S- Euro Disney, Case Study Example

List three ‘key’ issues in the case and explain what makes them strategically important issues.

In this case, the three key issues include the constant losses, climatic issues and the cultural issues. These presented a serious threat to the performance of Euro Disney. In the year 1994, though Disney had improved from the previous year, it still made losses. It was a concern whether the company was going to be any profitable. In the climatic issues were particularly problematic since the prolonged winters caused many design problems. On the other hand, the cultural issues also presented many challenges to the start of Euro Disney, given the cultural differences in France. These issues are strategically vital due to their centre role in any design process that may take place. They all affect the design processes of the theme parks directly.

How can the firm use its core competence to address each of these issues to increase its competitive advantage? Explain clearly.

The issue of constant losses can be addressed by the firm through proper budgeting and planning for its operations throughout the year. This will assist in ensuring that the only expenditures incurred are limited to the budgeted costs. In addition, it will enhance profit maximization. In addressing the climatic condition issues, the firm ought to strategize and adapt to the climatic changes in France. For instance, it will be crucial for it to maximize the use of summers for all the design work. This will help it avoid disruptions during the prolonged winters, which are characteristically gray. Finally, in addressing the cultural issues, it will be necessary for all the foreign employees to learn the new culture to readjust the firm’s operations quickly, to fit the new cultural setting. Therefore, in order to remain competitive, the company must constantly assess and address the external and internal factors identified. This would enhance its ability to come up with sound policies that will guarantee an added advantage over its competitors.