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Walt Disney, Globalizing the American Dream

The Walt Disney Company was founded on October 16, 1923 by Walt and Roy O. Disney. Initially founded as an animation company, the firm created its iconic character, Mickey Mouse. After success in the cartoon and silent film era, Disney released its first feature length animated film, Snow White and the Seven Dwarves, in 1934. Snow White was a groundbreaking release as the longest animated film in history, holding the title of the highest grossing film of the time. (Gabler, 2007) Piggybacking on the film’s success, the studio soon released iconic classics such as Pinocchio, Bambi, Cinderella, and Peter Pan. Seeking to deepen the growing emotional connection that families across the world had begun to experience through these timeless stories, company founder, Walt Disney, opened Disneyland theme park in 1955.

After building and expanding its California destination, the firm expanded their reach to create Walt Disney World in Orlando, Florida, which opened in 1971. The park became a huge success and the company continued to grow and become a household name across the globe.

In 1983, The Walt Disney Company opened Tokyo Disneyland. (Opening of Tokyo Disneyland, n.d.) As its first international park, Disney partnered with the Oriental Land Company who would be owning and operating the park upon completion. As early as 1979, the Oriental Land Company began sending its employees to Disneyland Park to learn and prepare for the operation of Tokyo Disneyland. “The first trainees included nine management employees who would become the key persons for the Park operations. They spent about one year learning about Park operations overall and various important details for management of the departments they would be responsible for.” (Opening of Tokyo Disneyland, n.d.) Tokyo Disneyland opened to great success, and The Walt Disney Company found that its model of emotional engagement resonated effectively with their new Japanese audience.

Emboldened by their international success, Disney then decided to set its sights on opening a fourth park, this time in Europe. After considering multiple locations in Germany and Spain, they finally landed on a plot of land just outside of Paris, and one-fifth its size, and 20 miles outside the city in a town called Marne-la-Valee. (Euro Disney: The First 100 Days, 1993) On April 12, 1992, Euro Disney opened. However, the Walt Disney Company soon discovered that the warm reception they received in Tokyo and at home in the US would not be repeated in France.

“A Cultural Chernobyl”

After successfully capitalizing on the emotional connection Americans had to the Disney brand, the reception the Euro Disney project got from the French public was quite a shock. On opening day, French Prime Minister Francois Mitterand was quoted saying that Disney “was not his cup of tea.” (Sylt, 2019) The French minister of culture announced prior to opening day that he would be boycotting the project calling it “a cultural Chernobyl” and “an unwelcome symbol of American clichés and consumer society.” (Novela, 2017) These sentiments were echoed by the French public. A French writer, Jean Cau, when asked about the park called it: ““A horror made of cardboard, plastic, and appalling colors; a construction of hardened chewing gum and idiotic folklore taken straight out of comic books written for obese Americans.” (Euro Disney: The First 100 Days, 1993) It seemed that to mirror previous successes, Disney needed to identify where they had missed the mark culturally for the French, or risk a failed park.

Sequential Vs Synchronic Cultures

In attempting to identify cultural missteps, the first, most widely known incident occurred prior to even breaking ground on the project. In 1986, Disney and the French government were deep in the negotiation process for the Euro Disney project. Joe Shapiro, heading the Disney team during the negotiations found that the deliberations were taking much longer than expected. “Jean-Rene Bernard, the chief French negotiator, said he was astonished when Mr. Shapiro, his patience depleted, ran to the door of the room and, in a very un-Gallic gesture, began kicking it repeatedly, shouting, “Get me something to break!” (Novela, 2017) This cultural gaffe shows an important negotiating difference where Mr. Shapiro, an American was expecting to negotiate in a sequential manner, which fell in conflict with the French synchronic approach. As stated by our textbook, “In synchronic cultures…it is often necessary to “give time” to people with whom you have a particular relationship.” (Trompenaars & Hampden-Turner, 2012)

An additional unforeseen challenge was a difference in French eating behavior. In their preparation to serve the French public, one Disney executive was quoted saying “we were told Europeans don’t take breakfast, so we downsized the restaurants. And guess what? Everybody showed up for breakfast.” (Hill, 2000) Disney quickly had to re organize their staffing and meal period planning to accommodate the needs of their guests. The most egregious concern voiced by French visitors was that they were unable to get any wine in the park. Traditionally, there was no alcohol of any kind served in any Disney park. This was a carryover from Walt Disney’s personal philosophy on maintaining a family friendly environment at the Disney parks. Walt was once quoted saying: “no liquor, no beer, nothing. Because that brings in a rowdy element. That brings people that we don’t want, and I feel they don’t need it.” (Russon, 2018) This philosophy did not sit well with French guests who were typically accustomed to enjoying a glass of wine with lunch. The perception of guests were that not having access to wine showed a lack of cultural knowledge on behalf of Disney leadership.

