Transnational Management for EuroDisney SCA Park - myassignmenthelp

Question: Discuss about theTransnational Management for EuroDisney SCA Park. Answer: Introduction This paper explores the transnational management case study which concerns the EuroDisney SCA park which was designed to attract more European visitors. The EuroDisney Park is compared and contrasted from the Disneyland which did not have good customer attraction. From the case study, EuroDisney had significant strategies which contributed to is successes. On the other hand, there were external demands which caused poor performance of the same park, especially during the first years (Xu, 2017 pp.10). Disneyland began working towards a new location to raise its current situation and attract many visitors like its competitor. Therefore, as an international business strategist, I have proposed the location which would be viable for the parks success and justifications based on the transnational management context. Success Factors and External Demands To analyze the critical success factors for the EuroDisney, it is clear that the park managed the multinational strategies effectively, It implies that EuroDisney established resourceful and strong subsidiaries nationally, which meets the basic domestic market needs hence attracts many visitors. In simple words, the subsidiaries create opportunities of the park to manage the business effectively (Narula, 2014 pp.11). EuroDisney develops and adapts products and strategies which attracts and maintains the visitors. For instance, the prices were low, and the visitors would enjoy the attractions of the park such as the milkshakes and hamburgers compared to the Disney. The park had room to expand the business, and six new hotels were opened in Europe (Karadjova-Stoev and Mujtaba, 2016 pp.79). The second success factor is that EuroDisney applies the international strategies effectively. It means that the organization exploits the technological advances to create new products as well as the processes. The company responded well to the market changes and tried to expand its efforts to other nations such as Europe. The company had could adjust the costs and allow the customers spend many hours at low prices. Significantly, EuroDisneys location was strategic which attracted many visitors. The park was big, and there were many rooms to accommodate the customers in a single night. On the other hand, there were two external demands which caused the poor performance during its first years of operation. The first external demand was the political and the legal factors. It is clear that the decision to expand the park near Paris attracted negative implications from the public especially the politicians in French (Arins, 2017, pp. 32). The French visitors did not show up as they were expected since they viewed the park as a symbol of the United States culture (Delaplace, Pagliara and Pietra, 2016 pp.3). The politicians were ignorant and hence caused the French people not to tur n up in large numbers. The other external demand is that EuroDisney had a challenge coping up with the economic changes. The company operated in consideration of the customers; hence the price levels were likely to impact the revenues. The park contributed to the economic conditions, especially on the European economies. The fluctuations in the economy in the United States minimized the spending and the purchase of the advertising prices. The organization was expected to cope with the fluctuations in the exchanges rates to maintain the international demands such as the quality of its attractions, the costs, and labor. In addition, EuroDisney would cope with the competition demands by adopting new advances in technology and innovation of creating new products. New location for Disney A new location that would propel Disneyland to success is Karnataka in India. The government of Karnataka plays the crucial role of ensuring that Karnataka is one of the must-visit destinations in India. Recently, the government has formulated several policies that aim at developing the infrastructure of the region, development of skills required in the tourism industry, Last mile connectivity and Mega Circuit Development (Kocsis, 2014, pp. 71). Also, the Karnataka government has formulated some policies that are purposed to provide fiscal incentives such as offering subsidies and so on. The campaign Incredible India articulates some of the best services that India has to offer regarding tourism. Disneyland, therefore, would do well at this new location. To achieve a global competitive advantage, Disneyland has to consider and exploit there crucial factors which will determine the success of the business. The three factors include national differences, scale economies, and scope economies. The national differences are evident in India. First, India differs with other nations regarding cost of capital and wages. India has for long been considered as a lucrative location for starting businesses and the high foreign investment confirms the argument. The future of the Indian economy is great, and for this reason, Disneyland should consider the new location. The labor force in India currently stands at approximately 530 million, and this means that the wages are favorable especially for the new businesses. The cost of capital in India is also friendly due to the low cost of internet, transportation, labor and so on. In fact, the costs are much lower compared to other nations such as the United States and the United Kingdom. It is also important for Disneyland to put into consideration the economies of scale by expanding and exploiting the available scale economies in every activity. Also, balancing scale with operational and strategic flexibility is important for the business. After some time, Disneyland will be in a position to benefit from the experience and enjoy the reduced costs of operating in India and also come up with innovations which will enable the business to enjoy a competitive advantage (Skyrius, Katin, Kazimianec, Nemitko, Rumas, and Ã… ½ilinskas, R., 2016, pp. 171). India boasts of a good startup ecosystem including e-commerce, financial services, and technology. The Indian market is friendly and always open to new ideas. Therefore, Disneyland would enjoy easier operations in India. The laws in India are business friendly. This is one of the reasons why major businesses from developed nations are considering venturing in India where they will not have to be oppressed by stringent policies (Abdin, Fajardo, and Prudencio, 2016, pp. 31). Recently, some bills have been passed in the Indian parliament, and most of them would favor Disneyland. Some of the bills include the Direct Taxes Code Bill and the Goods and Services Tax Bill. The main purpose of the bills is to introduce a sense of uniformity and transparency in the Indian business sector (Aliouche, and Schlentrich, 2011, pp. 350). The friendly business laws, and especially the Land Acquisition Bill, promotes industrial development and social justice. The promotion of social justice ensures that the tourists who come to Disneyland will encourage extended stays and eventually the company will enjoy improved profits. Conclusion In conclusion, the multinational and transnational strategies of a business determine its success. The EuroDisney is obliged to manage the multinational and the transnational strategies to attract more customers and maintain them. External demands which include the political-legal factors, economic, and competition should be considered in every business as seen in the analysis of EuroDisney (Dalby, Lueg, Nielsen, Pedersen and Tomoni, 2014 pp.464). Responding positively to competition helps the business to manage the interactions of the goals in different situations. Therefore, India is the best location suggested for the Disneyland parkas outlined in this paper. This paper provides relevant justifications concerning the suggested location based on the transnational management context. For this treason, Disney needs to adapt to the external and internal forces effectively, to manage the new business venture. Bibliography Abdin, F., Fajardo, A. and Prudencio, J., 2016. Expansion of Disneyland to Brazil. Aliouche, E.H. and Schlentrich, U.A., 2011. 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