Faculty of Built Environment, Art and Design
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FACULTY OF BUILT ENVIRONMENT, ART AND DESIGN
(DEPARTMENT OF CONSTRUCTION MANAGEMENT)
Assignment No.1
STRATEGIC DEVELOPMENT PLAN
Simon Lukas Bayer: 13821922
Simon Martinengo: 13728874
Frederick Jacobus Hugo: 13617723
Ronald Gigmai: 13559964
Assignment presented as part of the requirements of the unit of
Strategic Project Management 641 (10900)
Lecturer: Steve Klomp
Word Count: 4,676
14.04.2008
CONTENTS:
LIST OF FIGURES
LIST OF ACRONYMS
NEED AND THE MARKET ANALYSIS
CURRENT AND FUTURE MARKET SITUATION
INTERNAL ENVIRONMENT ANALYSIS OF CARNIVAL CORPORATION
Mission Statement
Management
Goals and Values
Corporate Culture
Core Competencies
Marketing
Research and Development
Information Systems
Financial Performance
Market Share
Resources and Capabilities of Carnival Corporation
Strengths
Weaknesses
EXTERNAL ENVIRONMENTAL FOR CARNIVAL CORPORATION
Socio-Cultural Environment
Economic Environment
Political — Legal Environment
Task/Industry Environment
4.4.1
Threat of Entry
4.4.2
Threat of Substitution
Power of Suppliers
Power of Buyers
Competitive Rivalry
Opportunities
Threats
TIMEFRAME: SALIENT POINTS AND STRATEGIC OBJECTIVES
LIST OF SALIENT POINTS
PROFITABILITY
LIQUIDITY
LEVERAGE
ACTIVITY
COMMISSIONING OF THREE ADDITIONAL SUPER-LINERS
INCREASE IN CRUISE INDUSTRY CAPACITY
VERTICAL INTEGRATION WITHOUT OWNERSHIP (STARWOOD)
RECENT OPERATING FAILURES
STRATEGIC OBJECTIVES FOR FY96
REFERENCES
List of Figures
Figure 1: Reasons for Cruising
Figure 2: Gross Profit Ration Carnival
Figure 3: Gross Profit Ratio Starwood
Figure 4: Current Ratio Data Carnival
Figure 5: Current Ratio Data Starwood
Figure 6: Dept to Asset Ratio Carnival
Figure 7: Dept to Asset Ratio Starwood
Figure 8: Fixed Asset Ratio Carnival
Figure 9: Fixed Asset Ratio Starwood
LIST OF ACRONYMS
Carnival
Carnival Corporation
Starwood
Starwood Hotel Resorts Worldwide INC
Financial Year
NEED AND THE MARKET ANALYSIS
Carnival Corporations ability to influence customer behaviour, to reap greater financial rewards relies on understanding its customer’s needs (Peppers and Rogers 2004). Knowing the need is important to any organisation because it represents the why and how behind the customers actions (Peppers and Rogers 2004). However, the behaviour of the customer varies depending on their age group (Cartwright and Baird 1999).
Carnivals 1987 customer profile shows that 30% of their passengers were between the age group of 25 and 39 (Wheland and Hunger 2006). Therefore, it is assumed that 70% of the passengers are over 40, traditional cruise market is for the post family segment (Cartwright and Baird 1999) which can be seen in the over 50 year olds. A study shown by Cartwright and Baird (1999) reflects the top eight reasons why people go on cruises (cf. Figure 1).
Figure 1: Reasons for Cruising
Source: (Cartwright and Baird 1999)
Therefore, the need has been identified as “a safe vacation activity”. Safety on cruise travels is provided by the self contained aspect of the ship (Cartwright and Baird 1999).Customers dip into an alternative culture when they take a shore excursion and then retreat to the safety of the ship. The ship matches their usual culture such as nationality.
According to Michman (1991) the market is active retires, high rollers, and elderly travellers.
CURRENT AND FUTURE MARKET SITUATION
The current situation in the cruise industry and for Carnival Corporation is not as favourable as they would like it to be. The increasing industry capacity and the decline in industry demand puts companies under pressure to earn a reasonable return on invest. Therefore, “… the likelihood