MGMT530 – Labadee Decision
Week 5 Case Analysis

The objectives for the assignment were to define the uncertainties using a risk profile and make the recommendation for a decision for the Labadee Case.
Students will have a wide variety of responses based on the limited information provided in the case.

Risk Profile Uncertainty 1: How will guests react knowing many citizens are struggling? | Outcome: | Chance | Consequences: | Guests react negatively | 50% | Guests will cancel reservations | Guests react positively | 50% | Guests may be attracted and want to assist Royal Caribbean International | | | | | | | Uncertainty 2: How will the media respond to the decision? | Outcome: | Chance | Consequences: | Negatively | 80% | Royal Caribbean International eliminates Labadee’s story | Positively | 20% | Royal Caribbean International will continue to stop in Haiti | | | | | | | Uncertainty 3: How will Labadee be affected? | Outcome: | Chance | Consequences: | Haiti is impacted negatively | 70% | The community will not see the profits of the cruise; thus, putting Haiti in a worse financial position | Haiti is impacted positively | 30% | The community will keep the profits and receive the needed assistance from group and traveling guests | | | | | | |
Decision Recommendation Decision Recommendation | Alternative Recommended | Summary Rationale | Continue the trips | After creating a risk profile, it is true that continuing the trips is less favorable due to negative impacts/perceptions; however, going with the logic of greater risk equals greater payoff, the company should really consider making the trips. If the company does not make the trips, Haiti is in the same position. Haiti is still in shambles. If the company decides to make the trips, they have the opportunity to draw greater attraction to helping the citizens of Haiti. It puts RCI in a better position to help the country. As a result, guests will be attracted to the cruise line and will also want to help the country. Unfortunately, if the cruise line does not continue the trips, they run the risk of getting less publicity/attention; thus, increasing the probability of low visibility on the Haiti issue. Though it is not favorable to continue the trips, the trips may be Haiti’s only solution. They get increased visibility, more likelihood of assistance and the company remains profitable. |