Carnival Corporation

Hilda Teodoro
 1

COMPANY
BACKGROUND

Hilda Lopez Teodoro

 Company Background
Largest cruise line in the world = 40% market share
Leader and innovator in the industry
Cruises to the Bahamas, Canada, the Caribbean, Mexico, New
England, Panama Canal, Alaska and Hawaii
Achieved several firsts
More than 1 million passengers carried in a single year
First cruise line to carry 5 million passengers (1994)
Top honchos
Micky Arison, Carnival Corp. CEO & Bob Dickinson, Cruise Lines
President and COO
A controlled foreign corporation (CFC) since 50% of its stock is
held by foreigners
Enjoys exemption from US federal income taxes (except income
from US sources)

Hilda Lopez Teodoro

 1

VISION
MISSION

Hilda Lopez Teodoro

 Carnival Vision Evaluation
To consistently provide quality cruise vacations that exceed the expectations of our
guests. We understand the principle that fun is different for every individual so we offer
a diverse on-board experience that provides guests with a variety of ways to enjoy a
memorable vacation on one of our spectacular floating resorts. To cruise on one of our
vessels is to cross over to a world of endless fun and excitement.

Criteria Evaluation
1. Vivid image To consistently provide quality cruise vacations that
yes exceed the expectations of our guests
2. Realistic We offer a diverse on-board experience that
provides guests with a variety of ways to enjoy a
yes memorable vacation on one of our spectacular
floating resorts.

3. Aspirational To cruise on one of our vessels is to cross over to

yes a world of endless fun and excitement.

Hilda Lopez Teodoro

 Carnival Mission Evaluation
Criteria Evaluation
Customers R Absolute dedication to understanding and fulfilling our customers needs
with the appropriate mix of service, reliability and price for each customer
Products/Services R Our mission is to deliver exceptional vacation experiences through the
worlds best known cruise brands
Markets R We will be the superior choice and the acknowledged leader and
innovator in the cruise travel industry worldwide.
Concern for survival, R Ensuring sustainable and long-term increase in shareholder investment
growth & profitability by maintaining double-digit growth and leveraging on operational efficiencies
and synergies;
Technology R An aggressive shipbuilding program which incorporates state-of-the-art
technology, innovation and mechanical superiority;
Philosophy R A professional organization which conducts its business honestly and with
unquestionable integrity;
Self-concept R cruise brands that cater to a variety of different lifestyles and budgets, all
at an outstanding value unrivaled on land or at sea.
Concern for public R operating environmentally responsible ships and committed to preserving
image the purity of the crystalline waters we call home.
Concern for R A work environment that rewards achievement, develops potential,
employees motivates the collective spirit, and offers each employee superior
opportunities for personal and professional growth.
Hilda Lopez Teodoro R operating environmentally responsible ships and committed to preserving
Concern for nation-
 1

EXTERNAL
AND
INTERNAL
SCANNING

Hilda Lopez Teodoro

 Porters Five Forces Fuel & Shipbuilding
suppliers

High capital Threat of

requirements
New entrants Bargaining
(LOW) Power of
Suppliers
(HIGH)

Heightened
Rivalry among
competition
Competitors
(HIGH)

Bargaining
Power of Club Med
All Inclusive Tours
Buyers Threat of
(HIGH) Substitute
Products
Buyer has all relevant (MODERATE)
info
Low switching costs
Hilda Lopez Teodoro
 Competitive Profile Matrix

Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
Integrated network of sales
4 0.15 3 0.45 3 0.45 2 0.30
channels
5 Product Quality 0.10 3 0.30 2 0.20 2 0.20
6 Financial position 0.10 3 0.30 2 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power Carnival
0.15 has
4 largest capacity3with 3.5
0.60 million passengers,
0.45 3 0.45
3 Advertising Royal
0.15 is next
4 with 0.60
2.5 million3passengers
0.45 and Star
3 is 0.45
last
with 1.1 million passengers
Integrated network of sales
4 0.15 3 0.45 3 0.45 2 0.30
channels
5 Product Quality 0.10 3 0.30 2 0.20 2 0.20
6 Financial position 0.10 3 0.30 2 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15
The power 4of Carnivals
0.60 global3 brands0.45 3
comes from the0.45
Integrated network of sales effective integration of design (interiors and exteriors of
4 0.15 3 0.45 3 0.45 2 0.30
channels ships), operations (service and entertainment) and market
5 Product Quality appeal
0.10 (imaginative
3 imagery/slogans).
0.30 2 0.20 2 0.20
6 Financial position 0.10 3 0.30 2 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
Integrated network of sales
4 Carnival
0.15 was3 the first
0.45cruise line
3 to break
0.45 away2from 0.30
channels
traditional print media and to use television to reach a
Product Quality 0.10 3
Its0.30 2 0.20
with 2Kathie 0.20
5
broader market. Fun Fun commercials Lee
6 Financial position 0.10 have
Gifford 3 been so0.30successful.
2 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
Integrated network of sales
4 0.15 3 0.45 3 0.45 2 0.30
channels
5 Product Quality 0.10of Carnivals
One 3 0.30
strength is 2its vertical
0.20integration
2 0.20
6 Financial position 0.10
downstream 3 with Airtours,
0.30 one2 of the0.20 1 UK travel
four largest 0.10
agents.
7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
Carnival has received consistently good ratings
Integrated network of sales
4 0.15its customers
from 3 0.45 3 to product
with regard 0.45 quality.
2 0.30
channels
5 Product Quality 0.10 3 0.30 2 0.20 2 0.20
6 Financial position 0.10 3 0.30 2 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity Carnival shows 4the strongest
0.20 0.80 financial
3 position
0.60 with2a return on
0.40
2 Global brand power equity 0.15
(ROE) of 414% compared
0.60 to3Royal 0.45
Caribbeans
3 9% and
0.45
Star Cruises 3%. The double digit ROE for Carnival has been
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
sustained over the years. In contrast, Royal Caribbeans ROE
Integrated network of sales
has gone
4 0.15down 3from 12%0.45to 9% during
3 the period 2000
0.45 2 to0.30
2002.
channels
Star Cruises ROE, on the other hand, stands at a fragile 3%
5 Product Quality 0.10 3 0.30 2 0.20 2 0.20
6 Financial position 0.10 3 0.30 2 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
Cost containment has largely been responsible for
Integrated network of sales Carnivals success, as it has managed to keep operating
4 0.15 3 0.45 3 0.45 2 0.30
channels expenses at a 3-year average of 77% against revenues.
5 Product Quality 0.10 averages
3-year 3 for0.30 2 0.20
Royal Caribbean and Star2Cruises
0.20
are
6 Financial position at0.10
83% and3 91% respectively.
0.30 2 l. 0.20 1 0.10

7 Cost containment 0.10 3 0.30 3 0.25 1 0.10

8 Management depth 0.05 3 0.15 3 0.15 3 0.15

Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15
Carnivals 4
major 0.60
successes 3
have 0.45
especially 3 driven
been 0.45by
3 Advertising strategic
0.15 expertise
4 of Arison and
0.60 3 Dickinson
0.45 armed
3 with0.45
Integrated network of sales
bigger resources that allow them to implement those
4 0.15
strategic 3 that0.45
plans propelled 3the company
0.45 2 0.30
to leadership
channels
5 Product Quality
status.
0.10
However,
3
the management
0.30 2
teams
0.20
of Star
2
Cruises
0.20
and Royal Caribbean are themselves experts in their fields
6 Financial position 0.10
and 3 0.30 succeeded
have continuously 2 in0.20
ensuring 1that their
0.10
Cost containment / Price respective companies
7 0.10 3 0.30do not 3lag too0.25
far behind1 the leader.
0.10
competitiveness
8 Management depth 0.05 3 0.15 3 0.15 3 0.15
Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

