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...Calculation of Trend Percentages for Carnival Corp, LLC Historical Information: Ratio Anaylsis | 2010 | 2009 | 2008 | Current Assets | 1,244,000 | 1,518,000 | 1,650,000 | Fixed Assets | 30,967,000 | 29,870,000 | 26,457,000 | Current Liabilities | 5,755,000 | 4,967,000 | 5,781,000 | Long-term Liabilities | 1,353,000 | 950,000 | 1,608,000 | Owner’s equity | 23,031,000 | 22,039,000 | 19,098,000 | Sales Revenue | 14,469,000 | 13,460,000 | 14,646,000 | EBIT(Revenue – Operating Expense) | 12,122,000 | 11,306,000 | 11,917,000 | Net Income (Loss) | 1,978,000 | 1,790,000 | 2,330,000 | EPS(Net Income – Dividend on Preferred Stock / Average Outstanding Shares | $1.98 | $1.79 | $2.34 | Trend Analysis Information: | | | | Current Assets | -274,000 | -132,000 | -326,000 | Fixed Assets | 1,097,000 | 3,413,000 | 182,000 | Current Liabilities | 788,000 | -814,000 | -1,479,000 | Long-term Liabilities | 403,000 | -685,000 | -816,000 | Owner’s Equity | 992,000 | 2,941,000 | -856,000 | Sales Revenue | 1,009,000 | 1,186,000 | 1,613,000 | EBIT | 816,000 | -611,000 | -1,528,000 | Net income (loss) | 188,000 | -540,000 | -78,000 | EPS | $0.19 | -$0.55 | -$0.06 | This reference below is for the information below for the Stock Price analysis: http://investing.businessweek.com/research/stocks/financials/drawFiling.asp?docKey=136-000119312511018320-4OKRDHIIU7TKA8LGPOU3PNISUV&docFormat=HTM&formType=10-K Carnival Corporation LLC Common Stock Price vs....
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...Finance Revenue & Profit Comparison As of may 31st 2015 the Carnival cruise company has had their second quarterly total revenue to be at $3.59 billion. This is an overall increase of $59,000 from last quarter’s revenue. During this quarter they have beaten out one of their biggest competitors “Royal Caribbean” by a total of $1.77 billion in total revenues. Last year Carnival had total revenue increase from the previous year from $15.456 billion to $15.884 thus beating Royal Caribbean by an astounding $7.81 billion. This is no surprise because Carnival has a bigger share of the market due to the other cruise lines they have under their name. Even though Carnival has had an increase in total revenue over last quarter they have experienced a decrease in gross profit by $10,000 from last quarter which was $1.196 billion. What caused this decrease even with higher total revenue was an increase in their cost of goods sold. In the previous quarter cost of goods sold was 66% of sales and now is 70% of sales. Below are a few financial ratios to determine the company’s possible financial strengths and weaknesses based on last quarter. Liquidity: * Liquidity ratios show the company’s overall financial health by determining how the company can cover its liabilities with their assets. Current ratio looks at how the company can pay off their short-term liabilities from their current assets. Quick ratio or acid test ratio determines how they can pay of their short-term obligations...
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...CARNIVAL CORPORATION STRATEGY REPORT GRIFFIN CONSULTING GROUP Benjamin Levin Jennifer Jones Tom Slade Wednesday, April 11, 2012 2 CONTENTS Executive Summary ..................................................................................................................... 4 Company Background ................................................................................................................ 5 History ....................................................................................................................................... 5 Costa Concordia Incident .......................................................................................................... 6 Business Model and Operations Summary .......................................................................... 8 Five Forces Framework ............................................................................................................. 11 Internal Rivalry ...................................................................................................................... 11 Supplier Power ....................................................................................................................... 13 Buyer Power............................................................................................................................ 14 Entry and Exit ....................................................................................................................
