Carnival Corporation Case Study
Introduction
Carnival Corporation as the largest cruise line in the world is being a leader and innovator in the cruise line industry. Many of the onboard activities and services were introduced to strengthen the competencies between competitors. The challenges of the Carnival were being overcome by the management with creative and innovative strategies. As a corporate entity, Carnival did not refuse to withdraw money to settle the ocean pollution charged by public. The expansions of cruise line market via acquisition of a few subsidiaries dominate the cruise line in the world.
1. Strengths (internal factors)
First, the largest cruise line in the world, as the leader and innovator in the cruise industry (growth from two converted ocean liners into an organization with multiples cruise lines). Second, the belief of management and Board of Directors that the company will grows better. It motivates the employees to work hard. Third, internal grow in term of vessels that approximately ten vessels are under construction. Fourth, employees loyalty (the longest period employees remain in this organization is around eight years) because Carnival management treating well to their employees in terms of wages). Fifth, creative and innovative corporate officers that is ready to face challenges. Sixth, Carnival has operational experience and economic of scales that causing them to have lowest break even point in the same industry.
Weaknesses
First, in 1972, the speed of ship was slow. Second, the long-term debt within 1999 and 2001 is increased (the payback of debt may lower the revenue and thus decreasing the dividend payment for shareholders). Third, the expand market (business) of Carnival causing the difficulty in managing the business. Fourth, reducing on net income in 2001 is because of higher costs and expenses.
2. Opportunities (external factors)
First, the expansion through acquisition can reduce the competitors in same industry and has the ability to
Carnival Corporation as the largest cruise line in the world is being a leader and innovator in the cruise line industry. Many of the onboard activities and services were introduced to strengthen the competencies between competitors. The challenges of the Carnival were being overcome by the management with creative and innovative strategies. As a corporate entity, Carnival did not refuse to withdraw money to settle the ocean pollution charged by public. The expansions of cruise line market via acquisition of a few subsidiaries dominate the cruise line in the world.
1. Strengths (internal factors)
First, the largest cruise line in the world, as the leader and innovator in the cruise industry (growth from two converted ocean liners into an organization with multiples cruise lines). Second, the belief of management and Board of Directors that the company will grows better. It motivates the employees to work hard. Third, internal grow in term of vessels that approximately ten vessels are under construction. Fourth, employees loyalty (the longest period employees remain in this organization is around eight years) because Carnival management treating well to their employees in terms of wages). Fifth, creative and innovative corporate officers that is ready to face challenges. Sixth, Carnival has operational experience and economic of scales that causing them to have lowest break even point in the same industry.
Weaknesses
First, in 1972, the speed of ship was slow. Second, the long-term debt within 1999 and 2001 is increased (the payback of debt may lower the revenue and thus decreasing the dividend payment for shareholders). Third, the expand market (business) of Carnival causing the difficulty in managing the business. Fourth, reducing on net income in 2001 is because of higher costs and expenses.
2. Opportunities (external factors)
First, the expansion through acquisition can reduce the competitors in same industry and has the ability to