Coast4Life Inc.

This musical theme outlines the st lay outgic options available to Coast4Life for the upcoming fiscal year. Through my research, I occupy identified the current situational analysis that is essential to be considered for the options that will be provided in this report. Current situational analysis Vision Coast4Life cruise will be the first choice for vacationers who are seeking a safe, enjoyable and unique cruise experience in the northeastern Pacific Ocean. Mission Coast4Life meets the c all in all for of vacationers by offering safe, enjoyable and unique cruises along BC microscope slide at affordable prices and at a senior high school quality of serve well.Coast4Life strives to lessen the safety effects of cruising on ecology and maximize the safety of customers, rung and marine life by ensuring ships are well curbed and environmental and safety regulations are exceeded. Preferences The Board of Directors(BOD) preference is to be profitable and maintain a positive net in come in strike of upcoming frugal downturn. The General Manager of the Fraser dry dock believes it defines the nature on BC Coast for Coast4Life safety. Constraints Cash available on hand is $10,461,000 and an after impose rate of return on 16%.Key Success Factors Coast4life cruises wants to provide high quality services to the passengers. Refer to the passenger/crew proportion in comparison to industry averages(see addition 3-1). Current pecuniary Analysis(See supplement 1- Financial Ratios) Ongoing increase to Coast4lifes abilities to meet its short-term obligations. In light of the slight increase of acquiring additional assets, our receipts streams still continues to outdo this on a steady basis however, the incremental tax is declining with severally year.Our service offerings grow generating incremental income separately year nevertheless, Coast primordial and Natural Splendour gross margins are the same, and each offers different services. Companys ability to cov er interest is growth over the years, and our debts are declining. Coast4Lifes ability to convert investments into profit has increased. strategical elections To cut cost. Option1 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 targets for upcoming economic downturn(see Appendix 3- 2).Con(s) Against general managers preference, as can affect the reputation of the familiarity the quality of safety regulations the company adheres to. Option 2 Registering Coast4Lifes ships in Liberia Pro(s) Wages&Salaries will be cut by 30% In favour of BODs preference to cut costs $1,423,530 would be surrenderd by outsourcing from Liberia(see Appendix 3- 3). Con(s) Affect quality of service provided by the crew be against the mission teaching Hiring unskilled bear on can potentially increase management expenses(Additional Training).Minor options For materiality purpos es with respect to r heretoforeue sources the following are minor options to generate additional revenue Option 1 Switching customer target markets Pro(s) By targeting 40-60 year olds, revenue streams will increase by 20%, which could also increase all financial ratios by the same rate and, thus be in line with the vision statement. This target group can afford a more unique experience given industry annual family income of $78,000. For ages 40 -60 Industry is higher by 8% so we have blank 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 retained throughout the downturn in the following fiscal year even with growth in tourism industry in Canada. Option 2 Implement a web-based booking organisation Pro(s) Can potentially save the company up to $1,341,250 ($2,146,00010% reduction)/16% after tax rate of return in travel agent commissions over the life of the company and care in further increasing the co mpanys activity ratio Can be paid off in less than 4 months. The payback formula proves that no cash 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 world(prenominal) competition due to the online presence. Recommendation Given the uncertain future ahead, it is beat out 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 established revenue stream. With this consideration, the company will still have enough resources to maintain its financial position.