 Competitive Profile Matrix
Carnival Group Royal Caribbean Star Cruises

Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Capacity 0.20 4 0.80 3 0.60 2 0.40
2 Global brand power 0.15 4 0.60 3 0.45 3 0.45
3 Advertising 0.15 4 0.60 3 0.45 3 0.45
Integrated network of sales
4 0.15 3 0.45 3 0.45 2 0.30
channels
5 Product Quality 0.10 3 0.30 2 0.20 2 0.20
6 Financial position 0.10
Carnival 3
is highly 0.30
competitive2versus0.20 1
its two nearest 0.10

7 Cost containment competitors

0.10 3Royal Caribbean
0.30 3and Star
0.25Cruises.1 This is0.10
confirmed by its having the highest market share.
8 Management depth 0.05 3 0.15 3 0.15 3 0.15
Total 1.00 3.50 2.75 2.15

Hilda Lopez Teodoro

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SEGMENTATION
AND STRATEGIC
POSITIONING

Hilda Lopez Teodoro

 MARKET
SEGMENTATION

Socio-Economic
Segmentation
Approach

Hilda Lopez Teodoro

 STRATEGIC POSITIONING
Capacity
STRONG

Strength of Carnival
Global Brands
(Customer
Royal Caribbean
Awareness) LOW HIGH
Star

Market
Company
Share
Carnival 34% WEAK
Royal Caribbean 27%
Star Cruises 12%

Hilda Lopez Teodoro

 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers are single age 25-39 years old.
4-P Liberalization of international ports 0.05 2 0.10
5-T 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high Approximately
GDP per capita 100 million US residents have never taken a cruise holiday
compared with some 20 million that have. North America dominates with a
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
67.5% share of the worldwide cruise
cruisers are single age 25-39 years old. passenger market followed by
Western Europe with 22.5 %. Asia accounts for the remaining 10%.
4-P Liberalization of international ports 0.05 2 0.10
5-T 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
The money spent by passengers
cruisers are single age 25-39 years old.
on leisure comes from disposable
income. High GDP generally signals growth for an economy, which also
4-P Liberalization
drives theof international
increase in ports
household income. 0.05 2 0.10
5-T 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
There is a growing number of 40+ married couples that are taking cruises
2-E Increase
as theirinpreferred
discretionary expenditure
yearly vacation(disposable
preference.income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers are single age 25-39 years old.
4-P Liberalization of international ports 0.05 2 0.10
5-T 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Thereinhas
Increase been a 20%
discretionary increase(disposable
expenditure in the liberalization
income); of international
0.15 3ports 0.45
in GDP
high the past 3 years. Because landed ports are enhancements for the
per capita
cruise
3-SC Approx 70%service it would
of cruisers benefit
are aged 40+the cruisewhile
married company
30% ofif more0.10
ports are 3 0.30
opened
cruisers are and liberalized.
single T
age 25-39 years old.
4-P Liberalization of international ports 0.05 2 0.10
5-T 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

Expansion of overall leisure market particularly in North 0.20 4 0.80

1-E
America & Europe
Increase in discretionary expenditure (disposable income); 0.15 3 0.45
2-E
high GDP per capita
In the70%
Approx lastof3 cruisers
years Norwegian shipyards
are aged 40+ have30%
married while increased
of their
0.10 building
3 0.30
3-SC capacity by 50%. The availability of supply from the shipyards allows the
cruisers are single age 25-39 years old.
company to effectively plan for capacity build-up.
4-P Liberalization of international ports 0.05 2 0.10

