Your SlideShare is downloading. ×
0
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Carnival Corporation Powerpoint
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Carnival Corporation Powerpoint

1,085

Published on

Published in: Marketing, Travel, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,085
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
48
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Kimberly Bak Kristen Bak Gerald Lee
  • 2. Brief History  Carnival Cruise Lines is one of the largest and most successful cruise line company in the world. The history of Carnival Cruise Lines started in 1972. The Chairman and CEO, Ted Arison, purchased an ocean liner for $6.5 million. The ocean liner was named Mardi Gras and included in the deal was another ship called the Carnivale. In the beginning, Carnival experienced a deficit due to fuel and ship concerns. With the design of on-board activities, entertainment, an enhanced marketing approach, and travel packages, Carnival began seeing their successes and revenue grow. Carnivals' prices were competitive with other travel packages, which was a major factor in their success. Slowly, Carnival began buying out their competitors and adding more cruise ships to their company. Carnival Cruises became an industry leader with the finalization with Princess Cruises, which allowed Carnival to become a global cruise line. 2
  • 3. Brief History 1970s  1972- Carnival was formed by cruise industry pioneer Ted Arison  1972 – The maiden voyage of Carnival’s first ship, the Mardi Gras, which ran aground on a sandbar outside the Port of Miami  1975 – Carnival purchases Empress of Britain, which enters the service as the Carnivale  1978 – Festivale begins service for Carnival as the largest and fastest vessel sailing from Miami to the Caribbean 3
  • 4. Brief History 1980’s-  1982 – Debut of Tropicale, the first new cruise ship the cruise industry had seen in many years; ship marks the beginning of an industry-wide multi-billion-dollar shipbuilding boom.  1984 – Carnival becomes first cruise line to advertise on network television with the premiere of new advertising campaign starring company spokesperson Kathie Lee Gifford http://www.youtube.com/watch?v=BECwNurBbEQ  1985 – Debut of the Holiday  1986 – Launch of the Jubilee  1987 – The Celebration enters service  1987- Carnival Cruise Line made an initial public offering of 20% of its common stock. This provided capital that allowed the company to begin its expansion through acquisition.  1988- Carnival Cruise Line expanded into charter airlines with the purchase of Pacific Interstate Airlines  1989- Carnival’s first acquisition was Holland America Line 4
  • 5. Brief History 1990’s-  1990- The Fantasy enters service as first new ship ever placed on a three and four day Bahamas cruise program from Miami.  1992- Carnival’s second acquisition was Seabourn Cruise Line  1994- Parent company renamed Carnival Corporation to distinguish between it and its flagship brand, Carnival Cruise Lines.  1994- Launches the first passenger vessel to exceed 100,000 tons, Carnival Destiny, at the time it was the world’s largest cruise ship  1997- Carnival’s third acquisition is with Costa Cruises  1997- Carnival’s fourth acquisition is with Celebrity Cruises  1998- Carnival’s fifth acquisition is with the Cunard Line  1998 – Introduces Elation, the first new cruise ship deployed on the West Coast  1998 – Carnival Paradise, enters service. Paradise was the only non- smoking cruise ship in the world. 5
  • 6. Brief History 2000’s  2000 –Carnival Victory is launched  2001 – Introduces a new class with the launch of Carnival Spirit. It was the first new “Fun Ship” ever positioned in the Alaska and Hawaii markets  2002 –Carnival Pride is launched  2002- Carnival Legend enters service  2002- Carnival debuts Carnival Conquest, the largest “Fun Ship” ever constructed at the time  2003- Carnival merged with P&O Princess Cruises to form Carnival Corporation and PLC to become the largest cruise ship company in the world  2005 –Carnival Liberty debuts, operating the line's first ever Mediterranean cruises  2007 – Carnival Freedom debuts  2008 – The Carnival Splendor debuts & Celebration leaves the fleet  2009 – Carnival Dream, the largest "Fun Ship" ever constructed enters service on September 21 and is the largest ship ever built http://www.youtube.com/watch?v=pdgMlBTILq0 6
