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Integrated Business Challenge

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Questions:

1.How Disney can Manage/Lower any risk that may Impact the Project.

2.How Disney will find the Finance to Fund the Expansion.

3.How will Disney Market their Products and what is their Demographic.

4.The Main legal issues Disney may face in the Expansion.
 
 

Answers:

Introduction

The scoping report of Disneyland focuses on the issues that will be faced by the company during its process of expansion in a foreign country. The scoping report of Disneyland will identify various issues of the external market in Mauritius. The scoping report of the company will help Disneyland while reducing the different types of risks and legal problems faced by the company in the Mauritius region. The different risks are identified in the expansion of the business activities of the company and its strategic implementation. Apart from that, a business also faces many legal issues while operating their business operations in the country. A thorough research on the legal laws, trade laws and other regulations that controls the activities of the business in the new country will be conducted by using different theoretical frameworks and practical implications of latest technologies. The methods and approaches used in financing and marketing will be discussed in details that will help Disneyland in creating brand awareness among the target customers of Mauritius. Detailed analysis of the marketing techniques and sustainability are the main aspects that are the reason of popularity of the company in Mauritius. Apart from that, the demographic features of the country as well as the target customers are also mentioned in the study. Disney land is a theme park that is first opened in California, America. Disney currently operates on five different locations of the world such as Tokyo, Paris, Florida, Hong Kong and California. The study will focus on the expansion of Disney Land in Mauritius. Several aspects of culture, accessibility, human resources, land, economic stability, infrastructures, competition, awareness of Disney board, etc. are to be addressed in the study. The different favourable conditions of doing business in Mauritius must be discussed in the study for discussion of the marketing activities, risk profile, cultural inclusion and sustainability of the company in Mauritius.

1.Risk Profile

Economic condition of Mauritius is strong with the liberal economic principles. Despite of having many favourable conditions, there are many risks faced by the companies while doing business in Mauritius. The risks of expanding business operations in Mauritius are described below. Disney Land must focus on this aspect in order to mitigate the problems of expansion of business in the target country.

 


Problems while Dealing with the Construction Permits

The environmental considerations of the country are responsible for creating an effect causing a long widened process. Disney Land before starting their construction of park may consult with various government authorities that will carry different types of inspections before starting the work. After completing all the procedures of inspection, the occupancy permit can be granted by the Ministry of Government (Nguyen, Newby and Macaulay 2015).

Getting Electricity

The Central Electricity Board is responsible of providing electricity to the firms after lengthy process of various types of routine inspections, meter installation and visual internal and external inspection.

Registration of Property

Registration of property is done by land surveyor while preparing new plans for the building the theme parks in Mauritius. The process of registration is long therefore Disney land must have the hold on this aspect for late construction of their theme parks (Horkoff et al. 2014).

Getting Investors and credit

For getting finance from different types of renowned finance companies in Mauritius by a foreign company is difficult compared to a domestic company. Although, it can be said that, there are no private bureau of providing finance to these foreign companies. Getting credit by Disney can be a difficult task from the International Finance Corporation and World Bank.

Trading Across Borders

International trade In Mauritius is a crucial component of its different business procedure as an island economy (Dai et al. 2014).

Tax Payment

Rates of taxes in Mauritius are very competitive in nature. Rather in some circumstances, it can be burdensome. Taxes sometimes fluctuate in the different situations that affect the profitability of the business in the country.

 

Culture

The government of Mauritius considers formal business relations. Instead of making friendly relation with companies, business relations are more prioritized. The culture of using brochures, business cards, price lists are important while attending a formal meeting with the organizations of Mauritius (Morgan and Morphis 2017).

2.Financing

There are many types of sources of financing that business corporations use while expanding the business in a country. The sources of financing are described in the following:

Angel Equity

Business expansion can be done by selling the ownership stake while starting to find a reputed industry that is willing to provide the amount for the business expansion of the country and credibility with potential investors (Cassar, Ittner and Cavalluzzo 2015).

Smart Leases

Smart lease is defined as the process of leasing the company’s fixed assets while conserving cash for the working capital for an unproven business.

