Case 1: Carnival
Carnival Cruise Lines: This company has had its image damaged severely by mishaps, bad publicity, angry customers, etc. The situation may be hopeless. On the other hand, this is an opportunity to think strategically. Imagine that you are an MBA working for the company. How could you propose a strategic solution to its terrible situation? Please consider the following:
- What specific financial damage has the company suffered? Look at Yahoo Finance or the Wall Street Journal.
- Make an overall assessment of the situation including the status of the cruise industry and the actions of competitors.
- How can Carnival improve its situation by adopting or achieving an effective strategy?
- Provide a general strategic assessment showing how the company can improve its profit and overall position. Be specific
Things to keep in mind:
- This is a course in strategy. Apply strategic concepts from the course. Apply ideas from the course. Look at the textbook and follow your class notes/class discussion. Read about the topic as much as you can. Go immediately to The Wall Street Journal. If you miss something, your credibility will be shot.
- Use Street Smarts. Think of Carnival management as smart. So, treat them as experienced and knowledgeable. Give advice based on careful analysis and your best thinking.
- Find out what the more successful cruise lines are doing and apply their ideas. But, use common sense. Carnival cannot sell its ships or copy unfeasible ideas from other cruise lines.
- Produce a well-written paper of at least five pages that is suitable to show senior management.
Things to avoid:
- Do not provide an operational solution. Do not propose a marketing plan. Do not tell them to repair their ships. Marketing and repair are operations. Your paper will not earn a grade.
- Do not tell them to create a strategic plan. That is your job!
- Do not fill your paper with useless information such as company history, material from blogs or other unfounded opinions. For example, Carnival does NOT compete with more expensive cruise lines.
- This is the first paper in the course. Do not copy from sources without showing that you copied. That is plagiarism, a serious offense.