With a mission “to deliver exceptional vacation experiences through the world’s best known cruises brands that cater to a variety of different lifestyle and budgets, all at an outstanding value unrivaled on land or at sea”, today Carnival has three operational sectors in the cruise markets including: Contemporary, Premium and Luxury and runs Holland Americas lines, Princess cruises, Seabourn cruises, Costa cruises, P&O cruises, AIDA, Cunard lines, Ocean Village and Ibero Cruceros. Their current strategy is to attract more repeat cruisers and new ones from various class, by offering different types of packages including shorter and, or longer cruises, at a low to moderate price range for middle class clientele, and longer luxury cruises for upper classes.
Carnival Corporation 2010 Written Report ● What is this Strategic Management Business Case about? This strategic management case is about Carnival Corporation, a company that was originally started as a Cruise Lines subsidiary in 1972 with a vision of offering affordable vacation packages to middle-income consumers. Today Carnival Corporation not only has a mission “to deliver exceptional vacation experiences through the world’s best-known cruises brands that cater to a variety of different lifestyle and budgets, all at an outstanding value unrivaled on land or at sea”, but also a relatively strong diversified balance sheet, including not only several cruises lines but hotels in few states and countries . Historically, cruising has been a profitable business, and Carnival has distinguished itself as the best operator in the leisure travel industry, d espite the many ups and downs throughout the years, and expanded from a Cruise Line company to a very diversified and globally recognized corporation through its multiple acquisitions . ● Which are the three most critical issues of this Strategic Management Business Case? Please explain why? And analyze and discuss in detail. Legal Issues Dealing with legal issue is one of the problems that many companies must deal with, but when these are not addressed with priority, they can result in negative media publicity that may influence current and potential guests. With lawsuits ranging from passengers injured while onboard, sexual assaults from crew members, food contamination, negligence from medical staff onboard, pay and working conditions, copyright infringement in its production of entertainment shows on board and so on, the corporate image is rapidly being tarnished. Human resources along with other management should make better decisions and establish steps to take when handling complaints, before those complaints become lawsuits. Ineffective management of Costs With two of its biggest costs being fuel and travel agency services, managers need to reexamine contracts from those suppliers. Cruise agents have historically been paid around 20% of ticket price in commissions, and fuel costs have recently exploded along with the price of oil. As the
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- Fall '16
- Carnival Cruise Lines, cruise line, Holland America Line, Carnival, Carnival Corporation