m7a2so(Smart Writer)

Part 1—SWOT Analysis (2 pages)

EuroDisney as a firm experiences threats and opportunities and also strengths and weaknesses. This means that the firm must therefore put its good strategies in place in order to take advantage of any opportunities that may come up or to maximize the strengths that it has in order to increase its earnings. It is also important to strategize on how to minimize the firm’s weaknesses and minimize the effect of the threats to avoid lowering the earnings of the firm (Moss, 2010).

Strengths

1. Good company image

2. Great financial stability

3. It is popularly known for its entertainment

4. Good brand name

5. Good and strong reputation

6. Innovation

Opportunities

1. The location of the company in France was an opportunity due to the tourism that takes place there

2. The ease of accessibility of the location of EuroDisney is also an opportunity

3. The culture of the Europeans who include vacations as part of their lifestyle is also an opportunity for EuroDisney

4. Support from the government of France in terms of its finances

Weaknesses

1. The theme parks in EuroDisney have a low capacity which cannot accommodate the high number of visitors (Moss, 2010).

2. Lack of adequate experience for running the theme park business in Europe

3. Another weakness faced by the firm is applying effective business strategies and implementing them internationally

4. Poor management and high employee turnover rates

Threats

1. Competition from other firms such as DreamWorks

2. Economic forces such as depression

3. Presence of better theme parks compared to the ones in EuroDisney

4. Cultural imperialism is also a factor that acts against the firm’s objectives

Part 2—Balanced Scorecard/KPIs (4 pages) A balanced scorecard presents organizational performance on four primary groups of measures:

1. Financial

In terms of the financial perspective of the balanced score card, the main focus is on how the company should present itself before the shareholders in order to ensure that it succeeds on that perspective (Kaplan & Norton, 1996).

The measures that provide guidance on how the firm performs in terms of the financial perspective of the balanced score card in EuroDisney include;

a) Determining the profits and losses of the firm. When the profits or losses of the firm are calculated through the income statement, it is easier for the firm to know whether the shareholders are getting value for their investment or if the firm is competitive when this is compared to the performance of the competitor firms. For example, the performance of EuroDisney can be compared to that of DreamWorks.

b) Determining the assets and liabilities of the firm through the balance sheet. The assets and liabilities of the firm can only be measured through the balance sheet. The balance sheet indicates the financial performance of the firm to the shareholders as it outlines the assets that the firm possesses and also the liabilities (which includes debts) that the firm has. This therefore presents the shareholders with a clear report on how their investment is productive or non-productive as it indicates the performance of the firm. A firm with a lot of debts can be said to be performing poorly.

2. Customer (external stakeholder)

Customers are very important to the existence of any firm. This is because without them, the firms would have no need to run business. This therefore implies that businesses and firm exist to satisfy the needs and wants of the customers and so they must act according to what they are instructed by the customers.

Recently, most firms are placing their focus on the customers as they have realized that their very existence is because of customers. Firms must also be able to classify their customers based on their income and needs. This helps in identifying and satisfying their needs with much ease (Kaplan & Norton, 1996).

The measures that give measurable and reliable indication of the performance of EuroDisney in terms the customer perspective include;

A) Feedback from the customers. Feedback whether positive or negative, shows the performance of the firm in terms of the satisfaction levels. If the firm satisfies its customers, then they provide positive feedback. If they are not satisfied, they give negative feedback. Feedbacks help in informing the management of the firm’s performance. Positive feedback from customers indicates that the firm is more competitive compared to the others.

B) Customer retention or new customers- The firm can determine its performance in terms of how it satisfies its customers through the analysis of retention rates and new customers. When the firm retains the existing customers, then it shows that its services and products are good. This indicates to the shareholders that the firm is doing well and that they are gaining value for their investments. In terms of the competitive advantage, the firm is usually at the top of its competitors when it retains its customers or when it gains new ones.

3. Learning and Growth

This perspective involves the training and development of employees in relation to the overall development and growth of the firm. Due to the dynamism in the corporate world, it is very important that firms keep their employees constantly learning. Firms whose employees keep learning are very forward-looking and focused and always benefit. These firms show customer value as when the employees are trained, they tend to learn how to deal with customers better and therefore customer value increases (Kaplan & Norton, 1996).

The measures that are put in place to give a measurable and reliable indication performance of this perspective of the balanced score card include;

a) Presence of training programs for the employees. Firms that have such programs encourage the growth of the employees and the firms. They also give the firms a competitive edge over their competitors.

b) Presence of counseling and mentoring sessions. Firms with mentoring and counseling sessions or programs also encourage the growth of the employees and therefore leading to the firm’s growth. This is because when the employees are satisfied and stress-free, they work better and therefore the performance of the firm increases (Kaplan & Norton, 1996).

4. Internal Process

This perspective of the balanced score card deals with the business processes of the firm and about their conformity to the overall mission and goals of the firm. The measures that can be used to measure this include;

a) The inclusion or exclusion of the employees and the management in the firm’s mission, goals and overall strategy. When the firm’s employees and top managers are included in its overall strategy, it implies that the firm has trust in the workforce and believes that they can help the firm to achieve the goals.

b) Presence of the vision statement of the firm. The vision statement indicates the future focus of the firm. Firms without this do not show any value for their investors, and do not also have any strategies for the future. It is therefore very important that firms have a vision statement that shows its future focus and direction. This can also be categorized as a strategy to help employees grow and also to boost performance (Kaplan & Norton, 1996).

References

Adbulaziz, S. (2011). Walt Disney- Company Insight & Competitive Analysis. New York: Slide share Inc.

Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Boston, Mass: Harvard Business School Press.

Moss, S. (2010). The entertainment industry: An introduction. Wallingford, UK: CABI.