Assessment InstructionsBased on the work your group has prepared in the second assessment, you are required to propose at least three strategic recommendations addressing the management issues identified in your group’s analysis. In preparing these recommendations, you will need to use theories and concepts discussed in weeks 9, 10 and 11.
More specifically, your proposal MUST adhere to the following structure:- A brief recap of the identified issues that you and your group presented in week 9.- A detailed proposal of three strategic recommendations addressing identified issues.- A detailed proposal of strategic methods, evaluation and selection per each of the recommendations.
Case Study Analysis -In-class Group Presentation Disneyland Resort Paris Case Study Analysis -In-class Group Presentation Disneyland Resort Paris Students’ Names: Jiawei Shi 137813 Yuhao Li 131948 Lu Wang 132050 Meiying Xin 131091 Course: HAT203 Date: 17/09/2020 Case Study Overview The Disneyland Resort Paris was situated in Marne-la-Vallee, France purposely to attract European visitors and Paris urban and peri-urban population Despite costing US$4.4 billion, the resort had incurred more than US$1 billion cumulative losses during the first year of operation. Management changes in 1994 revived its business leading to increased attendance that peaked to 16 million visits in 2012. It then followed a downward trend due to terror attacks witnessed in Paris around that time. The fluctuating performance of Disney Resort Paris makes it an interesting case for analyzing business environment in hotel and tourism industry in France and European market in general. SWOT Analysis Stand for Strengths, Weaknesses, Opportunities and Threats; A strategic planning technique: Maximize your advantage; Reduce the chance of failure; Eliminate unawares risk; Successful competition Strength It is among one of the most visited and liked the amusement park all over the world; The Disney cartoon characters which are presented in the park have their own brand value and are preferred and liked by the children; It is among the first amusement park by Disney featured outside the USA; Weakness The expensive entry fee becomes a barrier for the visitors; Disneyland Paris is considered among the expensive visiting destinations; Some practices are inconsistent with the culture of the French people ( dress code of females' staffs, restaurant menu deign etc.); Several accidental incidents have brought an unfavourable situation for the park to flourish well (currency exchange movements, terrorist attacks etc.); Opportunities Due to its established and flourished brand name, Disneyland France could attract more and more customers from all around the world; Multiple adventure elements and the flexible fare has made it a hot spot for the visitors to have a joyful vacation; Disneyland gives it a bigger market for France; Threat The fluctuating economy of Europe holds the major threat to the success of the Disneyland Paris; The park did not well go with the European culture and contrast many of it (European fairy-tale characters, castle etc.); Competition from other theme parks in Europe; What Is STEEP Analysis STEEP : Social, Technological, Economical, Environmental and Political. A way of assessing the influence of external factors to further influence the decision Influence the company's market strategy and development http://www.cnchemicals.com/consultancy-core-competencies/research-approach-analysis-features/model/qualitative-model/investment-environment http://www.utsdesignindex.com/researchmethod/steep-analysis/ STEEP Framework for European Disneyland Social Factor Disney's lack of awareness of the European market and cultural background. The products and services provided by Disney do not make customers want to buy. The French people do not accept the specific and detailed dress code of Disney's employees during working hours. Technological Factor Impact on the products & services after adjusted in the European market STEEP Framework for Disney Europe Market Economical Factor The investment cost of construction is huge. The wrong economic assessment of France and the whole of Europe. Assumptions and predictions of improper business plans. Unstable air ticket prices and disproportionate exchange rates. Disney ticket fares have been adjusted. Environmental Factor Erroneously homogenize the cultural background of the whole of Europe A series of products and service that are not suitable for the local cultural environment STEEP Framework for Disney Europe Market Political Factor Low local monetary policy (British, Italy) In the economic recession that began in 1990, the government (EU) did not propose positive and favorable policies for the current period Intervention in Disney's loan and repayment issues Analysis of the Operations of Disneyland Resorts Paris considering Porter’s Five Forces Disneyland’s Assessment As per Porter’s Five Forces industry rivalry -The threat of competition for this Disney Park is very low -Disney has a strong brand name Threat of substitutes People in the region do not like to spend money on expensive tickets for entering into the theme-based Disneyland, there exists a number of substitutes such as other family leisure substitutes Power of buyer Disneyland Paris customers had lower bargaining power and hence, less attraction towards the Theme park Power of suppliers the suppliers in Disney do not seem to be in the control of the bargaining power Threat of new entrants The threat of new entrants for Disneyland in Paris is very low as there are a number of entry barriers for such huge theme-based projects Summary of the identified issues Findings from STEEPE, Porter’s Five Factors, and SWOT analysis concurs on a number of issues that led to negative performance of Disneyland Resort Paris. These includes; planning assumptions and forecasts that did not align with trends European economy and consumer behavior poor structural design that led to negative customer experience due to long queueing and service delay Enforcement of policies that collided with French culture. drop in transatlantic airfares that made it cheaper for people to visit Florida compared to cost of visiting the Paris theme park. Assumptions and predictions made during planning were based on improper business plans The planners erroneously homogenized culture of European market, and provided products that were not aligned with local cultural environment. Prevailing political environment led to unfavorable monetary policies and economic recession. Even though the resort was not threatened by substitutes, industrial rivalry, or new entrants, its customers and suppliers had significantly low bargaining power. Decline in cost of air travel led to competition from theme parks outside France, such as the one in Florida. Lastly, the acts of terrorism that ensued in Paris shortly after 2012 led to decline in park visits.