Disney's america theme park case study

UVA-BC-0178

This case was written by Sarah Stover, MBA ’97 and Elizabeth Powell, Assistant Professor of Business Administration. It written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright © 2001 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to dardencases@virginia.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation.

THE THIRD BATTLE OF BULL RUN THE DISNEY’S AMERICA THEME PARK (B)

On September 28, 1994, Disney officials announced the end of the Disney’s America project in Prince William County, Virginia. Two representatives from Disney’s America flew to Richmond to brief Virginia’s Governor George Allen on the decision. The same day, Prince William County officials were notified as well.

Peter S. Rummell, president of Disney Design and Development Company, issued a public statement, saying in part:

We remain convinced that a park that celebrates America and an exploration of our heritage is a great idea, and we will continue to work to make it a reality. However, we recognize that there are those who have been concerned about the possible impact of our park on historic sites in this unique area, and we have always tried to be sensitive to the issue.

While we do not agree with all their concerns, we are seeking a new location so that we can move the process forward. . . .

Despite our confidence that we would eventually win the necessary approvals, it has become clear that we could not say when the park would be able to open—or even when we could break ground.

The controversy over building in Prince William County has diverted attention and resources from the creative development of the park. Implicit in our vision for the park is the hope that it will be a source of pride and unity for all Americans. We certainly cannot let a particular site undermine that goal by becoming a source of divisiveness.1

1 Peter S. Baker and Spencer S. Hsu, Washington Post, “Mickey’s Tactical Retreat; Worried about Its Image,

Disney Co. Stunned State Officials by Giving Up Its Park Site,” Norfolk Ledger-Star, 29 September 1994, A1.

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Rummell stated that Disney would try to build an American history theme park elsewhere in Virginia, but that a site had not yet been selected.

Many Virginia politicians were disappointed, but some tried to remain optimistic. Governor George Allen’s office issued a statement: “I’m committed to a Disney theme park in Virginia and the jobs that will be created thereby. I’m pleased that the Walt Disney Company shares that commitment.”2

Robert S. Skunda, Allen’s Secretary of Commerce and Trade, commented to reporters, “I think they see the likelihood of long-term damage to their image. No company likes to be publicly bashed when they feel as though they are doing something that is worthwhile. . . . The thing that a company values most is its reputation. It has to. Without a reputation a company cannot continue to exist. I think those things drove Disney away from the Haymarket site.”3

Prince William County executive James Mullen said the county would be forced to go through a time of self-examination following Disney’s exit. He stated, “Mainly I’m disappointed for the people in the community who supported the project and for our staff, who put so much time in on this. Disney certainly hasn’t helped our marketing effort. They’ve made it very difficult for us to overcome the perception that this is a place (where) you can’t do a big project without a hassle.”4

Other local politicians were not as generous in their remarks about Disney. State Senator Joseph Benedetti of Richmond stated, “Promises were made that they’d stay, come hell or high water. Whatever they do is going to have to be written in blood next time.”5 State Senator Charles Colgan of Prince William County stated, “I think they broke faith with us.”6

James McPherson, the Princeton history professor and one of Disney’s most vocal opponents, stated, “I’m very happy. It’s good news.”7 McPherson said that he would be happy to help Disney find another location in Virginia that would be less significant historically. He stated, “Some of us would be quite happy to advise them. This has never been an attempt to bash Disney.”8