  • 7. Brief History 2010’s-  2010 – A fire on Carnival Splendor leaves the ship crippled  2011 – Carnival Magic enters service  2012 – Carnival Breeze enters service  2012- Carnival Spirit moved to Sydney, Australia in October 2012, it became the first Fun Ship to sail Australian waters and also became the largest cruise ship in Australia year-round  2012- An accident on Costa Concordia, operated by Carnival brand Costa Cruises, leaves 32 people dead.  2012-Carnival added features to ships, including the Guy Burger Joint, Blue Iguana Cantina Taco Bar, Red Frog Rum Bar and Blue Iguana Bar.  2013- A fire on Carnival Triumph leaves the ship crippled with no power for 5 days 7
  • 8. Mission Statement  "Our mission is to deliver exceptional vacation experiences through the world's best-known cruise brands that cater to a variety of different lifestyle and budgets, all at an outstanding value unrivaled on land or at sea." ◦ Product: Exceptional vacation experiences ◦ Target Groups: Low, medium, and high income groups, vacation travelers, and various lifestyle groups 8
  • 9. Current Performance Objectives ◦ Carnival is currently expanding and focusing on the European market. 9
  • 10. Historical Corporate Strategy  Concentration  Vertical Integration (External): Carnival Cruise Lines purchased fuel and port facility services at some of its ports of call. The company also performed major dry-dock and ship improvement work at dry-dock facilities.  Vertical Integration (Internal): In 2012, Carnival now has 90,000 employees. They have increasingly adding employees to their company.  Horizontal Integration (External): In 1988, Carnival Cruise acquired Holland American Line. The deal included two Holland America subsidiaries, Windstar Sail Cruises, and Holland America Westours. This acquisition allowed an aggressive building campaign. In 1992, Carnival acquired 50% of Seabourn. This acquisition allowed for additional cruise operations in South America, the Mediterranean, Southeast Asia, and the Baltic. In 1997, Carnival merged with Celebrity. The merged resulted in 17 ships and 30,000 berths. 10
  • 11. Historical Corporate Strategy  Diversification  Concentric (Internal) : Carnival Cruise Lines owns cruise ships and has developed many other travel necessities for their customers. Carnival has hotels, motor homes, and rail cars. Carnival owns 12 hotels, 300 motor coaches, and 20 domed rail cars. All these transportation products relate to developing travel and vacations.  Conglomerate (Internal): Carnival experienced risk with the purchase of Riviera Towers. The hotel consisted of 692 rooms. In 1991, Carnival reached a settlement to surrender the hotel project and settle their debt with the Bahamian government. In the late 1980's, Carnival invested into the Airline industry to transport their guests. In 1997, Pan Am Corp purchased Carnival Air Line as most of their revenue came from the Carnival Cruise Corporation. By terminating these travel industry companies, Carnival reduced their debt, which allowed for a greater focus on dominating the global cruise line industry. 11
  • 12. Stability of Carnival ◦ Carnival Cruises has ambition for profit stability. ◦ In 1988, Carnival acquired Holland American Line. ◦ In 1992, Carnival gained 50% of the Seabourn Cruise Lines. ◦ In 1997, the purchase of Costa. Carnival Cruises continued more acquisitions and mergers to become a global cruise line. 12
  • 13. Retrenchment  Turn Around  Divestment : In 1997, Carnival Corporation finalized an agreement with Pan Am Corp for their airline. The airline did not produce high profits, which allowed for a divestment and acquisition of the airline. 13
  • 14. Historical Competitive Strategies For Each Strategic Business Unit Within the Corporation ◦ Cost Leadership  Broad Market: In the 1970's, Carnival Cruise had competitive packages with other travel packages. ◦ Differentiation  Narrow and Broad Market: In 1972, the company attracted customers with planned activities, a casino, discos, and other forms of entertainment. Carnival used a lot marketing to differentiate themselves from the competition, but the market is now more narrow as many cruise lines are following their ideas. 14
  • 15. Historical Functional Strategies ◦ Nature of Market  Consumer ◦ Breadth of Product Lines  Full ◦ Degree of Customization  Standard  Custom ◦ Number of Distribution Channels:  Multiple ◦ Nature of Multiple Distribution Channels:  Complimentary ◦ Distribution form :  Direct Selling to End-users  Direct Selling to Retailers  Whole Sellers 15
