Unpredictable weather conditions B.Societal Environment 1.Economic a)Economy high fuel cost b)Less disposable/discretionary funds 2.Technologicala)Enhanced technology3.Political-Legala)Worldwide terrorism 4.Socioculturala)Global virus outbreaks C.Task Environment 1.Entry to Barriers (low)2.Industry/competitive substitutions Carnival Corporation PLC Strategic Audit
3.Largest growth sector in travel industry 4.Global Expansion 5.Expand Luxury Liners IV.Internal Environment (IFAs Table; See Appendix D)A.Corporate Structure 1.Micky Arison – Strong Leadership 2.Company size – competitive price advantage 3.Multiple brands – competitive, customization B.Corporate Culture 1.Diversification of staff C.Corporate Resources 1.Marketing a)Strong global presence (expanding into Asia market) b)Strong reliance on US consumer c)Negative media of past events/happenings2.Finance (see Appendix A)a)Steady decrease in profit and ROIb)Debt ratios are high 3.R&Da)Preservation of the marine environment and conditions of waters4.Human Resourcesa)Advancement opportunities 5.Information Systems a)Internet centers, technological advanced security 6.Operations a)Large market share of industry – over 50%V.Analysis of Strategic Factors ( SFAS Table – See Appendix E) A.Situational Analysis (SWOT) 1.Strengthsa)Multiple Brands b)Information Systems (Technology) 2.Weaknessesa)Negative Mediab)Decrease in Net Profit Margin c)Construction of new ships 3.Opportunities a)Global expansion b)Largest growth sector in travel industry c)Expansion of luxury liners 4.ThreatsCarnival Corporation PLC Strategic Audit
a)Industry and competitive substitutions b)Global virus breakouts B.Review of Current Mission and Objectives 1.Given the nature of the industry and their current initiatives, Carnival’s mission statement is appropriateVI.Strategic Alternatives and Recommended Strategy A.Strategic Alternatives 1.Growththrough expansion of luxury liners a.Pros – customization for current and potential customers (increase marketshare), expand globally b.Cons – potential cost of ship construction and marketing strategies (effects onthe already decreasing net profit of company), global virus breakouts 2.Stability– Maintain current multiple brands and develop them to be strongindependently a.Pros – competitive advantage within industry, price competitiveness b.Cons – financial obligations for maintaining and cultivating multiple brands 3.Retrenchment– Reduce the negative media of the company and industry a.Pros – increase customer market and goodwillb.Cons – no control over other companies within industry, cost to increase the credibility of the brand (safety, technology, etc.)B.Recommended Strategy 1.Continue growth of company through expansion of luxury liners, branding, and positivemedia. The goodwill of the company can be maintained by making sure that all cruiseships are up to date in safety regulations and technology. With the credibility of thecompany being high, the customer market and goodwill will increase. The increase in
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- Fall '19
- Revenue, Profit margin, Carnival Cruise Lines, Holland America Line, gross profit margin, Carnival Corporation & PLC