1. STRATEGIC PLAN 2013-2015
Undergraduate Student Project
Entire Presentation should be prescriptive in nature. Never
read anything, not even the mission statement.

2. PRESENTATION OUTLINE
I.
Company Overview
II.
Mission/Vision Statement
III. Internal Assessment
IV. External Assessment
V. Strategy Formulation
VI. Strategy Implementation
VII. Conclusion

3. COMPANY OVERVIEW
•
HEADQUARTERS:
Miami, Florida, and London, England
•
CRUISE BRANDS:
Carnival Cruise Lines (24 ships) Princess
Cruises (17 ships) Holland America Line (15 ships)
Costa (14 ships) P&O Cruises (7 ships) Cunard (3
ships) Seabourn (6 ships) AIDA (10 ships) P&O
Cruises Australia (4 ships) Iberocruceros (3 ships)
•
TOTAL NUMBER OF SHIPS:
102
•
EMPLOYEES WORLDWIDE:
Approximately 90,000
•
STOCK EXCHANGE:
NYSE and LSE (symbol: CCL)
•
2012 REVENUES:
$15.4 billion
•
2012 NET INCOME:
$1.5 billion
•
CRUISING AREAS:
Alaska - Bahamas - Baltic – Bermuda- CaribbeanHawaii - Mediterranean – New England - North Cape
– Panama Canal -South America - South Pacific and
other worldwide destinations

7. VISION STATEMENT
Carnival Corporation & PLC:
No current vision statement
Proposed Vision Statement:
Carnival’s vision is to provide the world with
the finest and safest vacation experience for
our employees and guests.

8. MISSION STATEMENT
Our mission is to take the world on vacation and deliver exceptional
experiences that appeal to a large variety of consumers, all at an
outstanding value. We believe our multi-brand strategy is essential to
achieving our mission and maintaining our leadership positions. Our ten
unique brands with worldwide sourcing of guests and diverse
itinerary options allow us to expand our offerings to our past guests,
while continuing to grow our business through the acquisition of new
guests in established and emerging markets. Our success also
depends on, among other things, our ability to exceed the expectations
of our guests by providing them with a wide variety of exceptional
vacation experiences. We strive to capture a greater share of
consumers’ spending on vacations by providing extraordinary cruise
products and services, all at an outstanding value.

9. PROPOSED MISSION STATEMENT
Our mission is to provide our valued customers with the ultimate
vacation experience through a variety of fabulous food and
entertainment (1,2, and 7). We provide state of the art cruise ships all
over the world while enhancing technology upgrades (3&4). We
follow all maritime regulations to ensure the safety of our
employees and passengers while at sea (5&9). We strive to provide
affordable vacations for all demographics, while maximizing our
shareholder’s profits (8). Our highest priority remains to perform in
an ethical manner while serving our guests (6).

10. ROYAL CARIBBEAN : MISSION/VISION
Vision Statement:
Our vision is to empower and enable our employees to deliver the best
vacation experience for our guests, thereby generating superior returns
for our shareholders and enhancing the well-being of our communities.
Mission Statement:
We always provide service with a friendly greeting and a smile. We
anticipate the needs of our customers. We make all efforts to exceed our
customers’ expectations. We take ownership of any problem that is brought
to our attention. We engage in conduct that enhances our corporate
reputation and employee morale. We are committed to act in the highest
ethical manner and respect the rights and dignity of others. We are loyal to
Royal Caribbean and Celebrity and strive for continuous improvement in
everything we do.

