According to Cummings (2003), the word strategy comes from the Greek language and is a combination of the words army and to lead. Carter et al (2008) argues that the word strategy is linked both to the military and business fields and has been used in the second approach since the end of the Second World War when some entrepreneurs started to implement strategic planning in their business
Big projects and most of the businesses require a plan where the expected and not so expected opportunities and obstacles are forecasted, aiming to survive successfully when facing competition. According to Chandler (1962), when environment changes take place, the urge for new strategies emerges and the company is therefore driven by its new structure.
It is known that Carnival Corporation started as a small business, and driven by its founder through his enthusiasm, goals and plans it became an industrial leader. He proved his ambitious when buying the distressed company just after two years of operation. Aiming to be different from the other cruise ships from that time, Carnival gave special attention to the passengers’ needs and was the first cruise line company to provide a more entertaining atmosphere onboard.
In order to have a precise business plan and know where it will be in the future, every company needs a focused concept of the current environment where it operates. Who are the people involved, what is the business concept, what are the opportunities, who are the competitors, what are the keys to success? Once all these questions would probably lead to more questions, a research process should then be started to obtain the answers, according to Cyr (2007).
Table of Contents
1. Introduction
1.1 The Company
1.2 Concept of Strategy
2. Business Planning
2.1 Pestel analysis
2.2 Porter's Five Forces
3. Strategy
3.1 Vision
3.2 Mission Statement
3.3 Goals
3.4 Values
4. Monitoring and evaluating
4.1 Corporate Governance
5. Conclusion
5.1 Recommendations
6. References
Research Objective and Core Themes
This paper aims to analyze the strategic business management and planning processes of Carnival Corporation & plc, evaluating how the company maintains its market leadership in the cruise line industry through internal resources, strategic vision, and corporate governance.
- Analysis of external environmental factors using PESTEL and Porter's Five Forces models.
- Evaluation of internal strategic pillars including vision, mission, and organizational values.
- Examination of corporate governance structures and monitoring mechanisms.
- Strategic recommendations for future business expansion into the hotel sector.
Excerpt from the Book
1.2 Concept of Strategy
According to Cummings (2003), the word strategy comes from the Greek language and is a combination of the words army and to lead. Carter et al (2008) argues that the word strategy is linked both to the military and business fields and has been used in the second approach since the end of the Second World War when some entrepreneurs started to implement strategic planning in their business.
Another common definition of strategy is from Chandler (1962): “Strategy can be defined as the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”
Strategy can be seen as a routing guide for the company’s future horizons. Being the company established in a competitive ambience, strategy has been proved to be the correct tool to achieve the leading position in a market.
Summary of Chapters
1. Introduction: This chapter introduces Carnival Corporation & plc as a global leader in the cruise industry and defines the concept of strategy within a business context.
2. Business Planning: This section explores the necessity of strategic planning and provides an analysis of the external business environment using PESTEL and Porter's Five Forces frameworks.
3. Strategy: This chapter details the company's internal strategic components, specifically focusing on its vision, mission statement, organizational goals, and values.
4. Monitoring and evaluating: This part examines the importance of acquisitions in growth and details the role of corporate governance in maintaining stakeholder trust.
5. Conclusion: The final chapter summarizes Carnival's success as a market leader and proposes future growth strategies involving the hospitality sector.
6. References: This section lists the academic and industry sources utilized to support the arguments presented in the paper.
Keywords
Carnival Corporation, Strategic Management, Business Planning, PESTEL Analysis, Porter's Five Forces, Cruise Industry, Corporate Governance, Resource Based View, Strategic Vision, Mission Statement, Competitive Strategy, Market Leadership, Business Strategy, Global Tourism, Acquisitions.
Frequently Asked Questions
What is the primary focus of this paper?
This paper examines the strategic management and planning frameworks utilized by Carnival Corporation & plc to maintain its position as a global leader in the cruise line industry.
Which theoretical models are applied to analyze the business?
The paper utilizes PESTEL analysis, Porter's Five Forces, and the Resource Based View (RBV) to assess both the external market environment and the internal capabilities of the company.
What is the main goal of the research?
The research aims to understand how Carnival Corporation aligns its corporate structure, vision, and operational strategy to achieve sustainable profitability and competitive advantage.
How does the author evaluate the company's growth strategy?
The author identifies acquisitions as a key growth driver, while emphasizing the importance of monitoring through corporate governance and rigorous internal evaluation processes.
What are the core pillars of Carnival's internal strategy?
The internal strategy is built upon a clear vision, a defined mission statement, actionable organizational goals, and core values that foster motivation and alignment among employees.
How is the company's performance maintained?
Performance is maintained through regular corporate governance oversight, adherence to a Code of Business Conduct and Ethics, and constant monitoring by the Board of Directors via specialized committees.
What specific recommendation does the author make for the future?
The author suggests that Carnival Corporation should consider expanding into the hotel industry, leveraging its existing sales, marketing, and reservation infrastructure to offer integrated vacation packages.
How does the brand portfolio influence the company's strategy?
The company maintains a large, diverse brand portfolio where each brand operates independently with its own structure, allowing the corporation to cover multiple market segments ranging from mass-market cruisers to luxury travelers.
- Quote paper
- Bettina Carollo (Author), 2010, The World’s Most Popular Cruise Line, Munich, GRIN Verlag, https://www.grin.com/document/191738
