Coast4life Case
Coast4life Inc.
Prepared for: Coast4Life’s board of directors
Prepared by: Pat Brown, CMA
Date: January 24, 2014
Introduction:
Cruise industry is facing a worldwide downturn after terrorist attack in Caribbean in Sep.
30, 2010 and the decline in bookings of cruises next year implies that the cruise revenues may shrink worldwide.
Financial analysis for the year ended 2012(appendix1)
Current ratio of 1.59 indicates that the company can meet its short term obligations.
There is a 48% improvement versus last year’s current ratio of 1.07 .quick ratio of
1.75shows a 45% improvement.
Total debt to equity ratio of 1.23 shows an 18% improvement over prior years ratio of
1.49 indicating that the firm is relying less on debt. Times interest …show more content…
Recommendations:
Alternative1:
Could not supply the company long-term revenue while fix the short-term turndown. On the other hand it may turn the company’s reputation down.
Alternative 2:
Provide a long-term incremental income for company if the company target and increase the vale customer’s percentage, therefore it is a recommended solution.
Alternative 3:
Would damage the company’s reputation if any low standard service happens because of the unskilled works.
Alternative: 4
Will increase the revenue for long-term company run without any additional expenses; therefore it is a recommended solution.
M1A1
Page 5
Conclusion:
Based on a review of the strategic alternatives available to Coast4Life, the recommended strategies are targeting a more profitable market segment and implementing a web-based booking system. Both of these alternatives are aligned with the company's mission and will strengthen its reputation in the cruise industry.
Coast4Life also need to release the cash shorten problem by convincing the stakeholders to give up the dividends in 2013 (see
Prepared for: Coast4Life’s board of directors
Prepared by: Pat Brown, CMA
Date: January 24, 2014
Introduction:
Cruise industry is facing a worldwide downturn after terrorist attack in Caribbean in Sep.
30, 2010 and the decline in bookings of cruises next year implies that the cruise revenues may shrink worldwide.
Financial analysis for the year ended 2012(appendix1)
Current ratio of 1.59 indicates that the company can meet its short term obligations.
There is a 48% improvement versus last year’s current ratio of 1.07 .quick ratio of
1.75shows a 45% improvement.
Total debt to equity ratio of 1.23 shows an 18% improvement over prior years ratio of
1.49 indicating that the firm is relying less on debt. Times interest …show more content…
Recommendations:
Alternative1:
Could not supply the company long-term revenue while fix the short-term turndown. On the other hand it may turn the company’s reputation down.
Alternative 2:
Provide a long-term incremental income for company if the company target and increase the vale customer’s percentage, therefore it is a recommended solution.
Alternative 3:
Would damage the company’s reputation if any low standard service happens because of the unskilled works.
Alternative: 4
Will increase the revenue for long-term company run without any additional expenses; therefore it is a recommended solution.
M1A1
Page 5
Conclusion:
Based on a review of the strategic alternatives available to Coast4Life, the recommended strategies are targeting a more profitable market segment and implementing a web-based booking system. Both of these alternatives are aligned with the company's mission and will strengthen its reputation in the cruise industry.
Coast4Life also need to release the cash shorten problem by convincing the stakeholders to give up the dividends in 2013 (see