Question

why did Disney take an ownership position in the firm rather than simply licensing some other...

why did Disney take an ownership position in the firm rather than simply licensing some other firm to build and operate the park ans settling for a royalty on all sales ?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are various reasons why Disney took ownership of the firm rather than licensing. These are mentioned below.

  • By having an ownership position in the firm, they will get all the profits. This was not possible in the licensing arrangement.
  • Direct control- They can better manage operations and make the decisions. Disney as a brand is very concerned about what it projects and very cohesive in its decisions and path taken. A direct control will help them maintain that.
  • Prospect of success- The Tokyo project was extrememly lucrative and Disney didnt want to share the profits with someone else. The Paris project looked full of potential too.
  • Expertise sharing- Disney has expertise in running such parks. With a direct control they will have able to better integrate and run this park too from their past expertise.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain why an investor might take an illiquid position in a forward contract rather than using...
Explain why an investor might take an illiquid position in a forward contract rather than using an exchange-traded futures contract. (2 pts.)
Question: AJ’s Fitness Center When A. J. Reeser signed papers to take ownership of the fitness...
Question: AJ’s Fitness Center When A. J. Reeser signed papers to take ownership of the fitness center previ... AJ’s Fitness Center When A. J. Reeser signed papers to take ownership of the fitness center previously known as the Park Center Club, he realized that he had just taken the biggest financial step in his life. Every asset he could pull together had been pledged against the mortgage. If the new AJ’s Fitness Center didn’t succeed, he would be in really...
AJ’s Fitness Center When A. J. Reeser signed papers to take ownership of the fitness center...
AJ’s Fitness Center When A. J. Reeser signed papers to take ownership of the fitness center previously known as the Park Center Club, he realized that he had just taken the biggest financial step in his life. Every asset he could pull together had been pledged against the mortgage. If the new AJ’s Fitness Center didn’t succeed, he would be in really bad shape financially. But A. J. didn’t plan on failing. After all, he had never failed at anything....
I did already posted this question before, I did get the answer but i am not...
I did already posted this question before, I did get the answer but i am not satisfied with the answer i did the code as a solution not the description as my solution, so i am reposting this question again. Please send me the code as my solution not the description In this project, build a simple Unix shell. The shell is the heart of the command-line interface, and thus is central to the Unix/C programming environment. Mastering use of...
Review the discussion below and reply with your thoughts in your own words: 1. Why are...
Review the discussion below and reply with your thoughts in your own words: 1. Why are hospitals adopting the “Toyota Way”? According to Colliver (2013), “the Toyota Way, as it is called, is the company’s systematic approach to producing cars and trucks efficiently, with the primary goal of pleasing the customer” (para. 2). Hospitals are adopting the “Toyota Way” because of the need to compete as reimbursements are dwindling. More hospitals are doing this to attract patients because the available...
Review the discussions below and reply your thoughts on each discussion: Discussion 1 I believe there...
Review the discussions below and reply your thoughts on each discussion: Discussion 1 I believe there are many reasons why the knowledge-doing gap has become so common within organizations. For one, I feel that many are faced with obstacles that require some thinking outside the box. Sometimes, you may have to take some steps outside the normal regimen to figure new approaches to solving a problem, and some can be either uncomfortable with this approach or simply unaware of where...
3. Fewer than 1% of all US firms trade outside of the country, and about 60%...
3. Fewer than 1% of all US firms trade outside of the country, and about 60% of those that do so, only trade with one other country. What are some potential reasons for this (all of the following are true, except one): a. Lack of knowledge, data, and experience. b. Most companies in the US are small and medium sized. c. The size of the US consumer market is large, thus companies may be happy to operated domestically only. d....
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational leadership b. Moral manager c. Social learning theory d. Moral intensity [The following information applies to the question.] In Chapter 4 we discussed the artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Internal Revenue Service. On August 29, 2005, KPMG admitted to criminal wrongdoing and...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell Boeing V-22 Program, a strategic alliance between Bell Helicopter, a Textron Company, and the Boeing Company,1,2 announced the V-22 Osprey tiltrotor will be featured at the Dubai International Air Show in the United Arab Emirates (UAE) from November 13 to 17, 2011. The Air Show, held biennially, is organized in cooperation with the government of Dubai, the Department of Civil Aviation, and Dubai International...
Identify hidden cost Identify a sunk cost trap Another assembly line is under construction in Building...
Identify hidden cost Identify a sunk cost trap Another assembly line is under construction in Building 3, to make a new stainless-steel dishwasher starting in early 2013. Building 1 is getting an assembly line to make the trendy front-loading washers and matching dryers Americans are enamored of; GE has never before made those in the United States. And Appliance Park already has new plastics-manufacturing facilities to make parts for these appliances, including simple items like the plastic-coated wire racks that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT