video NOTES

Twenty videos are available, geared to individual chapter topics. The teaching notes for these videos are also included in the Video Notes section of this Instructor’s Resource Manual, beginning on page V.1.

Video 3:“Walt Disney Imagineering: The Mouse that Doesn’t Come with a Computer”)

This video focuses on challenges faced by Walt Disney Imagineering, the group of artists and craftspeople who design and create Disney-themed venues. Disney management has successfully responded to differing expectations in global markets.

(Bonus Case 3-3, “Walt Disney Imagineering: The Mouse that Doesn’t Come with a Computer,” on page 3.49 of this manual relates to this video.)

Video Title

Walt Disney Imagineering:

The Mouse that Doesn’t Come with a Computer

learning objectives

  • Discuss the difficulties in adapting a business to the needs and perceptions of another culture.
  • Explain the role of risk in the global marketplace.
  • Identify the factors involved in deciding to do business internationally.
  • Discuss the reasons why a business engages in global trade

key people and companies

Joe Lanzisero, Jim Thomas, and Tom Morris, executives at Walt Disney Imagineering

overview

This video focuses on challenges faced by Walt Disney Imagineering, the group of artists and craftspeople who design and create Disney-themed venues. The underlying question addressed in the video is, “How does Disney preserve its fundamental message and still cater to the varying tastes of foreign cultures?” The video provides several examples of Disney management effectively responding to the differing expectations of global markets. Also, China’s expanding role in the global economy and a potential ethical scenario regarding global management practices are briefly discussed.

preparing students before the video

Ask students to name the largest U.S. companies with which they are familiar. Make a list of their responses, and then point out which ones are multinationals, as opposed to domestic companies. Also, ask students to share with the class their experiences traveling abroad. Encourage them to focus upon those elements of foreign culture that presented the most difficult adjustment for them during their travels.

major issues in the case

The video case provides an excellent illustration of why the adage “Never assume that what works in one country will work in another” is true. It also highlights the challenge involved in maintaining a consistent brand image on a global level, the advantages of using local talent, and the U.S.-China trade deficit.

Additional Discussion questions

1.Why do you think Disney chose licensing as a means of international expansion instead of the other alternatives?

2.How does our nation’s unfavorable trade balance with China impact the U.S. economy? Justify your response.

3.How is it that the U.S. economy is the largest in the world, although our nation comprises only 5% of the population?

Suggested Answers for Discussion Questions

1.Why do you think Disney chose licensing as a means of international expansion instead of the other alternatives?

The Oriental Land Company and the Hong Kong government have a licensing agreement with the Walt Disney Company. Through this agreement, its Chinese partners agreed to assume responsibility for producing, financing, and marketing its theme parks, while Disney collects royalties and maintains complete ownership of its brand and its trademarked entities. Foreign direct investment would have been much more expensive and would not have provided the benefit of a partner with expertise in its foreign market. Licensing typically provides greater flexibility in the structure of the relationship between partners than franchising. Exporting and contract manufacturing are not practical options. In a joint venture, it may have been more difficult for Disney to protect its brands and trademarks.

2.How does our nation’s unfavorable trade balance with China impact the U.S. economy? Justify your response.

This trade deficit exists because China exports much more to the U.S. than it imports from it. At first glance, many assume that a negative trade deficit is harmful to the nation’s economy.However, most economists disagree.They argue that the inexpensive cost of China’s manufactured goods make them more abundantly available to Americans and at a lower cost.In addition, any and all free trade stimulates increased buying and selling in our nation, hence contributing to the growth of our domestic economy.

3.How is it that the U.S. economy is the largest in the world, although our nation comprises only 5% of the population?

There are many factors that contribute to the answer to this question. One factor is that the United States has consistently embraced capitalism, which creates wealth much more rapidly that other world economic systems.Consistent, historical demand for U.S. goods and services has also helped our economy steadily expand.