  • 16. Geographic Coverage  International coverage  (United States, Australia, Pacific Islands, Caribbean Islands, Europe, Russia, Scandinavia, South America and Italy)  22 departure ports  (Baltimore, Boston, Charleston, Fort Lauderdale, Jacksonville, Miami, New York, Norfolk Virginia, Port Canaveral, Tampa, Galveston, New Orleans, Seattle, Vancouver, Venice, Barcelona, Barbados, Sydney, Pacific Islands, St. Peterburg in Russia, San Juan in Puerto Rico and Los Angeles) 16
  • 17. Destinations  Baltimore = Grand Turk and Bahamas  Boston = Grand Turk and Bahamas  Charleston= Grand Turk and Bahamas  Fort Lauderdale= Grand Turk, Bahamas, Mexico, and Cayman Islands  Jacksonville= Bahamas, Jamaica, Caribbean Islands, Dominican Republic, British Virgin Islands, Antigua, Mexico, Puerto Rico, Key West and Grand Turk  Miami = Key West, Mexico, Bahamas, Cayman Islands, Grand Turk, Costa Rica, Caribbean Islands, Isla Roaton, Belize, Panama, Columbia  New York= Canada, Bahamas, Caribbean Islands, Puerto Rico, Grand Turk, Tampa, Curacao, Jamaica, and Cayman Islands  Norfolk, Virginia= The Bahamas  Port Canaveral (Orlando), FL= The Bahamas, Key West, Belize, Puerto Rico, Caribbean Islands, Grand Turk, Mexico, and Isla Roatan  Sydney, Australia= Pacific Islands and Australia cities  St. Petersburg= Amsterdam, Denmark, England, Finland and Belgium 17
  • 18. Destinations  Tampa= Mexico, Cayman Islands, Panama Canal, Columbia, Long Beach, Belize, and Costa Rica  Galveston, TX= Mexico, Belize, Belize, Jamaica, The Bahamas, Key West, Isla Roatan and Cayman Islands  New Orleans= Mexico, Cayman Islands, Belize, Jamaica, British Virgin Islands, The Caribbean Islands, Puerto Rico, Grand Turk, and Key West  Los Angeles= Mexico cities, Catalina, Hawaii, Tahiti and Fiji Islands  Seattle= Alaska and Canada  Vancouver, BC= Canada and Alaska  London= Ireland, Scotland, Greenland, New York, and Canada  Barcelona= Spain, New Orleans, Grand Turk, and Canary Islands  Barbados= The Caribbean Islands  San Juan, Puerto Rico= The Caribbean Islands, Grand Turk, and Miami 18
  • 19. Historical Functional Strategies ◦ Degree of Selectivity of Channels  Low (not selective/ intensive distribution)  Medium (selective distribution)  High (exclusive distribution) ◦ Pricing Level  Competitive  Overprice (premium pricing) ◦ Advertising media  Print  Radio TV  Movies  Billboards ◦ Promotion emphasis  Push (The company uses many aspects to promote their packages to travel agencies and suppliers. They also use lowest guaranteed price on their website.)  Pull (They rely on word-of-mouth, advertising promotions, sales promotions, and social media.) 19
  • 20. Carnival: Source of Funds 20 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 2008 2009 2010 2011 2012 Carnival Cruise Short Term Liabilities Long Term Liabilities Retained Earnings Net Stocks
  • 21. Royal Caribbean: Source of Funds 21 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2008 2009 2010 2011 2012 Royal Caribbean Cruises Short Term Liabilities Long Term Liabilities Retained Earnings Net Stocks
  • 22. Norwegian Cruises: Source of Funds 22 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2008 2009 2010 2011 2012 Norwegian Cruises Short Term Liabilities Long Term Liabilities Retained Earnings Net Stocks
  • 23. Dividend Payment vs. Competitors 23 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2008 2009 2010 2011 2012 Dividend Payment Royal Carnival Cruises Norwegian Cruises
  • 24. Inventory Turnover vs. Competitors 24 0 10 20 30 40 50 60 2008 2009 2010 2011 2012 Inventory Turnover Royal Carnival Cruises Norwegian Cruises
  • 25. II. Historical Review of the Corporate Actual Performance Carnivals Biggest Competitors: -Royal Caribbean Cruise Line -Norwegian Cruise Line 25
  • 26. Stock Performance  Stock performance is the measurement of a stock's ability to increase or decrease the wealth of its shareholders. Performance is typically measured by its fluctuation in price. When the stock price increases, the stock shows good performance. Conversely, a decrease in price is a poor performance. 26
  • 27. Stock Performance Ticker Symbols:  Carnival: CCL  Royal Caribbean: RCL  Norwegian Cruise Line: NCLH 27
  • 28. Stock Performance of CCL 28
