WaltDisneyParksand
ResortsWorldwide,Inc.
BackgroundGuide
Chairs:
EagleMUNC
BostonCollegeModel
UnitedNations
Conference
KevinFritz
fritzke@bc.edu
StevenVangeli
vangelis@bc.edu
Website:
www.EagleMUNC.org
March18-20,2016
WaltDisneyParksandResortsWorldwide,Inc.
WaltDisneyParksandResortsWorldwide,Inc.
Introduction
WelcometoEagleMUNCIV,executives!
MynameisKevinFritz,IamasenioratBostonCollegeintheCarrollSchoolofManagement
studyingFinanceandMarketing,withaminorinInternationalStudies.Iamhonoredtobethe
chair of your committee this year, and can’t wait to provide you with the most innovative
experienceontheModelUNcircuittoday.I’mabigbelieverthateveryonecanstillbeakidon
theinside,soIloveeverythingaboutDisney,andthiscommitteeissomethingI’vepersonally
dreamedofdoingforalongtime.
I have been heavily involved in Model UN at BC during my time on campus. During my
freshmanyear,IwasacrisisstafferatthefirsteverEagleMUNC,andhadtheprivilegetoserve
ontheSecretariatduringmysophomoreandjunioryears.Thisyear,Iamthedirectorofour
community outreach program, the Eagle Global Leadership Initiative, and am also chairing
becauseit’ssomethingI’vealwayswantedtodo.
In addition to Model UN, I’m also the President of WZBC Sports Radio, as well as a Winston
Center Ambassador. I’m originally from Dix Hills, NY, and am a huge New York sports fan
(sorry,everyonefromMassachusetts!).
Myco-chairisStevenVanegli,whoisafellowNewYorker,businessschoolstudent,andmost
importantly,aclosefriendofmine.SteveoriginallyhailsfromWantagh,NewYork,andisalso
majoringinbothMarketingandFinance.
StevejoinedModelUNduringhistimeatBostonCollege,andservesontheboardoftheEagle
Global Leadership Initiative as our Finance Coordinator. He is heavily involved with the
Marketing department on campus, working as a researcher on the many consumer behavior
studiestheyconductduringtheyear.Outsideofschool,Stevecanfrequentlybefoundarguing
aboutbaseballandfantasysports,whichhewillclaimtobethebestat(althoughtheevidence
isdisputable).
We can’t wait to meet each of you at EagleMUNC IV, and provide an incredible experience
throughouttheweekendintheDisneycommittee!
Sincerely,
KevinFritzandStevenVangeli‘16
ChairandCo-Chair
WaltDisneyParksandResortsWorldwide,Inc.
SomeImportantInformationaboutthisCommittee
Thiscommitteewillfunctionabitdifferentlyfromwhatsomeofyoumayexpectfroma
standardModelUNcommittee,aswehopetobringyouthemostauthenticexperiencethat
willsimulateahigh-levelcorporatemeeting.Asyourchair,IwilltakeonthepersonaofRobert
Iger, the Chief Executive Officer of the Walt Disney Company. Steve, your co-chair, will
representBobChapek,ChairmanofWaltDisneyParksandResorts.Ourrolewillnotonlybeto
moderate the debate, but also provide occasional guidance and opinions, as we are the
ultimateoverseersofthecompany.
Additionally, bear in mind that you are not representing countries, but rather
individuals.Extensiveresearchonthehistoryofthepersonyou’rerepresenting,theircurrent
position, and public statements made by them will be crucial towards success in this
committee.Additionally,anunderstandingoftheWaltDisneyCompanyasawhole,thetheme
park/hotel industries, and the financial statements of the Walt Disney Company (available
online)willbebeneficialaswell.Therestofyourfocusshouldstemfromthetopicspresenting
intherestofthisguide.Goodluck,thecompanyisdependingonyou.
WaltDisneyParksandResortsWorldwide,Inc.
