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Consider the global expansion strategies of Disney and critically evaluate how Disney has exploited its core competences to create value for stakeholders.

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Organizational Strategy and Design in an International Context

 

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HR6016

 

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Understand how global expansion strategies allow an organisation to seek new opportunities to exploit its core competences to create value for stakeholders

 

20%

 

Understand work that requires independent study and avoids plagiarism

 

20%

 

Understand issues that relate to contemporary management

 

20%

 

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20%

 

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10%

 

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10%

 

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Case Study: Disney Goes Global 

Ritzer (2005) discusses the ‘McDonaldization’ of society, where the principles of the fast-food industry such as efficiency, consistency, quantification, and control are universally adopted, contributing to impersonal uniformity, with standardised products: Brazilian children sporting American-style t-shirts and drinking Coca Cola, Saudi women applying Chanel or Christian Dior cosmetics under their veils, Swedes increasingly eating burritos and tacos at fast-food chains.

‘Disneyfication’ may refer to bigger, faster, and better entertainment with a large sense of uniformity worldwide, a concept invented by Bryman (1999) to refer to the internationalisation of the entertainment values of US mass culture. However, when Euro Disney went bankrupt in 1994, amid criticisms that the theme park was too American for Europeans, management made appropriate changes to cater to local tastes and renamed the park ‘Disneyland Paris’, eg introducing wine and not requiring French employees to act in such scripted ways (Matusitz & Palermo 2013).

When Disney opened a theme park in Hong Kong in 2005, it was not successful; Hong Kong Disneyland personnel found the ‘emotional labour’ required too artificial, with objections to Disney’s refusal to let Chinese food inspectors into the park. The attempted Disneyfication of Chinese culture brought about significant cultural backlash; feng shui principles were not brought into the park, and cast members (employees) were concerned about their salary and working conditions.

Questions:

  • Consider the global expansion strategies of Disney and critically evaluate how Disney has exploited its core competences to create value for stakeholders.

Disneyland Hongkong has just reopened again as organisations challenge the situation presented by Covid-19. Please discuss at least one contemporary management issue as it might relate to the Covid-19 situation from the following list: how personal characteristics of managers might influence culture and effectiveness; effective management in the face of diversity for all stakeholders; the impact of domestic and global environments such as expats moving abroad; decision making; effective leadership in the 21st century.

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Sample Answer

Global Expansion Strategies and Value Creation: A Critical Analysis of Disney

Introduction

Global expansion has become a key strategy for organisations seeking to leverage their core competences and create value for a wide range of stakeholders. Multinational corporations often expand beyond domestic markets to increase revenue, enhance brand presence, and exploit competitive advantages. The Walt Disney Company provides a strong example of how global expansion can both succeed and fail depending on the alignment between global strategy and local context.

This essay critically evaluates how Disney has used global expansion strategies to exploit its core competences, particularly through its theme parks. It also examines how these strategies have created value for stakeholders while addressing challenges related to cultural adaptation. Furthermore, the essay explores a contemporary management issue, focusing on leadership and decision-making in the context of the Covid-19 pandemic.

Disney’s Core Competences and Global Strategy

Disney’s global success is rooted in its strong core competences, including brand recognition, storytelling expertise, customer experience design, and operational excellence. These competences allow Disney to create immersive entertainment experiences that are consistent across global markets (Johnson et al., 2020).

The company’s expansion strategy has largely followed a transnational approach, combining global standardisation with local responsiveness. This aligns with Bartlett and Ghoshal’s framework, where firms seek to achieve efficiency while adapting to local market conditions. Disney initially attempted a standardised model, often referred to as “Disneyfication,” which emphasised uniformity, control, and replication of its American business model.

However, early failures, particularly in Europe and Asia, demonstrated the limitations of this approach.

Disneyland Paris: Learning from Failure

The opening of Euro Disney in 1992 highlighted the risks of excessive standardisation. The park initially struggled due to cultural misalignment, including resistance to American-style service expectations and restrictions on local customs such as alcohol consumption. The failure to understand European consumer behaviour led to financial losses and reputational challenges.

Disney responded by adopting a localisation strategy. The park was rebranded as Disneyland Paris, and changes were introduced to better align with local preferences. These included offering wine in restaurants and adjusting employee management practices to suit French cultural norms (Matusitz and Palermo, 2013).

This shift demonstrated Disney’s ability to learn and adapt, ultimately leading to improved performance. It also highlighted the importance of balancing global consistency with local sensitivity.

Brand strength, storytelling, customer experience, and operational efficiency.

Because it did not adapt to local European culture and consumer preferences.

The spread of standardised Disney-style entertainment and experiences globally.

It caused park closures and financial losses, forcing strategic and operational changes.

Leah

Really strong analysis and examples. Helped me understand global strategy properly.

United Kingdom

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Rachel

Clear explanation of Disneyfication and cultural issues. Easy to follow.

United Kingdom

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Simon

Good critical points, especially about Hong Kong Disneyland.

United Kingdom

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Thomas

Flows really well and sounds natural. Perfect for my assignment prep.

United Kingdom

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