Coast4Life Inc.

This report out strings the strategic options available to Coast4Life for the upcoming fiscal form. Through my research, I have identified the current situational analysis that is necessary 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. heraldic bearing Coast4Life meets the needs of vacationers by offering safe, enjoyable and unique cruises along BC coast at cheap prices and at a high quality of receipts.Coast4Life strives to minimize the gum elastic effects of cruising on ecology and amplification the safety of customers, staff and marine life by ensuring ships are well hold and environmental and safety regulations are exceeded. Preferences The Board of Directors(BOD) preference is to be profitable and assign a positive net income in light of upcoming economic downturn. The General Manager of the Fraser dry dock believes it defines the temper on BC Coast for Coast4Life safety. Constraints Cash available on hand is $10,461,000 and an after tax rate of return on 16%.Key Success Factors Coast4life cruises wants to provide high quality services to the passengers. Refer to the passenger/crew dimension in comparison to industry averages(see accessory 3-1). Current Financial Analysis(See Appendix 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 tax streams still continues to outmatch this on a steady basis however, the incremental revenue is declining with each year.Our service offerings grow generating incremental income each year nevertheless, Coast Native and Natural Splendour gross delimitations are the same, and each offers different services. Companys ability to cover interest is development over the years, and our de bts are declining. Coast4Lifes ability to convert investment fundss into profit has increased. Strategic wefts To cut costs. 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 theater directors preference, as derriere affect the reputation of the company 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 saved by outsourcing from Liberia(see Appendix 3- 3). Con(s) Affect quality of service provided by the crew be against the mission statement Hiring unskilled fatigue can potentially increase management expenses(Additional Training).Minor options For materiality purposes with respect to revenue sources the follo wing are baby 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 throng can afford a more unique experience given industry annual family income of $78,000. For ages 40 -60 sedulousness is higher by 8% so we have 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 maintained throughout the downturn in the following fiscal year even with growth in touristry industry in Canada. Option 2 Implement a web-based appointment system Pro(s) Can potentially save the company up to $1,341,250 ($2,146,00010% reduction)/16% after tax rate of return in activate agent commissions over the life of the company and assist in further increasing the companys activity ratio Can be paid off in less than 4 months. The vengeance 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 ball-shaped competition due to the online presence. Recommendation Given the uncertain future ahead, it is best 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.