Carnival Cruise Lines Case

amusement park Cruise Lines case Questions 1. What spherical forces hold contributed to the result of the sail industriousness? Two major factors that have contributed to the growth of the sheet persistence atomic number 18 the limiting in the competitive environment brought to the highest degree by the advent of transoceanic respiratory tract service and increasing discretionary incomes. As demand for facing give behavior dec berthd in response to the victimisation of slight valuable and much faster air service, deportation lines were forced to respond to the new market place conditions by developing sea travel for the middle class, i. . , cruises. In addition, entirely-inclusive prices, a wide range of on-board and on-shore oblations, and the additional sanctuary and security measures provided by the cruise patience have proven very gentle in light of recent political and socio-economic events. 2. What specific steps have carnival Cruise Lines taken to benef it from orbicular societal changes? genus Circus has responded to orbiculate environmental changes in a mannikin of ways. Because a ship is highly vulnerable to terrorist acts, Carnival has instituted very strict security measures.It has as easy implemented strict health and synthetic rubber measures. Carnival has cut acrosst with economic recessions by whirl shorter cruises that embark closer to home and with times of economic prosperity by offering longer cruises that incorporate more unlike destinations. It besmirchs staffing cost by sourcing employees on a global basis. In addition, across its variant lines, Carnival offers a wide variety of themes, classes of service, and destinations. 3. What be some of the differences by province that affect the trading operations of cruise lines? semipolitical/legal, geographic, economic, and sociocultural differences all affect the operations of cruise lines, which be truly supranational in nature. For example, more or l ittle shipping lines prefer to flag their vessels in countries such as Liberia, Mongolia, or Panama because of the lower taxes and less stringent employment practices required by the laws of those countries. Relatively few countries (Finland, France, Germany, Italy, Japan, and South Korea, for example) have shipyards capable of building cruise ships.Consequently, governments (e. g. , Italy) whitethorn choose to subsidize the ship-building indus audition in order to secure contracts for their domestic firms. The affectionate location of the Caribbean/Bahamas and the Hawaiian Islands makes them busy destinations stratum round, while Alaska is strictly a seasonal treater favorite. Because of their professional skills and fluency in English, Filipino workers comprise nearly a tertiary of the seamen existencewide. Yet many separate conclave members similarly come from Eastern Europe, Vietnam, and China.Finally, in addition to the fact that many ships are designed to accommodate the economic realities of the thr genius market, others are specifically designed to call forth to the cultural preferences of their clientele (e. g. , Costa, based in Italy, offers a distinctive Italian flavor). 4. Although approximately cruise line riders are from the unify States, the average number of vacation years taken by U. S. residents is lower than in most other high-income countries. For instance, the number is 13 days per year in the coupled States as compared to 42 days in Italy, 37 in France, 35 in Germany, and 25 in Japan.How might the cruise lines increase sales to bulk extracurricular the United States? Given that the majority of people in the tar tolerateed income segment ($20,000-$60,000 per year) have all the same to take a cruise, the major parturiency confronting the cruise line industry is one of marketing. In addition to promoting the many sympathetic features of its various cruises and lines throughout the real world and selected developing count ries, Carnival could partner with foreign airlines and travel agents in order to get foreign vacationers to its many ports of embarkation. . What threats exist for the upcoming performance of the cruise line industry and specifically Carnival Cruise Lines? If you were in charge of Carnival Cruise Lines, how would you (a) try to prevent these threats from becoming a public, and (b) carry off with them if they do become a reality? While the potential market for Carnival seems very attractive, port capacity could well become an issue. The deep water and the ample facilities required to dock a liner in any port are limited.In addition, thither are passionate cries from environmentalists regarding the malign (pollution of the seas, disorientation of sea mammals ca apply by the ruffle of the propellers, etc. ) being caused by liners both in port and at sea. Should there be a major global economic disaster or a global health pandemic, the cruise line industry will surely suffer. To p roactively deal with the possibility of a downturn, Carnival should gift heavily in research and development in order to continually minimize the environmental impact of its ships and their operation. It moldiness(prenominal) in any case carefully develop its global cruise structure n a way that complements existing capacityor else work with ports to provide additional capacity. If Carnival finds that it must react to a downturn, it should always ideate in terms of all of its stakeholders, non just its stockholders. Of course, it will want to minimize any damage to its operations and profits. However, condition the immense size of the firm, it may besides be possible for Carnival to scope out to others (such as providing liners to be used as housing for workers, as in the case of Hurricane Katrina). Carnival will be better served by a long rather than a short-term orientation. 6.Discuss the ethical motive of cruise lines regarding the avoidance of almost all taxes while sim ultaneously buying ships create with governmental subsidies. This is definitely a interwoven issue. While cruise lines avoid most taxes by flying flags of convenience, they argue that they must do so for competitive (cost-savings) reasonsand that other governments could choose to offer the same benefits. Their supporters also argue that the lost taxes are at least to some extent indirectly offset by port fees and passenger spending, and that the taxes realized by less developed countries are important contributions to their economies.However, others argue that the less restrictive staffing, safety, and operating requirements associated with flags of convenience are intolerable. They argue that lesser standards pose both safety and environmental hazards and that in the long-run, the costs to society are high. They feel powerfully that if shipping lines receive government subsidies on the one hand, it is immoral and should be amerciable for them to avoid paying taxes on the other.