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...service to the Asia-Pacific region as well as certain investment into resorts and casinos in Macau as well as in Philippines. The year 2008 was an eventful year for Star Cruises Limited (Star Cruises), with events such as the overwhelming financial crisis which had affected Star Cruises, as well as the deemed disposal of the Norwegian Cruise Line Corporation Ltd (NCLC), where NCLC ceased to be a subsidiary of the Company and became a jointly controlled entity of the Company. Star Cruises’ financial performance was poor, as reflected in the financial statements. Gross profit for the company (Star Cruises without its subsidiaries) recognized a 25.86% decline. However, while profitability ratios such as Return on Assets (ROA) and Return on Equity (ROE) improved from last year; it is good to note that they are still a negative ratio. Although the improvement on face value may seem good when compared to its competitors, it is unfair to judge the value as Star Cruise made an overall loss and its absolute ROA and ROE are bad compared to its competitors. Overall, Star Cruises recorded a -20% change in her total assets, and was most salient compared to her other competitors which recorded an increase of either 10% or a fall of 2%. However, Star Cruises’ current assets had increased by a significant 118.79% in the year 2008. This increase in current assets is possible due to a much more significant increase of 34580.65% in her ‘other current assets’ account, which more than offsets a...
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...fine dining, formal atmospheres and a high degree of personal service. However this also rapidly transformed the market and brands like Carnival Cruise lines emerged. Carnival cruises is the market leader in the low-price cruise market. They strategically achieved this position by emphasizing on-board activities, and targeting a relatively younger cruiser. However, after acquiring 24 percent of the berth space in North America, it has plateaued in being able to set itself apart from its competitors. The case in question outlines key attributes that assist in determining if it wise that the brand make a lateral shift from their current low-priced market to that of a premium one. This analysis will be assessed by means of a brand strategy, possible marketing initiatives and various concepts discussed in-class. The case goes on to highlight that although Carnival Cruises is a key player in the entry level cruise business, it has room for significant improvement. As more competitors emerge, a “sea of sameness” begins to overtake the minds of potential cruisers. The author investigates the foundations of Carnival’s branding by looking at segmentation, targeting, their brand portfolio, along with the brand positioning and architecture. He goes on to highlight the various attributes that make up the cruising market and how it is affecting Carnival. Characteristics such as substitute products, buyers, new entrants and rivalries are discussed. Substitutes are posed as a challenge; many...
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...Forces Scale Comments Rivalry | High | 1 | Suppliers | Moderate | 2 | Buyers | Low | 3 | Entry & Exit Barriers | Low | 4 | Substitutes | High | 5 | 1. The cruise line industry is effectively an oligopoly market, where several major cruise liners make up more than 90% of the market shares. Carnival is constantly engaged in marketing and pricing battles with these competitors, making internal rivalry central to the industry. Additionally, cruise lines have historically been subject to heavy M&A activity, and Carnival sometimes competes to acquire even more share. The cruise line industry has relatively high competitor diversity and a moderate level of product differentiation. Carnival and Royal Caribbean are each more than 3x the size of the next largest competitor. Smaller cruise lines tend to specialize in options for a particular demographic or geographic region. Carnival Corporation’s multiple brands create a competitive rivalry within the company; however, each brand caters toward a slightly different demographic or specializes in a particular market or geographic region. One additional factor increasing internal rivalry in cruising is the industry’s high exit barriers. It is difficult for a cruise liner to sell their assets and exit the industry. This increases competition within the industry somewhat, as there is inflexibility in capacity adjustment, meaning that companies will undercut...
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...1) What global forces have contributed to the growth of the cruise-line industry? Answer: The global forces which have contributed to the growth of the cruise-line industry are- * Technological advance: the birth of industry was a direct respond to the technological advance in air travel that made liner travel less attractive to business people due the cost and time factors. * Market liberalization and international cooperation: the liberalization of cross border trade and resource movement had allowed the cruise line industry to force on the cheaper yet competent labor resources. At the same time, the industry is able to offer various global destinations and on land elimination package to its potential customers. * Support services: the development of new ports allows the cruise line expand its destinations and provide varieties of offering to the customers. This will help attract new customers, and the same time ensures the return of existing customers. * Customer’s affluence: the growing income among the middle class in many countries, particularly in the emerging market , contribute to the increase in discretionary incomes that could be spent on tourism. 2) What are some of the national differences that affect the operations of cruise lines? Answer: Cruise lines obtain flags of their convenience from about 30 different countries because of the lower taxes and less stringent employment policies of those countries. Few countries have shipyards capable...
