Questions
Case: Disneyland in Europe Between 1988 and 1990 three $150 million amusement parks opened in France....

Case: Disneyland in Europe

Between 1988 and 1990 three $150 million amusement parks opened in France. By 1991 two of them were bankrupt and the third was doing poorly. Despite this, the Walt Disney Company went ahead with a plan to open Europe’s first Disneyland in 1992. Far from being concerned about the theme park doing well, Disney executives were worried that Euro Disneyland would be too small to handle the giant crowds. The $4.4 billion project was to be located on 5,000 acres in Seine-et-Marne 20 miles east of Paris. And the city seemed to be an excellent location; there were 17 million people within a two-hour drive of Euro Disneyland, 41 million within a four-hour drive, and 109 million within six hours of the park. This included people from seven countries: France, Switzerland, Germany, Luxembourg, the Netherlands, Belgium, and Britain. Disney officials were optimistic about the project. Their US parks, Disneyland and Disneyworld, were extremely successful, and Tokyo Disneyland was so popular that on some days it could not accommodate the large number of visitors. Simply put, the company was making a great deal of money from its parks. However, the Tokyo park was franchised to others—and Disney management felt that it had given up too much profit with this arrangement. This would not be the case at Euro Disneyland. The company’s share of the venture was to be 49 per cent for which it would put up $160 million. Other investors put in $1.2 billion, the French government provided a low-interest $900 million loan, banks loaned the business $1.6 billion, and the remaining $400 million was to come from special partnerships formed to buy properties and to lease them back. For its investment and management of the operation, the Walt Disney Company was to receive 10 per cent of Euro Disney’s admission fees, 5 per cent of food and merchandise revenues, and 49 per cent of all profits. The location of the amusement park was thoroughly researched. The number of people who could be attracted to various locations throughout Europe and the amount of money they were likely to spend during a visit to the park were carefully calculated. In the end, France and Spain had proved to offer the best locations. Both countries were well aware of the park’s capability for creating jobs and stimulating their economy. As a result, each actively wooed the company. In addition to offering a central location in the heart of Europe, France was prepared to provide considerable financial incentives. Among other things, the French government promised to build a train line to connect the amusement park to the European train system. Thus, after carefully comparing the advantages offered by both countries, France was chosen as the site for the park. At first things appeared to be off to a roaring start. Unfortunately, by the time the park was ready to open, a number of problems had developed, and some of these had a very dampening effect on early operations. One was the concern of some French people that Euro Disney was nothing more than a transplanting of Disneyland into Europe. In their view the park did not fit into the local culture, and some of the French press accused Disney of “cultural imperialism.” Others objected to the fact that the French government, as promised in the contract, had expropriated the necessary land and sold it without profit to the Euro Disneyland development people. Signs reading “Don’t gnaw away our national wealth” and “Disney go home” began appearing along roadways. These negative feelings may well have accounted for the fact that on opening day only 50,000 visitors showed up, in contrast to the 500,000 that were expected. Soon thereafter, operations at the park came under criticism from both visitors and employees. Many visitors were upset about the high prices. In the case of British tourists, for example, because of the Franc exchange rate, it was cheaper for them to go to Florida than to Euro Disney. In the case of employees, many of them objected to the pay rates and the working conditions. They also raised concerns about a variety of company policies ranging from personal grooming to having to speak English in meetings, even if most people in attendance spoke French. Within the first month 3,000 employees quit. Some of the other operating problems were a result of Disney’s previous experiences. In the United States, for example, liquor was not sold outside of the hotels or specific areas. The general park was kept alcohol free, including the restaurants, in order to maintain a family atmosphere. In Japan, this policy was accepted and worked very well. However, Europeans were used to having outings with alcoholic beverages. As a result of these types of problems, Euro Disney soon ran into financial problems. In 1994, after three years of heavy losses, the operation was in such bad shape that some people were predicting that the park would close. However, a variety of developments saved the operation. For one thing, a major investor purchased 24.6 per cent (reducing Disney’s share to 39 per cent) of the company, injecting $500 million of much needed cash. Additionally, Disney waived its royalty fees and worked out a new loan repayment plan with the banks, and new shares were issued. These measures allowed Euro Disney to buy time while it restructured its marketing and general policies to fit the European market. In October 1994, Euro Disney officially changed its name to “Disneyland Paris.” This made the park more French and permitted it to capitalize on the romanticism that the word “Paris” conveys. Most importantly, the new name allowed for a new beginning, disassociating the park from the failure of Euro Disney. This was accompanied with measures designed to remedy past failures. The park changed its most offensive labor rules, reduced prices, and began being more culturally conscious. Among other things, alcohol beverages were now allowed to be served just about anywhere. The company also began making the park more appealing to local visitors by giving it a “European” focus. Ninety-two per cent of the park’s visitors are from eight nearby European countries. Disney Tomorrowland, with its dated images of the space age, was jettisoned entirely and replaced by a gleaming brass and wood complex called Discovery land, which was based on themes of Jules Verne and Leonardo da Vinci. In Disneyland food services were designed to reflect the fable’s country of origin: Pinocchio’s facility served German food, Cinderella’s had French offerings, and at Bella Notte’s the cuisine was Italian. The company also shot a 360-degree movie about French culture and showed it in the “Visionarium” exhibit. These changes were designed to draw more visitors, and they seemed to have worked. Disneyland Paris reported a slight profit in 1996, and the park continued to make a modest profit through to the early 2000s. In 2002 and 2003, the company was once again making losses, and new deals had to be worked out with creditors. This time, however, it wasn’t insensitivity to local customs but a slump in the travel and tourism industry, strikes and stoppages in France, and an economic downturn in many of the surrounding markets.

