Question

Write a strategic analysis on Carnival Cruise Line’s financial statements. Based on your analysis, what are your recommendations for Carnival Cruise line’s company?

Answer 1

Carnival Cruise Lines is one of the largest and most successful cruise line company in the world. The history of Carnival Cruise Lines started in 1972. The Chairman and CEO, Ted Arison, bought a sea liner for $6.5 million. The sea liner was named Mardi Gras and incorporated into the arrangement was another ship called the Carnivale. First and foremost, Carnival encountered a shortfall because of fuel and ship concerns. With the structure of on-board exercises, diversion, an improved advertising approach, and travel bundles, Carnival started seeing their victories and income develop. Fairs' costs were focused with other travel bundles, which was a main consideration in their prosperity. Slowly, Carnival began buying out their competitors and adding more cruise ships to their company. Carnival Cruises became an industry leader with the finalization with Princess Cruises, which allowed Carnival to become a global cruise line.

Carnival Corporation & Plc’s vision is to empower and enable Carnival Corporation & Plc employees to deliver the best vacation experience for Carnival Corporation & Plc guests, thereby generating superior returns for Carnival Corporation & Plc shareholders and enhancing the well-being of Carnival Corporation & Plc communities VISION STATEMENT

Carnival Corporation & Plc’s mission is to take the world on vacation and deliver exceptional experiences that appeal to a large variety of consumers, all at an outstanding value. We trust our multi-image methodology is fundamental to accomplishing our central goal and keeping up our authority positions. Our ten one of a kind brands with overall sourcing of visitors and differing schedule choices enable us to extend our contributions to our past visitors, while proceeding to develop our business through the obtaining of new visitors in built up and developing markets.Our success also depends on, among other things, our ability to exceed the expectations of our guests by providing them with a wide variety of exceptional vacation experiences. MISSION STATEMENT

Largest cruise company in the world Passenger Capacity increased drastically Fuel consumption has been reduced 21% since 2007 Jubilee Corp and Plc biggest voyage dispatch dry-dock fix office Carnival Cruise Line works from 19 homeports in North America, which is more than Carnival Corporation and Plc contenders. Serves 8.5 million guests a year Possesses 10 distinct cruise lines.

Accounts for 30% of disappearances of guests at sea since 2000. During 2012, $28 million was spent for ship incident- related expenses that were not covered by insurance. Offers of travels primarily reserved through movement specialists cost 10% of offers charges and extra commissions. Full brand recuperation from Costa Concorida catastrophe will take 2-3 years, additional showcasing would come in three territories: funds directed at travel agents, including cooperative advertising; social media; and possibly more TV ads.

EXTERNAL OPPORTUNITIES Long term expansion in Asian Vacation Markets, increased prosperity and size of Asian countries Annual passenger compound annual growth rate of 7% from 1990 – 2017. Europeans and Australians have more excursion days a year than North Americans (a month paid get-away). Worldwide travel and the travel industry is required to become roughly 2.8% every year. Cruising is the quickest developing portion of the movement business.

EXTERNAL THREATS A 6.3% increase in fuel prices, since February 2013. Expanding cost of ship fabricating each year. Wellbeing and security of movement fear mongering, sedate assaults, vessel seizures.Currency risk- the US dollar decreased 0.3% in Feb. 2013. USA unemployment rate is currently still high at 7.40%. Global warming is causing the oceans to absorb a great deal of extra heat (up to 90%). Increase of corporate tax.

RECOMMENDED STRATEGIES FOR OPPORTUNITIES Offer special discounts for repeat customers Keep building associations with movement booking organizations, particularly online organizations. Developing web based life advertising Sending limited time messages Continue to include greater excitement exercises Offer more destination spots to attract customers who want to travel to different countries Create a Referral Program Create an alliance with an airline company

Make enhancements to emergency power capabilities, additional emergency generators and new fire safety technology. Jamboree likewise needs to make techniques to discuss snappier with travelers to tell them what is occurring. Create solar paneling on ships

CONCLUSION As Carnival Corporation and Plc continues to improve the safety and security among our cruise brands throughout the world, we trust our customers will recover the trust of the journey business by cruising with us. The corporation needs to focus on the internal and external factors in an effort to further improve its operation and ultimately the return to the shareholders of the company.

purchase a ticket at the same time, and provide an added discount on the airline ticket to the customer, they will viably expel a hindrance to acquiring a journey ticket and increment the quantity of tickets being sold by the carrier that they choose.Referral Program Begin a program where, on the off chance that you suggest your friend(s) as well as family, you will get markdown. For instance, if a past Carnival client alluded a client who picked the base voyage bundle which is $249,Carnival could send the customer who gave the referral a certificate for $50 off their next cruise for each passenger they referred. The restriction could be the certificate must be used within two years. This will benefit Carnival by increasing the number of return cruisers and will combat the image of a first time cruise company.Royal Caribbean specializes in providing incentives for employees to better their customer service. Fair does not and as a result, Royal Caribbean overall has better client benefit. It would cost about $10 every hour per worker for Carnival to give client benefit preparing, expecting a current staff part could give the preparation. The advantage better client administrations will expand the shot that a client will come back to the voyage line. It also helps to improve reputation and compete with competitors such as Royal Caribbean who offer great customer service. If this program results in any repeat customers or attracts any new customers over time, it will generate customer profit. Support Environmental Issues Carnival should donate one thousandth of one percent of net income to the Save the Ocean campaign. This would make them stand out as a socially responsible company. It would also help to appease the environmental groups that are currently against cruise lines.

Carnival Corporation has been a successful company thus far. It is imperative for each organization to always be inquiring about its condition with the end goal to keep up and change with it. Jamboree has exhibited that they are to some degree mindful of their condition by reporting the main without smoke journey send.The above recommendations are simply more ways that the Carnival Corporation can adapt to its constantly changing environment in order to be more profitable.