Coast4Life Case Essay

647 Words3 Pages
Coast4Life Inc.-Strategic Analysis and Recommendations To: Board of Directors, Coast4Life Inc. From: Pat Brown, Financial Controller Date: January 25, 2013 Introduction: The purpose of this report is to analyze Coast4Life’s current business situation and opportunities and to recommend alternatives in order to meet the board of directors’ mandate that Coast4Life remain profitable during the downturn. This report includes an analysis of alternatives and recommendations on strategic issues. Major Issue: To remain profitable during the downturn * Should Coast4Life divest the Fraser dry dock? * Should Coast4Life target more profitable market segment? * Should Coast4Life register its ships in Liberia and hire unskilled crew and hospitality workers from underdeveloped countries for low wages? Operational Issue: * Should Coast4Life implement a web-based booking system? Analysis of Issues: Alternative 1: Divesting the Fraser Dry Dock Discuss financial impact after showing the quantitave analyses in the appendix Pros: * Cons: * Not supported by the general manager of the dry dock * More BC communities lobbying the government for assistance in building docks for cruise ships and freighters * Would hurt Coast4Life’s reputation for safety * The layoffs could damage the relationship the company has with the local community, the city, and other governments. Alternative 2: Target a more profitable market segment Discuss financial impact after showing the quantitative analyses in the appendix Pros: * Offers unique services and features (e.g. whale watching, ports of call) * Offers value for price (Coastal Native) and special amenities (Natural Splendour) * Experienced sailors; low turnover * Dock and head office in good location * Good management team * Government agencies promote tourism in

More about Coast4Life Case Essay

Open Document