Week 2 Case Study: Hong Kong Disneyland
MGT 614 Global and Transnational Management
July 12, 2014
The purpose of this paper is to analyze the management strategies of Hong Kong Disneyland. Hong Kong Disneyland was established September 12, 2005. It was built by Disney and supported by the Hong Kong government. The Disney Corporation was created in 1923 and become a global entertainment company with four different business segments. These segments were established to track the company as a whole so that studio entertainment, consumer products, media networks, and parks & recreation all become pieces of Disney. I think these segments were a positive part of Disney because it allowed the company to expand internationally. At first Disney was just planning on running the park in Hong Kong but after a lengthy deliberation they agreed to take partial ownership in the park. Disney owns 43 percent of the park and invested US$314 billion into HKD (Phatak et al., 2009, pg. 154). The Hong Kong government owns 57 percent and invested HK$23 billion into HKD (Phatak et al., 2009, p. 148).
There were also other international Disney parks created before Hong Kong. These were Tokyo and Paris. Disney wanted to create something better and learn from mistakes of previous parks. Hong Kong Disney was very vital in Disney’s success because Tokyo Disney was successful but Paris was a disaster. Disney had to analyze all aspects of the parks when planning Hong Kong because the last thing they wanted was to make the same mistakes twice. Disney wanted to avoid cultural issues that caused France to not be successful. I think that when a company wants to open business internationally they really need to weigh the pros and cons of entering that country. Disney did not do a good job of this is Paris. There were too many cultural issues that caused Paris to fail, for example the way the French...