Euro Disney Essay -- essays research papers

Only one year after the grand opening of EuroDisneyland, Robert Fitzpatrick left his position as EuroDisney’s chairperson, citing a desire to start his own consulting firm. In April 1993, Philippe Bourguignon took over the helm of EuroDisney, thought by some to be a sinking ship. EuroDisney publicly reported a net loss of FFr188 million for the fiscal year ending September 1992, though cumulative losses through April 1993 approached half a billion dollars.1 The European park also fell one million visitors short of its goal for the first year of operations, with the French comprising only 29% of the park’s total visitors between April and September 1992—a far cry from the predicted 50%.2 In addition to the financial woes weighing on Bourguignon, he was also expected to stem the flow of bad publicity which EuroDisney had experienced from its inception. Phase Two development at EuroDisneyland was slated to start in September 1993, but in light of their drained cash reserves (FFr1.1bn in May 1993)3 and monstrous debts (estimated at FF421bn),4 it was unclear as to how the estimated FFr8-10bn Phase Two project would be financed. Despite this bleak picture, Michael Eisner, CEO of Walt Disney Co., remained optimistic about the venture: â€Å"Instant hits are things that go away quickly, and things that grow slowly and are part of the culture are what we look for. What we created in France is the biggest private investment in a foreign country by an American company ever. And it’s gonna pay off.†5 The Dawning Of Disney After first attempting to start a commercial arts firm in 1917, Walt Disney, along with his partner Ub Iwerks, joined the Kansas City Film Ad Company, and began to learn the craft which would carry him to fame—cartooning. By 1919, Walt was making independent short cartoon ads for theatres. In 1920, Walt’s brother Roy became a partner, and soon thereafter the group moved to Hollywood. There, they developed a standardized cast of cartoon characters, which were mass-produced using a large staff and artists working on a single easy-to-draw cartoon. The year 1928 saw the creation of â€Å"Mortimer Mouse,† later renamed Mickey. 1 David Jefferson. â€Å"American Quits Chairman Post at Euro Disney,† The Wall Street Journal (January 18, 1993), p. B1. 2 Ibid. 3 â€Å"Euro Disney: Waiting for Dumbo,† The Economist (May 1, 1993), p. 74. 4 Peter Gumbel and Richard Turner. â€Å"Blundering... ...,† commented one.27 Different cultures have varying definitions of personal space. EuroDisney guests’ problems ranged from people who either got too close or who left too much space between themselves and the person in front of them. It was thought that the competition from French theme parks, which had significantly lower admission costs, might be a concern. However, Fitzpatrick did not appear to be daunted. â€Å"We are spending 22 billion French francs before we open the door, while the other places spent 700 million,† he said. â€Å"This means we can pay infinitely more attention to details—to costumes, hotels, shops, trash baskets—to create a fantastic place. There’s just too great a response to Disney for us to fail.†28 Bourguignon’s Predicament With these bold predictions of his predecessor echoing in his ears, Bourguignon stared at his desk. Surrounding him were piles of financial statements drowning in red ink (to the tune of $500 million), stock market reports chronicling EuroDisney’s falling price from FFr166 to approximately FFr65, and newspapers full of stories of EuroDisneyland’s cultural blunders. Bourguignon wondered where he would find the magic to turn this kingdom around. Euro Disney Essay -- essays research papers Only one year after the grand opening of EuroDisneyland, Robert Fitzpatrick left his position as EuroDisney’s chairperson, citing a desire to start his own consulting firm. In April 1993, Philippe Bourguignon took over the helm of EuroDisney, thought by some to be a sinking ship. EuroDisney publicly reported a net loss of FFr188 million for the fiscal year ending September 1992, though cumulative losses through April 1993 approached half a billion dollars.1 The European park also fell one million visitors short of its goal for the first year of operations, with the French comprising only 29% of the park’s total visitors between April and September 1992—a far cry from the predicted 50%.2 In addition to the financial woes weighing on Bourguignon, he was also expected to stem the flow of bad publicity which EuroDisney had experienced from its inception. Phase Two development at EuroDisneyland was slated to start in September 1993, but in light of their drained cash reserves (FFr1.1bn in May 1993)3 and monstrous debts (estimated at FF421bn),4 it was unclear as to how the estimated FFr8-10bn Phase Two project would be financed. Despite this bleak picture, Michael Eisner, CEO of Walt Disney Co., remained optimistic about the venture: â€Å"Instant hits are things that go away quickly, and things that grow slowly and are part of the culture are what we look for. What we created in France is the biggest private investment in a foreign country by an American company ever. And it’s gonna pay off.†5 The Dawning Of Disney After first attempting to start a commercial arts firm in 1917, Walt Disney, along with his partner Ub Iwerks, joined the Kansas City Film Ad Company, and began to learn the craft which would carry him to fame—cartooning. By 1919, Walt was making independent short cartoon ads for theatres. In 1920, Walt’s brother Roy became a partner, and soon thereafter the group moved to Hollywood. There, they developed a standardized cast of cartoon characters, which were mass-produced using a large staff and artists working on a single easy-to-draw cartoon. The year 1928 saw the creation of â€Å"Mortimer Mouse,† later renamed Mickey. 1 David Jefferson. â€Å"American Quits Chairman Post at Euro Disney,† The Wall Street Journal (January 18, 1993), p. B1. 2 Ibid. 3 â€Å"Euro Disney: Waiting for Dumbo,† The Economist (May 1, 1993), p. 74. 4 Peter Gumbel and Richard Turner. â€Å"Blundering... ...,† commented one.27 Different cultures have varying definitions of personal space. EuroDisney guests’ problems ranged from people who either got too close or who left too much space between themselves and the person in front of them. It was thought that the competition from French theme parks, which had significantly lower admission costs, might be a concern. However, Fitzpatrick did not appear to be daunted. â€Å"We are spending 22 billion French francs before we open the door, while the other places spent 700 million,† he said. â€Å"This means we can pay infinitely more attention to details—to costumes, hotels, shops, trash baskets—to create a fantastic place. There’s just too great a response to Disney for us to fail.†28 Bourguignon’s Predicament With these bold predictions of his predecessor echoing in his ears, Bourguignon stared at his desk. Surrounding him were piles of financial statements drowning in red ink (to the tune of $500 million), stock market reports chronicling EuroDisney’s falling price from FFr166 to approximately FFr65, and newspapers full of stories of EuroDisneyland’s cultural blunders. Bourguignon wondered where he would find the magic to turn this kingdom around.