Fall Semester 2014
Case: Shark Fin Soup Case
Student: Jianhong HU (Willing)
1. Describe the company in the case Hong Kong Disneyland, a 310-acre amusement park, is a joint venture between the Hong Kong government, who possesses 57 percent of the project, and Disney. The project is an adaptation of the American Disneyland but on a smaller scale. The aim of the project is to provide a family vocation resort to this financial based city. Though the project brings significant economic values to the city by creating new jobs and attracting visitors, it also suffers criticism. The major issues focus on the pollution, consumption of endangered animals, and labor issues.
2. Explain the key issue(s) that the company faces, and what the risks are that the company has to address. In order to demonstrate its core competence, Hong Kong Disneyland offers a special dish, shark fin soup, in its Fairy Tale Wedding packages, which arousing great controversy among the environmentalists. The environmentalists concern that the demand of this dish will lead to overfishing, which is going to result in the decline of the world’s largest shark species. As for response, the company informs the guests the harm of this dish in hopes of reducing the orders at the beginning. Later, it replaces this dish with non-shark fin soup options in the menu. One of the risk is that the withdraw of sharp fin soup is likely to affect the popularity of the ordering of the packages. Another risk is that customers are not satisfied with the new replacement. Another issue facing the company is that its nightly fireworks show increases air and noise pollution. Also the environmentalists suggest the Hong Kong Disneyland to take the new pyrotechnics technology to reduce noise and smoke. However the company refuses to take the new technology saying that the current fireworks’ pollution is under the allowed regulatory limitations. The risk of responding that way is that the company