Royal Caribean Cruises Case

In: Business and Management

Submitted By luismanuelec
Words 3407
Pages 14
ROYAL CARIBBEAN CRUISES

I. HECHOS.
Los hechos que se enlistan a continuación contienen la información incontrovertible mencionada en la lectura con la finalidad de plasmar las ideas principales que componen este caso de estudio. * Royal Caribbean Cruises (RCC) es la segunda empresa más grande de la industria con 40 cruceros.

Esta idea permite dimensionar el tipo de empresa en que se centra el texto para tener un mayor entendimiento del caso, para comprender las fortalezas que la han llevado hasta ahí, así como las oportunidades para llegar al primer lugar. También nos habla de que se trata de una empresa multimillonaria con la capacidad de poseer diversos cruceros.

* RC tiene 6 marcas de cruceros: Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises y CDF Croisieres de France y TUI.

Se representa una de las principales necesidades de los competidores en la industria, que consiste en tener diferentes divisiones que se enfoquen a sectores de mercado específicos, pues cada uno de ellos requiere tartos y servicios diferentes. El tener líneas enfocadas a cada sector, le permite a la empresa tener mayor participación de mercado.

* La industria de los cruceros es una industria multibillonaria global de entretenimiento y vacaciones.

Permite dimensionar el tamaño de la industria que trata el caso y las oportunidades económicas que ello representa para las empresas, lo que se ha reflejado en una creciente competencia por parte de empresas que buscan participar de esos beneficios.

* La industria está sujeta a leyes y regulaciones específicas a nivel mundial, nacional y local.

Este hecho refleja una de las principales problemáticas dentro de la industria, ya que el alto grado de reglamentación suele representar una alta inversión económica, de tiempo, esfuerzo, etc. Además representa una de las barreras de entrada…...

Similar Documents

Royal Resort Casino Case

...The scheme in the gambling industry is the same everywhere. The main goal is to attract the client first and to make his/her stay as pleasant as possible to spend as much money on the tables as they possibly can. RCC operates as a single firm to maximize the combined net profit from its three divisions. In this case, the three divisions operating as a single firm outperform the three divisions operating as individual companies in the market. There is a synergy between the divisions where the combined result is better than the sum of the individual performances. In fact we could say that Entertainment and Hotel give support to the main income generator that is Gambling. As the beginning of chapter 4 of the book says Team Production is the key reason that firms exist. That means in this case that the profitability of the Hotel and the Entertainment division are somehow sacrificed, hence the negative EVAs, for the benefit of having more clients spending their money on gambling and consequently rising the collective output that is the joint benefit. The other businesses operating separately have, presumably, a positive EVA but, as the case states, they serve a less affluent clientele and thus the combined EVA is probably smaller that RCC’s. Following the example of the automobile in page 144, chapter 4 of the book, there is also the advantage for the consumer of having only one transaction cost. Firms emerge to economize on repetitive contracting and consumers seek to have......

Words: 608 - Pages: 3

Carnival Cruise Lines Case

...Carnival Cruise Lines case Questions 1. What global forces have contributed to the growth of the cruise industry? Two major factors that have contributed to the growth of the cruise industry are the change in the competitive environment brought about by the advent of transoceanic airline service and increasing discretionary incomes. As demand for liner travel declined in response to the development of less expensive and much faster air service, shipping lines were forced to respond to the new market conditions by developing sea travel for the middle class, i.e., cruises. In addition, all-inclusive prices, a wide range of on-board and on-shore offerings, and the additional safety and security measures provided by the cruise industry have proven very attractive in light of recent political and socio-economic events. 2. What specific steps have Carnival Cruise Lines taken to benefit from global societal changes? Carnival has responded to global environmental changes in a variety of ways. Because a ship is highly vulnerable to terrorist acts, Carnival has instituted very strict security measures. It has also implemented strict health and safety measures. Carnival has dealt with economic recessions by offering shorter cruises that embark closer to home and with times of economic prosperity by offering longer cruises that incorporate more exotic destinations. It minimizes staffing costs by sourcing employees on a global basis. In addition, across its......

