Multinational Business Management free essay sample

Disney is made up of many different entities in which they attract their consumers. History The Walt Disney Company has a prestigious history in the entertainment industry, stretching over 75 years. It started on October 16, 1923 as the Disney Brothers Cartoon Studio, a joint venture of Walt Disney and his brother, Roy. Three years later the company had produced two movies and purchased a studio in Hollywood, California. Pitfalls in distribution rights nearly sank Walt and his company, but the creation of Mickey Mouse saved a sinking ship. By 1932, the Disney Company won its first Academy Award for Best Cartoon, for the Silly Symphony. 1934 marked the production of Disneys first full-length feature film, Snow White and the Seven Dwarfs, which released in 1937 and became the highest grossing film of its time. But afterwards, the expenses of production caused difficulties with the next few animated films; then the advent of World War II halted the production of films as the Walt Disney Company contributed its skills to the war effort. After the war it was difficult for the company to pick up where it had left off, but 1950 proved a turning point with the production of its first live-action film, Treasure Island and another animated film, Cinderella. In that time period, Disney also began several television series; in 1955, The Mickey Mouse Club also made its debut. 1955 also provided another landmark moment: the opening of the first California Disney theme park, Disneyland. Disney continued its rise in popularity, and survived even the death of its founder in 1966. His brother Roy took over supervision at that time, and then was succeeded by an executive team in 1971. Several more projects, from merchandising to the continuing production of animated and live-action films to the construction of more theme parks filled the years; in 1983, Disney went international with the opening of Tokyo Disneyland. In the past few decades, Disney has moved into a wider market, beginning The Disney Channel on cable and establishing subdivisions such as Touchstone Pictures to produce films other than the usual family-oriented fare, gaining a firmer footing on a broader range. In the 1970s and 1980s, the company suffered from takeover attempts, but eventually recovered; the recruiting of the current chairman, Michael D. Eisner, was crucial to that. Eisner and executive partner Frank Wells have been a successful team, leading Disney to continue its tradition of excellence into a new century. Until today, Disney seeks to enhance their market by purchasing new and exciting entertainment to farther develope their success. In October 2012, The Walt Disney Company, in a move that gives it a commanding position in the world of fantasy movies, said it had agreed to acquire Lucas film from its founder, George Lucas, for $4. 5 billion in stock and cash. In addition, in 2004 Disney Company and The Jim Henson Company announced that they have entered into an agreement under which Disney acquired the beloved Muppets and Bear in the Big Blue House properties from Henson. Since its founding in 1923, The Walt Disney Company has remained faithful to its commitment to produc e unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. Current Disney has a lot to offer to its clients. The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international entertainment and media enterprise with five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. These businesses encompass a variety of industries, including theme parks and resorts, television and radio broadcasting, filmed entertainment, consumer products, travel and tourism, Internet technologies, book and magazine publishing, music and more Disney views the development of a diverse workforce as a business imperative and a catalyst to achieve better performance. We embrace diversity, in other words, to better serve our consumers by better reflecting the communities we serve. We believe that a diversity of opinions, ideas and perspectives enhances our internal creativity and the companys vitality. † As such, theyve been building a workforce representative of the global marketplace in which they operate , while fostering an inclusive environment for their employees and their families. Although they still have plenty of progress to make, they are proud that the Company now employs the most diverse workforce in its history. Today, Disney is organized into five major business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive Media. Media Networks Media Networks includes a huge collection of broadcast, cable, radio, publishing and digital businesses across two divisions – The Disney/ABC Television Group and ESPN Inc. In addition to content development and distribution functions, this segment includes supporting headquarters, communications, digital media, distribution, marketing, research and sales groups. The Disney/ABC Television Group is composed of The Walt Disney Company’s global entertainment and news television properties, owned television stations group, as well as radio and publishing businesses. This includes the ABC Television Network, ABC Owned Television Stations Group, ABC Entertainment Group, Disney Channels Worldwide, ABC Family as well as Disney/ABC Domestic Television and Disney Media Distribution. Hyperion and publishing and the company’s equity interest in Aamp;E Television Networks. ESPN Inc. s an American sports media conglomerate based in Bristol, Connecticut. Jointly owned by The Walt Disney Company and Hearst Corporation (who owns a 20% minority share), it owns various sports broadcasting operations, including cable channels, a sports radio network, an accompanying website, and other assets. ESPN markets itself as The Worldwide Leader in Sports. Most programming on ESPN networks consist of live or tape-delayed sporting events, sports news programm ing, sports talk shows, and original series and documentaries. Parks and Resorts When Walt Disney opened Disneyland on July 17, 1955, he created a unique destination built around storytelling and immersive experiences, ushering in a new era of family entertainment. More than 55 years later, Walt Disney Parks and Resorts (WDPamp;R) has grown into one of the world’s leading providers of family travel and leisure experiences, providing millions of guests each year with the chance to spend time with their families and friends making memories