Carnival for Marketing
Monitoring and control is a feedback loop. It’s about change, results and then controlling and improving those changes. Monitoring results is an important aspect of any business organization. It’s used to improve the business, financially or overall wellness, success of any company. Companies need metrics, financial indicators (statements) to monitor results. Financial ratios are one of the most common used tools for managerial decision making. “Ratio analysis is the calculation of ratios from data in these statements. It is done to identify possible financial strengths and weaknesses” (366). Ratios may serve as signs, clues or red flags concerning notable associations between variables used to evaluate and measure the businesses performance. There are basically two uses of financial ratios analysis which include tracing individual business performance over a period of time and making relative and reasonable judgments in relation to the business performance. The ratio analysis can be used to recognize or point out developments or movements that may be cause for concern and reevaluation. Some important metrics that are most important to monitoring results for a cruise line company like Carnival would include but are not limited to Revenues by Geographic Area (you can monitor which region is more profitable), Balance Sheet, Revenue by Segments (Carnival offers both cruises and tours) and Selected overall that would include fuel consumption, cruise operating expenses break down and passengers carried during a specific cruise line trip. (Attached is an example of Carnival’s Revenue by Segment statement).
Monitoring and controlling involves a process that ensures a company is achieving what it set out to achieve. “It compares performance with desired results and provides the feedback necessary for management to evaluate results and take corrective actions, as needed” (328). Evaluation and control evidence consists of performance facts, statistics and activity reports.
Monitoring and controlling involves a process that ensures a company is achieving what it set out to achieve. “It compares performance with desired results and provides the feedback necessary for management to evaluate results and take corrective actions, as needed” (328). Evaluation and control evidence consists of performance facts, statistics and activity reports.