
Student name: 任晓情
Student number: 200942205025
International business class 1
Introduction
In the environments of economic globalization and cultural diversity, the world become smaller and smaller and people around the world have more and more communications with each other in almost every aspect ,especially in business with the advance of informationization and the improvement of Internet popularity rate. Actually, no matter in our real life or in international environment, the modern communication between people will encounter difficulties or failures in the communication because of cultural differences. This paper is to discuss the importance of culture in business on the basis of the lessons and experience from Disney Company in France. However, The most important thing is give us a wake-up call, let us know the importance of culture in international business, so as to avoiding cultural embarrassment and being more success in international business.
Main body
First, it wants to talk about the assumptions of Disney make about the tastes and preferences of French consumers. There are two assumptions, demographics and subsidies. About 17 million Europeans live less than a two-hour drive from Paris. Another 310 million can fly there in the same time or less. Also, the French government was so eager to attract Disney that it offered the company more than $1 billion in various incentives, all in the expectation that the project would create 30,000 French jobs, the case said that. Probably, there is no mistake about the assumptions. However, the decision makers of Disney Company ignore a fact that there have cultural differences between the two nations. Even more, they forgot that the French look down the culture of United States. They do not think the united states have developed cultures. So they are afraid of that the undeveloped culture hit their own culture or even have a replace. And the French reject Disney from the bottom of their heart. What’s more, the most fatal problem is that the executives thought France is japan. “The Walt Disney Company adopted the global standardization business model which is the same with japan, transporting American culture into France without any change, which brings serious conflict of culture. They take measures which is the deviation of the local culture. For instance, the way of catering service, language use and Staff management, these differences cause the local tourist and resident unhappy and have a bad effect on the development of the European market.”(International business cuture1998)
Second, how might Disney have had a more favorable initial experience in France? Disney might have studied more of the European culture first before setting up their project and Disney could also have studied about the spending nature of Europeans. The executives in Disney must realize that the habit and culture of French is different to American’s and make some corresponding countermeasures according to these differences. For instance, In Disney’s service strategy, it must involve to allow drinking alcoholic drink in Disneyland. In author’s view that, if the company consider about these differences, and make more surveys to make sure the food supplying modules are visitors’ preference; the style of park system can be much satisfied to tourists, that definitely would be helpful to reduce the loss.
Third, whether France is the best choice for the location of Euro-Disney or not. In some people’s opinion, the location of Disney Company first launched in Europe ----France, was not a correct choice. “Paris which is the capital of the France is also self-proclaimed capital of European high culture and style. All that comparisons clearly say that the France is not a best choice for location of Euro Disney.”(termpaper warehouse2012) However, in author’s view, it was the best selection for starting in France. On one hand, just as we all know that, French Paris is a romantic capital city which advertise itself as the noblest culture in Europe, people in this city would much believe the affection of famous brand, it is doubtless that supply a chance for Disney theme park to show their brand culture. On the other hand, we need to consider about the attitude of French government. French government also hopes this theme park could create many job opportunities and stimulate their economic growth, so that they provide 1 billion dollars and many kinds of favorable measure to Disney Company. The support of local government is very significant for a transnational enterprise. Except consideration above, transportation, climate, and politics problem should be mentioned. On the basis of statistics of population in Paris, facilitate transportation of Paris and number of population around Paris promote this item. For another part, delightful climate of France is much suit for develop this tourism item. And, security political situation without any unstable factor is an essential point either
Conclusion
David. A. Chris, management scientists of American, said that, “When comes to the failure of multinational companies, the reason are all almost the neglect of cultural differences.”(Communication between cultures2002:269) When the Disney Company starts experiencing in France, they thought the commercial profit problem is much essential, but they neglected some situations they might be faced. Such as: the differentiation of two countries’ culture; the contradiction between American governments and French farmers; and the confliction of local culture of France and other Europe countries to American culture. So Disney faced some embarrassment and has a lesson. However, they realized the mistake and corrected quickly. That is to say, learning various cultures is a tendency which can give us more success in the future.
Reference
MITCHELL.C (1998) international business culture3rd ed. Shanghai Foreign Language Education Press.
SAMOVAR, L.A. (2002) communication between cultures4rd ed. Beijing Foreign Language Teaching and Research Press.
TERMPAPER WAREHOUSE (2008) Why Did Euro Disney Fail [online]. Available from :< http://www.termpaper warehouse.com/q_view/1961926> [Date accessed:6 April 2012]
