Saturday, September 7, 2019

Strategic briefing paper Case Study Example | Topics and Well Written Essays - 500 words

Strategic briefing paper - Case Study Example Analyzing the history of Euro Disney, one can draw connections between the financial issues of Euro Disney and its name, which its bosses were forced to change from Euro Disney to Disneyland Paris because people in Europe linked a word euro with business and finance. In addition, the company was also forced to overturn an alcohol ban as French admired wine and thus, it led to a huge bank bailout in the 90s. The company had also difficult relations with its staff, which protested against a payment freeze and went on striking and marching through the park that caused the first ever cancellation of the famous daily parade (Losing the magic: How Euro Disney became a nightmare, 2010). One of the ways out of such complicated situations is the proposal about recapitalization in order to improve Euro Disney financial position. It will also enable the company to continue making investments in the resort thus increasing the guest experience. In addition, shareholders will have the opportunity to purchase shares issued in the debt conversion and the companys debt will fall taking Euro Disney’s balance sheet from a negative to positive equity position. Disney finance director states, that such operation will strengthen Euro Disney, not de- listing it from the stock market (Holton, 2014). For Disneyland Paris it is essential to formulate a new strategy by setting fresh goals and values, search for the new resources and capabilities, and revise the company’s structure and system. For this purpose, the company should understand how its current structure drives competition, whether it is a changing customers’ demand, changing prices or certain technological change. With the help of diagnostic strategic capability that may be performed by means of value chain analysis or SWOT analysis, the company would consider the development of its availabilities. Besides, the

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