Words: 1069 - Pages: 5

Carnival Cruise Lin Case Study

...Carnival Cruise Line Case Study Abstract This case study reviews the financial position of Carnival Cruise Line. The data reviewed is primarily from the previous five years of annual reports produced by the company (2007-2011) and certain key ratios derived from those reports. For comparison purposes, this case study will use Carnival Cruise Lines nearest rival, Royal Caribbean Cruise Line. This case study will prove the financial strength and stability of this company and give the reader some indication as to why Carnival Cruise Line is the industry leader in the cruise market. Carnival Cruise Line Case Study The company that would eventually become Carnival Cruise Line (Carnival) began in 1972. It started with just one second-hand ship and enough fuel to make a one-way trip from Miami to San Juan, Puerto Rico (Carnival Web Site). Today, Carnival is the largest cruise company in the world – consisting of ten cruise brands operating 99 ships worldwide. For the fiscal year ended November 30, 2011, Carnival served over 9.5 million passengers and generated approximately $16 billion in revenues. Based on 2011 numbers, Carnival controls 49.2% of the market while its nearest competitor – Royal Caribbean – controls 23.8%. Various smaller competitors comprise the remaining market share of 27% (Cruise Market Watch, 2012). Carnival has managed to maintain its profitability and market share in an environment of economical and geopolitical swings. The structure of......

Words: 2559 - Pages: 11

Carnival Cruise Lines Case Answers

...Carnival Cruise Lines Although sea voyages have held an aura of mystique for centuries, only in recent decades have the general masses been able to experience open seas and exotic ports of call as a purely recreational activity. Cruises, i.e., sea voyages for pleasure, offer passengers the convenience of an assigned cabin as they sail along a fixed itinerary that concludes at their original point of sea embarkation. Almost everything about the entire cruise industry is international, from the routes traveled to the use of flags of convenience to the locations of shipyards to the staffing of vessels. By far the largest cruise competitor is Carnival Corp., which claims more than 40 percent of the global cruise market and owns more than ten different lines. Because Carnival operates globally, it can treat the entire world as a source of both customers and supplies. At the same time, its widespread operations also leave Carnival vulnerable to political upheavals, health crises, economic recessions, and natural disasters. Still in all, the future outlook both for the industry and for Carnival is bright as more people the world over choose a holiday cruise. Questions 1. What global forces have contributed to the growth of the cruise industry? Two major factors that have contributed to the growth of the cruise industry are the change in the competitive environment brought about by the advent of transoceanic airline service and increasing discretionary......

Words: 1255 - Pages: 6

Royal Dutch/Shell Case Write Up

...Royal Dutch/Shell case write up Introduction Royal Dutch/Shell Group of Companies was formed through and alliance of Royal Dutch Petroleum company and Shell Transport Trading company in 1907. Even though the two companies remain separate, the matrix structure of Royal Dutch/Shell Group of Companies had helped the company survive the oil price collapse and some other crisis. By 1990, Royal Dutch/Shell’s revenues exceeded the industry leader Exxon’s, making it the largest oil company in the world. However, In the 1990s and early 2000s, the company’s reserve replacement ratio has dropped from above 100 percent to almost below 100 percent, which indicates that the company was having trouble with replacing the oils it produced each year with new reserves. In order to boost up its reserve placement ratio and offset other series of problems, Royal Dutch/Shell Group Companies changed its operating structures. In January 2004, the company announced that it would reduce its estimate of proved oil reserves by 4 billion barrels, or 20 percents. Six months later, by the time the restatement was completed, the company had reduced its reserves for 3 additional times. Royal Dutch/Shell’s reputation was hugely affected as it had been suited by several security boards. Shareholders were outrageous as well. Causations of the reserve restatement Firstly, the complex operating structure of Royal Dutch/Shell had a huge negative impact on Royal Dutch/Shell’s performances and it directly led...