that will last forever. At the heart of WDPamp;R are five world-class vacation destinations with 11 theme parks nd 43 resorts in North America, Europe and Asia, with a sixth destination currently under construction in Shanghai. WDPamp;R also includes the Disney Cruise Line with its four ships the Disney Magic, Disney Wonder, Disney Dream and Disney Fantasy; Disney Vacation Club, with 11 properties and more than 500,000 individual members; and Adventures by Disney, which provides guided family vacation experiences to desti nations around the globe. The Walt Disney Studios For more than 85 years, The Walt Disney Studios has been the foundation on which The Walt Disney Company was built. Today, the studio brings quality movies, music and stage plays to consumers throughout the world. Feature films are released under the following banners: Disney, including Walt Disney Animation Studios and Pixar Animation Studios, Disney Nature, Marvel Studios, and Touchstone Pictures, the banner under which live-action films from DreamWorks Studios are distributed. The Disney Music Group encompasses the Walt Disney Records and Hollywood Records labels, as well as Disney Music Publishing. The Disney Theatrical Group produces and licenses live events, including Disney on Broadway, Disney on Ice and Disney Live! Disney Consumer Products Disney Consumer Products (DCP) is the business segment of The Walt Disney Company (NYSE:DIS) and its affiliates that extends the Disney brand to merchandise ranging from apparel, toys, home decor and books and magazines to foods and beverages, stationery, electronics and fine art. This is accomplished through a franchise-based licensing organization focused on strategic brand priorities, including: Disney Classic Characters amp; Disney Baby; Disney Live Action Film; Disney Media Networks amp; Games, Disney amp; Pixar Animation Studios; Disney Princess amp; Disney Fairies; and Marvel. Other businesses involved in Disneys consumer products sales are Disney Publishing Worldwide, the worlds largest publisher of childrens books and magazines, and www. DisneyStore. com and www. DisneyStore. co. uk, the companys official shopping portals. The Disney Store retail chain, which debuted in 1987, is owned and operated by Disney in North America, Europe, and Japan. Disney Interactive Founded in 2008, Disney Interactive entertains kids, families and Disney enthusiasts everywhere with world class products that push the boundaries of technology and imagination. Disney Interactive creates high-quality interactive entertainment across all digital media platforms, including blockbuster mobile, social and console games, online virtual worlds, and #1-ranked web destinations Disney. com and the Moms and Family network of websites. The Walt Disney Company operates in many different countries, virtually all around the world. Hong-Kong, Paris, Shanghai, California, and Florida are locations for Disney theme parks. All other business segments of DIS can be accessed in all countries around the world. Revenue of the Walt Disney Company in 2012, by operating segment (in million U. S. dollars)/%: International Disney Disney’s divisions overseas function as an American country with changes to adapt to different cultures. To accommodate other cultures, it is necessary to alter policies and procedures to attract employees and consumers abroad. In fact, different experiences have shown the importance of some adaptation to local tastes and culture. For instance, when the European park opened in 1992 in France, restaurants weren’t serving wine. This has been a huge misunderstanding on French culture and has lead to quite some discussions. In addition, hamburgers have been substituted for noodles and there is only one fast-food restaurant for seven Chinese ones. Also, the â€Å"American standard toilet† has been replaced by a more local type of toilet, considered more suitable. To avoid any other cultural problems in Hong Kong, Disney even contacted a Feng Shu master who helped the company to create a specific environment that answers to the Chinese â€Å"way of living. As a result, the Feng Shu master has not only decided of the opening date (a specific favorable date), but also advised them to reposition cash registers, to change the aisle to help the vital energy’s (chi) good circulation, and to adjust the number of hotels floors in order to close all second and fifth floors to public. According to Feng Shu, the number â€Å"2† represents illness, and â€Å"5† misfortune. Even Disney’s stars will undergo some major modifications: Mickey will have a red and gold Chinese suit to wear, and Mulan will have her own pavilion designed like a Chinese temple. Other details such as the building of a fountain and reducing the numbers of clocks in the park have been taken into consideration as to enhance the park’s success. Seeing these adaptations, Disney seems to have learned that they can’t simply impose the American culture on another continent. The question that still lies open is to know whether Mickey Mouse will soon have slanting eyes. The unusual success with Tokyo Disneyland prompted Disney to launch another international venture; this time, Disney chose Europe. Euro Disney was expected to create up to 28,000 jobs, easing the 10 percent unemployment rate from the year prior to the opening of the park. It was also expected to boost the construction industry that was hit hard by economic crisis, as well as the real estate around the park area. In building the park, Disney also met a critical challenge in readying the park for its opening date, including everything from construction and operation, to marketing, hiring and training employees for the park. Euro Disney was aggressively marketed by Disney as well as other firms. There were dozens of articles in magazines throughout Europe, and a model of The Sleeping Beauty Castle was sent around Europe to publicize the park. The Europe-wide campaign also included promoting the opening ceremony, which was broadcast live across Europe. Disney then hired and trained 14,000 employees for the opening of the park, and expected to fill more temporary positions during the peak season. It was extremely challenging to ensure the new employees work in accordance to Disney’s standard of customer service by the opening date. As a result, the management announced that a leading priority for Euro Disney was to indoctrinate all employees in the Disney service philosophy as