5-T Major shipyards are able to provide adequate supply of ships 0.05 3 0.15

EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers
Cruiseareship
single age 25-39
operating years old.are impacted by changes in bunker fuel
expenses
4-P prices. Post
Liberalization war issues in
of international Iraq had elevated issues on higher
ports 0.05 fuel cost,
2 0.10
5-T thus, operating cost per available berth day is expected to0.05
be high. Bunker
3 0.15
Major
fuelshipyards
cost havearerisen
able to
byprovide
22% inadequate
the last supply
year. of ships
.
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
Walt
high GDPDisneys
per capitainvolvement in the cruise market since last year shows that
even a company with no deep-sea shipping experience can become a
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
highly successful operator. Disneys
cruisers are single age 25-39 years old. success hardly came as a surprise,
bearing in mind that the corporation is able to draw from its vast
4-P Liberalization of international ports 0.05 2 0.10
experience in the operation of theme parks and resorts and its strong
5-T brand. 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers are single
There are more age
than25-39 years lines
50 cruise old. with the majority competing for the
4-P same contemporary
Liberalization market
of international segment as Carnival. Each of 0.05
ports these cruise
2 0.10
5-T lines have been more aggressive in the advertising and in 0.05
upgrading 3the 0.15
Major
ships.shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers are single age 25-39 years old.
There are so many other vacation offers that require less planning. For
4-P Liberalization
example peopleof international
could go ports 0.05 the country,
to the beach, take a bus tour across 2 0.10
5-T go to Disney World, Club Med, take a Trafalgar European tour. 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers are single age 25-39 years old.
4-P Liberalization of international ports 0.05 2 0.10
5-T Major shipyards are able to provide adequate supply of ships 0.05 3 0.15
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C The of
Entry uncertain environment
Walt Disney Cruises can impact bookings and concerns
0.10 regarding
2 0.20
3-C post-war effect in Iraq compounded by security alerts issued
Heightened competition
to various
0.10 3 0.30
national governments.
4-C Availability of substitutes (other types of vacations) 0.05 3 0.15
5-P Terrorism and security issues 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 E-F-E Matrix
Wtd
Key External Factors Weight Rating Score
EXTERNAL OPPORTUNITIES

1-E Expansion of overall leisure market particularly in North 0.20 4 0.80

America & Europe
2-E Increase in discretionary expenditure (disposable income); 0.15 3 0.45
high GDP per capita
3-SC Approx 70% of cruisers are aged 40+ married while 30% of 0.10 3 0.30
cruisers are single age 25-39 years old.
4-P Liberalization of international ports 0.05 2 0.10
5-T 0.05 3 0.15
Major shipyards are able to provide adequate supply of ships
EXTERNAL THREATS