HistoryoftheWaltDisneyCompany
EarlyHistory
In1923,KansasCitynativeWalterE.DisneymovedtoLosAngelestoopenacartoon
studiowithhisbrother,Roy.Afteranumberofearlyfailures,hecreatedacartooncharacterin
1928namedMickeyMouse,whobecameaninstanthit,starringinthefirstfilmtoemploya
newlydevelopedconceptknownasSynchronizedSound,calledSteamboatWillie.Thesuccess
ofMickeyMousefilmsandcartoonsenabledDisneytoquicklygrowhiscompany,and
reorganizeintoanewcorporationcalledWaltDisneyProductions,Ltd.TheWaltDisney
Productionsincludedanumberofsubsidiaries,mostnotableWaltDisneyEnterprises,thefirst
merchandisingdivisionofthecompany.1
SteamboatWillie,19282
Ahallmarkmomentintheearlyhistoryofthecompanycamein1937,withtherelease
ofWaltDisney’sfirstfeature-lengthfilm,SnowWhiteandtheSevenDwarfs.Thismovie
becamethehighest-grossingreleaseofthetime,andWaltDisneycapitalizedontheprofits
fromSnowWhitebybuildinganentirelynewfilmstudioinBurbank,California.TheBurbank
1"TheWaltDisneyCompany."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
<https://en.wikipedia.org/wiki/The_Walt_Disney_Company>.
2"SteamboatWillie."AnimationBegins.Wordpress,n.d.Web.
WaltDisneyParksandResortsWorldwide,Inc.
studiobecametheheadquartersofDisney’scompany,whichremainstruetothisday.Disney
producedanumberofhitmoviesthatremainfamoustothisdayintheyearsbetweenSnow
WhiteandtheoutbreakofWorldWarIIin1941.
Followingthewar,whichwaslargelyspentmakingpropagandafilmsfortheAmerican
government,WaltDisneyProductionsreturnedtoitscorecompetencyofanimatedfilms,and
quicklyproducedmorehitssuchasPeterPanin1953.However,WaltDisneyhadplansto
expandhisbusinessevenfurther.In1954,WaltpartneredwithABC(whichisactuallyownedby
theWaltDisneyCompanytoday)toproducethefirstrenditionoftheWonderfulWorldof
DisneyTVseries,ashowsimplyentitledDisneyland.Thepurposeoftheshowwastounveil
plansforabrandnewamusementparkconceptsettoopeninAnaheim,California,acity
locatednearLosAngeles.WaltDisneynamedtheparkDisneyland,anditopenedthenextyear
in1955.
DisneyEnterstheAmusementParkIndustry
WaltDisney’sOpeningAddressatDisneyland,19553
3"DisneylandOpeningQuote."Pinterest.N.p.,n.d.Web.
WaltDisneyParksandResortsWorldwide,Inc.
Disneylandbecameamajorsuccessforthecompany,asitreliedonanumberoffactors
thatenableditswidespreadsuccess.Firstoff,Disney’smanyfamousmoviesandcartoonsat
thetimewerewell-known,andthisallowedthecompanytothemetheparkaccordingly.While
manyotheramusementparksatthetimesimplyrelieduponbasicridessuchasFerrisWheels
orCarousels,Disneylandofferedamoreimmersiverideexperience,combiningAmusement
ParkattractionswithDisneymovies.AfewearlyexamplesincludePeterPan’sFlight,aride
basedonthepopularmovie,andtheMadTeaParty,aspinningridebasedofftheAlicein
Wonderlandmovie.4
AnotherfactorintheearlysuccessofDisneylandwasinnovation.Fromthestart,
Disneypushedanumberofconceptsthatwererevolutionaryatthetime,andeventually
becamestandardinthethemeparkindustry.Theideaofhavingacentraliconforapark(the
castle),themed“lands”,andeffectivelyisolatingDisneylandfromtheoutsideworld(thepark
wassurroundedbygates/trees)areallcommonplacetoday,butwerebrandnewin1955.
Disneylandalsoofferedsomeincrediblenewtechnologytoguests,suchasthefirstdailyoperatingMonorailintheWesternhemisphere,andtheuseofaudio-animatronicstoproduce
life-likeroboticsonrides.
ThefinalkeyfactorinDisneyland’searlysuccesswasthatitwasaplacewherethe
entirefamilycouldhavefun.AnissuethatoftenplaguedearlyAmusementParksinAmerica
wasthatparkseithercateredtoyoungkids,leavinglittletodoforadults,ormainlyhadrides
thatscaredyoungeraudiencesaway.Aboveall,WaltDisneywantedhisamusementparktobe
4Wallace,David."14OriginalDisneylandAttractionsThatAreStillAroundToday."Disneyrama.N.p.,20Nov.