well as operational policies and procedures. The â€Å"Disney University† was then opened at Euro Disney, with a goal to interview suitable candidates, select the best ones, and provided extensive training. Disney also attempted to hire employees of nationalities proportional to expected visitor counts (45% French, 30% other Europeans, 15% outside of Europe), but by the time of opening, it was 70 percent French. Yet, most cast members were paid roughly 15% above France’s minimum wage at that time. At the same time, Disney also cross-trained managers and supervisors to ensure service quality and consistent managerial practices. While European managers were trained at other theme parks, foreign managers were also sent to Euro Disney to work. Although Euro Disney mainly hired Europeans to work in the park, most of the top jobs and management positions were held in the hands of American expatriates. Nonetheless, the hiring process was heavily criticized by applicants, the press, and even the French unions. The controversy revolved around Disney’s grooming requirements. Disney enforced a strict dress code, a ban on facial hair and colored stockings, standards for neat hair and fingernails, and even a policy of â€Å"appropriate undergarments. † Applicants and labor leaders felt that requirements were excessive and much stricter than other employers. The efforts to force Disney to loosen the standards were unsuccessful. On the other hand, the Marne-La-Vallee area did not have enough apartment space for the thousands of Disney employees, and the jobs generally did not pay well enough to make decent housing affordable to these employees. As a result, Disney had to build its own apartment and renting rooms in the park area, adding millions of investment dollars to the entire project. Another big challenge Disney faced was getting the French cast members to break their ancient cultural aversions to smiling and being consistently polite to park guests. The individualist French had to be molded into the squeaky-clean Disney image. While Disney successfully staffed and trained cast members for the park by the time of the opening, more than 1,000 employees left their jobs within the first nine weeks of operation, about one-half of whom left voluntarily. The long hours and hectic pace of work at the park were also cited as major reasons for the turnover. One cast member explained that expatriate managers ceased to understand the European work habits and ethics, and the work mode was not one that the Euro Disney employees were used to in the past. There were other concerns raised by the French government regarding the operation of Euro Disney. While Disney assured that French would be the primary language of the park, most signs were actually bilingual, as were the park’s employees. More importantly, Disney followed one of its two major traditions of not serving wine, although wine to the Europeans (particularly the French) is like cheese to Americans. It was felt that this was a departure from the important French culture and lunch habits, causing weak attendance initially. There were also issues with visitors waiting long lines for rides or food, since there was no tolerance for such practices in France or Europe. Unlike Tokyo Disneyland, which experienced initial success, Euro Disney did not experience the exceeding-expectation turnout in terms of admissions and revenues. A major criticism was that park was neither international nor French in nature, and it failed to satisfy either party completely. Many visitors could not figure out whether it was going to be an American park, a French park, or a European park. Attendance was much lower than expected, and the company incurred financial loss. Even if revenues could be brought in line with projections for the balance of the year, the park still would not be profitable for another five years or so. There were comments about Euro Disney being out of character for the French population, because the French were too individualist and private to appreciate the standardized and crowded Disney theme park experience. While the Disney style of service was one with which Americans have grown up, there were several styles of service in Europe, and unbridled enthusiasm was not a marked feature of them. Meanwhile, the cost of the experience was thought to be an issue for some visitors. It was reported that many French visitors had been deterred from coming by the cost (including the admission costs, housing costs, and souvenirs). In regards to visitor reaction, there were mixed opinions about the experience at Euro Disney. Most positive feedback, which came mainly from other parts of Europe and the world, revolved around the originality of the park and the unique experience around the same area. For those who could not afford to go to the U. S. , Euro Disney gave them an identical Disney experience like that in America. However, the park ceased to please many local French visitors, who frequently complained about the long lines, poor service, and operational glitches. Even though Euro Disney had a rocky start, there was precedence that a tough start did not become catastrophic in the theme park business. Universal’s Florida theme park had a disastrous opening due to technical difficulties, but it quickly came back and was considered rather successful down the stretch. Management believed that it was still too premature to determine the impact of poor fall weather, and that the attendance figure of over 30,000 per day was rather respectable. If this number were annualized, the projected 11 million visitors during the first year of operation would be met. Although the local French population had not attended as planned, visitation from the rest of Europe was running higher than expected. The coming winter months were clearly important to Euro Disney’s chances for financial rebounce, if not success. However, the weather would still pose great challenge to the attendance. Euro Disney must also find a way to promote the park in such a way that there would be cut costs in public relations and operations, while providing affordable entertainment to visitors. In conclusion, The Walt Disney Company portrays a strong multinational corporation with a strong foundation beneath its success. Experience and constant improvements are necessary for growth in large businesses that develop abroad. Indeed, Disney productively accomplished expanding beyond The United States.