11. WEBSITE ANALYSIS

12. WEBSITE ANALYSIS

13. Social Media

14. Social Media

15. Internal Assessments

16. RATIO ANALYSIS
Carnival Corporation & PLC
Royal Caribbean
Current Ratio
0.2
0.2
Quick Ratio
0.2
0.2
Long Term Debt to Equity
0.3
0.8
Inventory Turnover
39.4
52.7
Total Assets Turnover
0.4
0.4
Accounts Receivable Turnover
21.1
27.4
Average Collection Period
17.3
13.3
Gross Profit Margin
0.9
0.9
Net Profit Margin
0.1
0
0
0
0.1
0
Return on Total Assets (ROA)
Return on Equity (ROE)

17. CURRENT ORGANIZATIONAL CHART
Chairman of the Board/ CEO
Vice Chairman of the Board/COO
CFO
Director
Director
Director
Director Director
Director Director
Director
CAO
Director Director
Director Director

18. RECOMMENDED ORGANIZATIONAL CHART
Board of Directors
CEO
CIO
HRM
President
of the
North
American
Market
President
of
Carnival
President
of
Princess
CFO
COO
President
of the
Australian
Market
President
of
Holland
President
of
Seabourn
President
of P&O
Australia
CAO
CMO
CSO
President
of the
Spain and
Brazil
Market
President
of the
European
Market
President
of Costa
President
of P&O
President
of Cunard
President
of AIDA
President
of Ibero

19. MARKET POSITIONING MAP
High Price
Royal Caribbean
Good Customer
Service
Bad Customer
Service
Carnival Corporation
& PLC
Low Price

20. COMPANY WORTH ANALYSIS
Carnival Corporation and PLC
Stockholders' Equity
Net Income x 5
(Share Price/EPS) x Net Income
Number of Shares Outstanding x Share Price
Method Average
$19,414
$6,490
$24,117
$28,942
$19,741
Royal Caribbean
Stockholders' Equity
Net Income x 5
(Share Price/EPS) x Net Income
Number of Shares Outstanding x Share Price
Method Average
$7,876
$92
$1,999
$8,157
$4,531

21. INTERNAL STRENGTHS
1.
Carnival Corporation and PLC is the largest cruise company in the world, having 48.4% of worldwide
market share in passengers.
2.
Passenger Capacity has increased over the last 4 years at an average rate of 3.59%.
3.
Fuel consumption has been reduced 21% since 2007, with a projection to reduce fuel consumption by
another 5% per unit.
4.
The Holland America line has the highest rate of repeat customers in the cruise industry.
5.
Seabourn Yachts have a service ratio of one staff member to one guest.
6.
P&O Cruises is the leading Australian cruise line, with 300,000 passengers annually. P&O Cruises
(Australia) carried almost half of all Australia and New Zealand cruise passengers in 2012.
7.
In 2012, our North America brand represented 61% of our total passenger capacity.
8.
Carnival Corp & PLC owns 40% interest in Grand Bahamas Shipyard, LTG, which is the largest cruise
ship dry- dock repair facility in the world.
9.
Carnival Cruise Line operates from 19 homeports in North America, which is more than our competitors.
Carnival Cruise Lines and PLC serves 8.5 million guests a year and has 10 distinct cruise lines under
10. ownership.

22. INTERNAL WEAKNESSES
1.
The net income was $1,298 in FY2012, a decrease of 6% as compared to 2011
2.
Revenues declined $410 million in 2012
3.
Protecting the health, safety, and security of our guests, employees and all others working on behalf of the
company since Costa Concordia tragedy.
4.
Carnival Corporation &PLC accounts for 30% of disapperances of guests at sea since 2000.
5.
Communicating with passengers and employees, if in crisis mode while sailing. (Costa Concordia tragedy)
6.
During 2012, $28 million was spent for ship incident- related expenses that were not covered by insurance.
7.
Sales of cruises mainly booked through travel agents cost 10% of sales fees and additional commissions.
8.
Cash can only be used in the gaming area of the boat
Full brand recovery from Costa Concorida tragedy will take 2-3 years, extra marketing would come in three
areas: funds directed at travel agents, including cooperative advertising; social media; and possibly more
TV ads.
9.
Loyalty program was recently expanded to six tiers from two, downgrading some members to lower
10. membership level and taking away perks.

