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Case Study

423 words - 2 pages

Carnival Cruise Lines
1-3. The global forces that have contributed to the growth of cruise-line industry are the nationality of competitors. Companies can obtain ‘flags of convenience’ from about 30 different countries, and travel to many different ports. This can tend to make it easier for companies to be based out of other countries and save money on taxes and such.
1-4. Legally, Carnival is a Panamanian company, and Carnival’s revenue is not subject to U.S. or Panamanian income taxes.
1-5. The Global Recession greatly impact the global cruise industry. People were less willing to spend money on vacations which ...view middle of the document...

1-7. Percentage of first time cruisers is declining. Industry members are worried that repeat cruise goers will get bored and move on to resort/destination vacations instead. I would market mainly to first time cruisers, offer large discounts or specific cruises for first timers. Cruise industries need to keep creating new things and having niche cruise lines in order to keep repeat customers returning. Though future gas prices, taxes, and interest rates are a worry, there isn’t much that can preemptively be done to fix these issues.
1-8. When buying ships built with governmental subsidies Carnival is purchasing ships for 2.5 Billion for ships that cost about 10 Million. Carnival could break even much sooner or have much better ships if the subsidies were higher or the ships weren’t as inflated in price.

Saudi Arabia’s Dynamic Culture
2-1. Depending on where I am sending my team and what we are selling I will have many things to let my employees know. Depending on where the team is going they need to be aware of social norms. Women may want to cover their face in respect of the culture. Many places close throughout the day for prayer or during Ramadan for fast. Alcohol, pornography, and drugs are prohibited
2-2. Saudi government has eliminated the prohibition of accident insurance because businesses need the coverage. They also offer interest free loans to businesses. This will help my company by not requiring any rate on return.

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