1-E Rise of bunker fuel cost 0.15 1 0.15

2-C Entry of Walt Disney Cruises 0.10 2 0.20
3-C Heightened competition 0.10 3 0.30
4-C Availability of substitutes
Carnival is doing(other types better
a slightly of vacations)
than average job of0.05 3 to the0.15
responding
5-P Terrorism and security issues
opportunities and threats in its environment. 0.05 1 0.05
Total 1.00 2.65
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive
Hilda Lopez Teodoro
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
5-M Highly integrated network of sales channels 0.10 3 0.30
6-M Cost Containment 0.10 3 0.20
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Weighted
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
Carnival
awareness, is operating
recall, a fleet
consumer trust and of 70 ships and
loyalty will have another 13
3-M ships
Strong scheduled
advertising for delivery by year-end 2006. It0.10
campaign has achieved
4 0.20
4-M several
Theme first in
ship concept the"fun
(e.g. cruise
ship" industry;
concept) with more than 0.101 million
4 0.40
5-M passengers
Highly carriedofinsales
integrated network a single year and first cruise
channels/flexible line to 3carry 5 0.30
0.10
million passengers.
deployment
6-M Cost Containment 0.10 3 0.20
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
Hilda Lopez
C=Culture, Teodoro
MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M
Its global brands are the strongest in the industry because
Theme ship concept (e.g. "fun ship" concept) 0.10
these
4 0.40
brands allow direct association and identification with the
5-M Highly integrated network of sales channels 0.10 3 0.30
respective markets they wish to serve. The ultimate manifestation
6-M Cost Containment
of a brands strength is when its very name Carnival0.10 becomes3
the 0.20
7-MT Strategy-oriented
global generic management
term for cruising. Among all the cruise0.05 3
companies 0.15
INTERNAL WEAKNESSES 0
no other brand could hold a candle to Carnival.
1-O High fixed cost 0.10 1 0.10
2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
The advertising team for Carnival is doing its job well for it leads it
5-M Highly integrated network of sales channels 0.10 3 0.30
competitors in advertising and promotion. The Carnival Cruise Line
6-M Cost Containment 0.10 3 0.20
is a common name because of such advertising and promotion
7-MT Strategy-oriented management commitment to intensified advertising
efforts. Companys 0.05 3 is 0.15
INTERNAL WEAKNESSES 0
evident in the significant advertising budget appropriated.
1-O High fixed cost 0.10 1 0.10
2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
5-M Highly
The Funintegrated
Orientednetwork of sales channels
Philosophy is there to keep everyone0.10 involved.3 There0.30
6-M areCost Containment
various activities to keep young and old alike entertained. 0.10 3 ship0.20
The
7-MT has been designed
Strategy-oriented to cater to everyones interests. Those
management 0.05 who 3come 0.15
aboard
INTERNALCarnivals
WEAKNESSES modern, gaily decked out vessels, expect 0 to have fun.
1-O Thus,
High in the
fixed public psyche, Carnival is the Fun Ship, the
cost 0.10provider
1 of 0.10
2-O good
Risk time. The Fun Ship is widely acknowledged as the
of overcapacity 0.05industrys
2 0.10
3-M cleverest communications idea because it succeeds in 0.05
No Asian market informing1 0.10
4-HR customer precisely what incentives
Lack of performance-driven the experience
for staff is going to be. 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
5-M Highly integrated network of sales channels 0.10 3 0.30
6-M Cost Containment 0.10
Carnivals regional offices are literally floating around the sea3 0.20
7-MT Strategy-oriented
most management
of the time, coordinating and managing these moving 0.05 3
targets. 0.15
INTERNAL WEAKNESSES 0
It has 18 servers running on Microsoft Back Office server one on
1-O High fixed
each cost
ship, plus other in the companys headquarters 0.10 in Miami;1 0.10
2-O Risk of overcapacity
offices in LA, Orlando and Puerto Rico and soon shipyards 0.05 2
in Italy 0.10
3-M and Finland.
No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
The company
awareness, has over
recall, consumer theand
trust years sustained
loyalty its double digit
3-M profitability
Strong and
advertising this has been possible because the 0.10
campaign company4 has 0.20
4-M beenship
Theme able to effectively
concept control
(e.g. "fun ship" and contain both fixed
concept) and variable
0.10 4 0.40
5-M costs.
Highly integrated network of sales channels 0.10 3 0.30
6-M Cost Containment 0.10 3 0.20
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15
The ability of management to act quickly on opportunities is4 a 0.60
awareness, recall, consumer trust and loyalty
major strength for Carnival. The most recent manifestation is the
3-M Strong advertising campaign 0.10 4 0.20
companys successful bid over P&O Cruise Line. A multi-cultural
4-M Theme ship concept (e.g. "fun ship" concept)
workforce allows the company to have a truly global0.10 persona4and 0.40
5-M Highly integrated
allows network of sales
the assimilation of channels 0.10 service.
different cultures in the crew 3 0.30
6-M Cost Containment 0.10 3 0.20
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
5-M Because
Highly of itsnetwork
integrated purchase of channels
of sales new cruise
ships it has high
0.10 fixed 3costs. 0.30
6-M
Depreciation and fuel are some of the more significant
Cost Containment 0.10
costs, 3 0.20
which cannot be avoided every time a ship sets sail.
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
Deliveries of new ships by 2006 herald an increase in capacity to
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
42,000 LB. The risk depends on the companys ability to build the
5-M Highly integrated
customer basenetwork of sales
at about thechannels 0.10
time the new ships will be 3 for
available 0.30
6-M Cost Containment
sailing to fully cover the massive fixed costs expected. 0.10 3 0.20
7-MT .
Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
5-M Highly integrated network of sales channels 0.10 3 0.30
6-M Cost Containment 0.10 3 0.20
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O
The company
Risk of has not developed cruises that cover the
overcapacity Asian market.
0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme shipcomponent
A major concept (e.g. of
"fun ship"
the concept)
cruise is the 0.10 has not
service. Carnival 4 0.40
5-M set up
Highly performance-driven
integrated network of sales incentives
channels that will motivate
0.10crew to
3 0.30
6-M always
Cost render their best service and adhere to Carnivals
Containment 0.10 3 0.20
7-MT exemplary service
Strategy-oriented level standards.
management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 I-F-E Matrix
Wtd
Key Internal Factors Weight Rating Score
INTERNAL STRENGTHS