23. IFE MATRIX
Internal Factor Evaluation Matrix (IFE)
Strengths
1.
Carnival Corporation and PLC is the largest cruise company in the world,
having 48.4% of worldwide market share in passengers.
2. Passenger Capacity has increased over the last 4 years at an average rate
of 3.59%.
3. Fuel consumption has been reduced 21% since 2007, with a projection to
reduce fuel consumption by another 5% per unit.
4. The Holland America line has the highest rate of repeat customers in the
cruise industry.
5. Seabourn Yachts have a service ratio of one staff member to one guest.
Weight Rating
Weighted
Score
0.08
4
0.32
0.05
3
0.15
0.06
3
0.18
0.05
3
0.15
0.04
3
0.12
0.04
4
0.16
0.06
4
0.24
0.07
3
0.21
0.05
4
0.20
0.06
4
0.24
6.
P&O Cruises is the leading Australian cruise line, with 300,000 passengers
annually. P&O Cruises (Australia) carried almost half of all Australia and New
Zealand cruise passengers in 2012.
7. In 2012, our North America brand represented 61% of our total passenger
capacity.
8.
Carnival Corp & PLC owns 40% interest in Grand Bahamas Shipyard, LTG,
which is the largest cruise ship dry- dock repair facility in the world.
9. Carnival Cruise Line operates from 19 homeports in North America, which is
more than our competitors.
10. Carnival Cruise Lines and PLC serves 8.5 million guests a year and has 10
distinct cruise lines under ownership.

24. IFE MATRIX CONTINUED
Weaknesses
1. The net income was $1,298 in FY2012, a decrease of 6% as compared to
2011
2. Revenues declined $410 million in 2012
3. Protecting the health, safety, and security of our guests, employees and all
Weigh
t
Rating
Weighted
Score
0.05
1
0.05
0.04
1
0.04
0.07
1
0.07
0.05
2
0.10
0.05
2
0.10
0.06
1
0.06
0.02
2
0.04
0.01
2
0.02
extra marketing would come in three areas: funds directed at travel agents, 0.06
including cooperative advertising; social media; and possibly more TV ads.
1
0.06
2
0.06
others working on behalf of the company since Costa Concordia tragedy.
4. Carnival Corporation &PLC accounts for 30% of disapperances of guests
at sea since 2000.
5. Communicating with passengers and employees, if in crisis mode while
sailing. (Costa Concordia tragedy)
6. During 2012, $28 million was spent for ship incident- related expenses that
were not covered by insurance.
7. Sales of cruises mainly booked through travel agents cost 10% of sales
fees and additional commissions.
8. Cash can only be used in the gaming area of the boat
9. Full brand recovery from Costa Concorida tragedy will take 2-3 years,
10. Loyalty program was recently expanded to six tiers from two, downgrading
some members to lower membership level and taking away perks.
TOTALS
0.03
1.00
2.57

25. External Assessments

26. COMPETITIVE PROFILE MATRIX
Carnival
Critical Success Factors
A dvertising
Market Penetration
Customer Service
Store Locations
R& D
Employee Dedication
Financial Profit
Customer Loyalty
Market Share
Product Quality
Top Management
Price Competitiveness
Total
Weight
0.11
0.07
0.09
0.09
0.07
0.06
0.09
0.08
0.10
0.08
0.06
0.10
1
Rating
4
3
3
4
3
2
4
2
4
2
3
4
Score
0.44
0.21
0.27
0.36
0.21
0.12
0.36
0.16
0.40
0.16
0.18
0.10
2 .9 7
Royal Caribbean Disney Cruises
Rating
3
2
2
3
2
1
2
3
3
3
2
3
Score
0.33
0.14
0.18
0.27
0.14
0.06
0.18
0.24
0.30
0.24
0.12
0.30
2 .5 0
Rating
2
4
4
1
4
4
3
4
1
4
4
1
Score
0.22
0.28
0.36
0.09
0.28
0.24
0.27
0.32
0.10
0.32
0.24
0.10
2 .8 2