2008.Web.<http://www.disneyorama.com/2008/11/14-original-disneyland-attractions-that-are-stillaround-today/>.
WaltDisneyParksandResortsWorldwide,Inc.
aplacewherefamiliescouldhavefuntogether,andthisremainstruetoday.5Allthreeofthese
factorsarestillextremelyimportanttoDisneytoday,astheyrepresentsomeofWaltDisney
ParksandResorts’corecompetencies.
DisneylandGrows
Disneylandquicklyexpandedduetoitsearlysuccess,undergoingamajorexpansionin
1959,whichincludedtheopeningofDisneyland’sfirstrollercoaster,theMatterhornBobsleds.
Additionally,Disneyofficiallyenteredthehotelindustryin1956,withthedelayedopeningof
theDisneylandHotelnexttothepark.
TheMatterhornBobsleds,Today6
DuetothefinancialsuccessoftheDisneylandoperation,itwassoonconsolidatedinto
theoverallWaltDisneyCompany(Disneylandwasoriginallyundertheownershipofanother
corporationheldpersonallybyWaltDisney,calledWEDEnterprises).Thisconsolidation
providedtheframeworkforwhatisknowntodayasWaltDisneyParksandResorts,aswellas
5MacDonald,Brady."DisneylandOpeningDay."LosAngelesTimes.LosAngelesTimes,17July2015.Web.06
Oct.2015.<http://www.latimes.com/travel/la-tr-d-disneyland-opening-day-20150712-story.html>.
6"MatterhornBobsleds."Disneyeveryday.N.p.,n.d.Web.
WaltDisneyParksandResortsWorldwide,Inc.
WaltDisneyImagineering,whichisthedesignteamforallofDisney’sridesandattractions.7It
quicklybecameapparentthatDisney’smodelforthemeparksandhotelswasasuccessfulone,
andplansweredrawnupforfurtherexpansioninanotherlocale.
WaltDisneyParksandResorts
Disneydeterminedthatthemostsuitablelocationforasecondamusementparkwould
becentralFlorida,nearOrlando.Thecompanyembarkedonamassivelandpurchasing
project,amassing40squaremilesinLakeBuenaVista,Florida.WaltDisney’svisionforwhat
hecalled“TheFloridaProject”wasmuchbolderthanDisneyland-heenvisioneditasaplace
wheremultipleamusementparks,hotels,andevenamodeltowncouldbeconstructed.Walt
Disneypassedawayin1966fromlungcancer,justayearafterhisplansinFloridawere
announcedtothepublic.WaltDisney’sbrother,Roy,tookoverthecompanyandannounced
thattheFloridaProjectwouldofficiallybecalledWaltDisneyWorld,intributetohisbrother.
DisneyWorldofficiallyopenedin1971,withaparkcalledtheMagicKingdom,Disney’s
ContemporaryResort,Disney’sPolynesianVillageResort,andtheFortWildernessCampground.
Expansiontookofffromthere,asgolfcoursesbecameapartofDisneyWorldby1974,a
shoppingdistrict(theprecursortoDowntownDisney)openedin1975,andDisney’sfirstwater
park,RiverCountry,openedin1976.8WaltDisneyalsoleftbehindaclearideaforasecond
amusementparkinFlorida,whichopenedin1982-theEPCOTCenter.
7"RetlawEnterprises."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
<https://en.wikipedia.org/wiki/Retlaw_Enterprises>.
8"WaltDisneyParksandResorts."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
<https://en.wikipedia.org/wiki/Walt_Disney_Parks_and_Resorts>.
WaltDisneyParksandResortsWorldwide,Inc.
OpeningoftheEPCOTCenter,19829
ParksandResortsBecomesaMajorSegmentoftheCompany
Themid-1980swereatimeofmajorchangeintheWaltDisneyCompany.In1983,Walt
DisneyParksandResortsexpandedoverseas,withthegrandopeningofTokyoDisneylandin
1983.Thenextyear,MichaelEisnerbecameCEOoftheWaltDisneyCompany,andusheredin
yearsofsignificantgrowth,particularlyintheParksandResortssegment.Eisnerledthe
companyuntil2005,andislargelyresponsibleformakingWaltDisneyParksandResortswhat
itistoday.PlansforathirdparkinDisneyWorldwerequicklydrawnupafterEisner’stenure
began,andtheseplanswereradicalbecauseitsignaledashiftinDisney’scorporatestrategy-
thethirdparkwastobecalledTheDisney-MGMStudios,andcontainedanumberofattractions
licensedfromMetro-Goldwyn-Meyerstudios.DisneyWorldexperiencedanumberof
importantadditionsintheclosingyearsofthe1980s,includingthegrandopeningofTyphoon
9"1982EPCOT."FindDisney.N.p.,n.d.Web.
