Ias 16: The Purpose Of The Carnival Corporation

Carnival Corporation & plc is a global contender with the title of the world’s largest cruise and leisure travel company. The goal of this assessment is to analyze the strengths and weaknesses with the financial ratio analysis of the company along with conducting an internal factor evaluation matrix to view the status of the company in comparison with their top competitor, Royal Caribbean Cruises Ltd.

Carnival Corporation & plc. is a global company with over 100,000 employees that serve 5 million passengers a year. At the end of 2014 Carnival Corporation & plc. income earnings were $15,884,000 dollars. Tickets sales at $11,889,000 dollars. After paying salaries and other fees Carnival Corporation & plc. income came to $459,000 which is low considering that in 2012 and 2013 income was over $1,070,000 dollars for each year after deducting costs. (Financial Information) The total sales come for the different age demographics, so approximately 50 percent of the predictions for cruise come from the 25-39 age group followed by the 40-59 age group at about 39 percent and the 60 plus age group at 11 percent. (Cruise Demographics)

Even though Carnival Cruise Lines’ present is looking positive, there are still some opportunities and challenges. Over the past two years Carnival Cruise Lines has captured transactional data about its customers but to date has not taken advantage of it to create value. And the data also reflect the Carnival relationship with travel agency. Carnival’s reservations office only can get roughly information from travel agency booking. And 85% booking from travel agency with 10% commission also causes Carnival want to enhance their own direct-sale channel. All of these indicate that the priority issue should be how to utilize the customer data to benefit both customers and company. And Carnival only have 50% of repeat guests. In terms of a

One of the major marketing strengths of carnival in its marketing department includes its focus on offering its products in three major markets i.e. premium, contemporary, and luxury markets. Secondly, through the use of its travel agents who receive bonuses for promoting the organization, Carnival offers alternative land package vacations.

Answer: Carnival should place a high priority on marketing. They can include more varied activities that should be marketed towards different lifestyles. This will attract more people who would not have considered a cruise in the past. They can offer many promotions that lower the cost of their cruise. The company can also offer a large selection of cruise options, with ports located in many countries around the world. (Source: http://www.echeat.com/essay.php?t=31046).

Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. Furthermore, Carnival Cruise Lines are successful because they have a clear vision and a commitment to their brand essence,

Carnival Cruise Lines is the largest cruise company in North America and carries more than 60,000 passengers a week. The Carnival experience is the standard against what past cruisers judge their later cruise experiences. Carnival has captured the "fun" psychographic and has a strong reputation for an enjoyable, relaxed cruise. Furthermore, Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. They have a clear vision and knowledge about the industry and a commitment to their brand essence, which is fun. Also, as an extension to their branding of the "fun" ships they are the low-price leaders. Because of their strong brand image they are able to achieve double-digit growth in

The history of the Carnival Corporation begins in 1972, when Ted Arison set up Carnival Cruise Lines as a subsidiary of the American International Travel Service. The first ship ran aground, but Arison remained steadfast in achieving his vision of a cruise line offering affordable vacation packages to middle-income consumers. By 1977, Carnival had three ships, and ten years later, as the industry leader, the company went public. In the early 1990s, Carnival began to diversify into land-based entertainment, thus changing its name to Carnival Corp. The company is the world's #1 cruise operator with about a third of the market.

The Carnival Corporate Scholars Program has caught my attention because I believe that this program can help grow my entrepreneurship skills for my major and the extra-curricular outside of school I’m involved with. I am familiar with the company named Carnival as a cruise line for years and have deep respect for the success and smiles that Carnival puts on people’s faces. I just don’t want to receive everything I can from this program but also to give back to the company and beyond to create an even better positive impact towards this program once I am involved in it. Networking is key in business or entrepreneurships to help benefit a cause; I can use skills like this that I have developed over my professional developments not to make sure

Out of 70 brands serving the North American market since 1960’s.Carnival Corporation dominated ten major brands that nearly took over the 95% of the total market. Hence, Cruise Lines came into view as the largest cruise company in the world.

Intangible assets are calculated on initial recognition at cost. After that they are carried at cost minus any amortization and impairment losses that are accumulated. If such assets have finite lives then they are amortized over that life and assessed for impairment if any. The amortization mechanism is reviewed at least once every financial year. This expense is recognized in the income statement. Gain and loss from intangible assets are measures as the difference between net disposal proceeds and carrying amount of asset and recognized in the profit and loss account.

A pause strategy is the best initial course of action for Carnival Corporation to improve on its health standards, overall safety and public relations. This allows the corporation to consolidate its resources to take more precise action towards its critical issues. Taking a pause strategy approach the corporation can put its growth strategy on temporary hold, keying in on improving ship infrastructure and implementing better safety features. Carnival can begin by issuing more frequent maintenance and upkeep of ships, improving the diligence of sanitization of surfaces, and executing better care and handling of perishables. This strategy gives Carnival Corporation the opportunity to show progressive action towards improving overall customer health and safety. Carnival can then utilize this to apply a marketing strategy showcasing its efforts to continually keep customer wellbeing at its

IFRS are standards and interpretations adopted by the International Accounting Standards Board (IASB). They include: International Financial Reporting Standards (IFRS), International

The International Financial Reporting Standards (IFRS) - the bookkeeping standard employed by organizations in more than 110 countries has some key contrasts from the U.S. sound accounting guidelines (GAAP). At the reasonably level, IFRS is viewed as all the more of an accounting standard which is based on principles as opposed to U.S. GAAP which is viewed as a standard based on rules. IFRS, ostensibly, incorporates and displays the financial aspects of a transaction better than U.S. GAAP.

There is a very lengthy and detailed due process that must be followed when developing standards for IFRS. The main goal of the IFRS Foundation is “is to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based on clearly articulated principles.” The IFRS Foundation delegates the responsibility of developing standards to the International Accounting Standards Board (IASB). The IASB is continually striving to develop standards that offer the most accurate representation of an entity’s financial performance through its financial statements. These standards are intended to help lenders, investors,