TABLE OF CONTENTS
INTRODUCTION 3
1. KEY ISSUES: PROBLEM STATEMENT 5
GREYWELL’S ALTERNATIVE OPTIONS 6
a. ALTERNATIVE 1: ACCEPT RASCALS OFFER 6
b. ALTERNATIVE 2: FOCUS ON ADVENTURE DIVING 6
c. ALTERNATIVE 3: RELOCATE 6
PREVIOUS STRATEGIES: 7
a. RESORT DEVELOPMENT 7
b. PRODUCT DEVELOPMENT 7
c. JOINT VENTURE 7
d. MARKET PENETRATION 7
2. WHAT DID THE MANAGEMENT DO/CURRENT STRATEGIES 7
a. SWOT Analysis 8
3. RECOMMENDATIONS 9
CONCLUSION 10
REFERENCES 11
INTRODUCTION
Coral Divers Resort is a family owned business by Jonathon Greywell. It has been in operation for ten years. Over the years, it had established a solid reputation for the Coral Divers Resort as a safe and knowledgeable scuba diving resort located in Bahamas.
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KEY ISSUES: PROBLEM STATEMENT
The key issues that Coral Divers resort is facing is that Greywell has been experiencing a decline in revenues and profits for the past three years as depicted in the graph below.
Greywell has also been unable to distinguish itself from other resorts in the New Providence. The surrounding resorts were able to specialise in different segments and were doing well.
GREYWELL’S ALTERNATIVE OPTIONS
a. ALTERNATIVE 1: ACCEPT RASCALS OFFER
Greywell had thought to add some specialized features to the resort such as focusing on family outings. Rascals in Paradise (Travel Company) had offered Greywell to help convert his resort to specialize in family diving vacations. According to the industry demographics, families were a growing market segment and therefore suggested this change together with creating children’s menus and to show how to prepare the meals.
b. ALTERNATIVE 2: FOCUS ON ADVENTURE DIVING
Other resorts in Bahamas were already offerings adventure oriented diving’s. Greywell had the basic ingredients for adventure diving i.e. reef sharks and deep water corals as it was already in place. However, if Greywell opted for this, it would require changes and additions to current
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SWOT Analysis
STRENGTHS Solid Reputation: Coral Divers Resort has developed itself to a safe and knowledgeable diving resort. Location: CDR has a beachfront location that offers divers not only diving opportunities but also the liberty to explore islands with a peaceful and quiet atmosphere. Association with PADI and NAUI: Since Greywell was a certified diving instructor from two of the well-known certified training organisations in the world; this implied the owners experience, reliability, and credibility. Land availability for future expansion: there was massive land and resource availability if Greywell thinks of expanding his resort in future.
WEAKNESS Decline in bookings and revenue: the resort is operating at 90% during peak period while it operates at 50% or below during off peak period. This led to unstable stream of revenue and idle capacity during off peak period. Ineffective marketing campaign: due to the owner not having much experince in management field, this resulted in unstable flow of revenue. Heavily leveraged: the resort at the moment has a risk of banruptcy as the owner has low cash liquidity, declining revenue which makes it difficult to obtain more