Bank Loans

It is the most common form of providing loans for the company. Banks of Mauritius will provide various types of loans such as long term financing, short term financing, mid term financing. It includes real estate, equipment and working capital. Banks usually seek assurance of personal assets and mortgages as a proof of recovering the loan (Bruton et al. 2015).

State and local Economic Development Organizations

Disney can approach to economic and state developing organizations that will charge a considerable low interest apart from lending money alongside a bank.

Customers

Disney Land can also collect funds for its expansion in Mauritius from the customers itself. Disney while expanding their branches in Mauritius can do advance payment from the customers. This strategy will help the company in growing faster with various limited resources (Achleitner et al. 2016).

3.Marketing

Marketing of Disney Land is consisted of many types of marketing strategy, such as user generated marketing strategy, digital marketing strategy, marketing mix, etc. Republic of Mauritius is a country that has many opportunities such as good location, multilingual & multicultural, strong economy, less humid weather, easily accessible transport facility, availability of various types of tourist destinations, etc. All these favourable conditions are utilized by Disney Land in order to formulate strategies of marketing and other operations of business in the country (Huang and Sarigöllü 2014). The facilities that are located for the expansion of Disney land in Mauritius are stable political situation, facilities, flow of tourists, great location, population, language, weather, etc.

User generated Marketing Strategies of Disney Land

Theme parks of Disney Land implement user generated marketing campaign, which runs on web, television and in the park itself. It includes different types of photos and videos of the visitors and travellers of the theme park. This strategy includes the participation of the customers and travellers in the marketing strategy of the company. This marketing campaign helps in posting snapshots, home videos, of the travellers to the park while sharing their experience in the website, print media, online communication and the big screen television present within the theme park. The marketing campaign of the Disney Land is known as “let the memories begin” where participants can post messages, photos, and various other updates and information related to Disneyland both on traditional media and digital media (Mullin, Hardy and Sutton 2014). The online components of the marketing campaign are used in the commercials used in television that are created in the social media campaigns. The functionality is now a part of the social media channels such as MySpace, YouTube, Facebook, Instagram, etc. Market research is conducted by the company in Mauritius for formulating content of the advertising in traditional and digital media (Leonidou et al. 2013). The user generated marketing strategy also helps in understanding the consumer behaviour of the population of Mauritius. It will finally help in formulating the marketing mix for the theme park in Mauritius.

 


Service Marketing Mix of Disney Land

Product: The product in the marketing mix in this context is the theme park of Walt Disney i.e. Disney Land. This is considered as the most profitable theme park of Walt Disney with many features added in it. In the park, all characters created by Walt Disney are visible in the park. The theme park has different rides, which is responsible for creating experience for the visitors (Mintz and Currim 2013).

Price: Price strategy adopted by Disney Land is not targeted by the target population of high-income group people. Hence, it can be said that the tickets of Disney Land in Mauritius is not too low or not too high so that middle income group people can afford it and can visit it frequently. There are merchandises available in the theme parks which are also affordable for the visitors of the park. The prices of these merchandises are kept competitive in nature for the increase of revenue of the company from the target customers of Mauritius.

Place: It can be seen that Disney Land is present in many parts of the world. In this context, the place of Disney Land is Mauritius (Babin and Zikmund 2015).

Promotion: Disney Land in Mauritius can adopt various types of user-generated promotions, traditional media campaigns and digital media campaigns for attracting target customers of Mauritius. The aim of doing promotions of Disney Land is to create the awareness of the different features and services available in the theme park of Mauritius.

People: People who are present in the theme parks are humble and polite in nature. They are known to provide excellent customer service in order to push sell of different services of the theme park. The company will train the employees in a way so that the employees can incorporate the culture of Disney to the visitors. This will help in the word of mouth promotion of the Disney Land in Mauritius.

Physical evidence: Many taglines are present in the theme park that is attractive to the visitors of the theme park. There are different types of small things that Disney Land can do for the visitors so that they can create a happy memory in their life and can visit the place (Kotler et al. 2015).

