Carnival Corporation: A Case Study
Dr. Stephen Wolfe
1. Provide a complete organization mission statement.
Carnival Corporation’s goal is to provide extraordinary vacation experiences (2) around the world (3) for people of all lifestyles (1). Our commitment to maintain our fun, quality environments (7) is fueled by our acquisition and retention of exceptional employees (9) that embody our guest centered service philosophy (6). Improvements to our technologies, (4) service operations, and maintenance are continuous to keep growing our brands (5) in the most responsible way possible (8). 2. Provide a problem statement – goal to be achieved through strategy. We want all of our voyages to be fun and successful, where both guests and crew are aware and informed of all statuses and outcomes throughout the duration of the trip. Today we have had too many safety concerns that are have resulted in 2014’s first quarter producing $0.00 earnings per share (EPS) due to customers losing confidence in our abilities to provide a safe, enjoyable vacation1. If we ignore this problem, increased resources and compensation will need to be issued to handle additional problems; and most importantly we may lose customer loyalty, which will result in continued loss of earnings per share, revenue, and may negatively impact the reputation of Carnival Corporation. In the first quarter of 2013, earnings per share were at $0.082, and our goal is to improve our financial position to begin the first quarter of 2015 at $0.10 earnings per share. 3. Provide an internal environment assessment: list 4 strengths and weaknesses. Connect each to the problem statement – show how strengths would be exploited and weaknesses corrected (or managed) to achieve a successful problem statement outcome. Strengths
1. Market Dominance – One of the largest strengths for Carnival is its sheer scale and scope of brands. Carnival competes in almost every market segment worldwide and its largest competitor, Royal Caribbean, is less than half its size. Carnival has enormous control over the cruise industry and can afford to undertake new procedures and projects to continue their growth. Being a dominant presence also enables Carnival the platform to negotiate with vendors to achieve lower costs. This strength can assist in successful problem statement results because Carnival is easily able to finance new projects and participate in acquisitions to increase share revenues. 2. Operational Experience - Carnival has massive experience in owning, operating, and acquiring cruise lines. This experience has created organizational records for above average revenues and below average costs. Successful problem statement results can be positively impacted by this experience because it is easier for Carnival to expand in new markets and make smart strategic decisions. 3. Brand Recognition - Being the largest cruise line operator, Carnival is recognized around the world by people looking to cruise. Carnival has been able to obtain and retain guests due to their extensive loyalty programs which offer guests incentives for using Carnival Corporation brands. Brand loyalty and recognition can help achieve higher share earnings because guests will continue to support a brand they know and receive benefits from. 4. Marketing – Carnival’s gigantic presence can be seen in their marketing campaigns. Print, TV, and social media presence, such as Twitter, Facebook, and Instagram, are common place for Carnival. These marketing campaigns for Carnival Corporation can assist in increasing awareness of expansions and encouraging customers to try their vacation experience. Weaknesses
1. Poor Safety Record – Carnival has had numerous safety incidents that have attracted poor media attention. The sinking of the Costa Concordia has been the largest woe; resulting in 30 passengers dead, 2 missing, and horrifying images plastered on news...
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