27. EXTERNAL OPPORTUNITIES
1.
Long term expansion in Asian Vacation Markets due to increased prosperity and size of Asian countries
(2012: 8% and 2013: 10%)
2.
Worldwide, the cruise industry has an annual passenger compound annual growth rate of 7% from 1990 –
2017.
3.
Unveiling of nine cruise ships through March 2016. (Note, this is a Strength, not Opportunity)
4.
The UK Provides the largest number of cruise passengers sourced in Europe; 1.8 million are estimated to
have cruised in 2012.
5.
Europeans and Australians have significantly more vacation days a year than North Americans (4 weeks
paid vacation)
6.
The age group of 45 years and older is expected to grow by 13% in US and Canada and 11% in the major
Western European countries by 2022.
7.
The global travel and tourism industry is expected to grow approximately 2.8% during 2012
8.
Almost 60% of the cruise passengers in the world are sourced from the North American region, where
Carnival Corporation has 19 US ports.
9.
Demand for technology growing on cruise ships; In the past five years, Internet logins on the MTN network
almost doubled from approximately 15 million to 27 million per year
Cruising is about five percent of the overall vacation market and is the fastest growing segment of the travel
10. industry

28. EXTERNAL THREATS
1.
A 6.3% increase in fuel prices, since February 2013. (Fuel accounts for 20% of cruise ticket price)
2.
The Costa Concordia and European sovereign debt crisis impacted all cruise line revenues by about -5.1%
3.
Increasing cost of ship building; In 1990 it cost $250 million to build a ship, where as in 2012 it cost $740
million.
4.
Safety and security of travel- terrorism, drug attacks, vessel seizures
5.
Royal Caribbean passengers carried increased 0.3% last year
6.
Currency risk- the US dollar decreased 0.3% in Feb. 2013
7.
8.
The United States unemployment rate is currently still high at 7.40%
Trend toward healthy eating and lifestyles; 1 in 4 Americans are currently on a diet, which is 25% of US
Americans.
9.
Global warming is causing the oceans to absorb a great deal of extra heat (up to 90%).
10. Increase of corporate tax

29. EFE MATRIX
External Factor Evaluation Matrix (EFE)
Opportunities
Weight Rating
1. Long term expansion in Asian Vacation Markets due to increased prosperity and 0.05
3
size of Asian countries (2012: 8% and 2013: 10%)
2. Worldwide, the cruise industry has an annual passenger compound annual
0.07
4
growth rate of 7% from 1990 – 2017.
3. Unveiling of nine cruise ships through March 2016.
0.05
4
4. The UK Provides the largest number of cruise passengers sourced in Europe;
0.04
3
1.8 million are estimated to have cruised in 2012.
5. Europeans and Australians have significantly more vacation days a year than
0.05
3
North Americans (4 weeks paid vacation)
6. The age group of 45 years and older is expected to grow by 13% in US and
0.05
3
Canada and 11% in the major Western European countries by 2022.
Weighted
Score
0.15
0.28
0.20
0.12
0.15
0.15
7. The global travel and tourism industry is expected to grow approximately 2.8%
during 2012
8. Almost 60% of the cruise passengers in the world are sourced from the North
American region, where Carnival Corporation has 19 US ports.
0.07
3
0.21
0.06
4
0.24
9. Demand for technology growing on cruise ships; In the past five years, Internet
logins on the MTN network almost doubled from approximately 15 million to 27
million per year
10. Cruising is about five percent of the overall vacation market and is the fastest
growing segment of the travel industry
0.04
2
0.08
0.06
3
0.18