  • 29. Market Share  The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.  Formula: Sales revenue over a specified time/total sales of the industry over the same period 29
  • 30. Market Share of the Companies in 2008 30 54% 7.70% 24% 2008 Market Share Carnival Norwegian Royal Caribbean
  • 31. Market Share of the Companies in 2009 31 49.8% 6.69% 21.50% Market Share in 2009 Carnival Norwegian Royal Caribbean
  • 32. Market Share of the Companies in 2010 32 53.9% 8.20% 25.00% Market Share in 2010 Carnival Norwegian Royal Caribbean
  • 33. Market Share of the Companies in 2011 33 53.7% 7.50% 25.60% Market Share in 2011 Carnival Norwegian Royal Caribbean
  • 34. Market Shares of the Companies in 2012 34 42.4%6.20% 21.20% Market Share in 2012 Carnival Norwegian Royal Caribbean
  • 35. Overall Market Share of the Industry from 2008-2012 35 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2012 2011 2010 2009 2008 Carnival Norwegian Royal Caribbean
  • 36. Net Income Net income is a company's total earnings. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is important measure of how profitable the company is over a period of time. 36 Formula: Net income = net revenue - expenses Net revenue = gross revenue - cost of goods sold
  • 37. Net Income from 2008-2012 37 $(500,000,000.00) $- $500,000,000.00 $1,000,000,000.00 $1,500,000,000.00 $2,000,000,000.00 $2,500,000,000.00 2008 2009 2010 2011 2012 Net Income Norwegian Royal Caribbean Carnival
  • 38. Net Sales  Net sales is the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed.  Formula: Net Sales = Gross Sales - Returns and Allowances 38
  • 39. Net Sales from 2008-2012 39 $(1,000,000,000.00) $- $1,000,000,000.00 $2,000,000,000.00 $3,000,000,000.00 $4,000,000,000.00 $5,000,000,000.00 Norwegian Carnival Royal Caribbean 2008 2009 2010 2011 2012
  • 40. Number of Employees vs. Competitors 40 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 Norwegian Carnival Royal Caribbean 2008 2009 2010 2011 2012
  • 41. Number of Cruise Ships Per Cruise Line 41 Carnival: 102 ships Norwegian: 12 ships Royal Caribbean: 21 ships
  • 42. Chart of Cruise Ships for each Cruise Line 42 0 20 40 60 80 100 120 Carnival Royal Caribbean Norwegian Number of Ships
  • 43. Profitability Ratios 43  A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses during a specific period of time.  The 3 Formulas that will be used: Gross Profit Margin: Revenue-COGS/Revenue Operating Profit Margin: Operating Income/Net Sales Net Profit Margin: Net Income/Sales
  • 44. Gross Profit Margin  A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. 44
  • 45. Gross Profit Margin in 2008 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Carnival Norwegian Royal Caribbean Gross Profit Margin in 2008 2008 45 Cruise Line 2008 Carnival 38.20% Norwegian 25% Royal Caribbean 32.50%
  • 46. Gross Profit Margin in 2009 Cruise Line 2009 Carnival 37.50% Norwegian 30% Royal Caribbean 30.80% 46 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Carnival Norwegian Royal Caribbean Gross Profit Margin in 2009 2009
  • 47. Gross Profit Margin in 2010 47 30.00% 31.00% 32.00% 33.00% 34.00% 35.00% 36.00% 37.00% 38.00% Carnival Norwegian Royal Caribbean Gross Profit Margin 2010 2010 Cruise Line 2010 Carnival 37.10% Norwegian 33% Royal Caribbean 33.90%
  • 48. Gross Profit Margin in 2011 Cruise Line 2011 Carnival 34.00% Norwegian 33.8% Royal Caribbean 34.40% 48 33.50% 33.60% 33.70% 33.80% 33.90% 34.00% 34.10% 34.20% 34.30% 34.40% 34.50% Carnival Norwegian Royal Caribbean Gross Profit Margin in 2011 2011
  • 49. Gross Profit Margin in 2012 Cruise Line 2012 Carnival 32.00% Norwegian 35.0% Royal Caribbean 32.90% 49 30.50% 31.00% 31.50% 32.00% 32.50% 33.00% 33.50% 34.00% 34.50% 35.00% 35.50% Carnival Norwegian Royal Caribbean Gross Profit Margin 2012 2012
  • 50. Operating Profit Margin  Operating profit margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages and raw materials. A healthy operating margin is required for a company to be able to pay for its fixed costs. The higher the operating profit margin, the better. 50
  • 51. Operating Profit Margin 2008 Cruise Line 2008 Carnival 19.60% Norwegian -3.0% Royal Caribbean 12.70% 51 -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Carnival Norwegian Royal Caribbean Operating Profit Margin 2008 2008
  • 52. Operating Profit Margin 2009 Cruise Line 2009 Carnival 21.50% Norwegian 9.2% Royal Caribbean 8.20% 52 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Carnival Norwegian Royal Caribbean Operating Profit Margin 2009 2009
