Case
Health Cruises, Inc., packages cruises to Caribbean islands such as Martinique and the Bahamas. Like conventional cruises, the packages are designed to be fun. But the cruise is structured to help participants become healthier by breaking old habits, such as smoking or overeating. The Miami-based firm was conceived by Susan Isom, 30, a self-styled innovator and entrepreneur. Prior to this venture, she spent several years in North Carolina promoting a behavior-modification clinic.
Isom determined that many people are very concerned about developing good health habits, yet they seemed unable to break away from their old habits because of the pressures of day-to-day living. She reasoned that they might have a chance from much greater success in a pleasant and socially supportive environment, where good health habits were fostered. Accordingly, she established Health Cruises, hired 10 consulting psychologists and health specialists to develop a program, and chartered a ship. DeForrest Young, a Miami management consultant, became the chairperson of Health Cruises. Seven of Isom’s business associates contributed an initial capital outlay totaling more than $250,000. Of this amount, $65,000 went for the initial advertising budget, $10,000 for other administrative expenses and $220, 000 for the ship rental and crew.
Mary Porter, an overweight Denver schoolteacher, has booked the cruise departing December 19th. She and her shipmates will be paying an average of $1,500 for the voyage. The most desirable staterooms cost $2,200.
Mary leaned of the cruise by reading the travel section of her Sunday newspaper on October 16. On that date, the Pittsford and LaRue Advertising Agency placed promotional notices for the cruise in several major metropolitan newspapers. Pittsford and LaRue account executive Carolyn Sukhan originally estimated that 300 people would sign up for the cruise. But as of November 14, only 200 have done so. Isom and Health Cruises, Inc., faced an
Isom determined that many people are very concerned about developing good health habits, yet they seemed unable to break away from their old habits because of the pressures of day-to-day living. She reasoned that they might have a chance from much greater success in a pleasant and socially supportive environment, where good health habits were fostered. Accordingly, she established Health Cruises, hired 10 consulting psychologists and health specialists to develop a program, and chartered a ship. DeForrest Young, a Miami management consultant, became the chairperson of Health Cruises. Seven of Isom’s business associates contributed an initial capital outlay totaling more than $250,000. Of this amount, $65,000 went for the initial advertising budget, $10,000 for other administrative expenses and $220, 000 for the ship rental and crew.
Mary Porter, an overweight Denver schoolteacher, has booked the cruise departing December 19th. She and her shipmates will be paying an average of $1,500 for the voyage. The most desirable staterooms cost $2,200.
Mary leaned of the cruise by reading the travel section of her Sunday newspaper on October 16. On that date, the Pittsford and LaRue Advertising Agency placed promotional notices for the cruise in several major metropolitan newspapers. Pittsford and LaRue account executive Carolyn Sukhan originally estimated that 300 people would sign up for the cruise. But as of November 14, only 200 have done so. Isom and Health Cruises, Inc., faced an