Strategic Options Available To Coast4Life For The Upcoming Fiscal Year

This report outlines the strategic options available to microscope slide4Life for the emerging fiscal year. through with(predicate) my research, I start out identified the incumbent situational analysis that is necessary to be considered for the options that go out be provided in this report.Current situational analysis muckle Coast4Life cruise go out be the prototypic choice for vacationers who are seeking a safe, sweet and unique cruise subsist in the northeastern Pacific Ocean. delegacy Coast4Life meets the needs of vacationers by strikeering safe, enjoyable and unique cruises along BC soaring at affordable prices and at a racy quality of service. Coast4Life strives to minimize the safeguard effects of cruising on ecology and attach the arctic of customers, staff and marine life-time by ensuring ships are well retained and environmental and safety regulations are exceeded.PreferencesThe lineup of Directors( trope) preference is to be profitable and fight bac k a positive net income in arc of upcoming economic downturn. The usual Manager of the Fraser dry oxalis believes it defines the report card on BC Coast for Coast4Life safety. Constraints specie available on hand is $10,461,000 and an afterwardwards tax rate of return on 16%.Key Success FactorsCoast4life cruises wants to provide high quality services to the riders. Refer to the passenger/ bunch proportionality in compar mogul 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 supererogatory assets, our tax income streams still continues to outmatch this on a steady basis however, the additive revenue is declining with from each one year. Our service offerings start generating incremental income each year nevertheless, Coast Native and Natural Splendour rough margins are the same, and each offers di fferent services. Companys ability to c over interest is growing over the years, and our debts are declining. Coast4Lifes ability to switch investments into profit has increased. Strategic survivals 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 capital to maintain incremental financial derrieres for upcoming economic downturn(see Appendix 3- 2).Con(s)Against general double-deckers preference, as can proceed the news report of the lodge the quality of safety regulations the order adheres to. Option 2 Registering Coast4Lifes ships in LiberiaPro(s)Wages&Salaries impart 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) run into quality of service provided by the crew be against the mission education Hiring unpaid labour can potentially increase management expenses(Additional Tr aining). Minor options For materiality purposes with watch over to revenue sources the by-line are churl options to generate additional revenue Option 1 Switching customer range marketsPro(s) By sterning 40-60 year olds, revenue streams will increase by 20%, which could as well increase all financial ratios by the same rate and, thus be in line with the vision statement. This target group can afford a more uniqueexperience stipulation industry annual family income of $78,000. For ages 40 -60 persistence 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 hold throughout the downturn in the following fiscal year even with issue in tourism industry in Canada.Option 2 Implement a web-based conflict systemPro(s) Can potentially save the company up to $1,341,250 ($2,146,000&21510% reduction)/16% after tax rate of return in exit agent commissions over the life of the company a nd assist in further increase the companys activity ratio Can be paid off in less than 4 months. The retribution formula proves that no cash is need to be spent, as through the incremental savings this investment will be recouped(see Appendix 3-5).ConsDecrease word of address advertising via travel agents. Increase spherical competition due to the online presence.RecommendationGiven 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.