1-O Capacity of 68 ships, 50% under 10 years old, with over 0.15 4 0.60
100,000 berths
2-M Strong, global brands that command high degree of 0.15 4 0.60
awareness, recall, consumer trust and loyalty
3-M Strong advertising campaign 0.10 4 0.20
4-M Theme ship concept (e.g. "fun ship" concept) 0.10 4 0.40
5-M Highly integrated network of sales channels 0.10 3 0.30
6-M Cost Containment 0.10 3 0.20
7-MT Strategy-oriented management 0.05 3 0.15
INTERNAL WEAKNESSES 0

1-O High fixed cost 0.10 1 0.10

2-O Risk of overcapacity 0.05 2 0.10
3-M No Asian market 0.05 1 0.10
4-HR Lack of performance-driven incentives for staff 0.05 1 0.05
Total 1.00 3.05
HildaMT=Management,
C=Culture, Lopez Teodoro M=Marketing, F=Finance, O=Operations, HR=Human Resources, I= Information Systems
 1

STRATEGY
SELECTION

Hilda Lopez Teodoro

 Decision Stage - QSPM
TALLY TABLE
STRATEGY OPTIONS TOWS SPACE BCG GE IEM GSM TOTAL
INTEGRATION STRATEGIES
1 Forward Integration 1 1 2
2 Backward Integration 1 1 2
3 Horizontal Integration 1 1 2
INTENSIVE STRATEGIES
4 Market Penetration 1 1 1 1 1 1 6
5 Market Development 1 1 1 1 1 5
6 Product Development 1 1 1 1 1 1 6

DIVERSIFICATION STRATEGIES
7 Related Diversification 1 1 2
8 Unrelated Diversification 1 1

Strategic Alternatives
QS PM Wt. Market Penetration Market Development Product Development
Critical Success Factors AS TAS AS TAS AS TAS
Sum Total 1 6.15 5.25 4.80
Attractiveness Score

Hilda Lopez Teodoro

 Key Strategy for Carnival
Carnival seeks to attract passengers from the broad vacation
market, including those who have never been on a cruise ship
before and who might not other consider a cruise as a vacation
alternative, through aggressive advertising and promotion.
Why Market Penetration?
Current markets are not yet saturated
Historically, the growth in sales for the company has
been driven by significant investments in advertising
Build up of market share will create significant
economies of scale that will provide major competitive
advantages for Carnival in terms of containing its costs,
competitive pricing and more creative service offerings
Dual challenge for Carnival
Address potential first-time cruisers (educate the
market)
Encourage repeat customers to cruise more often

Hilda Lopez Teodoro

 1

STRATEGIC
OBJECTIVE

Hilda Lopez Teodoro

 Strategic Objective
Purchase 20 new ships at 300 M each
within the next three years.
Financial Objective: Achieve $10 B in revenues by
2005
Company already achieved 205% growth from
1996 to 2001
Set target is indeed challenging but considered
achievable due to the following reasons:
1. Studies indicate that only 5% of the North American target market
cruise for leisure purpose (estimated market potential is $50B)
2. European cruise business is growing even faster than North
American market (studies show only 1% of EU travelers took a cruise
in 2000)

Hilda Lopez Teodoro

 1

ACTION
PLANS

Hilda Lopez Teodoro

 Departmental Program - Marketing
COMPLE PERSON
EXPECTED
ACTIVITIES TION RESPON-
OUTPUT
DATE SIBLE
Rewards Program Earned mile Mar 2004 To increase to VP
points are convertible to discounts or 20% the number of Marketing
upgrades 1st time cruisers
annually
Account executives assigned to Mar 2004
Corporate accounts To increase to
20% the frequency
Tie up with top rating TV shows in Mar 2004 of regular cruisers
North America and EU where cruise annually
ship is used as set location, e.g., The To increase
Bachelor, Friends exposure in North
Hold semi-monthly sales meetings to Jan 2004 America and
track key performance indicators & European television
handle issues