  • 53. Operating Profit Margin 2010 Cruise Line 2010 Carnival 16.20% Norwegian 11.4% Royal Caribbean 11.80% 53 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Carnival Norwegian Royal Caribbean Operating Profit Margin 2010 2010
  • 54. Operating Profit Margin 2011 Cruise Line 2011 Carnival 14.20% Norwegian 14.2% Royal Caribbean 12.35% 54 11.00% 11.50% 12.00% 12.50% 13.00% 13.50% 14.00% 14.50% Carnival Norwegian Royal Caribbean Operating Profit Margin 2011 2011
  • 55. Operating Profit Margin 2012 Cruise Line 2012 Carnival 10.60% Norwegian 15.6% Royal Caribbean 5.20% 55 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Carnival Norwegian Royal Caribbean Operating Profit Margin 2012 2012
  • 56. Net Profit Margin  Net profit margin measures how much out of every dollar of sales a company actually keeps in earnings. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. 56
  • 57. Net Profit Margin 2008 Cruise Line 2008 Carnival 15.90% Norwegian -10.0% Royal Caribbean 8.70% 57 -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% Carnival Norwegian Royal Caribbean Net Profit Margin 2008 2008
  • 58. Net Profit Margin 2009 Cruise Line 2009 Carnival 13.20% Norwegian 3.6% Royal Caribbean 2.70% 58 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Carnival Norwegian Royal Caribbean Net Profit Margin 2009 2009
  • 59. Net Profit Margin 2010 Cruise Line 2010 Carnival 13.60% Norwegian 1.1% Royal Caribbean 7.60% 59 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Carnival Norwegian Royal Caribbean Net Profit Margin 2010 2010
  • 60. Net Profit Margin 2011 Cruise Line 2011 Carnival 12.10% Norwegian 5.7% Royal Caribbean 8.00% 60 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Carnival Norwegian Royal Caribbean Net Profit Margin 2011 2011
  • 61. Net Profit Margin 2012 Cruise Line 2012 Carnival 8.40% Norwegian 7.4% Royal Caribbean 0.20% 61 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Carnival Norwegian Royal Caribbean Net Profit Margin 2012 2012
  • 62. Common Sized Income Statements 62  This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.
  • 63. Common Sized Income Statements for 2008 63 Common Sized Income Statements for 2008 Percentages Total Revenue 100% Cost of Revenue 67% Gross Profit 32% Selling & Admin Exp. 9% Depreciation Exp. 9% Special Income 1% Operating Expenses 22% Operating Income 10% Net Interest -2% Other Income -0.9% Pretax Income 8% Net Income 8%
  • 64. Common Sized Income Statements for 2009 64 Common Sized Income Statements for 2009 Percentages Total Revenue 100% Cost of Revenue 65% Gross Profit 34% Selling & Admin Exp. 11% Depreciation Exp. 9% Special Income - Operating Expenses 20% Operating Income 14% Net Interest -2% Other Income 0.6% Pretax Income 12% Net Income 12%
  • 65. Common Sized Income Statements for 2010 65 Common Sized Income Statements for 2010 Percentages Total Revenue 100% Cost of Revenue 62% Gross Profit 37% Selling & Admin Exp. 11% Depreciation Exp. 9% Special Income - Operating Expenses 20% Operating Income 16% Net Interest -2% Other Income -0.1% Pretax Income 13% Net Income 13%
  • 66. Common Size Income Statements for 2011 66 Common Sized Income Statements for 2011 Percentage s Total Revenue 100% Cost of Revenue 62% Gross Profit 37% Selling & Admin Exp. 11% Depreciation Exp. 9% Special Income - Operating Expenses 21% Operating Income 16% Net Interest -2% Other Income -0.1% Pretax Income 13% Net Income 13%
  • 67. Common Size Income Statements for 2012 67 Common Sized Income Statements for 2012 Percentages Total Revenue 100% Cost of Revenue 62% Gross Profit 38% Selling & Admin Exp. 11% Depreciation Exp. 8% Special Income - Operating Expenses 19% Operating Income 18% Net Interest -2% Other Income -0.1% Pretax Income 16% Net Income 15%
  • 68. Carnival’s Current Performance  Carnival’s current performance is above satisfactory. Carnival has a significant market share in the cruise industry and twice as much net income as the second largest cruise line, Royal Caribbean. 68
  • 69. III. Examination of the Corporate Top Decision Makers 69
  • 70. Board of Directors 70  The responsibility of the directors is to exercise their business judgment to act in what they reasonably believe to be in the best interests of Carnival and their shareholders. The directors are authorized to operate and carry into effect the agreements.