30. EFE MATRIX CONTINTUED
Threats
1. A 6.3% increase in fuel prices, since February 2013. (Fuel accounts for 20% of
cruise ticket price)
2. The Costa Concordia and European sovereign debt crisis impacted all cruise line
revenues by about -5.1%
3. Increasing cost of ship building; In 1990 it cost $250 million to build a ship,
where as in 2012 it cost $740 million.
4. Safety and security of travel- terrorism, drug attacks, vessel seizures
5. Royal Caribbean passengers carried increased 0.3% last year
6. Currency risk- the US dollar decreased 0.3% in Feb. 2013
7.
The United States unemployment rate is currently still high at 7.40%
8. Trend toward healthy eating and lifestyles; 1 in 4 Americans are currently on a
diet, which is 25% of US Americans.
9. Global warming is causing the oceans to absorb a great deal of extra heat (up to
90%).
10. Increase of corporate tax
TOTALS
Weighted
Weight Rating
Score
0.06
2
0.12
0.05
3
0.15
0.05
3
0.15
0.08
1
0.08
0.05
2
0.10
0.06
3
0.18
0.03
4
0.12
0.04
3
0.12
0.02
2
0.04
0.02
1
0.02
1.00
2.84

31. Strategy Formulation

32. SWOT MATRIX
SO Strategies
1 Expand P&O Cruise Line (Australia) by 2 ships by 2016 (S6,O5)
2 Expand Costa Cruise Line (Asia) by 2 ships by 2016 (S1, O1)
3 Increase technology advancements on 50% of our fleets by 2014 (S2, O9)
4 Increase number of cruises available by 25% (S10, O10)
ST Strategies
1 Continue cost saving fuel energy practices by installing energy reduction techonologies on our ships. (S3,T1)
2 Offer departing specials from 8 homeports in North America. (S9,T5)
3 Custom prepared healthy meals for guests on our Seabourn Yachts (S5,T8)
Increase safety and security awarness on all 10 cruise lines, by offering special advertising reassurance to travel on CCL
4 (S10,T4)
WO Strategies
1 Launch four new vessels by 2014 (W2, O3)
2 Create marketing campagin for "baby boomer" generation to revamp our brand on safety/security . (W9,O6)
3 Upgrade Carnival's Website Services for online booking/questions (W7,O7)
4 Promote loyalty membership program on all luxury fleets to secure brand loyalty. (W10, O10)
WT Strategies
Add 1 employee per 100 guests to inform them of any safety or security issues while on board any Carnival Cruse Line Ships
1 (W5,T4)
2 Raise ticket price by 10% (W1,T10)
3 Create a new employee division to oversee and maintain all maintance on cruise ships (W6,T7,T2)
4 Renovate five ships with solar powered technology to reduce cost (W1,W2,T1)

33. SPACE MATRIX DATA
Internal Analysis:
Financial Position (FP)
Return on Investment (ROI)
Leverage
Liquidity
Working Capital
Cash Flow
Financial Position (FP) Average
Internal Analysis:
Competitive Position (CP)
Market Share
Product Quality
Customer Loyalty
Technological know-how
Control over Suppliers and Distributors
Competitive Position (CP) Average
6
5
3
3
5
4.4
-1
-3
-2
-4
-1
External Analysis:
Stability Position (SP)
Rate of Inflation
Technological Changes
Price Elasticity of Demand
Competitive Pressure
Barriers to Entry into Market
Stability Position (SP) Average
External Analysis:
Industry Position (IP)
Growth Potential
Financial Stability
Ease of Entry into Market
Resource Utilization
Profit Potential
-2.2 Industry Position (IP) Average
-2
-3
-5
-3
-4
-3.4
5
5
6
5
7
5.6

34. SPACE MATRIX
FP
Conservative
Aggressive
7
6
5
4
3
2
1
CP
-7
-6
-5
-4
-3
-2
-1
1
2
3
4
-1
-2
-3
-4
-5
-6
-7
Defensive
SP
Competitive
5
6
7
IP