Words: 800 - Pages: 4

Snedeker Global Cruise Case

...Snedeker Global Cruises Introduction Snedeker Global Cruises is looking to reduce cost through its procurement costs. The Senior Purchasing Manager assigned the newly supply chain manager, Brandt Womack, his first task of implementing an E-auction Development Program. Through the EDP, it would determine products suited for an e-auction. Brandt now will have to determine the necessary steps to conduct a successful auction and the impact it will have on the suppliers and their relationships. Snedeker Global Cruises was incorporated in 1986, based in Miami, serves the contemporary and premium segments of the cruise vacation. Their cruise company has 35 cruise ships and over 70,000 berths, offering a variety of itineraries to Hawaii, Alaska, Asia, Australia, the Caribbean, Europe, Latin America and New Zealand. SGC continuously aspires to reduce their procurement costs in sourcing the products and services needed for the cruise ships operations. In the past, each cruise ship would individually make its own purchases for the upcoming season. By 2005, they incurred its highest procurement costs. SGC wanted to combat this trend and one of the first adjustments was to move towards a centralized purchasing, where one department would be in charge of all purchases for all ships. The centralized purchasing strategy would purse reducing costs via e-auctions. Problem The centralized purchasing strategy proved to greatly reduce the overall order costs of the company and provided...

Words: 1024 - Pages: 5

Royal Caribbean

...Annals of Tourism Research, Vol. 27, No. 2, pp. 345±370, 2000 Pergamon 5 2000 Elsevier Science Ltd. All rights reserved Printed in Great Britain 0160-7383/00/$20.00 PII: S0160-7383(99)00073-0 CARIBBEAN CRUISE TOURISM Globalization at Sea Robert E. Wood Rutgers University-Camden, USA Abstract: Caribbean cruise tourism provides a particularly illuminating vantage point for understanding the processes of globalization in the world today. After documenting the rapid expansion of this business, the paper explores three central manifestations of globalization at work in the Caribbean cruise industry: the restructuring of the industry in the face of global competition, capital mobility, and labor migration; new patterns of global ethnic recruitment and strati®cation, including their incorporation into the product marketed to tourists; and deterritorialization, cultural theming, and simulation. The paper asserts that this ``globalization at sea'' illustrates the contradictions, ambiguities, and unchartered course of contemporary globalization processes. Keywords: globalization, tourism, cruise industry, Caribbean, migration, ethnicity. 5 2000 Elsevier Science Ltd. All rights reserved. ReÂsumeÂ: Le tourisme de croisiÁere aux CaraÈõbes: la globalisation en mer. Le tourisme de croisiÁere aux CaraÈõbes fournit un point de vue particuliÁerement appropriÂe pour comprendre le processus de globalisation dans le monde d'aujourd'hui. AprÁes avoir passÂe en revue la rapide expansion de ce...

Words: 12509 - Pages: 51

The Royal Crown Case Study

...Royal Crown Hotel - Barcelona Case Study Scenario As the Event Planner for International Events you were given a brief to find and organize a pharmaceutical product launch and conference for Lombard Pharmaceuticals in Spain. You selected The four star Royal Crown Hotel , Barcelona as the venue mainly because there had been excellent on-line reviews, the conference facilities met your clients requirements and the sister Crown Hotel was within 1 miles walking distance of the main venue. It was also within budget. There were 500 delegates attending the conference of which 276 had chosen to bring partners along. However, following the conference in June 2013, you were called into your managers office to discuss the series of telephone conversations that had taken place that morning. Your manager, Richard Whittington and the client are both absolutely livid. From the clients point of view it had been a complete disaster. The first phone call had been from the CEO of Lombard Pharmaceuticals. ‘I had hoped that by having our Product Launch and Conference booked by a supposedly professional Events Planning company that the launch would run extremely smoothly and the hotel venue would have the requisite location, facilities and level of service required. However, the whole event was a complete shambles and has damaged our image in the eyes of our customers. Just about everything that could go wrong did go wrong. Didn't anyone check that the route from the Airport to......