WaltDisneyParksandResortsWorldwide,Inc.
Lagoon,asecondwaterparkin1988,twomorehotels(Disney’sGrandFloridianResortandSpa,
Disney’sCaribbeanBeachResort),andeventuallyin1989,TheDisney-MGMStudios.10
The1990ssawevenmoregrowthforWaltDisneyParksandResorts,asthecompany
expandedintoEuropein1992withtheopeningofDisneylandParisinMarne-la-Vallée,France.
DisneylandParispresentedanewchallengetothebrand,asunlikealmostalloftheirprevious
amusementparkandhotelventures,theParisresortstruggledfinanciallyformanyyearsafter
itsopening.Thecompanylearnedanumberofimportantlessonsaboutforeigncultural
understandingfromthisexperience,andwaseventuallysuccessfulinFrance(DisneylandParis
isnowamorepopulartouristattractionthantheEiffelTower).
TheGrandOpeningofDisneylandParis,199211
10"WaltDisneyParksandResorts."Wikipedia.
WaltDisneyParksandResortsWorldwide,Inc.
FurtherexpansionoccurredinFloridaaswell,withtheopeningofDisneyWorld’sfourth
amusementpark,theAnimalKingdom,in1998.12WaltDisneyParksandResortsalsoreturned
toitsroots,announcingthelong-overduerebrandingandexpansionofDisneyland,which
includedanewamusementpark,DowntownDisneyarea,andtwonewhotels.Disney’s
CaliforniaAdventure,Disneyland’snewcounterpartpark,openedin2001alongwithDowntown
Disney,Disney’sParadisePierHotel,andDisney’sGrandCalifornianHotel.Thisaddition
immediatelyrebrandedDisneyland,whichhadonlybeenastand-aloneamusementparkand
singlehotelupuntilthatpoint,andthecompanybeganadvertisingtheentirepropertyasthe
“DisneylandResort”fromthatpointonwards.Disney’sCaliforniaAdventurealsoservesas
anotherimportantcasestudyonanareaDisneyinitiallystruggledinfinancially,andwas
forcedtoadoptwithmajorchanges-afteryearsofrenovationsandadditions,theparkhasonly
recentlybecomefinanciallysound.
Afterthenewmillennium,WaltDisneyParksandResortscontinueditsglobal
expansion.HongKongDisneylandopenedin2005,allowingtheDisneybrandtogrowinthe
all-importantChinesemarket.Thisregionissostrategicallyimportanttothecompanythat
plansforanotherDisneypropertyinChinaweresoonannounced,fortheShanghaiDisney
Resortwhichwillopenin2016.WhilesecondamusementparkswereopenedatbothTokyo
DisneylandandDisneylandParisin2001and2002,respectively,recentexpansionacrossthe
Disneypropertieshascenteredonimprovingexistingparks,andhotelconstruction.For
11"Disneyland-Paris."DisneyBlogs.N.p.,n.d.Web.
12"WaltDisneyWorldTimeline."DisneyWorldTimeline.N.p.,n.d.Web.06Oct.2015.<http://www.orlando-
florida.net/walt-disney-world/resources/timeline.htm>.
WaltDisneyParksandResortsWorldwide,Inc.
example,major“land”expansionshavebeenannouncedinrecentyearsattheMagicKingdom
andAnimalKingdominFlorida.