4.Legal Systems

Legal system of Mauritius includes a detailed overview of the currency regulations, foreign investment, currency regulations, business vehicles, incentives, liabilities, relevant restrictions, etc. Mauritius is known to have a hybrid legal system that consists of both common and civil law practices. The legal system of the country is derived from the British Common Law and Napoleonic code. In terms of foreign investment, it can be said that there are no such restrictions for foreign direct investments in Mauritius. Disney Land will find no restrictions in doing business in Mauritius, as the jurisdictions of the country are not too much restricted. Product specific restrictions are there in some cases (Chang 2016). In the perspective of currency regulations, there are no exchange controls. For repatriation of dividends, profits and capital gains, no approval is required. Other legal systems include income tax rate and flat corporate tax of 15%, no tax on any dividend, no capital gains tax, free repatriation of capital, dividends and profits, direct incentives of cash for the employers in the perspective of training and recruiting, exemption from the customs duty on the equipment, etc. These are the legal aspects that Disney will face while doing business in Mauritius. Apart from that, it can be said that there are many other trade laws, consumer protection laws, local trade laws that can affect the business operations of the company in Mauritius. While entering in a country, the company must abide by the laws and regulations of the country in order to continue with the business in the country. However, the legal department of the Disney Land must have the capabilities in mitigating the issues of the different sets of regulations in Mauritius (Cassar, Ittner and Cavalluzzo 2015). It can be said that the legal systems might not create any vital issues in the expansion process of the company in Mauritius.

Cultural Inclusion

Cultural inclusion is the most important aspect that companies must follow while doing business operations in a country. The strategic management department of the company must accomplish the culture of the company as well as the culture of the operating country. Diversity and multiculturalism are the features that Disney Land maintains within the company in order to create a pleasing environment for the employees to work. As it is a multinational company, hence there will be many employees that will belong from a separate country. Policies of cultural inclusion and diversity are same in all the departments of the corporate offices present in the different countries of the world (Rice 2015). Disney Land is a company that is known for having high corporate and cultural values. It can be said that the creativity of the company comes from the talents from the employees of diverse backgrounds. The cultural diversity within the company is maintained in a way so that the employees can work in a group without any problem. It is a inclusive company that maintains a diversity and culture that recognized the commitment of the company while creating the culture of diversity and inclusion within the company. The employees of Disney Land are termed as tourism professionals, achievers, dreamers and designers from different parts of the world. The policies for diversity include gender equality as well as fair policies for all categories of people (Pieterse, Van Knippenberg and Van Dierendonck 2013). The social policy of the company is the major aspect of the policies and regulations of the company in terms of professional gender equality. It is seen that almost 48% of the employees are women and 52% of employees are men. Therefore, Disney Land will also maintain the gender equality in the corporate office of Mauritius. Disney also has a university that is focused on providing training and developmental approaches to the employees of the company.

There are mobility in terms of training and career growth of the employees who are working with the company. It is a positive approach of the company in order to develop skills for the employees for serving customers in a better way. The company must recruit employees from Mauritius in order to understand the consumer behaviour of the people residing in Mauritius. The strategies will be made on behalf of the purchasing decision of the consumers of Mauritius. The university run by Disney are focused in providing the knowledge about the corporate culture of the company (Brunow and Blien 2014). It is because the cultural facts will ultimately help in mixing the employees of the Mauritius with the employees with the other employees of other countries. The skills and capabilities of the employees will help in providing an improved customer service to the visitors of the theme park in Mauritius. It can be said that Disney Land has a unique corporate culture that can be found in terms of talent, enthusiasm and dedication of the employees. The international workforce of the company along with the interesting and unique products and service of Disney have a diverse corporate culture are known for their group cohesiveness (Suedekum, Wolf and Blien 2014).

There are many facts about the company that will be mentioned below which will prove that Disney Land must ensure cultural inclusion in the expansion of its branches in Mauritius.

  • Disney employs more than 100 nationalities
  • More than 20 languages are spoken
  • 80% of managers of different managers irrespective of their nationalities are promoted internally
  • Cultural aspect of Mauritius are also taken into considerations

Apart from that, Disney Land Mauritius must formulate strategies related to multiculturalism and diversity that will ensure a meaningful experience of work culture to the employees so that they can satisfy the needs and demands of the consumers of Mauritius (Bellini et al. 2013).

