internal Factors. Despite the of experience with the US. Disney parks and t successful with the still made serious in operational planning, such as the demand for breakfasts, the insistence on wine at meals, the severe peaks and valleys in scheduling, and even such mundane things sufficient restrooms for tour bus drivers. problems in motivating and employees in efficiency and customer mistakes reflect an French mindset or a deficiency of Disney management? Perhaps both. But should not Disney management have researched all cultural differences more thoroughly? the park needed major streamlining of inventories and operations after the The mistakes suggested an arrogant by Disney management: "We were arrogant," concedes was like, 'We're building the Taj and people will on our terms. come The miscalculations in hotel rooms and in pricing of many products, including food services, showed an insensitivity to the harsh mistake was taking on too much debt for the park The highly leveraged situation burdened Euro Disney with such hefty interest payments and overhead that the break even point was impossibly high, and even threatened the viability of the enterprise. See the following Information Box for a discussion of the important inputs and implications affecting break even, and how these should play a role in strategic planning. Were such mistakes and miscalculations beyond what we would expect of
reasonable executives? Probably not, with the probable exception of the crushing bur den of debt. Any new venture is susceptible to surprises and the need to streamline