Words: 1272 - Pages: 6

Royal Dutch Shell Case Study

...Submitted by: Waqas Ahmed Student ID: M003416757 Module: MGT3201 – Global Business Strategy Module Leader: Dr Qiuping Li Global Business Strategy: Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 1  Royal Dutch Shell ◦ 1907 - Merger of Shell Transport & Trading Company Ltd. and Royal Dutch Petroleum Company (Shell) ◦ 1936 - Shell operations started in Nigeria – Shell D’Arcy (Shell Nigeria) ◦ “Royal Dutch Group of Companies proved more than 50% of Nigeria‟s oil and gas reserves” – (Parboteeah, 2011)  Nigeria ◦ Formed by Britain in 1914 - “…the colony and Protectorate of Nigeria, governed by „indirect rule‟ through local leaders” (BBC News, 2010) ◦ High poverty and deteriorated political and security stance since existence ◦ Worldwide economic importance – Huge oil reserves ◦ 80 % revenues to Nigerian Government through oil reserves Global Business Strategy: Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 2  Compliments ◦ Support to Nigerian economy  Criticism ◦ Oil Pollution (Jolly, 2011) ◦ Development of communities ◦ “Shell invests $1bn on Nigerian oilfield” (BBC News, 1999) ◦ “Currently the Delta gets 13 percent with the balance going to the central government and other states” (Ruseckas, 2009) ◦ Employment for Nigerians (Parboteeah, 2011) ◦ Involvement in violence – Ken SaroWiwa (Pilkington,...

Words: 1228 - Pages: 5

Carnival Cruise Case

...Case 16 Carnival Corporation This case starts out by stating how the cruise line industry, specifically Carnival Corp., had survived the recession and even began to expand shortly after the recovery began. By reducing fuel consumption and expanding into the European market helped project the company through hard times. Since projections looked favorable, as only about 10 percent of Americans had been on a cruise before, the market was open for the taking. Having 98 ships in their current fleet (over 190,000 berths) gives them the ability to hold a large amount of customers. Although cruises didn’t always look as they do today, two events catapulted the experience on the open seas. The first was the TV show, Love Boat which dispelled any myths and the rising of women and disposable income. These two really played a role in kick starting the cruise line empire. A short description of the history is that Ted Arison had bought a vessel and converted it into a cruise liner. It was unsuccessful at first and had a hard time getting the right publicity. Soon enough after three years of losing profits, the ship began making money and they soon began expansion. This was due to the ships being at 100% capacity. By the 1990’s, the company had bought many more ships to add to their fleet, and had made huge leaps in industry. They found troubles through the Gulf war and the 9/11 terrorists attacks, but always seemed to come out on top of the current situation. The......

Words: 559 - Pages: 3

Carnival Cruise Lines

...Case Study Title: “Carnival Cruise Lines” Program MSC HTM 544: Strategic Management for Travel and Tourism Business Instructor Name: Professor: Ada Lo Student Name: Zheng Chen Jerry 1 Jerry, (Zheng Chen) 鄭晨 13105284g Table of Content Vision & Mission & Goals & Strategies ....................................... 3 Vision of Carnival ........................................................................................... 3 Mission Statement of Carnival ........................................................................ 3 Strategies being pursued by Carnival .............................................................. 3 Its Long-term Goals ......................................................................................... 3 Congruence of Mission, vision, goals, strategy and business model of Carnival............................................................................................................ 4 An internal factor analysis summary .......................................................... 5 External factor analysis summary ............................................................... 6 Strategic Groups within the Cruise industry ................................................ 7 Facing Issues and Solutions .............................................................................. 8 Issues............................................................................................................

Words: 2572 - Pages: 11

Star Cruise

...Analysis of the Financial Statements of Star Cruises Limited Executive Summary Star Cruises Limited provides cruise service to the Asia-Pacific region as well as certain investment into resorts and casinos in Macau as well as in Philippines. The year 2008 was an eventful year for Star Cruises Limited (Star Cruises), with events such as the overwhelming financial crisis which had affected Star Cruises, as well as the deemed disposal of the Norwegian Cruise Line Corporation Ltd (NCLC), where NCLC ceased to be a subsidiary of the Company and became a jointly controlled entity of the Company. Star Cruises’ financial performance was poor, as reflected in the financial statements. Gross profit for the company (Star Cruises without its subsidiaries) recognized a 25.86% decline. However, while profitability ratios such as Return on Assets (ROA) and Return on Equity (ROE) improved from last year; it is good to note that they are still a negative ratio. Although the improvement on face value may seem good when compared to its competitors, it is unfair to judge the value as Star Cruise made an overall loss and its absolute ROA and ROE are bad compared to its competitors. Overall, Star Cruises recorded a -20% change in her total assets, and was most salient compared to her other competitors which recorded an increase of either 10% or a fall of 2%. However, Star Cruises’ current assets had increased by a significant 118.79% in the year 2008. This increase in current assets is......