Sustainability

The issue of sustainability is a vital aspect that every company being multinational or a domestic company are focusing in order to sustain in the competitive business world. The market for Disney is also competitive in nature. Many theme parks are direct competitors to the company that are responsible for increased brand awareness, brand image and target customers in the target market. Sustainability is the issue that is maintained in every aspect of the strategy formulation. Apart from companies, the consumers across the different parts of the world are focused on the different aspects of sustainability that the enterprises are taking for saving the resources of the environment (Tollin, Christensen and Wilke 2015). The environmental aspect is a vital concern and responsibility for all the consumers and the customers in the target market. Sustainability of the company encompasses activities that not only focuses on the environmental aspects but also to the basic human rights of the employees associated with the company. Disney is a multinational company and is known for maintaining approaches of sustainability for the company in order to create a positive image of the brand all over the world. Being it is the target market of Mauritius, Disney is successful in meeting the expectations of the consumers all over the world. Due to various ranges of products, Disney manages to earn high brand recognition in the world. It is due to the sustainable approaches taken by Disney Land in different parts of the world. Disney Land in Mauritius will be committed to utilize the maximum resources from renewable sources of energy compared to non-renewable sources of energy (Carroll and Buchholtz 2014). The company will use technologies that will maintain approaches of sustainability in the environmental consumption of the company. Apart from that, it can be said that there are many rules set by the government of Mauritius that Disney Land must have to abide by in order to continue with the business operations in Mauritius. The environmental protection approaches along with internal business strategies must contain the elements of sustainability in them in order to attract the consumers of Mauritius to their theme park (Cullen 2016).

 


It can be said that Disney Land must incorporate sustainability approaches in different sectors such as waste, energy, water, greenhouse gas emissions, inspiration, eating and related products, ecosystems, etc. In terms of waste management, Disney Land is involved in recycling into different types of waste management programs that will help in less pollution of environment. The opportunities for the recycling are different in terms of the process adopted by the company in different country of operation. The recycling procedures will use the technologies that are feasible in the country of Mauritius. The waste management include packaging, wastage and wrapping (Werbach 2013). Disney Land must focus on the manufacture of parks that will emphasize the methods and approaches of consumption of water in terms of drinking. Apart from that, the technical improvements of the water consumption, follow up of the strategies of water quality and behavioural changes can be implemented in the sustainable approaches of water consumption. In terms of energy preservation, Disney Land can use maximum input from solar and wind energy compared to other non-renewable sources of energy. The sustainable solutions are to be formulated in order to preserve the fossil fuels of the earth. Greenhouse gases are the poisonous gases that emits on burning of fossil fuels and are the reason of global warming (Schaltegger, Hansen and Lüdeke-Freund 2016). The responsibility of the company lies on the fact that the companies must emit less greenhouse gas from their different branches of operations. In terms of related products, Disney Land Mauritius must implement processes that can introduce the ecological footprint of the company by maintaining sustainability in the perspective of manufacturing and packaging. Disney Mauritius can focus on the different aspects of promoting their services and products to the target customers of Mauritius. There are many corporate social responsibility approaches that Disney practice in other countries in order to increase their brand image (Beckmann, Hielscher and Pies 2014). In Mauritius, these approaches can be implemented by effective customization regarding the nature of the consumers of Mauritius in order to create a brand image in the minds of the Mauritius customers.

Conclusion:

The Disney Land in Mauritius will be able to earn substantial profit if the scoping areas described in the study are followed and prioritized in a proper way. The scoping areas include different factors of risks that Disney may face while entering Mauritius for the business expansion. Apart from that, the hybrid nature of the legal systems of Mauritius are explained properly so that the company can mitigate the issues that will be faced in the expansion policy. The issue of sustainability is mentioned and explained elaborately so that the company can improve their brand image as well as the factors that the company can practice in Mauritius for maintaining sustainability. However, the marketing approaches that Disney can apply in promoting their theme park in Mauritius are described in the perspective of the external market analysis of Mauritius. Focus on user generated marketing will be provided by the company in order to attract more customers to the theme park. The source of financing that are mentioned earlier are the possible sources of finance that Disney can use in their business expansion in Mauritius.

 

References:

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