35. BCG MATRIX
High
1.0
Medium
.50
High +20
Low
0.0
Star
Question Mark
NA
EAA
Industry
Sales
Growth
Medium 0
Rate
(Percentage)
Low
CS
Cash Cow
Dog
-20
North America
Cruise Brands
EAA Cruise
Brands
Cruise
Support
Profit
$
9,364
$
5,827
$
86
Remaining Profits
$
5,913
$
9,450
$
15,191

36. IE MATRIX (Note, the EFE and IFE
scores possibly do not match the position of the
The Total IFE Weighted Scores
divisions)
Strong
Average
Weak
4.0 to 3.0
4.0
2.99 to 2.0
II
I
High
1.99 to 1.0
III
EAA
NA
3.0
IV
The
EFE
Total
Medium
Weighted
Scores
2.0
Low
1.0
V
VI
VIII
IX
CS
VII

37. GRAND STRATEGY MATRIX
Rapid Market Growth
Quadrant II
Quadrant I
Weak
Competitive
Position
Strong
Competitive
Position
Carnival Corporation
Quadrant III
Quadrant IV
Slow Market Growth

38. QSPM
Convert safety and
security procedures Expand Costa
on all 10 Carnival Cruise Lines(Asia)
and PLC cruise by 2 ships in 2016.
lines.
Opportunities
Weight
1. Long term expansion in Asian Vacation Markets due to increased
0.05
prosperity and size of Asian countries (2012: 8% and 2013: 10%)
2. Worldwide, the cruise industry has an annual passenger compound
0.07
annual growth rate of 7% from 1990 – 2017.
3. Unveiling of nine cruise ships through March 2016.
0.05
4. The UK Provides the largest number of cruise passengers sourced in
0.04
Europe; 1.8 million are estimated to have cruised in 2012.
5. Europeans and Australians have significantly more vacation days a year
0.05
than North Americans (4 weeks paid vacation)
6. The age group of 45 years and older is expected to grow by 13% in US
0.05
and Canada and 11% in the major Western European countries by 2022.
7. The global travel and tourism industry is expected to grow approximately
0.07
2.8% during 2012
8. Almost 60% of the cruise passengers in the world are sourced from the
0.06
North American region, where Carnival Corporation has 19 US ports.
9. Demand for technology growing on cruise ships; In the past five years,
Internet logins on the MTN network almost doubled from approximately 15 0.04
million to 27 million per year
10. Cruising is about five percent of the overall vacation market and is the
0.06
fastest growing segment of the travel industry
AS
TAS
AS
TAS
4
0.20
2
0.10
2
0.14
3
0.21
0
0.00
0
0.00
2
0.08
1
0.04
0
0.00
0
0.00
0
0.00
0
0.00
3
0.21
2
0.14
0
0.00
0
0.00
4
0.16
2
0.08
3
0.18
4
0.24

39. QSPM CONTINUED
Convert safety and
Expand Costa
security procedures
Cruise Lines(Asia)
on all 10 Carnival and
by 2 ships in 2016.
PLC cruise lines.
Threats
Weight
1. A 6.3% increase in fuel prices, since February 2013. (Fuel accounts for
0.06
20% of cruise ticket price)
2. The Costa Concordia and European sovereign debt crisis impacted all
0.05
cruise line revenues by about -5.1%
3. Increasing cost of ship building; In 1990 it cost $250 million to build a ship,
0.05
where as in 2012 it cost $740 million.
4. Safety and security of travel- terrorism, drug attacks, vessel seizures
0.08
5. Royal Carribean passengers carried increased 0.3% last year
6. Currency risk- the US dollar decreased 0.3% in Feb. 2013
7. The United States unemployment rate is currently still high at 7.40%
8. Trend toward healthy eating and lifestyles; 1 in 4 Americans are currently
on a diet, which is 25% of US Americans.
9. Global warming is causing the oceans to absorb a great deal of
extra heat (up to 90%).
10. Increase of corporate tax
AS
TAS
AS
TAS
0
0.00
0
0.00
4
0.20
1
0.05
1
0.05
2
0.10
3
0.24
2
0.16
0.05
0
0.00
0
0.00
0.06
0
0.00
0
0.00
0.03
0
0.00
0
0.00
0.04
0
0.00
0
0.00
0.02
0
0.00
0
0.00
0.02
0
0.00
0
0.00

