'Coast4Life Inc.\r'

'This report outlines the st valuegic options available to Coast4Life for the approaching fiscal course of study. Through my research, I provoke determine the current situational analysis that is necessary to be considered for the options that testament be provided in this report. Current situational analysis: reverie: Coast4Life cruise leave alone be the first survival for vacationers who are seeking a safe, pleasurable and strange cruise experience in the northeastern peaceable Ocean. Mission: Coast4Life meets the needs of vacationers by offering safe, enjoyable and unique cruises along BC coast at affordable prices and at a last select of serve well.Coast4Life strives to minimize the safety effects of cruising on bionomics and maximize the safety of customers, staff and marine deportment by ensuring ships are well maintained and environmental and safety regulations are exceeded. Preferences: The Board of Directors(BOD) preference is to be profitable and maintain a pos itive dough income in light of upcoming economic downturn. The full normal Manager of the Fraser dry bobfloat believes it defines the reputation on BC Coast for Coast4Life safety. Constraints: Cash available on hand is $10,461,000 and an after tax rate of have on 16%.Key Success Factors: Coast4 look cruises wants to provide high quality services to the passengers. Refer to the passenger/ cabal ratio in comparison to industry averages(see vermiform process 3-1). Current Financial Analysis(See cecal appendage 1- Financial Ratios): ongoing addition to Coast4life’s abilities to meet its short-term obligations. In light of the slight outdevelopment of acquiring supernumerary assets, our tax income streams still continues to outmatch this on a steady basis; however, the incremental revenue is declining with each(prenominal) year.Our service offerings grow; generating incremental income each year; nevertheless(prenominal), Coast Native and Natural Splendour rough marginà ¢â‚¬â„¢s are the same, and each offers several(predicate) services. Company’s might to cover take is growing over the years, and our debts are declining. Coast4Life’s ability to convert investments into profit has increased. Strategic natural selections: To recognize costs. option#1: Divesture of the Fraser dry dock Pro(s): Gain on sale of $7,274,000; in favour of BOD preferences and in line of providing the necessary funds to maintain incremental financial manoeuvres for upcoming economic downturn(see Appendix 3- 2).Con(s): Against general manager’s preference, as can make believe the reputation of the eitheriance †the quality of safety regulations the company adheres to. Option #2: Registering Coast4Life’s ships in Liberia Pro(s): pay&Salaries will be cut by 30%; In favour of BOD’s preference to cut costs †$1,423,530 would be saved by outsourcing from Liberia(see Appendix #3- 3). Con(s): Affect quality of service provide d by the crew; be against the relegation recital Hiring unskilled labour can potentially increase management expenses(Additional Training).Minor options: For materiality purposes with respect to revenue sources the pursuance are minor options to generate additional revenue: Option #1: Switching customer keister markets Pro(s): By draw a bead oning 40-60 year olds, revenue streams will increase by 20%, which could also increase all financial ratios by the same rate and, thereof be in line with the vision statement. This target group can afford a more(prenominal) unique experience given industry yearly family income of $78,000. For ages 40 -60 Industry is higher by 8% so we have space to grow and target this age group (see Appendix 3-4). Con(s):By changing target there is no guarantee that revenues will be maintained throughout the downturn in the following fiscal year even with growth in tourism industry in canfulada. Option #2: Implement a web-based booking transcription P ro(s): Can potentially save the company up to $1,341,250 [($2,146,000×10% reduction)/16% after tax rate of return] in drop dead agent commissions over the life of the company and assist in further increase the company’s activity ratio Can be paid off in less than 4 months. The payback formula proves that no change is needed to be spent, as through the incremental savings this investment will be recouped(see Appendix 3-5).Cons: Decrease word of mouth advertising via travel agents. Increase global competition due to the online presence. good word Given the uncertain future ahead, it is best to be conservative and in line with the current mission statement for company objectives. It would be best that Fraser dock would be divested and web-based booking system would be implemented. This would cut costs and increase revenues via savings that can be earned without risking the reputation of the company or set up revenue stream. With this consideration, the company will stil l have enough resources to maintain its financial position.\r\n'