Questions :

What is Walt Disney Company shown as multinational enterprises (MNE) characteristics?
Disney instead of licensing some other firm to build and operate the park and settling for a royalty, it takes wholly ownership strategy in the firm, why?
Are Walt Disney and Euro Disney indicate the same strategy of MNE?
Before going ahead with Euro Disney, was there an external environmental analysis from Disney? Clarify.
Total: 800 words.

In: Operations Management

Between 1988 and 1990 three $150 million amusement parks opened in France. By 1991 two of...

Between 1988 and 1990 three $150 million amusement parks opened in France. By 1991 two of them were bankrupt and the third was doing poorly. Despite this, the Walt Disney Company went ahead with a plan to open Europe’s first Disneyland in 1992. Far from being concerned about the theme park doing well, Disney executives were worried that Euro Disneyland would be too small to handle the giant crowds. The $4.4 billion project was to be located on 5,000 acres in Seine-et-Marne 20 miles east of Paris. And the city seemed to be an excellent location; there were 17 million people within a two-hour drive of Euro Disneyland, 41 million within a four-hour drive, and 109 million within six hours of the park. This included people from seven countries: France, Switzerland, Germany, Luxembourg, the Netherlands, Belgium, and Britain. Disney officials were optimistic about the project. Their US parks, Disneyland and Disneyworld, were extremely successful, and Tokyo Disneyland was so popular that on some days it could not accommodate the large number of visitors. Simply put, the company was making a great deal of money from its parks. However, the Tokyo park was franchised to others—and Disney management felt that it had given up too much profit with this arrangement. This would not be the case at Euro Disneyland. The company’s share of the venture was to be 49 per cent for which it would put up $160 million. Other investors put in $1.2 billion, the French government provided a low-interest $900 million loan, banks loaned the business $1.6 billion, and the remaining $400 million was to come from special partnerships formed to buy properties and to lease them back. For its investment and management of the operation, the Walt Disney Company was to receive 10 per cent of Euro Disney’s admission fees, 5 per cent of food and merchandise revenues, and 49 per cent of all profits. The location of the amusement park was thoroughly researched. The number of people who could be attracted to various locations throughout Europe and the amount of money they were likely to spend during a visit to the park were carefully calculated. In the end, France and Spain had proved to offer the best locations. Both countries were well aware of the park’s capability for creating jobs and stimulating their economy. As a result, each actively wooed the company. In addition to offering a central location in the heart of Europe, France was prepared to provide considerable financial incentives. Among other things, the French government promised to build a train line to connect the amusement park to the European train system. Thus, after carefully comparing the advantages offered by both countries, France was chosen as the site for the park. At first things appeared to be off to a roaring start. Unfortunately, by the time the park was ready to open, a number of problems had developed, and some of these had a very dampening effect on early operations. One was the concern of some French people that Euro Disney was nothing more than a transplanting of Disneyland into Europe. In their view the park did not fit into the local culture, and some of the French press accused Disney of “cultural imperialism.” Others objected to the fact that the French government, as promised in the contract, had expropriated the necessary