Coursework Assignment Cover Sheet

This form must be completed with your personal details and the statement of integrity
signed and then attached to the front of the work you are submitting for assessment.
Student details: (Please enter in BLOCK CAPITALS)
Surname: TIAN
Degree
INTERNATIONAL
programme:
MANAGEMENT
Module details:
12BSP031

Initials: J.H

Id Number: B210246
Year:
2012-2013

International management analysis

Assignment details:
INTERNATIONAL MANAGEMENT ANALYSIS OF THE WALT
DISNEY (MIANLY FOCUS ON PARKS AND RESORTS)

Set by: Ott Ursula

This coursework must be submitted by: 2 pm

on 13/09/2013
This coursework must be submitted via the coursework boxes labelled with this module title and code.
(Situated on the ground floor of the Business School outside the MSc Admin Office BE0.43.)
In addition, you have to submit an electronic version through the Learn submission system.
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Statement of Integrity:
The submission attached for assessment does not contain any work or effort or ideas or
arguments from unattributed sources.
Signed: JIAHE TIAN
Date:13/09/2013
Assignment Requirements: Please refer to course outline.

Name: JIAHE TIAN

Student ID: B210246

INTERNATIONAL
MANAGEMENT ANALYSIS 20122013 PROJECT

International Management Analysis of The Walt Disney

----Mainly Focus on Parks and Resorts

Submitted by:

JIAHE TIAN

Student ID:

B210246

School of Business and Economics

(MSc International management)

Name: JIAHE TIAN

Student ID: B210246

Conten

Chapter One: Introduction.........................................................................................3

1.1 Aim& Objectives.........................................................................................................3
1.2 Methodology...............................................................................................................3
1.3 Overview of the Walt Disney Company....................................................................4

Chapter Two: Literature Review................................................................................5

2.1 Bartlett and Ghoshal: Transnational Management..................................................5
2.1.1 Competitive Challenge...........................................................................................5
2.1.2 Organizational Challenge......................................................................................7
2.1.3 Collaborative Challenge.........................................................................................9
2.1.4 Management Challenge.......................................................................................11
2.1.5 Learning Challenge.............................................................................................12
2.1.6 Cultural Challenge...............................................................................................13
2.2 The History of Walt Disney Company.....................................................................18

Chapter Three: Application of Parks and Resorts of The Walt Disney...............23

3.1 Bartlett and Ghoshal: Transnational Management................................................23
3.1.1 Competitive Challenge.........................................................................................23
3.1.3 Collaborative Challenge.......................................................................................29
3.1.4 Management Challenge.......................................................................................32
3.1.5 Learning Challenge.............................................................................................34
3.1.6 Cultural Challenge...............................................................................................34
3.2 Analysis of International Management Functions.................................................37
3.2.1 Finance................................................................................................................ 37
3.2.2 Marketing............................................................................................................. 39
3.2.3 Human Resources...............................................................................................41

Chapter Four: Survey Analysis...............................................................................43

Name: JIAHE TIAN

Student ID: B210246

4.1 Result of The Research............................................................................................43

4.2 Discuss..................................................................................................................... 45

Chapter Five: Conclusion........................................................................................48

References................................................................................................................50
Appendices...............................................................................................................54
Appendix 1: Worldwide Advantage: Goals and Means.................................................54
Appendix 2: Strategic Orientation and Configuration of Assets and Capabilities in
Multinational, International, Global, and Transnational Companies..............................55
Appendix 3: Organizational Configuration Models........................................................56
Appendix 4: 2012 The Walt Disney Revenues and Operating Income..........................58
Appendix 5: The Walt Disney Revenue From 2008 to 2012.........................................59
Appendix 6: The Result of Questionnaire Survey of Chinese Buying Behaviours about
Shanghai Disneyland....................................................................................................60

Chapter One: Introduction

1.1 Aim& Objectives

The purpose of this project is to analyse international management of a multinational
enterprise (MNE), the Walt Disney, which mainly focuses on the Walt Disneys parks
and resorts. At the beginning, literature review will be listed, including transnational

Name: JIAHE TIAN

Student ID: B210246

management typology and the history of Walt Disney Company. For transnational
management typology, it is divided into six parts, which are competitive,
organizational, collaborative, management, learning, and cultural challenges. For the
Walt Disney Company, it primarily introduces historical background. And then,
according to these theories, this project will analyse how to apply into the parks and
resorts of the Walt Disney. The last part does the research, which is about surveying
and discussing Chinese customers buying behaviours about Shanghai Disney.

1.2 Methodology
This project mainly utilizes the secondary data into literature review and application
on the Walt Disney, which comes from books, academic journals, websites and
newspapers. Moreover, the research will use 30 questionnaires to study the
customers buying behaviours. These questionnaires mainly are collected from
Chinese people between 6th August 2013 and 16th August 2013.

1.3 Overview of the Walt Disney Company

The Walt Disney Company was built in October 16th 1923 by Walt. In that time, the
Disney Brothers Studio was known by most of people 1. Gradually, the range of
Disneys business is increasing. Nowadays, mentioning to the Walt Disney
Company, it is known as the international entertainment company, including five
segments, which are media networks, parks and resorts, the Walt Disney studios,
Disney consumer products and Disney interactive. Each of them involves different
1 http://thewaltdisneycompany.com/about-disney/disney-history on August 13, 2013.
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business field. For example, the Walt Disney studios are responsibility to make the
Disneys films. Parts and Resorts mainly provide the entertainment facilities for
visitors. Meanwhile, the Walt Disney positively develops international market so that
people around the world can know and purchase Disneys products. In the current
situation, not only are Disneys films popular in the world, but also Disney theme
parks and resorts cover almost all the world. For parks and resorts, there are five
vacation destinations with 11 theme parks and 43 resorts, which are in North
America, Europe and Asia. Shanghai Disney is going to be built in 2015 and will
become the sixth one.2

Chapter Two: Literature Review

2.1 Bartlett and Ghoshal: Transnational Management

Under the background of the globalization, many popular and large-scale companies
take transnational management to expand overseas market, in order to obtain more
competitive advantages than its rivals in the world, which not only brings good
opportunities and resources for the company but also makes multinational
corporates immediately change and adjust their strategies to cater to international
markets needs. Most of change is in aspect of attitudes and actions. Four stages, as
the evolutional patterns, are the international mentality, multinational mentality, global
mentality and transnational mentality (Bartlett et al., 2008). Therefore, Bartlett and
Ghoshal (2008) provided that six different challenges existing into transnational

2 http://thewaltdisneycompany.com/about-disney/company-overview on August 13,

2013.
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management, which can comprehensively analyse the MNE. They are competitive,
organizational, collaborative, management, learning, and cultural challenges.

2.1.1 Competitive Challenge

Mentioning to competitive challenge of MNEs, people connect with competitive
advantages, because they are more important factors to make the company reduce
their costs and enhance their profits than competitors. Besides, competitive
advantage also increases superior value.3 Therefore, in order to develop worldwide
advantage, the company should achieve three goals. One is global efficiency using
existing activities. Second is multinational flexibility to operate international issues.
And the third is worldwide learning, which is foundation to expand overseas market.
Moreover, three means, national differences, scale economies and scope
economies, are necessary for competitive advantages (Bartlett, C. A., Ghoshal, S., &
Birkinshaw, J. M., 2008).

Appendix 1 is build blocks for worldwide advantages achieved by three goals and
three tools. It shows a variety of competitive advantages due to different objectives
and means. For example, when the strategic objective is global efficiency and the
mean is national differences, which make the MNE gain much more advantages, low
cost of production or labour force. This table of Appendix 1 is obvious to distinguish
different kinds of competitive advantages (Bartlett, C. A., Ghoshal, S., & Birkinshaw,
J. M., 2008).