40. QSPM CONTINUED
Convert safety and
security procedures
Expand Costa
on all 10 Carnival Cruise Lines(Asia)
and PLC cruise
by 2 ships in 2016.
lines.
Strengths
Weight
1. Carnival Corporation and PLC is the largest cruise company in the world,
0.08
having 48.4% of worldwide market share in passengers.
2. Passenger Capacity has increased over the last 4 years at an average rate of
0.05
3.59%.
3. Fuel consumption has been reduced 21% since 2007, with a projection to
0.06
reduce fuel consumption by another 5% per unit.
4. The Holland America line has the highest rate of repeat customers in the
0.05
cruise industry.
5. Seabourn Yachts have a service ratio of one staff member to one guest.
0.04
6. P&O Cruises is the leading Australian cruise line, with 300,000 passengers
annually. P&O Cruises (Australia) carried almost half of all Australia and New 0.04
Zealand cruise passengers in 2012.
7. In 2012, our North America brand represented 61% of our total passenger
0.06
capacity.
8. Carnival Corp & PLC owns 40% interest in Grand Bahamas Shipyard, LTG,
0.07
which is the largest cruise ship dry- dock repair facility in the world.
9. Carnival Cruise Line operates from 19 homeports in North America, which is
more than our competitors.
10. Carnival Cruise Lines and PLC serves 8.5 million guests a year and has 10
distinct cruise lines under ownership.
AS
TAS
AS
TAS
4
0.32
3
0.24
3
0.15
4
0.20
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
3
0.18
2
0.12
0
0.00
0
0.00
0.05
0
0.00
0
0.00
0.06
3
0.18
2
0.12

41. QSPM CONTINUED
Convert safety and
Expand Costa
security procedures
Cruise Lines(Asia)
on all 10 Carnival and
by 2 ships in 2016.
PLC cruise lines.
AS
TAS
0.15
1
0.05
4
0.16
3
0.12
0
0.00
0
0.00
0.05
4
0.20
2
0.10
0.05
3
0.15
2
0.10
0.06
4
0.24
1
0.06
0.02
0
0.00
0
0.00
0.01
0
0.00
0
0.00
0.06
0
0.00
0
0.00
0.03
0
0.00
0
0.00
Weaknesses
Weight
1. The net income was $1,298 in FY2012, a decrease of 6% as compared to
0.05
2011
2. Revenues declined $410 million in 2012
0.04
3. Protecting the health, safety, and security of our guests, employees and all
0.07
others working on behalf of the company since Costa Concordia tragedy.
4. Carnival Corporation &PLC accounts for 30% of disapperances of guests
at sea since 2000.
5. Communicating with passengers and employees, if in crisis mode while
sailing. (Costa Concordia tragedy)
6. During 2012, $28 million was spent for ship incident- related expenses that
were not covered by insurance.
7. Sales of cruises mainly booked through travel agents cost 10% of sales
fees and additional commissions.
8. Cash can only be used in the gaming area of the boat
9. Full brand recovery from Costa Concorida tragedy will take 2-3 years,
extra marketing would come in three areas: funds directed at travel
agents, including cooperative advertising; social media; and possibly more
TV ads.
10. Loyalty program was recently expanded to six tiers from two, downgrading
some members to lower membership level and taking away perks.
TOTALS
AS
TAS
3
3.19
2.23

