IRAC analysis
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Workplace Application Report Format
1. Module 1 Topic / Legal Issue:
Topic: International and Comparative Law
Issue: What can Disney do to expand its retail stores as well as their theme parks throughout the world without fully investing in the operation?
2. Why does this topic apply to your workplace? Since Disney is planning to expand its business in Asia and Europe, it needs to find ways to establish a global reputation and extend their business operations. In addition, Disney must understand the various international laws that are placed among American companies. Lastly, Disney must find alternative was to enter foreign markets.
3. IRAC Analysis
Issue: What can Disney do to expand their retail stores as well as their theme parks throughout the world? What obstacles may the company face due to various international laws?
Rule: Franchising: Here the Franchising firm grants right to another firm in the host country of its product to operate according to the norms of the franchiser and franchisee pay royalty in turn. This is a useful strategy, which Disney followed as it reduced its financial risk and used this case as a test market strategy.
Rule: Joint Venture: The U.S. firms who desire to enter foreign markets can enter a joint venture. The company will own a small portion of the operations and the rest will be owned by other foreign investors.
Application: Disney can have other companies or investors open new theme parks and stores by paying Disney royalty fees and also taking all the monetary risks involved.
Conclusion: Once Disney expands worldwide, the firm's reputation and trademark will be prevalent and well known, thus causing demand for the products and services.
4. Appropriate management response to the situation to limit legal liability.
Disney's management must sign a sales contract to make sure that the foreign purchaser will provide the shipment and the payment of the goods. In addition, Disney can work with other cooperation or agencies to act on the behalf of Disney so it can limit Disney's involvement in an international market. Also, Disney should enter in a distribution agreement to set the terms and conditions in the price, availability, quality, and the method of payment.
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Solution Summary
This explains the IRAC analysis by taking the case of Disney
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Workplace Application Report Format
1. Module 1 Topic / Legal Issue:
Topic: International and Comparative Law
Issue: What can Disney do to expand its retail stores as well as their theme parks throughout the world without fully investing in the operation?
2. Why does this topic apply to your workplace? Since Disney is planning to expand its business in Asia and Europe, it needs to find ways to establish a global reputation and extend their business operations. In addition, Disney must understand the various international laws that are placed among American companies. Lastly, Disney must find alternative was to enter foreign markets.
Comments: This issue deals with the evaluation of internationalizing the business of Disney. The points mentioned are adequate. The additional pros that can be added are
Disney is motivated to set up parks throughout the world to expand its sales of merchandise goods as well as attendance to their theme parks. In addition, with the expansion of the parks, Disney can play a role in spreading advertisements of their movies and the ideology that Disney is a Place of Dream and happiness. Disney is motivated to also acquire more resources by their expansion, for example, Disney wants to create a park in Shanghai so that it can facilitate in probably creating a Disney channel for the Chinese people. Lastly, Disney wants to minimize the risk of their parks in America in case they do poorly they can gain their profits in Asia or Europe.
Pros:
? Sales expansion
? Resource acquisition
? Risk minimization
? Maximizing the wealth of the stakeholders by tapping the opportunities in the emerging economies.
? The strengths of Disney is its brand and is recognized all over the ...
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