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Case
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Reference no. UVA-OM-0898
Published by: Darden Business Publishing
Published in: 1999
Length: 8 pages

Abstract

In March 1999, the Hong Kong government announced that it was negotiating with Disney to create a theme park in Hong Kong. While Disney CEO Michael Eisner had been quoted as predicting that the Chinese people would embrace the concept, Disney was reportedly seeking some significant concessions from the Chinese government, including bearing land costs, building the infrastructure, and providing low-cost loans or equity to help finance the $1.3 billion project. Even if the Chinese government and Disney reached agreement on these issues, however, there were clearly a number of important design issues to be resolved. Was Hong Kong truly the best site for a new Asian park? Should Disney take on a local partner? How deeply should traditional Chinese culture be integrated into the theme park? How should Disney manage the relationship with Beijing, given the Chinese government''s track record of media censorship? Appropriate audiences for this material includes and ''operations'' oriented course or an elective course that covers managing service operations.

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Abstract

In March 1999, the Hong Kong government announced that it was negotiating with Disney to create a theme park in Hong Kong. While Disney CEO Michael Eisner had been quoted as predicting that the Chinese people would embrace the concept, Disney was reportedly seeking some significant concessions from the Chinese government, including bearing land costs, building the infrastructure, and providing low-cost loans or equity to help finance the $1.3 billion project. Even if the Chinese government and Disney reached agreement on these issues, however, there were clearly a number of important design issues to be resolved. Was Hong Kong truly the best site for a new Asian park? Should Disney take on a local partner? How deeply should traditional Chinese culture be integrated into the theme park? How should Disney manage the relationship with Beijing, given the Chinese government''s track record of media censorship? Appropriate audiences for this material includes and ''operations'' oriented course or an elective course that covers managing service operations.

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