Individualism vs Communitarianism

One would expect that Disney, a US based and founded company, would lean more on the side of an individualist approach to operating, and therefore be in alignment with the equally individualist French perspective. Interestingly, this is not the case. Disney, in fact, trends more towards a communitarian approach, possibly a differentiator that led to their success in America, and a natural fit for Japan. The controversy began in the hiring process. Disney, since the inception of its first park in California, and to this day holds all of its employees to rigorous appearance guidelines which it calls “The Disney Look.” The Disney Look Book defines this concept as this: The Disney Look in conjunction with The Four Keys Basics –Safety, Courtesy, Show and Efficiency ensure Walt Disney’s vision for a great Guest experience. The Disney Look is clean, natural, polished and approachable.” (The Walt Disney Company) However, clean, natural, polished, and approachable are all simply umbrella terms that are detailed late in the policy. This 30 page “Disney Look Book” specifically details how a Disney employee, known as Cast Members, should look.

Not only were specific costumes required for each role, but hairstyles, jewelry, makeup, hosiery, eyewear, and clothing fit are also mentioned. Visible tattoos and excessive piercings are strictly forbidden. These strict guidelines did not go over well with prospective French employees. “Applicants and labor leaders in France felt the requirements were excessive, being much stricter than the requirements of other employers. They hoped to force the company to loosen its standards, but they were unsuccessful” (Euro Disney: The First 100 Days, 1993) French labor unions attempted to change the Disney Look requirements, seeing it as an attack on individual liberty. Thor Degelmann, Euro Disney’s personnel director countered ongoing protests surrounding the controversy by saying “For us, the appearance code has a great effect from a product identification standpoint, without it, we couldn’t be presenting the Disney product that people would be expecting.” (Ferguson, 1989)

In addition to thorough visual guidelines, Disney also had high standards for guest service and interactions. Another excerpt from the Disney Look Book illustrates how not only visual appearance, but also behaviors are perceived to impact the guest experience: “No matter where you work or what your role is, anytime you are in a public area, you are onstage. Your attitude and performance are direct reflections on the quality of our Disney show. Often, it’s the seemingly little things that detract from our Guests’ enjoyment – chewing gum, having poor posture, using a cell phone or frowning. Of course, smoking and eating onstage are also strictly prohibited. All of this adds up to one of the most important aspects of your role in our show: good stage presence.” (The Walt Disney Company) Every incoming Cast Member is required to take an 8 hour orientation course called “Traditions” where they are introduced to the history of the company, its mission “we create happiness,” and are acquainted with operating standards such as the aforementioned Four Keys: Safety, Courtesy, Show, & Efficiency. This approach created (and continues to create) a strong organizational culture, rooted in communitarianism. If your goal is to create happiness, you can’t do it alone. While this strong organizational culture was a natural fit for the Japanese, the French felt differently.

This discord is perfectly shown by this quote from a former Euro Disney Cast Member who quit shortly after opening day. “After two days of “brainwashing,” as he called Disney’s training, he left following a dispute with his supervisor over the timing of his lunch hour. “I don’t think that they realize what Europeans are like… that we ask questions and don’t think all the same way.” (Euro Disney: The First 100 Days, 1993) This perspective was clearly felt by his peers, and in the first nine weeks of operation, roughly 1,000 employees, 10 percent of the total, quit (Euro Disney: The First 100 Days, 1993) Management relations with employees continued to be tense. Unlike Tokyo Disneyland, management positions at Euro Disney were mostly given to American managers from the US theme parks. This decision to not integrate the French into the parks management structure was a clear contributor to employee retention and relations issues.

This dissonance also trickled down to the guest experience. An American visitor to the park, shortly after its opening was quotes as saying: “They (Disney) compete with their own high standards. But they are not winning in France. Most of the workers are simply not aiming to please, even though they are thrilled to have a job in this rotten economy, they are playing a different game than their American counterparts. They are acting like real people instead of ‘Disney’ people. Unfortunately you her the feeling that the whole thing is not yet under control. (Euro Disney: The First 100 Days, 1993)

Solving the Euro Disney Flop

Projected attendance for the first year of Euro Disney’s operation was slated at 11 million guests, with a projected operating income of $373 million. Final figures were unfortunately lower, as the park was not profitable for its first five and a half months, and attendance was lower than expected. (Mirarchi, 2017) In the 1993 annual report, Euro Disney Chairman Phillipe Bourguignon stated “today, I find myself in the difficult situation of delivering unwelcome news, all the more so given the optimism of the pre-opening period.” (Mirarchi, 2017) Faced with sub-par attendance, low revenue, employee retention concerns, and a skeptical guest base, Disney management soon realized that in order to avoid a failing park, they needed to make drastic changes, and do so quickly. Prices at on property hotels were reduced by 25%, and ticket prices were

Service delivery changes were made, most notably a breakaway from traditional views on alcohol sales in the park. Acting upon the feedback from their guests, Disney began selling wine in its restaurants at Euro Disney. Signs posted in the park were also modified, originally in French and English, it was decided that French would be the primary language in the park. A name change also took place for the park, instead of Euro Disney, it would now be known as Disneyland Paris. The name “Euro” was considered to have business and commerce connotations, management felt that Disneyland Paris “had a connotation of romance and magic, which was considered closer to the image that Disney wished to project.” (Liu, 1999)