3 http://www.quickmba.com/strategy/competitive-advantage/ on August 17, 2013

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According to the Appendix 2, each kind of strategies has its own advantages. For
multinational strategy, it decentralized strategies and the rights of different nations
decisions are separated. It uses different products and services for different nations
preferences and government policies. For international strategy, the parent company
provides knowledge supporting and special capabilities around the world. For global
strategy, it centralizes decisions and operations into the parent company. All of
standards of productions are same worldwide, in order to get much more profits from
economies of scale. For transnational, it is good for achieving three goals. Usually,
companies use minimum cost of productions to response local needs. At the same
time, it can flexibly adjust strategic management, aiming to different national market
(Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 2008).

2.1.2 Organizational Challenge

Organizational structures, as essential elements, have impacted the development of
MNEs. In other words, different organizational structures have different features to
manage partner companies in the whole world. Bartlett, Ghoshal and Birkinshaw
(2008) connect a variety of organizational structures with different typology of
strategies, which are multinational, international, global and transnational strategies,
because special organizational structures should use different strategies to achieve
their goals.

Name: JIAHE TIAN

Student ID: B210246

According to Appendix 3, they indicate different relationships between parent

company and subsidiaries. For the multinational strategy, it is often utilized by
decentralized federation of organizational structure. The characteristic of it is to
decentralized parent companys functionally-departmentalized structure into
international companies. There are a variety of product-lines to apply different
nations. However, product lines and capital intensive should centralize in parent
company. Each of subsidiaries is a portfolio to operate it business issues
independently, using different strategies. Usually, the parent company and subsidiary
corporations have weak relationship (Fouraker, L. E., & Stopford, J. M.,1968).

For international model, the parent company of coordinated federation, which applies
international strategy, the home country provides technology supporting and
innovating knowledge for subsidiary firms to guarantee reputation of its brand.
Nationally, its core competencies are centralized into home company, as well as
knowledge (Roth, K., Schweiger, D. M., & Morrison, A. J., 1991).

For global strategy, it fits centralized hub organization. Most important capital and
capabilities are centralized into home company, which has strong connection with
subsidiaries and controls their productive processes. Besides, home company has
right to make decisions international companies should do. This strategy suits to
capture global scale economies (Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M.,
2008).

Name: JIAHE TIAN

Student ID: B210246

The last strategy is transnational strategy, which is suitable internal network of

organizations. Obviously, it is the most complex and competed strategy. Its
subsidiaries are distributed by the home company and also maintain special
resources and capability, which maybe can reduce cost of products and labour force.
In addition, each of components, such as people, resources and information, has
frequent flow between subsidiaries companies so that they can enjoy the best
information to gain much more competitive advantages in the world. Moreover, the
home company is complex to make decisions, which should share or not with
international companies (Stonehouse, G., Campbell, D., Hamill, J., & Purdie, T.,
2007).

2.1.3 Collaborative Challenge

From historical experience, strategy challenge is the important aspect to protect
potential profits, which not only impact competitors action but also bargaining power
of customers. In the world, strategy alliance is described as the position of
collaborative strategies increasing (Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M.,
2008). There are several reasons to demonstrate it totally. To begin with, technology
change encourages strategy alliance, especially for technology companies, which
positively find creative and maintaining method to obtain much larger competitive
advantage than their rivals (Kelly, M. J., Schaan, J. L., & Joncas, H., 2002).
According to the research, 87% of CEOs participating in that researching process
believe that strategy alliance is essential for future development of their companies
(Kelly, M. and Schaan,J-L.,1996). In addition, with global competition intensifying,
MNEs have to take strategic alliance to occupy large market share so that they can
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maintain their positions of the global market. Furthermore, industry convergence

makes companies create cross-industry alliances, since for high-technology
industries, they have overlapping and getting together phenomenon. Finally, there
are some alliance benefiting for companies to form economies of scale so that they
can get much more margin profit. Besides, alliance can reduce their risk in special
aspect, as partners undertake a part of risk with the company (Bartlett, C. A.,
Ghoshal, S., & Birkinshaw, J. M., 2008).

In terms of collaboration, Bartlett et al. (2008) shows that the risks and costs of it.
Theoretically, when partners collaborate and form strategic alliances, they also get
good change to develop their competitive advantages. In fact, costs and risks of
collaboration are increasing for firms, as they have different administration and
systems. Also, each of companies environments is uncertain. Moreover, because
the best environment is difficult to achieve through cooperation, it enhances cost of
collaboration to administrate partners (Bartlett, C. A., Ghoshal, S., & Birkinshaw, J.
M., 2008).

For successful collaborative ventures, it demands the MNE should have an ability to
build and manage it very well. To some extend, building and managing collaborative
ventures are one of most important processes. During building cooperative ventures,
there are often three stages existing, which are partner selection, escalating
commitment and alliance scope. Each of them will help MNEs to build excellent
cooperative venture in the future. This process is the foundation for easy
management. During managing process, managing the boundary, managing
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knowledge flows and providing strategic direction are necessary for each of
companies to administrate (Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 2008).

2.1.4 Management Challenge

Under the international management, the MNE should adjust different kinds of
aspects and utilizes three types of management, global business management,
world-wide functional management, geographic subsidiary management. In terms of
global business management, because it is closer to business management strategy,
the responsibilities of it is to not only position strategy, according to macroenvironment around the world, but also allocate the optimum resources to get to its
aim in the world. Sometimes, global business management includes global humanresource management, trade, invest and trade. 4 For world-wide functional
management, it supports fundamental activities for MNEs operations, such as
development of marketing, through knowledge, innovative technology, new
information and so on. For geographic subsidiary management, it more accurately
focuses on subsidiary management. The role of it is as bicultural interpreter, Linkage
role or liaison-style bicultural role and national defender and advocate. They are the
implements of corporate strategy. Naturally, the MNE consists of national
organizations. Besides these three different kinds of management, there is top-level
corporate management not ignored, since it plays an essential role in the whole
operations. It exists the challenge to properly manage the MNE and provide
directions and purpose, leveraging corporate performance and maintaining
sustainable development of the entire corporate (Bartlett, C. A., Ghoshal, S., &
4 http://www.economywatch.com/business/global-business-management.html on
August 20, 2013
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Birkinshaw, J. M., 2008). Consequently, managerial challenge owns a variety of

managers to help the company.

2.1.5 Learning Challenge

With the increasing global economy, innovation gradually becomes core
competences and gives birth to developing opportunities for MNEs. However, the
learning challenge also exists into each of MNEs in the world. Bartlett, Ghoshal,
Birkinshaw (2008) provide three different kinds of innovations, which are the central,
local and transnational innovations.

For central innovation, it is required effective innovation by the central MNE based
on information and knowledge. It mainly involves in designing, creative concept and
so on. Parent company has core resources and technology. For local innovation, it is
suitable for global strategy and subsidiaries have responsibilities to get resources
from the parent company so that they own high competitive power to produce
products for local person. For transnational innovation, it exists everywhere of the
whole MNE. Innovating process cannot be compulsively separated by the company.
Therefore, these three types of innovations have their own characters in the different
MNEs.

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2.1.6 Cultural Challenge

Culture, as the more essential factor, has directly impacted multinational corporates
developing, such as leadership styles of different segments, corporation of
teamwork, negotiation and so on, because when they operate around the world,
different style cultures of people have different habits and give birth to huge
obstacles to manage or work (Holt, D.H., 2002). If the company prepares to expand
overseas market, they should consider influence of a variety of cultures. Under this
situation, according to interviewing 116,000 IBM managers from 72 countries, Dutch
researcher, Geert Hofstede (1984), explored method of analysing cultures from
different geographies and found five dimensions of cultures, power distance,
uncertainty avoidance, individualism, masculinity and long-term orientation, which
can help to instruct the behaviours of people. Therefore, Hofstedes Theory becomes
popular in the field of culture analysing.

