There are three points that Carnival may have overlooked in their crisis response. For an analysis of their key financial ratios, please see Table 2: This analysis indicates that Return on Assets ROA continues to flat line and gradually drop over the last five years, and Sales-Per-Employee over the last two years has seen a gradual drop.
It is impossible to predict how and when they will occur and how they will progress; they can play out in an infinite number of ways. The results can vary, but none are terribly efficient or effective. Thus, what typically happens in this scenario is that when plans are confronted with an actual event, they fail because they did not, could not, account for every eventuality and context.
After a dip in revenues inincreased travel volume and cruise purchases are anticipated for the next two years. Once understanding is achieved, which relies on collecting and analyzing the appropriate information, the team can visualize their objectives given the specific context of the situation.
This form of crisis management often results in either a culture of personality, in which the leader simply makes all the decisions. Understanding the pitfalls of risk determination, before conducting a risk assessment, can inform those responsible for determining and managing operational risk.
Given this, one way to ensure that an organization understands their true risk environment is to introduce risk managers to this concept. These are concerns that need to drive the development of an effective marketing plan that will increase asset utilization efficiency and higher profitability at the same time.
The media picked up on some of the more dramatic of these calls, notably from a year-old girl who called her mother, begging her to come take her home because she was afraid she would die. As a result, at the low-end of the Carnival market, the company enjoys elasticity of demand based on aggressive pricing and exceptionally high sales rates even in the midst of a recession, yet also battles price erosion and a negative connotation to their brand Dev, Several similar cases were highlighted in the news, most from very young or aged passengers, whom society sees as the most vulnerable.
Carnival may not have adequately understood their risk environment. It does not work. A combination of these two approaches is also common, but the results are the same: However, they did not consider the impact and risk that the media could have on their reputation, and did not develop a plan to mitigate it.
First, crisis management teams must understand the situation; what is the nature of the crisis and the specific relevance or impact to the organization. Carnival continues to be one of the most evangelistic companies in this industry, seeing a definite correlation of their ongoing marketing efforts to the results achieved with attracting couples and families who have never been on a cruise before Carnival, During a press conference held nearly three days after the Triumph became disabled, the Chairman made almost no mention of the difficult conditions on the boat and did not formulate and deliver a response meant to counter the negative media blitz.
This created fear amongst some passengers, who called their loved ones on shore to express their concerns. There are however many challenges to attaining this strategy goals.
After determining Mobile, Alabama, was the best port to tow the beleaguered ship, Carnival booked more than 1, hotel rooms, 20 chartered flights and motor coaches to house passengers and get them home.
Situation Analysis An assessment of Carnivals internal environment, customer environment, and external environment are all addressed in this section of the marketing plan. First, there is the continual factors of a global economic slowdown, increasing labor costs, the instability of fuel costs, and the threat of terrorism and piracy.
Since acquiring each of these, Carnival has created a unique geographic and experience-based marketing position for each of these brads.
Carnival needs to create a unified marketing strategy that integrates the strongest and most relevant benefits and positioning factors of each of the eleven brands provide, while also alleviating the reputation of being cheap in terms of quality at the low-end of their product line.
It is unclear which methodology Carnival adopts for crisis management, however, this particular crisis indicates their current approach has some gaps. Had Carnival taken the steps to understand the situation before acting or formulating a strategy, they might have noted that the incident would lead to conditions on the boat that carried a strong risk of negative media.
This means that many organizations, including Carnival, may not have a realistic view of the risks they face. Carnival acquired Costa Cruises earlier in their history to gain greater market share in Mediterranean and Caribbean ports that could accommodate smaller ships.
C2 has since been adapted for the private sector to address the challenges facing organizations in a crisis. Thus, through understanding, visualizing, describing and directing, a crisis management team can employ a strategy that accurately reflects the specifics of the crisis.
There is also the threat of new environmental regulations and tax implications in the nations they have operations bases in. Risk assessments can often produce misleading results because the core tool for performing a risk assessment, the risk matrix, is a subjective, qualitative exercise subject to personal interpretation and anecdotal evidence.
It also forces decision makers to pause and think about all the potential impacts of an incident before responding. This is akin to trying to force the crisis to fit your plan, rather than building your plan around the crisis.A thorough analysis of an organization, in this case Carnival Cruise Lines, that encompasses both the external and internal intricacies of the organization and what can create a competitive advantage.
A SWOT Analysis Carnival is the world's largest cruise line with more ships, itineraries, and other cruise lines owned by the same conglomerate.
The case of Carnival Cruise Lines chronicles the company’s birth and development as it redefined the leisure cruise industry.
With a theme of “Fun Ships” and low pricing, Carnival appealed. After determining Mobile, Alabama, was the best port to tow the beleaguered ship, Carnival booked more than 1, hotel rooms, 20 chartered flights and motor coaches to house passengers and get them home.
The cruise was ruined, but passengers were safe and the ship was stable. The media, however, tells a different story. Carnival's eleven brands each have different goals and objectives as each has a significantly different brand image and experience they are marketing (Kwortnik, ).
The flagship brand, Carnival Cruise Lines, is oriented more towards price-conscious consumers and seeks to create an experience of affordable luxury. An interview will generally cover questions regarding your availability, work experience, salary expectations, your knowledge of the position being offered (responsibilities, duties, etc.), why you would like to work for Carnival Cruise Line and so forth.
CARNIVAL CORPORATION & PLC PORTER’S 5 FORCES Porter’s 5 forces model allows to analyse the factors outside the Cruise industry that influence the nature of Carnival competition within it, the forces inside the Cruise industry that influence the way in which Carnival compete, and so the company’s likely profitability.Download