To combat financial woes, a complex financial restructuring took place, with the Walt Disney Company attempting to restructure debt through layoffs and organizational changes in its other parks. In 1994, Disney sold off 24% equity in shares of the park for $345 million dollars to Saudi prince Al-Waleed bin Talal bin Abdulaziz al Saud. (Liu, 1999) Disneyland Paris, finally fiscally balanced and generating revenue continued to operate as a joint venture, however the original vison of success in France was not yet fully realized. In 2017, Disney CEO Bob Iger announced that Al-Waleed’s shares had been re-purchased, along with all other outstanding shares. Ownership and operation returned fully to the Walt Disney Company. (Niles, 2017) With outside investors and influence removed, Disney could now shape the park in whatever way they choose.

In February 2018, CEO Bob Iger, alongside French president Emmanuel Macron, announced a massive 2 billion Euro, multi-year expansion for Disneyland Paris. Iger stated in the announcement: “We’re very excited about the future of Disneyland Paris and continue to invest in its long-term success. The resort is already the leading tourist destination in Europe, and the transformative expansion we announced today will add even more of our beloved characters and unparalleled storytelling to create new lands, attractions and entertainment that further elevate the guest experience and drive new opportunities for tourism in this dynamic region.” (Gailey, 2018)

Cultural Management Takeaways

The story of Euro Disney, Now Disneyland Paris is a fantastic example of how an excellent, proven product can face hardship when expanding globally. Cultural norms, either unknown or unconsidered were the root cause of operational difficulties both in planning, and opening. While it appears that The Walt Disney Company has been able to salvage the Euro Disney project, and even more recently set sights on expansion, foresight and cultural insight could have greatly changed and mitigated the hardships the park experienced in its formative years.

What is particularly interesting, and most likely led to its initial tribulations was the formation of its local management team. In the Tokyo Disney project operated by the Japanese based Oriental Land Company, Japanese managers were put in place for high level leadership roles. This layout allowed the project to be executed with an intimate understanding of Japanese cultural norms and perceptions. This decision was clearly beneficial, as evidenced by the immediate success of the park and feedback from Japanese visitors who quickly embraced not only the experience, but also the Disney brand. Unlike Tokyo, Disneyland Paris utilized American leadership for its park. Had the company chosen to integrate French managers in its senior management structure from inception, many of the issues mention could have been foreseen. Prior to breaking ground on the Tokyo Disney project, Japanese managers were sent to Disneyland California and Walt Disney World in Orlando to learn and understand operating practices and organizational culture. In turn, they were able to bring this knowledge back to Tokyo Disney, and successfully integrate these fundamental elements of what made Disney successful into their park. Unfortunately the decision to not follow past practices when executing the Disneyland Paris project were strongly felt, not only from an organizational culture perspective, but also in the financial bottom line.

While the company reacted quickly by changing food and beverage offerings, such as the availability of wine, most of these decisions can be seen as a “band aid.” The tension between French labor unions and Disney management practices was also a factor that should have been foreseen. Disneyland California has always operated as a unionized environment, with frankly a very vocal and influential union. Had French managers been integrated into decision making processes, concerns raised by employees about the communitarian team environment could have been reduced. What instead occurred, due to a lack of knowledge of the French cultural identity, was an example of poor change management. In addition to employee integration into organizational culture, the public perception of the Disney brand would have been known by French management, and could have been positively impacted.

Naturally, hindsight is most often 20/20, and fortunately Disney has been able to learn from its mistakes and turn the Euro Disney flop, into a considerable success, primed for massive expansion in coming years. I had the opportunity to visit Disneyland Paris in 2016, prior to the company buy-back, bringing full operational decisions back into Disney’s purview. As a manager at Walt Disney World in Orlando, what I saw was quite fascinating, and occasionally concerning. The level of hospitality was not up to the standards that I was familiar with. What I instead experienced was a rather “laissez faire” attitude in my interactions with French Cast Members. Food & beverage offerings were limited, and I noticed multiple locations closed or being operated seasonally. The density of available activities and offerings that I experienced in Orlando and California were just simply not there. This being said, Disneyland Paris is the most beautiful Disney park I have ever attended. The focus on detail and design choices made gave a distinctly French feel to the experience. Soaring towers and detailed facades created a visual experience unmatched by other Disney parks.

Since the announcement of the company buy-back, and eventual announcement of the planned expansion, I have heard that there is quite a lot of work to be done in aligning service and operational standards in Disneyland Paris, and that that work is well on its way. While cultural gaffes and lack of understanding may have impacted the beginning of Disneyland Paris, lessons have been learned, often “the hard way.” I look forward to seeing how Disneyland Paris evolves and expands in the upcoming years. As Walt Disney once said, "Around here, however, we don’t look backwards for very long. We keep moving forward, opening up new doors and doing new things, because we're curious … and curiosity keeps leading us down new paths."

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