land and sold it without profit to the Euro Disneyland development people. Signs reading “Don’t gnaw away our national wealth” and “Disney go home” began appearing along roadways. These negative feelings may well have accounted for the fact that on opening day only 50,000 visitors showed up, in contrast to the 500,000 that were expected. Soon thereafter, operations at the park came under criticism from both visitors and employees. Many visitors were upset about the high prices. In the case of British tourists, for example, because of the Franc exchange rate, it was cheaper for them to go to Florida than to Euro Disney. In the case of employees, many of them objected to the pay rates and the working conditions. They also raised concerns about a variety of company policies ranging from personal grooming to having to speak English in meetings, even if most people in attendance spoke French. Within the first month 3,000 employees quit. Some of the other operating problems were a result of Disney’s previous experiences. In the United States, for example, liquor was not sold outside of the hotels or specific areas. The general park was kept alcohol free, including the restaurants, in order to maintain a family atmosphere. In Japan, this policy was accepted and worked very well. However, Europeans were used to having outings with alcoholic beverages. As a result of these types of problems, Euro Disney soon ran into financial problems. In 1994, after three years of heavy losses, the operation was in such bad shape that some people were predicting that the park would close. However, a variety of developments saved the operation. For one thing, a major investor purchased 24.6 per cent (reducing Disney’s share to 39 per cent) of the company, injecting $500 million of much needed cash. Additionally, Disney waived its royalty fees and worked out a new loan repayment plan with the banks, and new shares were issued. These measures allowed Euro Disney to buy time while it restructured its marketing and general policies to fit the European market. In October 1994, Euro Disney officially changed its name to “Disneyland Paris.” This made the park more French and permitted it to capitalize on the romanticism that the word “Paris” conveys. Most importantly, the new name allowed for a new beginning, disassociating the park from the failure of Euro Disney. This was accompanied with measures designed to remedy past failures. The park changed its most offensive labor rules, reduced prices, and began being more culturally conscious. Among other things, alcohol beverages were now allowed to be served just about anywhere. The company also began making the park more appealing to local visitors by giving it a “European” focus. Ninety-two per cent of the park’s visitors are from eight nearby European countries. Disney Tomorrowland, with its dated images of the space age, was jettisoned entirely and replaced by a gleaming brass and wood complex called Discovery land, which was based on themes of Jules Verne and Leonardo da Vinci. In Disneyland food services were designed to reflect the fable’s country of origin: Pinocchio’s facility served German food, Cinderella’s had French offerings, and at Bella Notte’s the cuisine was Italian. The company also shot a 360-degree movie about French culture and showed it in the “Visionarium” exhibit. These changes were designed to draw more visitors, and they seemed to have worked. Disneyland Paris reported a slight profit in 1996, and the park continued to make a modest profit through to the early 2000s. In 2002 and 2003, the company was once again making losses, and new deals had to be worked out with creditors. This time, however, it wasn’t insensitivity to local customs but a slump in the travel and tourism industry, strikes and stoppages in France, and an economic downturn in many of the surrounding markets.