Individualism and collectivism

The tendency of people to look after themselves and their immediate family only is
the definition of individualism (Hodgetts, R. M., Luthans, F., & Doh, J. P., 2006). It is
obvious that this dimension of culture explains the relationship of people in each
culture. For individualistic persons, they often concentrate on themselves and their
families in the life and work (Soares, A. M., Farhangmehr, M., & Shoham, A.,2007).
For example, in the America, the awareness of families is very strong so that when
their works conflict with family issues, they prefer to choose tackle family problems
immediately. To the contrary, under the collective culture, people have strong
awareness of the group. No matter what they do, they should put collective honour
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and social influence firstly. Naturally, they also pursue harmonious group and
conformity in the group relationship. Also, collective persons are loyalty to consensus
viewpoint. For instance, in China, people are more collective than others. Their
benefits always connect with society or group. (Hodgetts, R. M., & Hegar, K.
W.,2002).

Power distance
Holt, D.H. (2002) defines power distance that the extent to which members have
less power can accept that power is decentralized unequally. For high power
distance, like China, the authority is more centralized by managers or leaders of
groups. Naturally, subordinates have to respect and obey managers demands
without freedom decisions in the business. Therefore, inequalities among people
exist business operating (Hodgetts, R. M., Luthans, F., & Doh, J. P., 2006). To be
opposite, low power distance of culture more concentrates on equal position
between managers and employees so that subordinates have right to put forward
their suggestions and join in decisions making. America is the typical example to
respect and carefully listen employees ideas. It is good for creative industries. In
addition, the authority is decentralized (Soares, A. M., Farhangmehr, M., & Shoham,
A.,2007).

Uncertainty avoidance
Uncertainty avoidance is defined as the extent to which people feel threatened by
ambiguous situation, and have made decisions to make every effort to avoid these
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happening. (Hodgetts, R. M., Luthans, F., & Doh, J. P., 2006) It is divided into two
different situations to analyse. One is high uncertainty avoidance, and other is low
uncertainty avoidance. Features of high uncertainty avoidances of culture are people
are willing to set detailed rules and laws, which are relative with organizations
behaviours and leaders of organizations face to lower risk than low uncertainty
avoidance of culture. Naturally, people will lose their interests in making decision. For
example German culture, high uncertainty avoidance is relative higher, which can
arrive into 65, according to the research.5 Lower uncertainty avoidance is the
opposite and uses more emotional things to motivate persons. Subordinates do not
know what exact means leaders have. This culture is lack of rules and laws to
standardize persons behaviours.6

Masculinity and femininity

This dimension of culture analysing concentrates on emotion roles of genders.
Hofstede had defined the masculinity as a situation in which the dominant values in
society are success, money, and things. (Hodgetts, R. M., Luthans, F., & Doh, J. P.,
2006). For the masculine society linking with men in genders, people pay more
attention to aggressive, achievement, power and challenge. For example, one of the
most masculine countries belongs to Japan, which has samurai spirit in its society,
which pursues the power, aggressive and so forth. However, with thoughts opening,
the position of Japanese women is more important than before (Bergiel, E. B.,
Bergiel, B. J., & Upson, J. W., 2012). For the feminine society, factors, more like
5 http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/uncertaintyavoidance-index/ on August 16, 2013.
6 http://geerthofstede.nl/dimensions-of-national-cultures on August 16, 2013.
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women, are to build relationship, provide excellent welfare, and guarantee

harmonious society. Obviously, it restricts masculinity developing. 7

Long or short term orientation

This dimension is added by Michael H. Bond and others, who are working in
Hofetedes team in 1987, according to the research of Chinese culture. Long-term
orientation pursues the saving, persistence, and ordering relationships for results for
a long time. It encourages people have an awareness of organizational identity and
loyalty. For example, China, Hong Kong, Taiwan, Japan, and South Korea occupy
top-five positions of long-term orientation. Naturally, they have long-term vision, in
order to achieve the final result. However, for short-term orientation of culture, it
prefers quick result without saving and persistence. For instance, America is good
example. In the US, people often satisfy with quick result so that they rarely take
care about long-term plan or orientation.8

Criticism of Hofstedes theory

Theoretically, the five dimensions of Hofstedes cultural theory have become more
authoritative in the world. However, with the complement of cultural analysis, people
begin to query Greert Hofstedes theory, which maybe have many limitations. First of
all, McSweeney,B. (2002) thinks that IBMs employees are not representative of their
countries, because the research of Hofstedes theory just relies on staffs of IBM
7http://smallwarsjournal.com/jrnl/art/leveraging-hofstedes-cultural-dimensionstheory-to-improve-the-quality-of-information-oper on August 16, 2013.
8 http://www.sagepub.com/upm-data/11711_Chapter7.pdf on August 17, 2013
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around the world. Culture is the broad concept and need survey different kinds of
persons, in order to get more reasonable results. IBMs employees are limited, even
though global employees are involved into the research. Secondly, The best units for
analysing cultures are not nations. For culture, it is difficult to be distinguished by
countries. To some extend, it leads cultural analysis mistakes. However, Hofstedes
theory does not consider about it more (Hofstede, G., 2002). The last one is that
people think that IBM data are too old to be believed by the current society. Because
the Greert Hofstedes research is out-dated and the data collecting is not updating,
the results exit some unbelievable and inaccurate elements (McSweeney,B., 2002).

2.2 The History of Walt Disney Company

On October 16, 1923, Walter Elias Walt Disney, as an American magnate,
animator, film producer, director, screenwriter, and actor, cooperated with M. J.
Winkler together to make a series of Alice Comedies. Most of people consider that
was the start of the Walt Disney Company. However, in that time, it was called Walt
Disney Studios. With the development of Disney, it theoretically experiences five
stages in past almost a century, staring stage, golden age of animation, World War II
stage, theme parks building and current stage.9

From 1923 to 1937 was the first stage of the Walt Disney, which just began to
develop. In 1923, Walt Disney, as the founder of the Disney Company participated in
his brother Roy O. Disney in Hollywood. They mainly focused on animation
developing and corporated with M.J. Winkler, who invested $1,500 per reels for the
9 http://en.wikipedia.org/wiki/Walt_Disney on August 14, 2013.
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Walt Disney Company. During this period, there were three series of animation films,
which are Alices heels, Oswald the Lucky Rabbit and Mickey Mouse films. When
Mickey Mouse films appeared, Disney decided to add some new element, music,
into the cartoon film. Gradually, Mickey Mouse was called the best-known and most
popular international figure of his day by New York Time in 1935. It was imaginable
that Mickey Mouse attracted more people and obtained much more profits for the
Walt Disney Company. Therefore, The Mickey Mouse was the symbol of it. 10

The second stage is called golden age of animation between 1937 and 1941. Walt
Disney produced Snow White and the Seven Dwafs, which became the first featurelength animation in the US, because short-time film did not always occupy animation
and created huge profits for itself. After that, although Pinocchio was considered
could be successful both technology and artist, the World War II beginning impacted
Pinocchios international market. Experiencing a series of attempts, Walt Disney
produced a first its commercial film, called Fantasia, with stereophonic sound.
Unfortunately, it must face another failed film. Due to above all lessons of Disney, it
produced a low-budget film, called Dumbo, which got a huge success. 11

The third stage is the World War II from 1941-1955, which had a particular influence
for the development of the Walt Disney. With the start of the World War II, Disney
also actively joined in that war and created films with military features, in order to
10 http://www.fundinguniverse.com/company-histories/the-walt-disney-companyhistory/ on August 14, 2013.
11 http://en.wikipedia.org/wiki/Golden_age_of_American_animation on August 14,
2013
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support the war effort. There were 83 films, which displayed American public and
solders. Therefore, Donald Duck had become the typical image of animation. For
example, Disney also created a mosquito image, which reflected all US torpedo
boats. During that period, Disney produced 400,000 feet of film with 68 hours worth
for US army, which could protect Disney studio in that time. 12

