in determining the success of the plan. If employees can be shown they will get things they value by helping the firm carry out this plan, the process has an excellent chance for success. Many managers feel that they would rather have a mediocre plan vigorously implemented, than an excellent plan implemented in a mediocre fashion.Step 7: Evaluation andControlAs the firm is implementing the selected alternative, it must constantly monitor the results achieved. What do you expect this chosen alternative to accomplish, and by when? This is a major concern, as the firm must determine if the selected strategy is working as anticipated. Clear objectives must be set. A 20% increase in awareness and a 10% increase in sales within six months are possible examples of the benchmarks that might be used to determine if the selected alternative is on course.If objectives are not being met by the targeted dates, a tough decision must be made. Is it a poorly devised strategy, poor implementation, or an unfavorable environment that is leading to these results? The answer to this question will dictate how the organization will respond. As we said earlier, planning cannot assume an inanimate set of competitors. If your recommendation is to cut price and expand distribution, can you reasonably assume that competitors will do nothing and let you take their business away without a fight? This is seldom the case. The competitive situation will almost always change, sometimes significantly. Other external environmental factors, such as the economy or technology, may also not remain constant or turn out asplanned.7/21/239

Analyzing Cases in MarketingHow to Analyze aCaseSuch changes that result in outcomes that do not meet expectations point to the need for the development of contingency plans. Contingency plans are not centered on the most preferred alternative under the present conditions, but are a Òfall-backÓ position in case things do not work out as planned for the selected alternative. For example, more expensive, upscale products might have been recommended for the firm. If the competition slashes prices at the same time the economy weakens, the firm might need to respond by implementing a contingency plan. To blindly carry out a strategy that no longer matches the environment is an almost certain route to failure. In this instance, a contingency plan of heavy sales promotion might need to be implemented. Firms can try to predict what future environments will be like, but they cannot guarantee the future external environment with muchcertainty.ConclusionWe conclude with one final piece of advice: Like anything else, the learning benefits of case analysis are dependent on the amount of effort you put into the analysis. Learning to think critically and see the big picture are important lessons to be learned in a case course. Likewise, learning how business activities (not just marketing activities) can be strategically integrated to achieve superior results is the ultimategoal.7/21/2310

MKT 551: How to Analyze aCaseExhibit 1Hypothetical Pro FormaAssessmentUnfavorableEnvironmentNeutralEnvironmentFavorableEnvironmentSalesDollars$2,000,000$3,500,000$7,000,000Units ($5 perunit)400,000750,0001,400,000CostsProductdevelopment$250,000$250,000$250,000Production costs$1,200,000($3 perunit)$2,062,500($2.75 perunit)$3,500,000($2.50 perunit)Advertising$300,000$300,000$300,000Sales commission(10%)$200,000$350,000$700,000Other selling expenses$100,000$135,000$200,000Earnings beforetaxes$-50,000$402,500$2,050,000Analyzing Cases in Marketing7/21/2311

Analyzing Cases in MarketingMKT 551: How to Analyze aCaseExhibit 2A Hypothetical ImplementationTimelineWeeks12345678910Conduct customer surveysCollect mediainformationAnalyze data and present resultsDevelop point-of-purchase materialsDevelop sales force training programConduct sales force training programDevelop and send promotional materials to dealersRoll out program in selected regions with both personal and masspromotion7/21/2312

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