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...MGMT 619 Spring 2009 Carnival Corporation [pic] Team 6 Amy Clogher Jacob Griego Ted Noble David Sciortino Deepa Sethi Executive Summary Carnival Corporation is the leading cruise line company in the international cruising industry, with 11 major cruise line brands and is clearly a winning company. It controls almost 50% of the cruise line market and is a broad line provider. The company does not face any considerable challenges within its industry and has adequately responded to all threats. Although 2008 was a challenging year due to the economic crisis, Carnival posted net income for 2008 of $2.3 billion (15.9% of sales). Carnival’s strategy is to be a broad line provider with a wide scope on a large scale. Carnival maintains this strategy by focusing on cost leadership in the contemporary and bargain lines, and then differentiating in the premium and luxury lines of their product mix. Industry & Competition The cruise line industry is a moderately attractive, 3-star industry that is characterized by top incumbents capturing a majority of the economic value in the industry, high fixed costs, cost savings achieved from economies of scale, and a high degree of rivalry between the top two industry incumbents. The cruise line industry has reached the growth stage after the inflection point. It is predicted that the growth stage will be longer in the cruise line industry due to frequent product upgrades and niche enhancements that forestall...
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...Carnival Cruise Line Case Study Abstract This case study reviews the financial position of Carnival Cruise Line. The data reviewed is primarily from the previous five years of annual reports produced by the company (2007-2011) and certain key ratios derived from those reports. For comparison purposes, this case study will use Carnival Cruise Lines nearest rival, Royal Caribbean Cruise Line. This case study will prove the financial strength and stability of this company and give the reader some indication as to why Carnival Cruise Line is the industry leader in the cruise market. Carnival Cruise Line Case Study The company that would eventually become Carnival Cruise Line (Carnival) began in 1972. It started with just one second-hand ship and enough fuel to make a one-way trip from Miami to San Juan, Puerto Rico (Carnival Web Site). Today, Carnival is the largest cruise company in the world – consisting of ten cruise brands operating 99 ships worldwide. For the fiscal year ended November 30, 2011, Carnival served over 9.5 million passengers and generated approximately $16 billion in revenues. Based on 2011 numbers, Carnival controls 49.2% of the market while its nearest competitor – Royal Caribbean – controls 23.8%. Various smaller competitors comprise the remaining market share of 27% (Cruise Market Watch, 2012). Carnival has managed to maintain its profitability and market share in an environment of economical and geopolitical swings. The structure of this...
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...Asian Journal of Case Research 7(1) 2014 ISSN 1985-4579 pp:1-16 FUNDING PROMOTIONAL ACTIVITIES: THE CASE OF JASMINE BEAUTY ENTERPRISE Wan Sharinee Fitri Wan Yahaya1, A.K Siti-Nabiha2, Fathyah Hashim3 ABSTRACT Established in 2008, Jasmine Beauty Enterprise (JBE) specialises in halal health and beauty products that it markets and sells in Malaysia. However, after four years of operation, the company’s founder, Jasmine, is still under pressure to sustain the business. Much of this pressure comes from health and beauty being such a competitive and volatile market, which requires JBE, a newbie in the industry, to invest heavily in brand and product promotions. Not only does JBE need to promote its products but, as customers are not really familiar with the company, it also needs to build brand trust and image. From 2008 to 2012, the company spent RM1.2 million on marketing and promotional activities. However, sales did not increase as expected, and the lower-than-expected revenue has reduced the company’s profit margin. There is also an issue of accrued sales, as a large amount of accounts receivables are affecting cash flow in the company, which needs to be addressed. Overall, these problems are limiting the company’s cash reserves, and its ability to grow. Jasmine felt that the company was not getting value out of the promotional activities and, as a result of JBE’s costly marketing and promotional activities, the company needs to seek a bank loan. A thorough...