ExpansionBeyondAmusementParksandtheirSurroundingHotels
Inthepast20years,WaltDisneyParksandResortshasmovedtowardsinvestingin
areasoutsideoftheirtraditionalamusementparkandhotelcenters.TheDisneyCruiseLine
openedin1998,andhassincegrowntobecomeastrongsegmentoftheParksandResorts
business.Additionally,Disneyhasopenedanumberofresortsoutsideoftheiramusement
parkareas,inlocationssuchasHiltonHead,SouthCarolina,andKapolei,Hawaii.Finally,
DisneyhasdevelopedtheDisneyVacationClub(DVC),whichoriginallystartedin1991,to
becomeoneoftheirmajorbrand-loyaltyprogramsfortheParksandResortssegment.The
DisneyVacationClubisDisney’sversionofatimeshareprogram,wherememberspayannual
duesandcanstayinspecializedroomsatanumberofDisneyproperties,aswellaspartner
hotelsinotherlocations.13Disneyhasfocusedongainingasmuchshareaspossiblein
consumerspendingonvacations,andthishasledtoabroaderfocusonofferingavarietyof
traveloptionstocustomers.AgreatexampleofthisexpandedfocusisAdventuresbyDisney,
whichisacollectionoftripstoexoticlocationswhichareorganizedandguidedbyDisney
employees.
CurrentIssues
Disneyvs.Universal(andothercompetitors)
Nineoftheworld’stoptenmost-visitedamusementparksonayearlybasisareowned
byDisney,withtheMagicKingdominFloridatakingthetopspot.However,Disney’stop
13"DisneyVacationClub."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
<https://en.wikipedia.org/wiki/Disney_Vacation_Club>.
WaltDisneyParksandResortsWorldwide,Inc.
competitor,UniversalParksandResorts,hasrecentlyundergoneawaveofmajorexpansions
intheirparksaroundtheworld.UniversalcompeteswithDisneyParksinthreemain
geographicareascurrently-Florida,California,andJapan.Overthepastfewyears,eachof
theseparkshaveseensignificantgainsinattendance,withUniversalStudiosJapan’s
attendancegrowingby16.8%from2013to2014,andsimilargains(17%)attheIslandsof
AdventureparkinOrlandointhesameyear.Forcomparison,Disney’slargestgainsoutofany
oftheirparksaroundtheworldbetween2013and2014wereattheMagicKingdom,butonly
4%.14
AlthoughDisneycurrentlydominatestheattendancerankingsoverUniversal,whichis
theclear#2,UniversaliscurrentlyoutgainingDisneywhichshouldcausesomelong-term
concern.TheprinciplereasonattributedtotheseoutstandinggainsbyUniversalinrecent
yearsistheirsuccessfulexpansionaroundsomeoftheirkeyfranchises,suchastheSimpsons
andmostnotably,HarryPotter.TheWizardingWorldofHarryPotter,whichcostedacombined
(twophases)$456millioninFloridaand$442millioninJapan,hasbeenthecenterof
Universal’srecentexpansionandsuccess.
14"TheMostPopularThemeParksintheWorld."TheMotleyFool.N.p.,n.d.Web.06Oct.2015.
<http://www.fool.com/investing/general/2015/06/13/the-most-popular-theme-parks-in-the-world.aspx>.
WaltDisneyParksandResortsWorldwide,Inc.
UniversalOrlando’s$456MillionAddition15
InlightoftheserecentgainsbyUniversal,Disney’sleadershipfromCEOBobIgerand
downhasrealizedtheneedformoreaggressiveexpansionofDisneyparkstocompeteinthe
yearsgoingforward.UniversalfoundsuccessbytakingDisney’sformulaofusingtheirtheme
parkstoenhancethebrandastepfurther,bydevotingentiresectionsofaparktojustone
individualfilmseries.ThisisanoptionDisneycouldpursueinitsparksaswell,andalreadyhas
beguntodo-CarsLandinDisney’sCaliforniaAdventureandPandora-TheLandofAvatarin
Disney’sAnimalKingdomaretwoexamplesofthis.16WiththerecentacquisitionsMarveland
Lucasfilm(StarWars),thisgrowthstrategycouldcertainlybeprofitable,andisclearlyonethe
corporationseesasviable-theconstructionofStarWarsthemedlandswasrecently
announcedforboththeDisneylandResortinCaliforniaandWaltDisneyWorldinFlorida,so
designingthese“lands”effectivelyisanimmediatepriority.
15"WizardingWorldofHarryPotterGrandOpeningGala."OrlandoInformer.N.p.,n.d.Web.
16
WaltDisneyParksandResortsWorldwide,Inc.
