Subject category:
Finance, Accounting and Control
Published by:
Asia Case Research Centre, The University of Hong Kong
Length: 22 pages
Data source: Field research
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https://casecent.re/p/76833
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Abstract
This is a Simplified Chinese version. Tokyo Disneyland was started as a result of a licensing agreement between Walt Disney of the US and Oriental Land Corporation of Japan. The agreement states that Walt Disney will receive a licence fee of 7% of sales in exchange for Walt Disney providing Oriental Land Corporation its managerial and technological know how, and assuming small risks in the venture. When Walt Disney proposed a second project with Oriental Land Corporation, the senior executives tried to find a way to make Walt Disney a risk-taking partner through investment in the business as a precondition to venturing into the new project. To prepare for the negotiations, Oriental Land Corporation's executives asked its subordinates to calculate the project's net present value as seen from Walt Disney's standpoint in two potential methods, ie, to proceed with the existing licensing method or a joint venture method in which Walt Disney would share appropriate risks.
Location:
Other setting(s):
1997
About
Abstract
This is a Simplified Chinese version. Tokyo Disneyland was started as a result of a licensing agreement between Walt Disney of the US and Oriental Land Corporation of Japan. The agreement states that Walt Disney will receive a licence fee of 7% of sales in exchange for Walt Disney providing Oriental Land Corporation its managerial and technological know how, and assuming small risks in the venture. When Walt Disney proposed a second project with Oriental Land Corporation, the senior executives tried to find a way to make Walt Disney a risk-taking partner through investment in the business as a precondition to venturing into the new project. To prepare for the negotiations, Oriental Land Corporation's executives asked its subordinates to calculate the project's net present value as seen from Walt Disney's standpoint in two potential methods, ie, to proceed with the existing licensing method or a joint venture method in which Walt Disney would share appropriate risks.
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Location:
Other setting(s):
1997