The fourth stage is from 1955 to 1966. The Walt Disney did not restrict in the film
business to be operated and wanted to expand the new field, theme parks. In the
later 1940s, Disney Park prepared to plan and establish, where children could enjoy
different kinds of lives and play with cartoon images they most favorite. The first
Disney theme park, Disneyland, was competed establishment in Anaheim, California,
which included a variety of elements of cartoon images Disney created, such as
Mickey Mouse, Snow White, Donald Duck and so on. 13 Following that, Disney began
to positively joined into different kinds of entertainments, such as TV production.
When it entered into 1960s, it gained a success through the worlds leading producer
of family entertainment. In 1960 Winter Olympics, the Walt Disney was the head of
Pageantry. Gradually, it also opened resorts so that people could enjoy a series of
services.14

12http://apush-wiki-marlboroughschool.wikispaces.com/How+Did+Disney+Affect+the+World+War+II+War+Effort%3F
on August 14, 2013.
13 http://thewaltdisneycompany.com/about-disney/disney-history/1960-01-01--196912-31 on August 14, 2013.
14
http://en.wikipedia.org/wiki/Walt_Disney#1955.E2.80.931966:_Theme_parks_and_b
eyond on August 14, 2013.
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The fifth stage is from 1967 to today. The Walt Disney Company also developed their
theme park and resorts. In 1971, Magic Kingdom and two hotels were opened near
Oriando, Florida. After that, Tokyo Disneyland, Paris Disneyland, and Hong Kong
Disneyland were sequentially built.15 Besides development of parks and resorts, Walt
Disney also actively expanded other entertainment items, such as films and TV
projects so that the reputation of the Walt Disney Company becomes larger than
before. And then, the Walt Disney opened Family Museum in the Presidio of San
Francisco in 2009, which recorded Disneys life and career, a variety of award. 16

15 http://thewaltdisneycompany.com/about-disney/disney-history/1970-01-01--197912-31 on August 16, 2013.

16 http://en.wikipedia.org/wiki/Walt_Disney#Legacy:_1967.E2.80.93present on
August 16, 2013.
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Chapter Three: Application of Parks and Resorts of The Walt

Disney

3.1 Bartlett and Ghoshal: Transnational Management

3.1.1 Competitive Challenge
Since the first park and resort of the Walt Disney Company is built, people are
gradually like to visit theme park and have fun enjoying their beautiful lives,
accordingly, its basic strategy always is maintained in past decades years. In 2012,
the revenue of parks and resorts in the Walt Disney arrived in $12,920 millions,
which occupy approximately 31% of the total revenues. Comparing with revenue in
2011, there is 10% of the increase. This part of Disney is the one of main incomes
annually (The Walt Disney, 2013). It not only provides high reputation of brand,
excellent services with reasonable price and place selecting but also offers high-level
technology and innovation.

Brand
The brand of the Walt Disney has played an essential role in development of Disney
Company. According to the research of global reputation pulse, the Disney is ranking
No. 1 with 80.75 score (Forbes, 2013). It means that Disneys brand have highest
reputation in persons hearts and is approved by most of people, since Disney
provides several concepts, such as most admired company, promoting he
happiness and well-being of kids and families etc., in order to build sustainable
brand in the world. Obviously, Parks and resorts also benefit from its high reputation.
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In addition, Disney concentrates on establishing brand loyalty of customers through

building relationships and repeat business. This process also helps Disney maintain
sustainable competitive advantages in the global environment (Disney Institute,
2011).

Product
Products of the Walt Disneys parks and resorts are the most important competitive
advantages. Service is the unique product of Disney, because in the common life,
people often connect with high quality of service from Disney parks and resorts in the
world. On the one hand, in order to pursue the safe and secure environment for their
guests and customers, it positively takes a series of safe measures. For example,
when cast members are employed at first into the Disney parks, they should accept
safe operations training so that it can guarantee customers safety.17On the other
hand, high technology in Disney helps it to improve their quality of service. For
instance, in order to reduce queuing time people enter, Walt Disney brings into
FastPass system, which uses new science and technology to eliminate lines, when
people check-in. Under this situation, fewer complaints from customers are solved by
Disney theme park.18

Price

17 http://thewaltdisneycompany.com/about-disney/security on August 20, 2013

18http://www.insidethemagic.net/2011/02/disney-announces-nextgen-theme-parktechnology-to-include-ride-reservations-from-home-advance-hotel-check-in/ on
August 20, 2013
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Relative to other similar entertainment, the price of Disney theme park is higher.
However, when quality of services and facilities are considered by people, the price
is reasonable. As the mention before, the quality of products of Disney is over others
competitors in the U.S., such as Blackstone Group LP, Six Flags Inc., Cedar Fair LP
and Comcast Corporation. Therefore, in 2011, there is 51.0% American market share
the Walt Disney Company owns, which occupies absolute advantage in the U.S.
theme park industry (Adler-Golden, D., Bertoni, L., Iyasere, S., & Woo, W., 2011). In
Addition, recently, Disney pursues higher profits through long-term visitors. In other
words, the longer people choose types of tickets, the cheaper prices are. In 2011,
Disney added much more different kinds of options, such as five-day tickets, six-day
ticket and seven-day tickets. In Orlando, there is up to 45% saving off for Disneys
tickets nowadays.19

Place
Place, as a key element, occupies decisive position for parks and resorts of the Walt
Disney Company. All over the world, there are five Disneys parks and resorts
separately in Europe, Asia and North American. The number is not many, however, it
covers almost whole world. If people want to visit Disney parks, they always quickly
find one. In addition, overseas companies, Tokyo Disney, Hong Kong Disney, Paris
Disney, locates in the relatively prosperous cities and visitors flow rate is very large,
which can provide good place to attract more customers. Nationally, their economies
are also higher. Furthermore, the headquarter company of the Walt Disney provides
technological and designing supports for subsidiaries so that people in each part of
19http://articles.orlandosentinel.com/2011-06-20/travel/os-disney-ticket-prices20110620_1_disney-pricing-strategy-ticket-prices-ticket-options on August 20, 2013
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world can enjoy the fantastic experience, like in American Disney parks. Besides, in
2015, the Shanghai Disney in China will be opened, in order to satisfy the growing
Chinese peoples demands. It will invest the budget of $4 billion to build Disney
theme park and $ 0.73 billion to establish resorts. The Walt Disney occupies 43% of
the property in the end.20 Therefore, international Disneys places are successful to
help it obtain much more profits.

Innovation and technology

In parks and resorts of the Walt Disney, high technology and continuous innovation
are another competitive advantages. Relying on The New York Times, Disney can
track its customers to constantly entertain via high technology. For example, if
people are too long at the Pirates of the Caribbean ride, cameras and sensors
detecting will add much more boats for them and guarantee to satisfy all of
customers needs. In the future, someone will image that each of persons, who will
visit Disneys theme park, will have one wristband with chips inside, which can
remember peoples name, credits and favourite items in Disney. People can directly
buy drink or food using wristband.21 Therefore, with the development and innovation
of technology, parks and resorts do not leave technology supporting to attract much
more visitors. At the same time, technology can provide fantastic and unforgettable
experiences of peoples in Disneys parks and resorts.

20 http://english.cri.cn/11354/2013/05/25/2702s766899.htm on August 20, 2013

21 http://mashable.com/2010/12/28/disneys-innovative-tech-makes-its-theme-parksmore-fun-2/ on August 21, 2013
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3.1.2 Organizational Challenge

The parks and resorts of the Walt Disney experience an especially long time to form
organizational structure in past decades years. Since the first Disney theme park,
Disneyland, was competed establishment in Anaheim, California, in 1955, 22 Disney
has defined the concept of Disney theme park. Following it, when Disney expanded
its international market firstly in Tokyo, it did not have any percentage of Tokyo
Disneyland. However, Tokyo Disneyland got the license from the home company and
was constructed by Walt Disney Imagineering (WDI). The success of Tokyo
Disneyland enhanced the Walt Disneys confidence to open another Disney theme
parks in the world.23 Therefore, Paris Disney and Hong Kong Disney are sequentially
opened and owned some percentages of property.