AnotheravenueDisneycanpursueagainstUniversalisusingsizetotheiradvantage.In
everyinstanceofdirectcompetition,Disneyhasmoredevelopedandundevelopedlandthan
theirUniversalcounterpart,leavingmultipleopportunitiesformajorexpansionthatthe
competitioncannotmatch.Buildinganentirelynewparkononeormoreoftheirpropertiesis
certainlyanoptionforDisney,andifthisnewparkattractsenoughattention,itcanboost
attendanceattheotherDisneyparksintheareaaswellduetotheir“hopper”option.
AfinalareaoffocusforDisneyinregardstotheirrivalrywithUniversalisthemurky
stateofusingMarvelcharactersinDisneyorUniversalparks.Disneypurchasedthecomics
giantin2009,buthassincebeenrestrictedinitsuseofthesecharactersforridesand
attractions,particularlyinFlorida.ThisisduetothecontractbetweenUniversalandMarvel
thatwassignedbackinthe1990s(pre-Disneyacquisition),whichusheredinMarvelSuperHero
IslandatUniversal’sIslandsofAdventurepark,oneofthemainareasofthepark.Universal’s
contractwithMarvelgivesthemtightcontrolovertheusageofMarvelcharactersinthe
Orlandoarea(whereWaltDisneyWorldis),andmoreloosecontrolofuseofMarvelcharacters
atamusementparksanywhere.17DisneyhasbeenactivelynegotiatingwithUniversalovera
possiblebuy-outofthiscontract,sothisisapossiblewayforDisneytogaintheabilitytouse
Marvelcharactersactivelyintheirparks.Regardlessofwhetherabuy-outoccursornot,itisa
corporateprioritytofindasolutionthatwillenableDisneytofeatureMarvelinalloftheirparks
atwill.
17"WaltDisneyParksandResorts."Wikipedia.
WaltDisneyParksandResortsWorldwide,Inc.
ExpansionDecisionsOutsideofParks
TheintroductionofgolfandashoppingdistricttoWaltDisneyWorldin1974begana
trendthathasescalatedtothisday-Disneyisalwayslookingforwaystoreachconsumers
beyondjustparksandresorts.IftheintroductionsoftheDisneyCruiseLineandAdventuresby
Disneyinthepastdecadesareanyindication,thecompanyconstantlystrivestofindnewways
toreachtheirconsumers.Thisissuecanbebrokendownintotwomainareas:theneedtonew
waystoentertainguestsonDisney’sproperties,andfindingnew/expansionopportunitiesfor
Disney’sventuresoutsideoftheirtraditionalamusementparkandresortproperties.Thisis
certainlythemostopen-endedofthemainissuesthisexecutivemeetingwilladdressat
EagleMUNC,socreativeideasareamust.
UnveilingtheShanghaiDisneyResort
ConstructionontheShanghaiDisneyResortbeganin2011,andthis$3.66billion
projectiscurrentlynearingcompletion,asitisscheduledtoopeninthespringof2016.Asthis
importantexecutivemeetingofWaltDisneyParksandResortsatEagleMUNCwillcoincide
withtheopeningofDisney’sShanghaiResort,theopeningandinitialmonthsoftheresortwill
beakeytopicatthemeeting.ShanghairepresentsamajoropportunityintheChinese
mainlandmarket,whichDisneywillhaveaccesstoafullthreeyearsbeforeUniversal,which
willdebuttheirBeijinglocationin2019.ToliveuptothemassiveprojectionsDisneyhasmade
fortheShanghairesort(whichincludesitquicklybecomingthemost-visitedthemeparkinthe
worldbyyearlyattendance),anumberofchallengesmustbenegotiated.
Thesheerquantityofexpectedvisitorsisablessingfinancially,butalsoacurseinterms
ofdesigningthepark.Chinaistheworld’smostpopulouscountry,andShanghaiisthethird-
WaltDisneyParksandResortsWorldwide,Inc.
largestcityintheworldbypopulation,makingcrowdcontrolanever-presentissue.OnNew
Year’sEvein2015,36peoplewerekilledindowntownShanghaiduetoastampede,and
Disneymusttakeeveryprecautionpossibletoensurethatsomethingofthissortdoesnot
occurattheresort.Beyondsafety,Disneyalsoneedstomakesurethatguestsattheparkcan
stillhaveanenjoyableexperience,evenonthemostcrowdeddays.Thisinvolveseverything
frommakingsurethereareenoughattractionsandeateriesrelativetothemaximumamount
ofgueststheparkcanadmit,tomoremicro-levelissuessuchasproperly-placesecurityand
janitorialstaff.