  • 71. Internal vs. External  Internal directors: Affiliated with company  External directors: Not engaged with company  Carnival Cruises Board of Directors:  4 internal directors  7 external directors 71
  • 72. Internal Board of Directors  Micky Arison- Chairman of the Board (Son of Carnival founder Ted Arison)  Arnold Donald- President & CEO Carnival Corporation  Pier Luigi Foschi- Chairman & CEO Carnival Asia & Chairman of Costa Crociere  Howard Frank- VP of the Board & CEO of Carnival Corporation 72
  • 73. 1. Micky Arison  Son of Carnival founder Ted Arison  64 years old  Born in Israel  Jewish  1979-2013 CEO of Carnival Corporation  Owner of Miami Heat basketball team 73
  • 74. 2. Howard Frank  VP of the Board & CEO of Carnival Corporation  72 years old  Vice Chairman of the board of directors since 1993  Joined Carnival as senior VP finance & Chief Operating Officer in 1989  Chairman of the Executive Committee of The Cruise Lines International Association 74
  • 75. 3. Arnold Donald  President & CEO of Carnival Corporation  58 years old  Bachelors Degree in Economics  Masters Degree in Mechanical Engineering  Board of Director of Carnival since 2001  Chairman of the Board of Merisant Company from 2000-2005 75
  • 76. 4. Pier Luigi Foschi  Chairman & CEO Carnival Asia and Chairman Costa Crociere  66 years old  Italian  Chairman of Costa Crociere since 2000  Appointed Chairman and CEO of Carnival Asia in 2012 76
  • 77. External Board Members (7) 77 1. Sir Jonathon Band ◦ 63 years old ◦ Born in United Kingdom; British ◦ Bachelors Degree in Social Science from Exeter University ◦ Salary from Carnival: $440,408 in 2011 ◦ Stock ownership: 27,454 shares as of 2013 ◦ First Sea Lord & Navy’s most senior serving officer ◦ Married with two daughters
  • 78. 2. Richard J. Glasier ◦ 67 years old ◦ American ◦ Bachelors Degree in Economics from Cornell College and MBA in Finance from Southern Methodist University ◦ President and CEO Officer of Argosy. Former CFO and Executive Vice President of Royal Caribbean Cruises. Has 20 years experience in hotels, gaming, and cruises. ◦ Carnival Cruise Salary: $525,298 in 2011 ◦ Ownership of stock: 44,050 shares in 2013 78
  • 79. 3. Stuart Subotnick ◦ 71 years old ◦ Bachelor’s Degree in Business Administration at Baruch College, Master of Law Degree from Brooklyn Law School, and Juris Doctorate degree from New York University. ◦ President and CEO of Metromedia Company. He is also member of the board of directors of Above.net ◦ Director since 1987 ◦ Carnival Cruise Salary: $518,928 in 2011 ◦ Stock ownership: 54,408 shares in 2013 79
  • 80. 4. Debra Kelly-Ennis ◦ 56 years old ◦ American ◦ Bachelors Degree from University of Texas and MBA from University of Houston. ◦ Completed executive Leadership program at Harvard Business School. ◦ Former President and CEO at Diageo, Canada. She served as Chief Operating Officer at Saab. She was General Manager of Oldsmobile. ◦ She joined the board of directors on May 15, 2013. 80
  • 81. 5. Laura Weil ◦ 55 years old ◦ American ◦ Bachelor’s Degree in Art History and Government from Smith College and MBA Degree in Finance and Marketing from Columbia University. ◦ Chief Operating Officer of New York and Company. Former CEO of Ashley Stewart, CEO of Urban Brands, and CFO of American Eagle Outfitters. ◦ Carnival Cruise Salary: $488,428 in 2011 ◦ Stock ownership: 52,738 shares in 2013 81
  • 82. 6. Sir John Parker ◦ 71 years old ◦ Born in Ireland; Irish ◦ Doctor of Science in Engineering from Queen’s University ◦ President of Royal Academy of Engineering and Vice President of Engineering Employers’ Federation ◦ Director of the board since 2000 ◦ Carnival Cruise Salary: $482,928 in 2011 ◦ Stock ownership: 52,008 shares in 2013 ◦ Married with two children 82
  • 83. 7. Randall J. Weisenburger ◦ 54 years old ◦ American ◦ Bachelor's Degree in Finance and Accounting from Virginia Tech. He has a Master's degree in Business Administration from the University of Pennsylvania's Wharton School of Business ◦ He is the Chief Financial Officer and Executive Vice President of Omnicom Group Inc. He is also on the board of director for Valero Energy Corporation. ◦ Carnival Cruise Salary: $448,928 in 2011 ◦ Stock ownership: 156,954 shares in 2013 83
