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Carnival Case Issues

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Carnival Case Issues
SPRING 2013 – GLOBAL STRATEGY AND POLICY
MAN4720009_2013S_11202: , Schwartz: Tuesday and Thursday 9:30 to 10:50 AM – LA 331

GLOBAL STRATEGY AND POLICY
MAN4720009_2013S_11202 Spring, 2013
Prepared for Professor Harry Schwartz, March 14, 2013 by the following students:

Robert Ondercik Z8384 Finance
Ron Abraham Z4458 Accounting
Jenna Franzone Z3483 Business Management
Tabitha Palmisano Z0857 Marketing
Jeffrey Von Z7035 Accounting
Aaron Schneider Z0653 Business Management
Sabine Borges Z7510 Accounting

1. Current Situation: CRITICAL CASE ISSUES
Human Relations
(CI #1) Employee and Labor Lawsuits
Employees of Carnival are claiming unfair working conditions with poor compensation. (CI #2) Succession
Mr. Arison stepping down in the future, who will run company, third generation Arison or someone else. Operation/Logistics
(CI #3) The Costa Concordia Cruise Ship lawsuit Cruise ship laying on side, environmental risk, and lawsuits from crash.
(CI #4) The Carnival Triumph dead at Gulf of Mexico Pending lawsuits from this event, leading to more negative publicity
(CI #5) US Corporate Tax
Congress continues to try to charge Corporate taxes on Carnival, but has failed recently. This could change soon.
Marketing
(CI #6) Serving on 20 % of Americans
It becomes expensive for customers to get to ports to cruise, discouraging some customers from cruising.

Carnival Corporation & plc is currently the largest cruise company in the world and is among the most profitable and financially strong leisure travel companies in the world. Carnival Corporation & PLC’s portfolio of cruise brands in North America, Europe, Australia and Asia are comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (Australia) and P&O Cruises (UK). Collected, these brands operate 100 ships totaling 203,000 lower berths with nine new


Cited: Carnival PLC. (2012, March 03). Carnival corporatoion & plc 2012 annual report. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-reportsother2 Carnival PLC Carnival Corporation & PLC. 2012 Annual Report. Washington, DC. March 7, 2013. http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-reportsother4 Carnival Corporation. 2006 <Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-history> The Financial Times Ltd. 2013 <Retrieved from: http://markets.ft.com/research/Markets/Tearsheets/Directors-and-dealings?s=CCL:NYQ> "How Much Does a Cruise Ship Cost to Build." Ship Cruises. N.p., n.d. Web. 13 Mar. 2013. http://www.shipcruise.org/cruise-articles/489-cruise-ship-cost "Market Share | Cruise Market Watch." Cruise Market Watch RSS. N.p., n.d. Web. 12 Mar. 2013.
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