Depending on different concepts of organizational structures, the Walt Disney should

belong to coordinated federation organization, which often adopts international
strategy to guide the whole operation. To begin with, under normal conditions, home
company, the Walt Disney in America, controls the core competencies, such as core
technology, copyright of Disneys park and theme parks designing and so on.
However, others of operations are decentralized in subsidiary companies. Disney
offers main knowledge for international collaboration partners so that each of Disney
theme parks is similar with the home company. For example, for international
Disneys park, Walt Disney Imagineering (WDI), as the core-designing department in
Disney, is responsibilities for creating and constructing Disney theme parks around

22 http://en.wikipedia.org/wiki/Disneyland on August 21, 2013

23 http://disney.wikia.com/wiki/Tokyo_Disneyland on August 21, 2013
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the world.24 Furthermore, the role of overseas operations of Disney can adapt and
leverage parent company competencies. When home company want to innovate
some new technology, subsidiary companies could positively adopt it so that they
can attract more visitors as many as the American Disney theme parks. Also, for
knowledge of Disneys parks and resorts, they are always created at the centre of
Walt Disney Imagineering (WDI) and then diffuses into overseas Disneys parks.

3.1.3 Collaborative Challenge

The parks and resorts of the Walt Disney, in order to improve competitive
advantages around the world, often form strategic alliances with another corporates.
In other words, collaboration in Disney is more common and, to some extent, brings
more profits. There are three strategy alliances happening recently, which are New
Balance and Walt Disneys parks and resorts, H2O and Walt Disneys parks and
resorts, and HP and Walt Disneys parks and resorts.

The first strategy alliance is New Balance and Disneys parks and resorts. New
Balance announces multi-year strategic alliance with Disney, which includes
exclusive footwear, running-specific initiatives and co-branding opportunities. The
purpose of New Balance is to have the aid of the reputation of Disneys brand and
expand their market and customers. Therefore, The official athletic shoes of Walt
Disney Resort, Disneyland Resort, ESPN wide world of sports complex, and
runDisney events are New Balance.25 Accordingly, this alliance promotes Disneys
guests to get healthy vacation destination in runDisney and Disney Sports. Also,
24 http://en.wikipedia.org/wiki/Walt_Disney_Imagineering on August 21, 2013
26

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New Balance designs a runDisney 860v3 running shoe that is mens and womens
limited-edition kicks with Mickey Mouse and Minnie Mouse elements for Disneys
parks and resorts.26 Consequently, the strategy alliance between New Balance and
Disneys parks and resorts are relative good for the development of both of them.

The second multi-year strategy alliance is H2O and Walt Disneys parks and resorts
so that they extend and expand alliance relationship, because H2O Plus want to
develop international market and Walt Disney can get the better bath products in the
Disneys hotels. Currently, H2O Plus will apply at Hong Kong Disneyland Resort,
Disneyland Resort Paris and Aulani, a Disney Resort & Spa in Ko Olina, Hawaii.
Moreover, different kinds of hair and skin care products are provided by H2O for a
variety of locations, when runDisney race runs at weekends, which includes health
and fitness expos, race retreat and VIP lounges. 27 For the Walt Disney, it can not
only get excellent bath or beauty products in its parks and resorts but also make
customers gain high quality of products during their especial experience in Disney
theme parks or hotels.

25http://www.newbalance.com/New-Balance-and-Walt-Disney-Parks-and-ResortsAnnounce-Multi-Year-StrategicAlliance/press_2013_New_Balance_And_Walt_Disney_Parks_And_Resorts_Annou
nce_Multi_Year_Strategic_Alliance,default,pg.html on August 21, 2013
26http://www.examiner.com/article/walt-disney-parks-and-resorts-and-new-balancemake-deal-promote-rundisney on August 21, 2013
27 http://finance.yahoo.com/news/h2o-plus-walt-disney-parks-130000417.html on
August 21, 2013
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The third is HP and Walt Disneys parks and resorts. In 2002, HP set up a 10-year
extensive technological agreement with Walt Disney. HP promises that it not only
provides tens of thousands of PCs, servers and printers, but also innovate new
control system called Mission, Space. People can obtain different Disneys contents
at home from HP machines. At the same time, HP builds infrastructure, in order to
protect important.28 In past several years, Disney engineer focused on making magic
of Disney, which works for disable persons. At that time, the HP iPAQ PDA, as the
assistive tool, is the excellent platform for Walt Disney, because HP agrees to build
DURATEQ technology into iPAQ PAD (Hewlett-Packard Development Company, LP,
2009).

Though the Walt Disneys parks and resorts form strategy alliance with above three
companies gradually, there are several significant management challenges of the
collaborative venture. First of all, during building collaborative ventures, they maybe
exit conflicts with profits and priorities, since they have different strategy and
developing environment and are lack of common identify for some things. Secondly,
in terms of managing cooperative ventures, different managing styles and systems
make them difficult to work together and administrate each other (Bartlett, C. A.,
Ghoshal, S., & Birkinshaw, J. M., 2008). In this point, the Walt Disney is no
exception.

28 http://news.cnet.com/HP,-Disney-expand-technology-alliance/2100-1041_35088645.html on August 22, 2013

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3.1.4 Management Challenge

In the management of the Walt Disneys parks and resorts, headquarter and
subsidiaries actively join in managing process. The headquarter company control
whole developing orientation of Disneys parks and resorts, while subsidiaries
support and adapt measures and technology of the headquarter. However,
subsidiaries are not totally same with home company and own their own unique
geographic characteristics.

In Tokyo Disneyland, the whole proprietary right belongs to the Japanese company,
the Oriental Land Company. However, the license of Disney theme park is obtained
from the Walt Disney in America. Therefore, the management of Tokyo Disneyland
has not strong relationship with the Walt Disney. The rest of overseas Disney theme
parks and resorts, such as Paris Disneyland and Hong Kong Disneyland, include a
part of the Walt Disneys proprietary. Obviously, Paris and Hong Kong Disneyland
are partly controlled by the home company and their management should be
restricted by the Walt Disney. No matter which kinds of management of subsidiaries
of Disney, geographic subsidiary management always support strategies the Walt
Disney offers. And each of international Disneys theme parks and resorts are
popular in local persons hearts. This is challenge for Disneys subsidiaries
management, as different geographies have different priorities, which is difficult to
control how to balance their performances and management. It requires that
subsidiaries should frequently communicate with headquarter so that subsidiaries
performances can become much better than before. As a result, geographic

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subsidiary management of the Walt Disneys parks and resorts plays a significant
role in the whole management.

For top-level corporate management of the Walt Disneys parks and resorts, the
purpose of it is to innovate and create family entertainment around the world and
provides a magic and unique entertainment experience, which guests visit through
core-competitive technology, special innovation and imagination. When Walt
Disneys parks and resorts encounter risks in the world, the top-level managers
should offer solving methods at first time and try their best to reduce the risks Disney
facing. Besides, the senior leaders of Disney should keep sustainable competitive
advantages utilizing a variety of strategies, which are adjusted according to
macroenvironment and microenvironment changing. However, continuous innovation
is the unchangeable strategy in the top-level corporate management.

3.1.5 Learning Challenge

The Walt Disneys parks and resorts are successful, since the Walt Disney
Imagineering, as the central innovating department, plays an essential role of
overseas Disney constructing and designing. It has been granted over 115 patents in
areas such as ride systems, special effects, interactive technology, living
entertainment, fiber optics, and advanced. To some extent, the Walt Disney
Imagineering is core competitive advantage in the world and continuously creates
new products, in order to attract more guests attentions. For example World of
Colour has the fantastic effect and forms fanciful shapes with the memorable music.

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Usually, it consists of water, fire, colour and beautiful light and shows the
kaleidoscope of imagination. There is the excellent vision effect for customers. 29

3.1.6 Cultural Challenge

The Walt Disneys parks and resorts is typical multinational corporate. During its
managing process, it must face to different kinds of cultures all over the world, which
directly impact its common management, such as leadership styles of overseas
subsidiaries, communicating types and business negotiation. Therefore, different
cultures in different countries maybe bring different management methods so that
cultures have to be considered by the Walt Disney. Cultural differences are a barrier
for the development of Disneys parks and resorts.