  • 84. Audit Committee  The purpose of the Audit Committee is to assist the Boards' oversight of the integrity of the Companies’ financial statements, the Companies’ compliance with legal and regulatory requirements, the independent auditor’s qualifications and independence, the performance of the Companies’ internal audit functions and independent auditors, and relevant elements of the Companies’ risk management programs. 84
  • 85. Members of the Audit Committee  Richard Glasier  Laura Weil  Stuart Subotnick  Randall Weisenburger  (All external members) 85
  • 86. Compensation Committee  The Compensation Committee has overall responsibility for approving and evaluating the director and officer compensation plans, policies and programs of Carnival, including annual base salary, annual incentives, long- term incentives, stock options, terms of employment agreements and severance arrangements. 86
  • 87. Members of the Compensation Committee  Richard Galsier  Randall Weisenburger  Laura Weil  (All external members) 87
  • 88. Nominating and Governance Committee  The purpose of the Nominating & Governance Committee is to develop and recommend to the Boards a set of Corporate Governance Guidelines applicable to the Companies. They also assist the Boards by identifying individuals qualified to become Board members and to recommend to the Boards the director nominees for the next annual meeting of shareholders. 88
  • 89. Members of the Nominating and Governance Committee  Sir John Parker  Stuart Subotnick  Richard Glasier  Randall Weisenburger  (All external members) 89
  • 90. Health, Environmental, Safety & Security Committee  The purpose is to assist the Boards in fulfilling their responsibility to supervise and monitor health, environmental, safety and security policies, programs, initiatives at sea and onshore, and compliance with health, environmental, safety and security legal and regulatory requirements. 90
  • 91. Members of Health, Environmental, Safety & Security Committee  Sir John Parker  Sir Jonathon Band  Debra Kelly-Ennis  (All external members) 91
  • 92. Prior Decisions  On November 15, 2012, the Boards of Directors declared a special dividend to holders of Carnival Corporation common stock and Carnival plc ordinary shares of $0.50 per share.  In September 2007, the Boards of Directors authorized the repurchase of up to an aggregate of $1 billion of Carnival Corporation common stock and Carnival plc ordinary shares. 92
  • 93. Inventory Turnover Ratio 93 0 10 20 30 40 50 60 2008 2009 2010 2011 2012 Inventory Turnover Royal Carnival Cruises Norwegian Cruises
  • 94. Days of Inventory Ratio 94 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2008 2009 2010 2011 2012 Days of Inventory Royal Carnival Cruises Norwegian Cruises
  • 95. Total Assets Turnover Ratio 95 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 2008 2009 2010 2011 2012 Total Assets Turnover Royal Carnival Cruises Norwegian Cruises
  • 96. Inventory Turnover vs. Competitors 96 0 10 20 30 40 50 60 2008 2009 2010 2011 2012 Inventory Turnover Royal Carnival Cruises Norwegian Cruises
  • 97. Management Team for Carnival  Micky Arison- Chairman of Board  Howard Frank- VP of Board & Chief Operating Officer  Arnold Donald- President & CEO  David Bernstein- Senior VP & CFO  Richard Ames- Senior VP Shared Services  Arnaldo Perez- Senior VP, General Counsel & Secetary  Larry Freedman- Chief Accounting Officer & VP Controller 97
  • 98. Management: Carnival Australia  Michael Ungerer- President 98 Management: Carnival Cruise  Gerald Cahill- President & CEO Management: AIDA  Ann Sherry- CEO Management: Carnival UK  David Dingle- CEO
  • 99. Management: Costa Crociere  Pier Luigi Foschi- Chairman  Michael Thamm- CEO 99 Management: Holland America Stein Kruse- President & CEO Management: Princess Cruise  Alan Buckelew- President & CEO Management: Seabourn  Rick Meadows- President
  • 100. Top Management Involved with Board of Directors  Micky Arison  Arnold Donald  Pier Luigi Foschi  Howard Frank 100
  • 101. Management Style  Chairman Micky Arison is known for being less hands on than most. He gives great independence and authority to his executive teams who operate Carnival and Carnival brand ships. 101
  • 102. Management’s Compensation 102
