Economic Development

Overview:  You  will examine how Disney learned from past experience to adapt its business plan for a new cultural environment. You will then research the culture of a foreign country and develop their own plan for introducing a new company there.

Students will:
1. Share opinions about how a foreign company might be expected to adapt to different communities.
2. Review the lessons Disney learned from its past experiences by reading and discussing the article "The Feng Shui Kingdom" (http://www.nytimes.com/learning/teachers/featured_articles/20050427wednesday.html).
3. Conduct research to determine how a major company might adapt its practices to respond to the needs of consumers in a specific foreign country.
4. Develop a business plan to introduce a company to that foreign country.

Activities / Procedures:
1. WARM-UP:   "Imagine that you are an advisory committee for your community. A major supermarket from a foreign country is preparing to open a new store in your community. What information can you provide about the people in your community to allow the supermarket company to respond to your community's needs? Are there any cultural or religious concerns that might affect the food products to be sold? Who is available to work in this store? Where in the community would you advise the company to build? Are there areas where it should absolutely not build? Will it compete with existing food stores? What cultural or economic impact might you foresee with the introduction of the new company?"

2. Read the following article and answer the questions "The Feng Shui Kingdom" (found online at http://www.nytimes.com/learning/teachers/featured_articles/20050427wednesday.html)

Related Article
The Feng Shui Kingdom
By LAURA M. HOLSON

(Go to Article
a. Where did Disney build a new amusement park?


b. Whom did the company consult?


c. Why did the company put a bend in the walkway to the gate?


d. Why did Disney heed the advice of a Feng Shui expert?


e. What does Disney do to commemorate the opening of each new building in Hong Kong and why?


f. What does the World Tourism Organization expect China to become in the next 15 years?


g. What examples does Robert Thompson cite as indications that American corporate behavior in foreign countries has changed?


h. What organization is collaborating with Disney on the development of Hong Kong Disneyland and how?


i. Name some of the ways in which Disney has tried to respond to the cultural differences in China.


j. Why is one of the park's main ballrooms 888 square meters?


k. According to Jay Rasulo, what lesson has he learned from past experience and why?


l. What mistakes did Disney make when opening Disneyland Paris, according to the article?


m. What Chinese pop singer did Disney hire and why?


n. Why must park employees speak three languages and what are they?


o. How does the park's most anticipated attraction differ from other parks with a similar attraction?

3. You will develop a business plan to introduce a major company to a foreign country. What do they need to know about the corporate culture? What do they need to know about the people and culture of the foreign country?

You will be acting as an advance development team introducing a company to a region of the world for the first time (imagine this situation even if the company already exists in that region today). Before students divide off in groups, have lets share some assumptions about the country and its people, and suggest how the people in this country might respond to the introduction of this new company?

Divide students into groups of four, and assign each one a company category - Fast food, Entertainment, Media, Clothing/Fashion. Ask each group to first choose a company in their category. Suggested companies include:


--Fast food: Burger King, McDonald's, Subway or other convenience restaurant chain
--Entertainment: MTV, Six Flags, Block Buster, movie theater
--Media: Newspaper, Magazine, Television or radio station
--Clothing/Fashion: Gap, Pac Sun, Triple 5 Soul, other retail clothing line

Next, each group choosesa different country.  Some suggested countries include:
Canada
Dominican Republic
Iceland
India
Israel
Mexico
Nigeria
Singapore
Saudi Arabia
South Africa
After each group has been assigned a country, ask each group to choose a major city in this country in which to introduce its company.

Within each group, two students will conduct research on the corporation, while the other two will conduct research on the country they have chosen, answering the following questions :

THE CORPORATION
--What does the company do/make/sell?
--Who is the target audience or consumer for the company (who typically buys or uses their products or services)? Are there any cultural differences that might shift this target to a different population in the country?
--What is the average cost of the company's product or service in the U.S. (in U.S. dollars)? What would this price be in the country's currency?
--How many people currently work for the company? What types of jobs do they have?
--What is the average salary for an entry-level employee (in U.S. dollars)? For an executive? What would these salaries be in the country's currency? How do you think the company will adjust these wages in the new country?
--Are entry-level workers required to learn specialized skills?
-What steps might the company need to take to train local residents?
--What are the company's annual profits?
--Who is the company's competition?
--In what countries does the company currently sell or produce its products or services?