The American Walt Disneys parks and resorts may be influenced by traditional
American culture and virtually possesses characters of American culture. In the
American society, it always has high individualism. It makes American persons
concentrate on individual profits and families interests in their lives. When the work
conflicts with the life, they are likely to choose their own lives without hesitation. This
phenomenon also exit into the Walt Disneys parks and resorts. In addition, low
power distance is another character of the Walt Disney. Naturally, American people
have the equal position with their leaders in the company. Employees have right to
participate in discussion of decision making. It benefits for the Walt Disney, because
it requires innovating ideas and visions existing in their teamwork so that their
29 https://disneyland.disney.go.com/entertainment/disney-california-adventure/worldof-color/ on August 22, 2013
31

Name: JIAHE TIAN

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visitors can be attracted by fantastic products all the time. Furthermore, according to
the relative research, American culture has lower uncertainty avoidance, which
means that subordinates have the less restrictions and rules to norm their
behaviours. Normally, under this situation, people can keep feeling of freshness in
the firm and high passion for their works. Also, masculinity and femininity exits into
American society at the same time, because America not only advocates mens
factors, such as power, challenge and achievement, but also pursues harmonious
society. The Walt Disney is not exception. Finally, Hofstede (1991) shows that
American gets low score than on the dimension of long-term orientation.

International Disneyland has a huge difference with parks and resorts in the America,
due to different cultures. In Japan, masculinity is relatively higher than common
countries but it is similar with American culture. Therefore, in this dimension,
management of Tokyo Disneyland is semblable with the home company. In addition,
since uncertainty avoidance is high in Japan, Disney needs to set detailed rules and
regulations to norm employees behaviours so that it can reduce risk in operating
process. The moderate power distance and individualism make Tokyo Disneyland
low innovation and high social sense than American culture. 30 For Hong Kong
Disneyland, it has similar degree of individualism and uncertainty avoidance with
American culture, which mean that it cannot adjust their management style entering
Hong Kong in two aspects. However, high power distance makes Hong Kong
Disneyland have not good relationship between leaders and subordinates. In
addition, because Hong Kongs persons pursue long-term orientation, its Disneyland

30 http://restaurantkyoto.dk/blog/en/japanese-culture/ on August 30, 2013

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maybe formulates long-term goal, which will be achieved in the future. 31 For France,
there are two dimensions similar with American culture, high individualism and shortterm orientation. Therefore, the Paris Disneyland focus on not only individual
interests but also short-term profits, when it manages Disneys park and resort.
However, the French culture makes Pairs Disneyland avoid uncertainty and high
power distance in the management. 32

3.2 Analysis of International Management Functions

3.2.1 Finance
The finance of the Walt Disney appears arising tendency in past four years,
according to Appendix 5-1. It is obvious that media networks always keep the most
important part of revenues and operation income, comparing with other four
segments. The second largest part is parks and resorts, which also play a significant
role in development of the Walt Disney. However, the growth rate of parks and
resorts showed in Appendix 4-1 is the highest part in the development of the Walt
Disney, arriving in 10% in 2012. It means that the position of parks and resorts
gradually enhances. Therefore, Disney has to pay an attention to this part, when it
will make strategies in the future.

In 2011, parks and resorts obtained $11,797 million, which primarily comes from
domestic revenues, which achieve $9,302 million, and just $2,495 million of

31 http://geert-hofstede.com/hong-kong.html on August 30, 2013

32 http://geert-hofstede.com/france.html on August 30, 2013
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international market, depending on Appendix 5-2. And both domestic and

international markets have $898 million and $138 million increasing respectively. In
terms of domestic revenues of parks and resorts of the Walt Disney, there is 11% of
growth, comparing with 2010 in Appendix 4-2. However, only 6% increasing happens
in international market of Disneys parks and resorts. The total revenue rising of
parks and resorts mainly comes from the domestic enhancing, as lager number of
passenger drive cruise about the launch of Disney Dream in 2011.

Base on above all analysis of parks and resorts of the Walt Disney, the importance of
it has been considered by Disney Company, because of the percentage of its
finance. In addition, for international Disneys parks and resorts, they control and
share a part of proprietary so that it makes the Walt Disney obtain a portion of
revenues annually. However, international part is much less than domestic incomes.
Therefore, financial management of the Walt Disney should focus on domestic
revenues in America and does not ignore the income of international marketing.

3.2.2 Marketing
At present, marketing management of the Walt Disneys parks and resorts is
successful around the world. The reputation of Disney theme parks has been
expanded into worldwide peoples hearts. Disneys marketing strategy also makes it
attract more global customers. There is no doubt that especial experience of
individuals or families has built the excellent word-of-mouth and impels them visiting

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in the theme park repeatedly. Therefore, several reasons demonstrate Disneys

parks and resorts have good global marketing management.

First of all, Disney constantly expands the marketplace in the overseas. Tokyo, Hong
Kong and Paris Disneyland has been established and opened. These three
Disneyland cover almost all the world excepting North American place. Choosing
them, Disney wants to make sure if people want to visit Disneys parks and resorts,
there is at least one near them. Tokyo Disneyland, as the first international
Disneyland, was the huge success in national place, which encourages the Walt
Disneys parks and resorts to development international markets. However, with the
growth of the volume of visitors, these Disneyland cannot satisfy most of people,
especially for Chinese persons, who own enough power of consumption for
entertainment in the common life. Consequently, the Walt Disney decided to build
Disneyland in Shanghai, China and will open in 2015 to meet Chinese persons
requirements.33

Secondly, parks and resorts of the Walt Disney continuously promote in everywhere,
such as TV, Internet and print publications. The most common ways are to broadcast
advertisement of Disneys parks and resorts continuously. For example, Disney
announces Give a Day, Get a Disney Day, which means customers can gain the
free one-day ticket of Disney theme parks through doing the volunteer services, as
Disney hope volunteers from the society in its community.34 In Disneys resorts, it
33 http://www.demc.com/artman/publish/article_130.shtml on August 23, 2013
34http://www.disunplugged.com/2009/10/06/disney-parks-new-promotion-give-aday-get-a-disney-day/ on August 26, 2013
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provides free Disney Dining Plan and free Disney Quick-Service Dining Plan for its
customers. The condition prices of Disney World Resort Package, which contains
Disney World Theme Park Tickets and Resort Hotel Room, are non-discounted,
when people buy them in limited data.35

Thirdly, the Walt Disneys parks and resorts are tracking business, which provides
the convenient information for Disney to adjust their marketing strategies according
to the temporal situation. Different seasons have different rates in Disneys parks and
resorts. If during the summer holiday, most of students are out of schools, this time is
too busy so that it improves price of a room in the Disney hotel. If times are not busy,
Disney also offers some promotion methods, giving low price of room with free
dinning.36

3.2.3 Human Resources

In Human Resources Management (HRM) of the Walt Disneys parks and resorts, it
more focuses on fostering employees and cast members experiences, which should
be consistent with firms requirements. It not only trains employees and cast
members skills and knowledge at their works but also instil local corporate culture
and values into peoples minds so that they are loyalty for itself, which are

35 http://www.onlywdworld.com/2012/07/disney-free-dining-promotion-for-oct.html on
August 26, 2013
36 http://www.demc.com/artman/publish/article_130.shtml on August 23, 2013
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innovation, quality, community, storytelling, optimism and decency.37 Its services

include talent acquisition, learning and development, and employee benefits. 38

To begin with talent acquisition is the essential part of Human Resource

Management of the Walt Disney, because Disney pursues continues innovation for
its products so that it can attract exiting and new guests eyes and attentions in the
world. Audiences everywhere has been inspired by storytelling of Disney. Under
these situations, Disney should employ talent persons utilizing different methods for
creating different interest image stories for customers. 39 In addition, learning and
development is another goal for the Walt Disney. Disney offers a variety of resources
for staffs, such as over 10,000 online reference materials, performance support
systems, and education reimbursement for job-related degree programs, in order to
enhance their skills and knowledge. Besides, Disney also gives an excellent learning
environment for everyone. 40 Furthermore, Disney provides employees more benefits
and thinks that employees and cast members are the most valuable of its
organization. In order to improve quality of peoples lives in the common society, the
Walt Disney Company provides a comprehensive total rewards package. Salaries is
not only way to achieve it. Therefore, Disney more concentrates on the Welfare,

