You’re an operations executive chairing the Projects Committee for Royal Caribbean Cruise Line. You’re committee has been tasked with conducting a post-audit of the Project: Oasis of the Sea. The committee is aware that the ship actual performance (financial) has fallen short of expectations. As Chair of the Projects Committee, you’re expected to prepare a report that outlines current status of the investment (project), and then present a plan to improve its performance in the foreseeable future. You will want to gather relevant information (financial, economic, etc.); explore and evaluate alternatives that will bring the Oasis of the Sea into the “black”; and document your plan, on behalf of the Projects Committee, using sound arguments that are well supported, properly vetted, and logically presented. It is important that management carefully consider any potential ethical implications associated with their stated position. If there are any potential ethical concerns associated with your position, they should be identified and discussed in the final recommendation.
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Royal Caribbean Cruises demanded an audit of their project afterwards: Oasis of the Seas. As the CEO hoped, not financially, he depends on me and my community to give him insight.
The CEO had told me to work with this details. A $1.05 billion loan was secured by Royal Caribbean Cruise with the support of the government of Finland which guaranteed 95 percent of the loan to buy a two-winged ship carrying 5,400 passengers, making it the world's largest cruise ship.
Unlike any other cruise ship that can offer passengers, such as seven thematic "neighborhoods" from Central Park to the Coney Island boardwalks, with carousel and zipline will experience something. This offers 25 restaurants, 37 bars, 21 pools, 6 Jacuzzi and a Teen Zone of 28.700 sq. ft., which all seem to be doing. Scuba diving, slot machines, Broadway-styles shows in 1380 seating or ice shows are abundant sports.
However, there are issues. Passengers have noisy staterooms which are connected to the Boardwalk area and are worried about the lack of privacy on balconies. The price of all facilities for a spacious 1524 sq. ft suite and the ability to plan daily start at $1649 per person for a double occupancy room up to $16,659.
In October 2014, the third quarter net income for Royal Caribbean as a whole corporation was $490.2 million (2.19 per share), which is up from $365.7 million ($1.65 per share) a year previously. Their net income as a whole entity was $492.9 million ($2.20 per share). Total revenues for that quarter (including passenger ticket sales and onboard spending) was $2.39 billion, versus $2.31 billion the previous year. According to Wall Street estimates, the company is forecasting $4.55 per share for the year. But later that week their shares fell in the NYSE 2.29% or go from $1.45 per share.
Verify all reports to ensure unexpected or unrealized events are not present. All variable numbers must be the same and the capital budgeting approach should therefore be used. Some of the first things my group will do is to make sure the statistics presented to us are right and to define the methods of budgeting used to take the screening decision. Through this way we "constitute apples with red rather than orange apples."
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You’re an operations executive chairing the Projects Committee for Royal Caribbean Cruise Line. You’re committee has...