Euro Disney’s Information in Starting

TMA 1

Euro disney

Q1 Identify the factors that contributed to EuroDisney's poor performance during the fisrt year of operation. To what extend do you consider these factors were foreseeable and controllable by either EuroDisney or the parent company Disney.

The poor performance of the EuroDisney during the first year of operation are having many factors, mainly they can be divided to be the internal factors and also the external factors.

For internal factors, actually these are faults or mistakes made by Disney management or excutive team. They are divided to three category:

1 Wrong decisions, Misunderstandings and unexpectations:

Wrongly expectations:

- 11 million visitors will generate over 100 million, pre-tax profit estimation is FFr 227 million and in 2001 will be raised to FFr3 billion, is expected, however, the fact is 9.2 million entrance in 1992 and their purchase will be 12 percent less then expected, only $33 per head.

- About food provision, no breakfast provided as the Disney Executives being informed that European do not eat breakfast, and therefore, the size of restaurants and breakfasts in the restaurants of the hotel and the park are decreased, resulted a long queue