  1. What is Walt Disney Company shown as multinational enterprises (MNE) characteristics?
  2. Disney instead of licensing some other firm to build and operate the park and settling for a royalty, it takes wholly ownership strategy in the firm, why?
  3. Are Walt Disney and Euro Disney indicate the same strategy of MNE?
  4. Before going ahead with Euro Disney, was there an external environmental analysis from Disney? Clarify.
  5. total answer must be 800 words

In: Operations Management

Many product markets exhibit characteristics of both monopolistic competition and oligopolies, such as video game consoles...

Many product markets exhibit characteristics of both monopolistic competition and oligopolies, such as video game consoles and movie theater chains. What characteristics in each of these markets make it more monopolistically competitive? Which characteristics make it more like an oligopoly?

a. Elastic demand with differentiated products.

b. Differentiated products with mutual interdependence.

c. Single seller of a good or service and collusive agreement.

d. Large number of sellers with homogenous products.

In: Economics

A person with axial hypermetropia has a lens-retina distance of 1.9 cm and the maximum optical...

A person with axial hypermetropia has a lens-retina distance of 1.9 cm and the maximum optical power of their eye is the same as that for a normal person.

A) what is the near point for this person?

B) What is the range accommodation this person needs to see objects from their near point all the way to their far point (Which is the same as for a normal eye)?

C) What is the optical power of the contact lenses used to treat this person and give them a normal near point of 25 cm>

In: Physics

The state of California has a mean annual rainfall of 22 inches, whereas the state of New York has a mean annual rainfall of 42 inches.

The state of California has a mean annual rainfall of 22 inches, whereas the state of New York has a mean annual rainfall of 42 inches. Assume that the standard deviation for both states is 4 inches. A sample of 33 years of rainfall for California and a sample of 46 years of rainfall for New York has been taken. (a) Show the probability distribution of the sample mean annual rainfall for California. A bell-shaped curve is above a horizontal axis labeled inches. The horizontal axis ranges from about −2.1 to about 2.1. The curve enters the viewing window near −2.1 just above the horizontal axis, curves up to the right, and reaches a maximum near 0. The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 2.1. A bell-shaped curve is above a horizontal axis labeled inches. The horizontal axis ranges from about 39.9 to about 44.1. The curve enters the viewing window near 39.9 just above the horizontal axis, curves up to the right, and reaches a maximum near 42. The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 44.1. A bell-shaped curve is above a horizontal axis labeled inches. The horizontal axis ranges from about 10 to about 34. The curve enters the viewing window near 10 just above the horizontal axis, curves up to the right, and reaches a maximum near 22. The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 34. A bell-shaped curve is above a horizontal axis labeled inches. The horizontal axis ranges from about 19.9 to about 24.1. The curve enters the viewing window near 19.9 just above the horizontal axis, curves up to the right, and reaches a maximum near 22. The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 24.1. Correct: Your answer is correct. (b) What is the probability that the sample mean is within 1 inch of the population mean for California? (Round your answer to four decimal places.) Incorrect: Your answer is incorrect. (c) What is the probability that the sample mean is within 1 inch of the population mean for New York? (Round your answer to four decimal places.) Incorrect: Your answer is incorrect. (d) In which case, part (b) or part (c), is the probability of obtaining a sample mean within 1 inch of the population mean greater? Why? part (b), because the standard error is smaller part (c), because the population standard deviation is smaller part (b), because the population standard deviation is smaller part (c), because the sample size is larger Correct: Your answer is correct.

In: Statistics and Probability

Question 4 Please select the most appropriate for the terms concerning adult issues. concerning adult issues....

Question 4

Please select the most appropriate for the terms concerning adult issues.
concerning adult issues.

Senescence

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Menarche

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Affects women more extremely.

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Erikson's middle age

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Erikson's old age

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Slavishly bows to authority

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Sees a circle approaching

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Tells a story after resuscitating

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

He can't stand that touchy-feely stuff.