37 http://disneycareers.com/en/working-here/culture-diversity/ on August 26, 2013

38 http://thewaltdisneycompany.com/about-disney/human-resources on August 26,
2013
39 http://disneycareers.com/en/default/ on August 26, 2013
40 http://disneycareers.com/en/working-here/learning-development/ on August 26,
2013
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such as Medical, Disney Health Pursuits Wellness Resources, Employee Assistance

Program (EAP) and so on.41

Chapter Four: Survey Analysis

This research comes from 30 questionnaires through E-mail from 6 th August 2013 to
16th August 2013. The purpose of the research is to understand Chinese customers
behaviors and expectations for Shanghai Disneyland in the future. The questionnaire
is mainly divided into two parts. One is mainly research individual information in
China; the other is research expectation of Chinese persons. Appendix 6 shows
detailed surveying results.

4.1 Result of The Research

Chinese personal information
According to question 1 to 4, they primarily focus on individual information, which are
closely related with buying behaviors in Shanghai Disneyland. 80.00% of persons
age of this research is between 16 and 35 years old. There is 66.67% of people, who
have income range is from CNY2001 to 5000 monthly (equal from GBP201 to
GBP500). For educating background of them, the most people are undergraduate
occupying 83.33%. And postgraduate persons play the second position with 13.33%.
41 http://disneycareers.com/en/working-here/total-rewards/ on August 26, 2013
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Name: JIAHE TIAN

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During the researching process, there are 40.00% of people went to exiting
Disneyland in the world. Hong Kong Disneyland is the most popular place Chinese
people often went before.

Chinese peoples expectations

Referencing to question 5 to question 7, it is obvious to see that 53.33% of Chinese
people hope the price of the ticket of Shanghai Disneyland is between CNY301 and
400. For cheaper ticket, below CNY300, also possesses 26.67% of persons in
China. In addition, most of people prefer to visit Disney theme park during legal
holidays, because they have enough time to relax themselves. However, there are
33.33% and 26.67% of people choosing weekends and special festivals, such as the
Valentines Day, Christmas Day, Easter Day and so on, respectively. Furthermore,
people are mostly willing to stay one day in Shanghai Disneyland with 46.67%. The
two-day stay in the Disneys park is 36.67% of people.

In terms of question 8, it is multiple choices about motivating factors people firstly

visiting the Shanghai Disneyland. The result is diversiform playing programs, brand
of Disney, and high quality of service position top-three with 83.33%, 70.00%, and
60.00% respectively. Obviously, these are competitive advantage of the Walt
Disneys parks and resorts around the world.

The question 9 is about whether or not adds several Chinese elements in Shanghai
Disneyland or not. 66.67% of people think Shanghai Disney should put Chinese
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factors in the park, because it can attract much more Chinese persons visiting and
make Shanghai Disneyland unique in the world, while 23.33% of Chinese people
disagree this point, since Shanghai Disney should keep oriental style and not be
changed randomly. Besides, there are 10.00% of persons not considering about it,
as they pursue to have a fun and relax themselves in Shanghai Disneyland.

For question 10, the most charming things of Disneyland Chinese people think is
wonderful performance with 80.00%. 63.33% of people selecting diversiform playing
programs and 53.33% of people choosing the extraordinarily magic experience play
the second and third most important positions for surveying persons. However,
American style meals and interaction with Disneys cast members are not ignored by
Shanghai Disneyland, through lower percentage of people choosing them. This is
significant for Shanghai Disneyland to build perfect Disney theme park.

4.2 Discuss
During this research of Chinese persons purchasing behaviours and expectations,
most of people intensely expect for Shanghai Disneyland, which gives birth to more
fun for Chinese people in the society of high pressure. Dominatingly, Shanghai
Disneyland will attract much more young people in China, whose incomes belongs to
middle class. Under this situation, Shanghai Disney should provide stimulated and
magical programs, in order to cater young persons demands. Besides, people can
release their pressure via vision and hearing impact from special programs, when
they are in Shanghai Disneyland. Therefore, high quality of services and diversiform

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playing programs in the Disney theme parks and resorts are independence, when
they spend time to relax their bodies.

In addition, the reputation of Disneys brand and price of ticket are not ignored by
Disneyland. Disneys parks and resorts should take a series of promoting measures
in China to enhance influencing power of Disneys brand. By the way, this also
improves Chinese young persons confidence for the loyalty of the Walt Disney
Company. In the future, Disneys parks and resorts in Shanghai not only will focus on
traditional competitive advantages around the world but also will provide reasonable
price of one-day ticket to attract much more Chinese people visiting in the Disneys
theme park and enjoy the unique magic experiences in Chinese market, because
most of young persons own less salaries in China and maybe do not afford high
price of ticket frequently. However, in several special days, such as legal holidays,
special festivals, the price of Disneyland in Shanghai should be enhanced a little bit,
in order to gain maximum profits.

Moreover, Shanghai Disneyland should appropriately add Chinese factors in the park
and resort to cater for special Chinese culture and market. However, Chinese
elements are not limited in traditional Chinese decorations of Shanghai Disneyland
but are Chinese value and culture in everywhere. For example, its top-level
managers should understand Chinese management style so that they can
harmoniously get alone with Chinese employees and customers mutually.

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Chapter Five: Conclusion

This project is analysing the Walt Disneys parks and resorts using related theories of
international management. For the Walt Disney, it is the typical MNE with characters
of international management model. Tokyo Disneyland, Paris Disneyland, and Hong
Kong Disneyland have appeal to more global persons. The purpose of Disneys
parks and resorts is continuous innovations.

Referencing to the transnational typology, the Walt Disneys parks and resorts have
six challenges, the competitive, collaborative, organizational, management, learning
and cultural challenges, which make the Walt Disney Company face to various risks.
Moreover, international management functions of the Walt Disney are necessary to
be analysed, as it can detailed understand inside successful company. Finally, the
research demonstrates Chinese buying behaviours and expectation for Shanghai
42

Name: JIAHE TIAN

Student ID: B210246

Disneyland. The result of the survey can provide suitable suggestions for Disneyland
in Shanghai opening so that Chinese people can accept it immediately.

In current, the Walt Disneys parks and resorts occupy an essential role in whole
development of the Disney. Quick increase of parks and resorts makes the company
should concentrate on position of this part in next development. In American market,
the theme parks and resorts becomes the dominating incomes and are relatively
mature. In international market, due to different challenges and risk, there are
aspects continuously improved by the Disney. However, no matter what Disney is, in
the future, Disneys parks and resorts will have wide rising space and wonderful
performance in the entire world.

43

Name: JIAHE TIAN

Student ID: B210246

References

Adler-Golden, D., Bertoni, L., Iyasere, S., & Woo, W. (2011). AMUSEMENT PARKS.

Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M. (2008). Transnational management.

McGraw-Hill/Irwin.

Bergiel, E. B., Bergiel, B. J., & Upson, J. W. (2012). Revisiting Hofstedes

Dimensions: Examining the Cultural Convergence of the United States and Japan.
American Journal of Management, 12(1), 69-79.

Disney Institute, 2011, Disneys Approach to Brand Loyalty.

Fouraker, L. E., & Stopford, J. M. (1968). Organizational structure and the

multinational strategy. Administrative Science Quarterly, 47-64.

Forbes, 2013, 2013 Most Reputable U.S. Companies: Part of Worlds Largest Study
on Corporate Reputation.

44

Name: JIAHE TIAN

Student ID: B210246

Hewlett-Packard Development Company, LP, 2009, Disney Device Delights: Guest

Assistive Services Based on HP iPAQ PDA.