Hilda Lopez Teodoro

 Departmental Program - Operations
COMPLE PERSON
EXPECTED
ACTIVITIES TION RESPON-
OUTPUT
DATE SIBLE
Inventory management for menu Jan 2004 To achieve 99% VP
items Customer Operations
satisfaction for
Independent Quarterly review of Mar 2004 room & banquet
menu/international cuisine
service
To achieve 99%
Monthly inspection of ship facilities Jan 2005 Customer
and equipment satisfaction for on-
board entertainment
3 year replacement plan of all Jan 2006 and recreation
onboard entertainment and recreation
equipment

Hilda Lopez Teodoro

 Departmental Program - HR
COMPLE PERSON
EXPECTED
ACTIVITIES TION RESPON-
OUTPUT
DATE SIBLE
Professional Development Mar 2004 To encourage VP Human
Program encourage promotion performance above Resources
internally/ succession planning targets by providing
increased variable
Programmed Training Course for Jan 2005 compensation
Sales and On-board Crew
To provide
Certification required
employee and
management
Hire top notch sales agents with Apr 2004
continuing
extensive experience in the
professional
leisure/tourism industry
education & training

Hilda Lopez Teodoro

 Departmental Program - Finance
COMPLE PERSON
EXPECTED
ACTIVITIES TION RESPON-
OUTPUT
DATE SIBLE
Pool treasury operations with one Mar 2004 To efficiently VP
global banking partner manage cash Finance
generated from
operations for
Centralize purchasing function at Jan 2004 departmental
corporate headquarters programs
Financial data for performance Apr 2005 To reduce
review available by workday 3 after operating expenses
month end from 77% to 70%

Hilda Lopez Teodoro

 Departmental Program - IT
COMPLE PERSON
EXPECTED
ACTIVITIES TION RESPON-
OUTPUT
DATE SIBLE
Identify application systems Feb 2004 To explore new VP IT
designed to educate potential first- sources of Systems
time cruisers & to allow interaction customer interface
with regular cruisers & sales stimulation
Identify key process for HR, Finance, May To build a world
Marketing, and Operations which can 2004 class information
be done through an integrated IT system to ensure
system (internal & external) internal efficiencies
and to serve the
Build customer database & market Apr 2004 business needs
information

Hilda Lopez Teodoro

 1

BALANCED
SCORECARD

Hilda Lopez Teodoro

 Financial Perspective : To achieve our vision how
should we appear to our stakeholders?

GOALS MEASURES TARGET

Revenue Growth Total Revenue $ 10 Billion in

2005

Market Share Increased Market Share 10% Increase

Profitability Profit Margin 15%

Hilda Lopez Teodoro

 Customer Perspective : To achieve our vision
objectives, how should we appear to our customers?

GOALS MEASURES TARGET

Customer Satisfaction Survey rating 99%

Increased First Time Increased Market Share 10% Increase

cruisers

Customer Retention % of repeat Carnival 80% of repeat

customers Carnival
customers

Hilda Lopez Teodoro

 Internal Business Perspective : To achieve our
financial and customer objectives, what business processes do we need
to enhance?

GOALS MEASURES TARGET

Improve customer Customer satisfaction 95% customer

service survey result satisfaction
Sales and market share 25 % increase
reports in sales

Improved cost Cost per department 0% Increase

controls

Effective advertising Ratio of advertising and 11%

and promotions promotional expenses
per sales area to per
segment sales

Hilda Lopez Teodoro

 Innovation & Learning Perspective: To innovate
product and improve ability. What kind of people will we need in the
company?

GOALS MEASURES TARGET

Employee satisfaction Employee Opinion High

and motivation Survey Index

Talent Retention Employee Turnover Low

Performance & Overall performance 95%

compentency evaluation index of a business
unit/functional unit.

Hilda Lopez Teodoro

 Thank You

Hilda Lopez Teodoro