Coral Divers Resort Introduction Mr. Jonathan Greywell is contemplating a business decision in which there are four realistic options. He is the owner of Coral Divers Resort, located in the Bahamas on the island of New Providence. He caters to customers looking for a resort package that includes diving. This case discusses a decline in revenues for the three-year period of 2005-2007. His options include: selling the resort, partnering with another business, focusing on higher margin business, or improve his current business to be more competitive. Selling Coral Divers Resort The most significant reason to sell the business is the declining revenues. However, Greywell would need to find another means of income such as another …show more content…
Another factor to consider in making this decision is whether Rascal’s is worth the 30% commission. The fees for families (i.e. more people per room, etc.) when compared to the operation expenses keep the profit margin the same with the added benefit of a unique identity in the market. Higher Margin Adventure Diving Adventure diving generates a higher margin and therefore it is a good idea for Greywell to consider adding it to the mix of dive offerings. However, it cannot be considered without weighing the risks involved. Coral Divers Resort has an excellent reputation and careful consideration should be given as to how to protect this intangible asset. Adventure dives would need specifically trained and experienced dive masters. Simply training existing employees might pose an additional risk since they aren’t too excited about diving with sharks and also lack experience that might be helpful for safety issues. Within an hour’s distance away, competitors are already a part of this market and bringing in $115 per adventure dive which is $50 above the regular dive experience. An additional $600 per week can be earned on two days per week with an average of 6 customers each of those days. Despite hiring or training costs and additional $31,200 in revenue can be generated, after the expenses for shark food and the special dive suit. Perhaps more adventure dive business is possible, yet this
Have you ever been sailing out in the ocean well if you have did you know that you could have been several hurt and have lost your ship. In the two text “Rogue Wave” by theodore taylor and "Parents of Rescued Teenage Sailor Abby Sunderland Accused of Risking Her Life" by paul harris they both have similar reasons of why it is risky to make an adventure. Both text illustrate how it's risky because it can possible put you in agonizing pain, you can also lose an object that you are very proud of. The two text both explain the an adventure is very risky.
The play Away by Michael Gow shoes the character of Coral to be in need of change in her distinctive world. Discuss how this applies to the play.
First of all, ocean exploration technology has advanced much more than before in the past decade. In the past, people had to bring everything needed for scuba diving which included hundreds of pounds of gear and photographing technology. Now, all
Marathon Key is uniquely situated to allow for diving as the keys are known for being a hub for pirates of old. Even though most dive boats are not intent on looking for buried treasure, divers are impressed with the crystal clear waters and luminescent colors of various fish species. Scientific excursions are a regular occurrence, but there are also many dive opportunities for novice divers as
The Battle of Coral Sea was the first major sea battle between allied fleet forces, including those of the United States and Australian Navies, and the Imperial Japanese Navy (IJN) during World War II. Pivotal in terms of allied naval fleet operations during the war, the Battle of Coral Sea was also the first naval battle that featured opposing air craft carriers in close proximity to each other, resulting in air battles initiated by sea, rather than from traditional land bases. The following provides relevant details.
Beginning and advanced snorkelers find underwater life inspiring. Three areas provide choice to visitors. First, the clear water of the shallow lagoon offers experience and safety for beginners and the timid. Second, the Inlet with its strong current and rocky line remains popular and challenging. Finally, Monster Hole drops to 30 feet deep 30 to 40 yards off the jetty for experienced snorkelers.
Our recommendation would be for Greywell to focus on family diving. This is because 45% of divers now prefer to travel with their families. With the median age of divers (36 years old) steadily increasing, the resort could focus solely on a niche market that could bring higher revenues by attracting a premium category of vacationers and charging a higher premium price. To encourage a whole family diving experience, young adults below the ages of 18, and even below 13, will be encouraged to sign up for low-risk diving classes - as part of the whole family package - and they will be watched under the careful guidance of the resort’s qualified diving instructors in swimming pools and shallower diving spots. While the Family Resort only has a 43% return on investment (very low compared to the
For knowledgeable divers prepared to have an improve to some cage-free adventure, traveling author Charli Moore suggests a 7-day reside aboard dive studying the islands on the Reefs Sea, external excellent Barrier Reef as well as Fish hawk Reef, based about 217 kilometers from the coastline of Cairns in Queensland.
Kids love the interactive activities, which include touching sea animals and climbing through tunnels. For an additional fee, take advantage of the Behind-the-Scenes Tour – a 45-minute guided tour that brings you above the tunnel system where you can see animals that are off-exhibit. Also available are overnight adventures and a snorkel program.
On ABC’s Good Morning America’s Weekend Adventure special, viewers were taking to new depths of excitement and adventure as tourists went face to face with the beautiful Caribbean Reef Shark off the coast of the Bahamas. The video clip we saw showed tourists from around the world getting up close and personal with these huge, majestic fish. Participates were ecstatic after there trip down under with the fish. One tourist says, “No other dive compares to it”. How have these people been attracted to these adventure dives, and what makes these so appealing? Those are the questions I will explain in the next paragraph.
When it comes to judging the alternatives with the most important factors of profit maximization and competitive advantage, the recommended option to become focused on family diving vacations is much stronger than the option to specialize in shark diving. (Displayed in detail in Exhibit 2). Partnering with Rascals posts the highest first full year profits of $166,000 compared to the adventure focused and cost efficiency alternative that posts a first year profit of $112,000. Further, the partnering with Rascals has projected revenues that are sustained further out in the future because of the competitive advantage gained when moving into the family oriented diving segment rather than the adventure oriented segment. The difference in estimated revenue between the two in 2011 is approximately $620,000 with the family specialization solution
What is uttermost on the mind of the leisure bay spa company is the optimum satisfaction and happiness of its users. It is pledged at producing variety of hot tubs that target to proffer a life time experience for its users.
Fairmont Chateau Lake Louise (CLL) is unable to translate its world's most spectacular natural surrounding into profits. The many issues facing CLL today include the declining Asian tour group market, due to the 1997 Asian economic crisis, the concentrated, summer and winter, seasonal demand, and the emergence of Internet, which empowers customers to make short-term decisions. The analysis below will present several key elements that will potential increases CCL's long-term profitability regardless of its highly volatile business cycle.
Just last Sunday 60 year-old lady Doreen Collyer was on her regular dive in the azure blue transparent waters of Mindarie beach, a kilometre off shore, happily paddling around in the ocean exploring the tunnels and caves with all sorts of colourful reef fish- ods and groupers, Coral trout, Emperors, Fusiliers, Parrotfishes , Surgeonfishes , Sweetlip darting around her in bursts of colour and diving into moss green seaweed crevices. Collyer would often dive just after having her usual Sunday morning decaf coffee with her two beloved children at the Mindarie marina. ON this still, June morning, Collyer was looking forward to this dive as it would be her one-hundredth. It should have been a joyous occasion but as she
Coral reefs are one of the oldest types of living systems on earth, and certainly one of the most spectacular (Goreau, 1987). They are massive underwater structures formed by the limestone skeletons of tiny invertebrate animals. Reefs house a greater diversity of body forms, chemistry, and animal phyla (thirty-two compared to the eight that inhabit the most biodiversity ecosystems on land). Phyla comprise the second largest category of living things, after kingdoms.