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...Brand Choice Pizza Hut Lecturer Chris Smith Submit Day 18 April 2014 Pages Count 19 Brand Choice Pizza Hut Lecturer Chris Smith Submit Day 18 April 2014 Pages Count 19 Mai Thi Kim Anh s3410200 Dang Ngoc Bao s3445804 Truong Thi Phuong Duyen s3446035 Le Ngoc Giang s3446610 Le Phuong Nghi s3445860 To Thi Thanh Trang s3446628 Mai Thi Kim Anh s3410200 Dang Ngoc Bao s3445804 Truong Thi Phuong Duyen s3446035 Le Ngoc Giang s3446610 Le Phuong Nghi s3445860 To Thi Thanh Trang s3446628 MARKETING COMMUNICATION IMC PLAN MARKETING COMMUNICATION IMC PLAN Table of Contents Stage 1 I. Situation Analysis 1 1. 4Ps Overview: 1 2. Target Audience: 2 3. SWOT Analysis: 3 4. Competitive Frame: 4 II. Communication Objectives 5 III. Communication Budget 6 Stage 2 I. IMC Program 6 1. Advertising: 6 2. Consumer-Oriented Promotion: 11 3. Event Marketing and Sponsorships: 12 4. Marketing-Oriented Public Relations and Publicity: 13 II. Evaluation and Control 15 1. Evaluation: 15 2. Control: 16 Executive Summary Since 2007, Pizza Hut has made a name for itself in Vietnam's booming market for fast food despite the industry’s increasingly competitive tendencies. With 40 locations scattered in cities across the country, Pizza Hut aims to reach the active and young urbanites, who are looking for more value and are attracted to the brand because of its proposition “Pizza...
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... Analyzing the Four Financial Statements In the study of accounting there are four different types of financial statements. These financial statements have an important role in the daily functions of many businesses and corporations. Accounting is defined as “the information system that identifies, records, and communicates the economic events of an organization to interested users” (John Wiley & Sons, 2012). The financial statements when working with finances include Balance Sheet, Income Statement, the statement of cash flows, and the statement of owner’s equity. This paper will explain the four financial statements, along with which statement is a best fit to creditors, investors, and management. The financial statement that would be of interest to creditors is the balance sheet. The balance sheet presents outlined information in relation to an organization’s assets, liabilities, and shareholder’s equity. The balance sheet statement also shows the financial position for a specific company at any given time. Under assets are two different sections, current asset, and fixed asset. The income statement provides the details that show the profits and losses over a period, such as one month, three months, and up to one year. The income statement is prepared at the end of the accounting period. In addition, the income statement identifies the amount of net income or loss. Most businesses operate as for profit entities; the income statement is a critical indicator of the...
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...ECON2103 – Problem Set (1) Multiple Choice Questions: 1. Understanding opportunity cost You work as an assistant coach on the university basketball team and earn $12 per hour. One day, you decide to skip the hour-long practice and go to the local carnival instead, which has an admission fee of $7. The opportunity cost of skipping practice and going to the carnival, valued in dollars is _________. 1) 2) 3) 4) $20 $12 $19 $7 2. Determining opportunity cost Winona is deciding whether to buy a suit that she wants, as well as where to buy it. Three shops carry the same suit. She can go to her local department store, located 15 minutes away from where she works, and pay $120 for the suit. She can travel to a shop across town, located 30 minute away from where she works, and pay $90 for the suit. Finally, she can take a one-hour drive out of town to a neighboring city and pay $85 for the suit. Winona makes $90 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $90 in lost income. Assume that returning to work takes Winona the same amount of time as getting to a shop and that It takes her 30 minutes to shop. Answer the following questions, ignoring the cost of gasoline and depreciation of her car when traveling. The opportunity cost of her time if she chooses to purchase the suit in the shop across town is ___________. 1) 2) 3) 4) $180 $135 $45 $90 Assume that Winona takes opportunity costs and the price or the suit into consideration...
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