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Mean and ugly

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Alzheimer's

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

Death and loss first step

authoritarian
Integrity vs despair
Aging
avoidant
Near-Death Visions
Denial
aviodance-avoidance
Not for men
Generativity bs stagnation
death-bed visions
neurofibrillary tangles
loss of bones mass

In: Psychology

In Fulbright County, the Parks and Recreation Department constructed a library in one of the county’s...

In Fulbright County, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the 2017 fiscal year.
Required

Prepare a journal entry for capital projects fund and governmental activities at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Transaction Fund General Journal Debit Credit
1. The county issued $7,800,000, 4 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds sold for 101 on July 30, 2016. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. Assume the premium and interest are recorded directly in the debt service fund.
1 Capital Projects Fund Cash
Other Financing Sources—Proceeds of Bonds
Governmental Activities Cash
Bonds Payable
Premium on Bonds Payable
Interest Payable
2. A $830,000 federal grant was received to help finance construction of the library.
2 Capital Projects Fund Cash
Revenues
Governmental Activities Cash
Program Revenues—Culture and Recreation—Capital Grants and Contributions
3. The Library Special Revenue Fund transferred $430,000 for use in construction of the library.
3 Capital Projects Fund Cash
Other Financing Sources—Interfund Transfers In
Governmental Activities No Journal Entry Required
4. A construction contract was awarded in the amount of $6,980,000.
4 Capital Projects Fund Encumbrances
Encumbrances Outstanding
Governmental Activities No Journal Entry Required
5. The library was completed on June 1, 2017, four months ahead of schedule. Total construction expenditures for the library amounted to $9,041,000. When the project was completed, the cost of the library was allocated as follows: $290,000 to land, $6,385,000 to building, and the remainder to equipment.
5a Capital Projects Fund Record the completion of construction of the library.
5b Record the payment upon completion of capital project.
5c Governmental Activities Record the completion of construction of the library.
5d Record the capitalization of each item.
6. The capital projects fund temporary accounts were closed to Fund Balance—Restricted. The resources are restricted because they were obtained from bonded debt issued exclusively for library construction. The capital projects fund was closed by transferring remaining funds to the debt service fund for use in library construction debt repayment.
6a Capital Projects Fund Close the temporary accounts to Fund Balance—Restricted.
6b Record the transfer to the debt service fund.
6c Close the remaining temporary account to Fund Balance-Restricted.
6d Governmental Activities

In: Accounting

Compare the following 3 alternatives using the incremental benefit/cost ratio method. Determine which is the most...

Compare the following 3 alternatives using the incremental benefit/cost ratio method. Determine which is the most efficient and which is the most profitable. i=5% per year compounded yearly.

Alter.

DOT Construction cost

Annual Maintenance

Annual Benefits

Life (yrs)

A

$250,000

$5,000

$320,000

9

B

$450,000

$7,000

$370,000

15

C

$700,000

$10,000

$380,000

25

In: Civil Engineering

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information...

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation’s anticipated annual volume of 500,000 units.
Per Unit Total
Direct materials $ 7
Direct labor $11
Variable manufacturing overhead $15
Fixed manufacturing overhead $3,000,000
Variable selling and administrative expenses $14
Fixed selling and administrative expenses $1,500,000

The company has a desired ROI of 25%. It has invested assets of $28,000,000.
Your answer is correct.
Compute the total cost per unit.
Total cost $ per unit

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT
Your answer is correct.
Compute the desired ROI per unit.
ROI $ per unit

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT
Your answer is incorrect. Try again.
Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.)
Absorption-cost pricing markup percentage %

LINK TO TEXT
Your answer is correct.
Using variable-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.)
Variable-cost pricing markup percentage %

In: Accounting

Oriole Inc. is issuing 10,000 bonds, and its investment banker has guaranteed a price of $972...

Oriole Inc. is issuing 10,000 bonds, and its investment banker has guaranteed a price of $972 per bond. If the investment banker sells the entire issue to investors for $10,018,000. (Round percentage underwriting cost to 2 decimal places, e.g. 17.54%.)

What is the underwriting spread for this issue?

What is the percentage underwriting cost?

How much will Oriole raise?

In: Finance