ArtistRenderingofShanghai’sFirstDisneyPark18
TheotherissueDisneymustkeepinmindthroughouttheopeningofShanghaiDisney
isrelationswithboththeiremployeesandtheChinesegovernment.Bothofthesearecommon
pitfallsofWesterncorporationsoperatinginChina,aspoormanagementoftheworkforcecan
leadtobadPR,strikes,oralow-qualityproduct,andpoorhandlingofrelationswiththe
18"ShanghaiDisneyland."DisneyParksandResortPromotionalMedia.N.p.,n.d.Web.
WaltDisneyParksandResortsWorldwide,Inc.
governmentcanquicklyleadtoalossofbusinessopportunities.Withthegrandopeningofthe
ShanghaiResortimpending,executivesofDisneyParksandResortsmustensurethatno
furtherdelaysoccurduetolabor(contractorscuttingcornersinconstructionledtoaprevious
delay),andthatrelationswithtopChineseofficials,suchasMinisterofCultureLuoShugang,
remainpositive.
TicketPrices
TicketpricesfortheMagicKingdominWaltDisneyWorldrecentlycrossed$100for
single-dayadmission,andthisisjustoneexampleofageneraltrendacrossWaltDisneyParks
andResorts.Increasesinticketpricesoverrecentyearshasprovedbeneficialtothecompany,
astheimprovedeconomicclimateandhigherdiscretionaryconsumerbudgetsthathave
resultedhasledtoagreatergeneralwillingnesstopayforDisneythemeparktickets.19Going
forward,thecompanyislookingintothefeasibilityoffurtherincreasesinadmissionprices,but
thisissomethingwhichmustbedoneverycautiously.Itisthegoaloftheexecutivemeetingat
EagleMUNCtodetermineadjustmentstoticketpricethatmaximizeprofit,whilenotcrossing
thelineofangeringconsumersorpricingoutreliablecustomers.
ImmediateOutlook
Overall,Mr.IgerisextremelyoptimisticabouttheprospectsfortheWaltDisneyParks
andResortssegment,butthisexecutivemeetingwillinvolveasolvinganumberofimportant
challengespresentedinthisguide,andbeyond.Everyexecutiveatthisgatheringcomesfrom
19"WaltDisneyCoQ32015EarningsResults•TheDisneyCruiseLineBlog."TheDisneyCruiseLineBlog.
N.p.,04Aug.2015.Web.06Oct.2015.<http://disneycruiselineblog.com/2015/08/walt-disney-co-q3-2015earnings-results/>.
WaltDisneyParksandResortsWorldwide,Inc.
animpressivebackground,anditisthesincerehopeofMr.IgerandtheentireDisney
CompanythatproperdecisionscanbereachedbyMarch20th,2016.
QuestionstoConsider 1. WhataffectcouldraisingorloweringticketpriceshaveforDisney?What
affectwillthesechangeshaveonDisney’semployeesandthecompany’s
bottomline?
2. WhataretheimplicationsoftheopeningoftheShanghaiPark?Canthis
parkbeamodelforpotentialnewparks?
3. WhatrolewillDisney’srecentacquisitionofnewcompanieshaveon
Disney’scorporateplansgoingforward?
4. HowwillDisneyremaincompetitivegiventherecentriseofitsmajor
competitor,Universal?
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"DisneyVacationClub."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
<https://en.wikipedia.org/wiki/Disney_Vacation_Club>.
"MatterhornBobsleds."Disneyeveryday.N.p.,n.d.Web.
"RetlawEnterprises."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
<https://en.wikipedia.org/wiki/Retlaw_Enterprises>.
"ShanghaiDisneyland."DisneyParksandResortPromotionalMedia.N.p.,n.d.Web.
"SteamboatWillie."AnimationBegins.Wordpress,n.d.Web.
"TheMostPopularThemeParksintheWorld."TheMotleyFool.N.p.,n.d.Web.06Oct.2015.
<http://www.fool.com/investing/general/2015/06/13/the-most-popular-theme-parks-in-theworld.aspx>.
"TheWaltDisneyCompany."Wikipedia.WikimediaFoundation,n.d.Web.06Oct.2015.
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