Words: 8822 - Pages: 36

Carnival Cruise Lines Case

...Key Points The birth of the modern cruise industry can be dated back to the 1960s. With the Airline industry taking off, shipping companies began to reposition themselves as providers of transportation to that of vacation travel. As the means of travel changed, so did its consumer base. Cruising was dominated by brands that served a more affluent customer base, providing fine dining, formal atmospheres and a high degree of personal service. However this also rapidly transformed the market and brands like Carnival Cruise lines emerged. Carnival cruises is the market leader in the low-price cruise market. They strategically achieved this position by emphasizing on-board activities, and targeting a relatively younger cruiser. However, after acquiring 24 percent of the berth space in North America, it has plateaued in being able to set itself apart from its competitors. The case in question outlines key attributes that assist in determining if it wise that the brand make a lateral shift from their current low-priced market to that of a premium one. This analysis will be assessed by means of a brand strategy, possible marketing initiatives and various concepts discussed in-class. The case goes on to highlight that although Carnival Cruises is a key player in the entry level cruise business, it has room for significant improvement. As more competitors emerge, a “sea of sameness” begins to overtake the minds of potential cruisers. The author investigates the foundations of......

Words: 1523 - Pages: 7

Royal Carribean

...Royal Caribbean Case This main focus of this case study is an analysis on the current situation (data from around 2Q of 2010). The case compares Royal Caribbean to its main competitor, Carnival, through the entirety of the study. The most discussed issue in the case is of Royal Caribbean and its situation relative to the world economy as its recovering from one of the worst recessions since the great depression. From where the timeline of the case begins (2Q of 2010) it had made a large recovery in profit and had cut costs as well. However, even despite the forecasts predicting a further increase in profit, Royal Caribbean along with the cruise line industry is still in a delicate position. The case constantly brings up the point that cruises are solely a purchase based off of discretionary income. In times of economic struggle, discretionary items like cruises are left out of the budget. Another issue that the case brought up with every factor discussed is Royal Caribbean being 2nd place in the world for market share, bested by Carnival Cruise Lines. The case goes back and forth debating whether or not its position within the market share is a good thing. While they by far are in 2nd place, Royal Caribbean has a special niche in the market being the luxury cruise liner with the newer and nicer ships. Overall, the largest theme in this case study is the uncertainty of the cruise industry with the unpredictable economy that may or may not be recovering. Strategic &......

Words: 655 - Pages: 3

Royal Hotel Case Study Analysis

...  Royal Hotel Case Study Analysis 1                                   Troubleshooting Information Systems at the Royal Hotel: A Case Study Analysis            Jason Willis  University of Massachusetts  SCH­MGMT 632  Dr. Charles Mutigwe  May 28, 2016                            Royal Hotel Case Study Analysis 2  Table of Contents  1. 2. 3. 4. 5. 6. 7. Executive Summary  Case Overview  Problem Statement  Case Data Analysis  Decision Criteria  Resolutions Analysis  Recommendations/Action plan    Executive Summary  The Royal Hotel is an all suite luxury establishment in New York City that caters  primarily to traveling businesspeople. As a luxury hotel, much of their clientele consists of high  level executives who, by definition, are demanding and astute when compared to the average  hotel guest. The 482 suites that comprise the hotel are equipped with various amenities to allow  the client to conduct business from the comfort of the hotel. These include but are not limited to:  paper fax, printer, copier, high­speed internet access, two­line telephones, and voicemail. In  addition, the Royal Hotel maintains a fitness center, three restaurants, a coffee shop, a 24 hour  business center, suite dining, complimentary shoe shine, and high­speed elevators. The Royal has  hosted 150,000 guests and earned $30 million in revenue per year. While it has maintained  profitability and a strong contingent of repea......

Words: 2246 - Pages: 9