Hodgetts, R. M., Luthans, F., & Doh, J. P. (2006). International management: Culture,
strategy, and behavior. Boston: Mcgraw-Hill.

Hodgetts, R. M., & Hegar, K. W. (2007). Modern human relations at work. Cengage
Learning.

Hofstede, G. (1991), Cultures and Organization: Software of the mind, McGraw-Hill

London.

Hofstede, G. (2002). Dimensions do not exist: A reply to Brendan McSweeney.

Human relations, 55(11), 1355-1361.

Hofstede, Geert and Michael Bond. (1984). The Need for Synergy Among CrossCultural Studies, Journal of Cross-Cultural Psychology, p. 419.

Holt, D.H. (2002) International Management. Thompson South-Western.

45

Name: JIAHE TIAN

Student ID: B210246

Kelly, M. and Schaan,,J-L.(1996)The Management and Implementation of Strategic

Alliances in the Canadian High Technology Industry. Menlo Park, CA:SRI.

Kelly, M. J., Schaan, J. L., & Joncas, H. (2002). Managing alliance relationships:
key challenges in the early stages of collaboration. R&D Management, 32(1),
11-22.

McSweeney, B. (2002). Hofstedes model of national cultural differences and their

consequences: A triumph of faith-a failure of analysis. Human relations, 55(1), 89118.

Roth, K., Schweiger, D. M., & Morrison, A. J. (1991). Global strategy implementation
at the business unit level: Operational capabilities and administrative
mechanisms. Journal of International Business Studies, 369-402.

Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede's dimensions of

culture in international marketing studies. Journal of business research, 60(3),
277-284.

Stonehouse, G., Campbell, D., Hamill, J., & Purdie, T. (2007). Global and
transnational business: Strategy and management. John Wiley & Sons.

46

Name: JIAHE TIAN

Student ID: B210246

The Walt Disney Company, 2013, The Walt Disney: Fiscal Year 2012 Annual
Financial Report and Shareholder Letter

The Walt Disney Company, 2012, The Walt Disney: Fiscal Year 2011 Annual
Financial Report and Shareholder Letter

The Walt Disney Company, 2011, The Walt Disney: Fiscal Year 2010 Annual
Financial Report and Shareholder Letter

Appendices

Appendix 1: Worldwide Advantage: Goals and Means

Sources of Competitive Advantage
Strategic
Objectives

National
Differences

Scale
Economies

Scope
Economies

Achieving
efficiency in
current
operations

Benefiting from
differences in
factor costs-wages
and cost o capital

Expanding and
exploiting
potential scale
economies in
each activity

Sharing of
investments and
costs across
markets and
businesses

Managing
risks through
multinational
flexibility

Managing different
kinds of risks
arising from
market- or policyinduced changes in
comparative
advantages of
different countries

Balancing scale
with strategic and
operational
flexibility

Portfolio
Diversification of
risks and creation
of options and
side bets.

47

Name: JIAHE TIAN

Innovation,
learning, and
adaptation

Student ID: B210246

Learning from
societal differences
in organizational
and managerial
processed and
systems

Benefiting from
experience-cost
reduction and
innovation

Shared learning
across
organizational
components in
different
products,
markets, or
businesses

(Source: Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 2008)

Appendix 2: Strategic Orientation and Configuration of Assets and Capabilities

in Multinational, International, Global, and Transnational Companies
Multinational

International

Global

Transnational

Strategic
orientation

Building flexibility
to respond to
national
differences
through strong,
resourceful, and
entrepreneurial
national operations

Exploiting parentcompany
knowledge and
capabilities
through wordwide
diffusion and
adaptation

Building cost
advantages
through
centralized
global-scale
operations

Developing global
efficiency flexibility,
and worldwide
learning capability
simultaneously

Configuratio
n of assets
and
capabilities

Decentralized and
nationally selfsufficient

Sources of core
competencies
centralized,
others
decentralized

Centralized
and globally
scaled

Dispersed,
interdependent
and specialized

(Source: Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 2008)

48

Name: JIAHE TIAN

Student ID: B210246

Appendix 3: Organizational Configuration Models

49

Name: JIAHE TIAN

Student ID: B210246

(Source: Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 2008)

50

Name: JIAHE TIAN

Student ID: B210246

Appendix 4: 2012 The Walt Disney Revenues and Operating Income

4-1: The Walt Disney

(Source: 2012 The Walt Disney Annual Report)

4-2: Parks and Resorts

(Source: 2012 The Walt Disney Annual Report)

Appendix 5: The Walt Disney Revenue From 2008 to 2012

Table5-1
The Walt Disney Revenue From 2008 to 2012

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Name: JIAHE TIAN

Student ID: B210246

(Unit: million $)
Media
Network
s

Parks
and
Resort
s

Studio
Entertainmen
t

Consume
r
Products

Interactiv
e

Total

200
8

15,857

11,504

7,348

2,415

719

37,84
3

200
9

16,209

10,667

6,136

2,425

712

36,14
9

201
0

17,162

10,761

6,701

2,678

761

38,06
3

2011 18,714

11,797

6,351

3,049

982

40,89
3

201
2

12,920

5,825

3,252

845

42,27
8

19,436

(Source: 2012, 2011, and 2010 the Walt Disney annual report)

Table5-2
The Parks and Resorts of The Walt Disney From 2008 to 2012
(Unit: million $)
2008

2009

2010

2011

Domestic

8,973

8,442

8,404

9,302

International

2,531

2,531

2,357

2,495

(Source: 2012, 2011, and 2010 the Walt Disney annual report)

Appendix 6: The Result of Questionnaire Survey of Chinese Buying

Behaviours about Shanghai Disneyland
1. Age
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Name: JIAHE TIAN

Student ID: B210246

Age

Under15

16-35

36-55

Over 56

Total

24

Percentag
e

6.67%

80.00%

13.33%

0.00%

30

2. Monthly income (CNY)

Income

Under20
00

20015000

500110000

Over
1000

Total

20

Percenta
ge

10.00%

66.67%

23.33%

30

3. Education information
Educatio
n
informati
on

Junior
College

Undergradu
ate

Postgradu
ate

PhD.

Total

25

Percenta
ge

0.00%

83.33%

13.33%

3.33%

30

4.Have you gone to existing Disneyland in the world?

Yes

No

Total

12

18

Percentage

40.00%

60.00%

30

5. Do you think how much about the single-ticket in Shanghai Disneyland is suitable?
(CNY)
Price
(CNY)

Under 300

301-400

401-500

Over 501

Total

16

53

30

Name: JIAHE TIAN

Percentag
e

26.67%

Student ID: B210246

53.33%

16.67%

3.33%

6. When will you want to visit Shanghai Disneyland? (Multiple Choice)

Time

Weekends

Legal
Holiday
s

Special
Festival

Commo
n

Others

Total

10

19

Percentag
e

33.33%

63.33%

26.67%

10.00%

3.33%

30

7. How Long will you spend in Shanghai Disney each time?

Time

A Half Day

One Day

Two
Days

Three Days and

more

Total

14

11

Percentag
e

10.00%

46.67%

36.67%

6.66%

30

8. Which kind of factors motivating you to visit Shanghai Disney at the first time?
(Multiple Choose)
Factors

Brand

Diversiform
programs

Excellent
service

Suitable Unique
prices of Disneys
tickets
culture

Total

21

25

18

Percentag
e

70.0%

83.33%

60.00%

23.33%

16.67%

30

9. Do you think Shanghai Disneyland should add Chinese elements?

Yes

No

Don not care

Total

20

Percentage

66.67%

23.33%

10.00%

54

30

Name: JIAHE TIAN

Charms

Diversifor
m
programs

Student ID: B210246

Excellent
American
Interaction
performanc style meals with
e
Disneys
cast
members

Extraordin
ary
magical
experience
s

Others

Total

19

24

16

Percentage

63.33%

80.00%

23.33%

26.67%

53.33%

13.33%

10. What, do you think, is the best charm of the Disneyland? (Multiple Choose)

55