Coral Divers and Loblaws Case Answers - 2367 Words

ADMS 4900 N: Management Policy Part I Coral Divers Resort: Case Analysis Synopsis Coral Divers Resort (CDR) is a small, but well-regarded, diving resort in New Providence Island in the Bahamas. It is owned by Jonathon Greywell, who work full-time at the resort and is a diving instructor certified by PADI and NAUI. CDR had established a solid reputation as a safe and knowledgeable scuba diving resort that offered not only diving, but also a beachfront location. Many divers had come to prefer CDR over the other crowded resorts in the Caribbean. It had been in operation for 10 years with annual revenues reaching as high as $554,000. However, over the last three years, financial performance had fallen off. Greywell realized that the resort†¦show more content†¦Firstly, they have no competitive advantage. Greywell needs to differentiate his resort from competition, and one such way is to add some specialized features. Secondly, its finances are weak. Revenues had declined, Greywell needed to do something to increase business before the situation worsened. The refore, Greywell is in a generally good position in terms of his resources. The challenge for Greywell is to effectively and efficiently implement these resources to create a resort that is profitable and different from competitors. Recommendations/Solutions 3. What strategy would you recommend to Greywell? Note: All numbers and calculations used below can be found in Appendix 3. Our recommendation would be for Greywell to focus on family diving. This is because 45% of divers now prefer to travel with their families. With the median age of divers (36 years old) steadily increasing, the resort could focus solely on a niche market that could bring higher revenues by attracting a premium category of vacationers and charging a higher premium price. To encourage a whole family diving experience, young adults below the ages of 18, and even below 13, will be encouraged to sign up for low-risk diving classes - as part of the whole family package - and they will be watched under the careful guidance of the resort’s qualified diving instructors in swimming pools and shallower diving spots. While the Family Resort only has a 43% return on investment (very low compared to theShow MoreRelatedContemporary Issues in Management Accounting211377 Words   |  846 Pagesfrom a UK perspective Robert W. Scapens 16. Strategic cost management: upsizing, downsizing, and righ t(?) sizing John K. Shank 17. Environmental management accounting Kazbi Soonawalla 18. Organization control and management accounting in context: a case study of the US motion picture industry S. Mark Young, Wim A. Van der Stede, and James J. Gong INDEX 266 291 308 329 355 380 407 425 CONTRIBUTORS ‘ Thomas Ahrens is Professor of Accounting at the Warwick Business School, University