There are four main global staffing policies which are, ethnocentric management orientation,

polycentric management orientation, regiocentric management orientation, and geocentric

management orientation.

The staffing policy selected by Euro Disney is ethnocentrism, in which staff from the parent country
is hired to fill in positions at subsidiary companies across the globe. Ethnocentrism also encapsulates
not only the staffing aspect but includes the overall human resource management strategy used by
the company. Essentially, the approach is based off the principle that “what works at home, will
work here”.

Euro Disney’s Lack of Human Resource Strategic Partnership

Strategic Human Resource Management includes considering aspects such as:

 Cultural Evaluation
 Employee Selection
 Training
 Development
 Compensation
 Evaluation

Disney Euro failed to consider almost all the human resource aspects listed above, seen from the
lack of cultural awareness, misunderstanding French Laws, and French habits.

Cause of Disney Euro’s Failure

1. Planning Euro Disney Entirely Off Their Previous Parks

Walt Disney opened their first theme park outside the United States in Tokyo, Japan using
ethnocentrism and was met with instant success.

This gave the company confidence in their foreign planning and motivated them to open a
second branch outside of the United States that targets its European consumers,
specifically Paris. The company planned the entire Euro Disney project based off the success
of the three previous parks which were almost identical in their planning. This was their
biggest mistake and the downfall to Euro Disney.

2. Using Solely Ethnocentrism Management Policy

 The appointed Euro Disney chairman was an American who was argued to have strong
ties to France.
 The company used a universalistic approach when planning Euro Disney.
 The company made no significant difference in the parks that were built in different
countries.

3. Failed to Recognize Local Employees Contribution and Opinions

 Euro Disney failed to recognize the work performance of their local employees.
 Euro Disney failed to consult with any French locals within their staff which led to
several misunderstandings that caused losses for Euro Disney.
Miscalculations by Euro Disney

The miscalculations made by Euro Disney as a result of their failure to consider the French market
and seek out local opinions are as follows:

1. Miscalculation of French Drinking Habits

Euro Disney chose not to serve alcohol throughout the park when it first started, similar to
its previous parks. This caused backlash in France, where it is the norm for alcohol to be
served regardless of time.
2. Misunderstanding of Breakfast and Food Norms
Euro Disney was designed under the assumption that Europeans do not take breakfast and
downsized their restaurants. This misunderstanding caused long lines and the restaurants to
be understaffed.
3. Misunderstanding of Per Capita Spending
American and Japanese park visitors tended to not leave the park empty handed, whereas
Europeans did. This miscalculation caused a big gap in Euro Disney’s projected revenue per
guest.
4. Misunderstanding of French Labour Laws
In the United States labour laws are flexible, in which workers can be scheduled based off
the day of week and time of year. French labour laws do not have this kind of flexibility. This
caused French workers to be irritated and led to labour disputes and high labour costs.
5. Violation of French Labour Laws
Europeans emphasise individualism which goes against Disney Euro’s strict dress code, in
which employees must adhere to the Disney look. The strict dress code was believed to
violate French labour laws, and the company was taken to court due to this issue.

Key Factors to be Considered in American Versus French Culture

Although both the United States and France are Western countries, they are both radically different
as can be seen when the two countries are compared based off the Hofstede’s Cultural Dimensions
Model:

Whereas, although Japan is an Asian country, and the United States is a Western country the two are
similar from several aspects:

*Table Japan vs America

Other reasons Tokyo Disneyland was an instant success is because it was considered good for Asians
to be associated with American Culture, this did not apply to Europeans

Lessons from Euro Disney

Before entering a foreign country, the company’s Human Resource Management department should
be aware of the specifics of the country, including their history, culture, traditions, and laws, to
ensure the venture is a success.