9. External factors
• Economic recession in Europe
-> Affect the attendance
-> Affect the almond spent in Disney’s good
• Difference of culture
-> European are more Prices Conscientious
-> Not the same mobility
10. Internal Factors
• Using a model which was proof in US and
Japan but doesn’t work in France
-> Breakfast, Wine, restroom for bus drivers
• Management Mistake
-> French mindset v.s US management
• Insensitivity of economics conditions
-> Too much depts.
-> Breakeven points to much high
14. • European Bank funding
For 500 millions $
Conditions : Disney should
-> Invest 750 millions $ to bail out its affiliate
-> eliminate for 5 years lucrative management fees
and royalties
• A member of Saudi royal family
For 500 million $
15. Growth of earnings from 1995 to
1997
• 3rd quarter of 1995 : benefit of 35
millions $
• 1996 : 11,7 million visitors (up from 8,8
million 3 year before)
• November 1997 : name changing and
new situation updated in Forbes
magazine
16. Later problems of Walt Disney
Company
• In 1999 : 41% drop of earning
• Cause of previous earnings, investment in
new enterprises but with low generations
of profits
• Growth of ratings with ABC networks, bus
Disney sell itself fo 1 billion $ a year to the
national football League
18. Resume : what can be learned
• Beware of the arrogant
mindset especially with
new situations and new
cultures
• Great success can be
Ephemeral
• High Leveraged
situations are
dangerous
• Beware with Prices
Strategy