  • 103. IV. Examination of External Environment of the Company (GERALD STARTS) 103
  • 104. V. Examination of the External Environment of the company 104
  • 105. Competitors  North America: Royal Caribbean, Disney Cruise Line, and Norwegian Cruise Line  Southern Europe: Mediterranean Shipping Cruises, Louis Cruise Line, Festival Cruises, and Spanish Cruise Line  Germany: Festival Cruises, Hapag- Lloyd, Peter Deilmann, Phoenix Reisen, and Tranocean  United Kingdom: My Travel's Sun Cruises, Fred Olsen, Saga and Thomson 105
  • 106. Barriers to Entry 1. Competition 2. High start-up costs 3. Use of ports and facilities 4. Reputation and establishment 106
  • 107. Substitute Product/Services  High substitute product/services  Other cruise ship competitors -Royal Caribbean -Norwegian Cruise Line, etc.  Other forms of transportation -Airplane -Car -Train 107
  • 108. Customers  Low bargaining power for customers  Low bargaining power is due to fixed prices by: -Travel agents -Website booking 108
  • 109. Suppliers  Low bargaining power for Carnival Cruise  Low bargaining power is due to: -Competitive prices from suppliers around the world -But Carnival does use a limited number of suppliers for their fuel and port facility services. 109
  • 110. IV. Examination of the External Environment of the Company 110
  • 111. Societal Environment  Socio-cultural: Age (mostly older demographic), and Attitudes (think its expensive & will get sea sick)  Legal/political: Pollution and energy guidelines. Also safety concerns with falling off ships, terrorist attacks and potential wars with other countries  Technological: Wireless internet and cell phone use  Economic: Fuel price concerns, fluctuating economy and interest rate risks 111
  • 112. SWOT Analysis Strengths:  Largest cruise line in the world  Higher market shares than competitors  Acquired several companies in the cruise line industry  Global and International presence  Strong consumer demand in Europe  High value entertainment on ships  Cost advantages over most of their competitors  High customer satisfaction  Affordable vacation packages for families 112
  • 113. SWOT Analysis Weaknesses:  Poor safety record  Bad publicity  Many people think cruises are too expensive  Need to advertise low “average” prices 113
  • 114. SWOT Analysis Opportunities:  Cruise industry appeals to large demographic  Offer more destination route locations  Expand to Asian and African markets  Expand advertising by using different medias 114
  • 115. SWOT Analysis Threats:  Diseases  Weather  Tight competition with other cruise companies  Environment regulations  Increasing fuel prices  Cheaper vacation packages through competition with hotels, airline travel, and car driving 115
  • 116. VI: Recommended Plan of Action 116
  • 117. Mission/Objective  Mission: Continue to make customers feel appreciated by giving them great customer service. Customers who feel appreciated and have a fun time will tell their friends, co-workers and family about the wonderful experience they had.  Objectives: Attract customers by having promotional campaigns. Carnival also needs to make it aware to customers how a cruise vacation is affordable in a time where money can be scarce. 117
  • 118. Recommended Strategies for Environmental Concerns  Support Environmental Issues  Fuel Technology 118
  • 119. Recommended Strategies for Opportunities  Offer special discounts for repeat customers  Continue building relationships with travel booking companies, especially online companies.  Expanding on social media marketing  Sending promotional emails  Continue to add more entertainment activities  Offer more destination spots to attract customers who want to travel to different countries  Create a Referral Program  Create an alliance with an airline company 119
  • 120. Program Development  Make enhancements to emergency power capabilities, additional emergency generators and new fire safety technology.  Carnival also needs to create procedures to communicate quicker with passengers to let them know what is happening.  Create solar paneling on ships 120
  • 121. Feedback Implementation  Send customers who went on a cruise an email survey rating their satisfaction and experience. As a reward, give them a free drink ticket for any future cruises. 121

×