THE COUNTRY --What is the physical environment like?
--What kinds of religious traditions do the people follow?
--What cultural rituals do they engage in?
--What kinds of foods do the people eat? Are there restrictions on the kinds of foods they can eat?
--What do people do for entertainment? Are there restrictions on the kinds of images they can see or language they can hear?
--What do they wear? Are there restrictions on what they can wear?
--How do they get their news? Are there restrictions on the kind of information or news they are allowed to receive?
--What languages do they speak?
--What is the average age of the working population?
--Are there any days or times in which work is restricted?
--Are there restrictions on who can work?
--What is the average income for local workers?
--What types of industries currently exist in the country?

After you have conducted their research in pairs, the larger groups of four will reconvene to share with one another what they learned. Each group will prepare an artifact that demonstrates what their company can produce or sell in their chosen country. For example: the fast food group will prepare a sample menu, the clothing group will a catalog of the clothes they might sell, the media group will prepare a descriptive table of contents for a newspaper or magazine or program schedule for a radio or television station, and the entertainment group will present a list of movies, music videos that can be shown. Alternatively, groups may produce an advertisement marketing the product or service they are offering.

We will do #4 or we will choose to do one extension activity and one interdisciplinary connections activity.  Class will vote.

4. Reflecting on what they learned from the article and the group work, students will pair off to develop a business plan that should include the following information:
--Overview of the company (1 paragraph)
--Statement of purpose (1 paragraph)
--Data on current earnings
--Earnings projection
--Statement about why company would like to do business in the new country (1 paragraph)
--Statement of opportunities and challenges (1-2 paragraphs)
--Cultural considerations the company has addressed (1-2 paragraphs)

You will present their business strategies to the class, and discuss the viability of each plan based on what they learned about how and why companies must adapt business practices to meet the needs of different cultures.

Vocabulary:
Feng Shui, prosperity, expansion, policy, export, imperialism, replica, equity, architecture, concession, investment, bankruptcy, concede, finance, fiscal, net, culinary, faux pas, placate, merchandise, diverse, topiary, overkill

 

Extension Activities:  Choose one of the following
1. Why is China expected to become a major tourist destination in the next 15 years? On a timeline, show how China has changed in the past ten years and the direction in which the country is headed. What types of industries have been introduced? How has the government changed?

2. The article makes extensive reference to Feng Shui. Research elements of Feng Shui and design the classroom to correspond to those principles.

3. Profile The Walt Disney Company. Where else in the world has the company opened amusement parks? Prepare an essay detailing the company's global impact.

4. Research a foreign company that has had success in the United States. Write an article that shows why and how the company has been successful.

 

Interdisciplinary Connections:  Choose one of the following
Fine Art- Prepare a scrapbook of images of Chinese art and culture.

Media Studies- Develop your own cartoon feature film. What elements make for a good cartoon? Create characters and a setting.

Technology- Prepare a "How it Works" poster for an amusement park ride. Design a ride or attraction for Disney World China. What are the important elements to consider?

Find five articles that demonstrate five different companies' successes and failures in expanding to other foreign countries.  Write a 1/2 page summary of each article documenting the successes and failures.

 

Other Information on the Web
Disney's website (http://corporate.disney.go.com/index.html) offers information about the company.

Hong Kong Disneyland (http://www.hongkongdisneyland.com/eng/) is a source of some public information about the park.

The World Tourism Organization (http://www.world-tourism.org/) provides information about tourism trends around the globe.

The Weather Channel (http://www.weather.com) provides information about climate around the world.

The CIA: World Factbook (http://www.cia.gov/cia/publications/factbook/index.html) provides demographic and cultural data about countries around the world.

Dismal Scientist (http://www.economy.com/dismal/) offers economic indicators and analysis about the global economy.

The Asia Society's website (http://www.asiasociety.org) provides valuable information about Chinese art and culture.