42. Strategy Implementation

43. RECOMMENDATIONS
Recommendations
Amount
1
Appoint a "Chief Safety Officer" in each Carnival & PLC Cruise Brand
$
3,000,000
2
Unveil six ships (North American, EAA, UK, Costa)
$
2,843,000,000
3
Reconcile Concorida legal litigation
$
585,000,000
4
World-wide advertising campaign on safety
$
100,000,000
5
Employee procedures and training programs
$
1,200,000
6
Donate to Coral Reef Alliance
$
1,000,000
7
Install security devices throughout on all vessels
$
10,100,000
8
Offer additional support to guests and travel agents via telephone and email
$
250,000
9
Install scrubber technology
$
180,000,000
10
Build a smartphone application for passengers- "Carnival In-touch"
$
125,000
Total
$
3,723,675,000
See Appendix I for explanation

44. EPS/EPIT ANALYSIS
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
Common Stock Financing
Recession
$3,000
$3,400
$3,800
0
0
0
3,000
3,400
3,800
9
10
11
2,991
3,390
3,789
911
911
911
3.28
3.72
4.16
Tax Rate: .003
Interest Rate: .03
Amount Needed : $3,724 (Billon)
Number of oustanding shares: 807
$3,000
112
2,888
9
2,880
807
3.57
Debt Financing
Recession
$3,400
112
3,288
10
3,278
807
4.06
$3,800
112
3,688
11
3,677
807
4.56

45. EPS/EPIT GRAPH
EPS-EBIT Graph
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
$3,000
$3,400
Common Stock Financing
$3,800
Debt Financing

46. INCOME STATEMENTS
Income Statement (in millions)
Total Revenue
Cost of Revenue
Gross Profit
Operating Expenses
Research and Development
Selling and General Administrative
Non-recurring
Others
Total Operating Expenses
2012
2013
2014
2015
15,382
10,320
5,062
15,350
10,285
5,066
16,203
10,856
5,347
16,987
11,381
5,606
1,720
173
1,527
1,642
33.3
1,917
1
1,527.4
1,587
33.3
2,113
1,527.8
1,673
33.3
2,309
1,528.2
1,735
Total Other Income/Expenses Net
Earnings Before Interest and Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Net Income
(4)
1,638
336
1,302
4
1,298
(6)
1,593
448
1,145
3.5
1,141
2
1,671
560
1,111
3.3
1,108
3
1,732
672
1,060
3.2
1,057
Dividends
Retained Earnings
1,168
130
1,168
(27)
1,168
(60)
1,168
(111)
See Appendix II for explanation

47. PROJECT BALANCE SHEETS
Balance Sheet (millions)
2012
2013
2014
2015
Assets
Current Assets
Cash and Cash Eqauivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Other Assets
Total Assets
860
830
715
420
2,825
33,148
3,174
1,342
732
41,221
890
920
849
536
3,195
34,159
3,174
1,489
835
42,852
945
975
920
597
3,437
35,170
3,174
1,620
875
44,276
Liabilities
Current Liabilties
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilites
Long Term Debt
Other Liabilties
Total Liabilities
See Appendix III
for explanation
465
730
390
236
1,821
32,137
3,174
1,314
715
39,161
1,977
1,734
3,629
7,340
7,168
724
15,232
2,200
1,786
3,702
7,688
8,409
738
16,835
2,215
1,840
3,776
7,830
9,650
753
18,233
2,243
1,895
3,851
7,989
10,891
768
19,648
Stockholders' Equity
Common Stock
Additional Paid In Capital
Retained Earnings
Treasury Stock
Other Stockholder Equity
Total Stockholder Equity
Total Stockholders' Equity and Liabilities
363
8,252
18,479
(2,958)
-207
23,929
39,161
363
8,252
18,452
(2,483)
-198
24,386
41,221
363
8,252
18,392
(2,213)
-175
24,619
42,852
363
8,252
18,281
(2,101)
-167
24,628
44,276

48. PROJECTED RATIOS
Current Ratio
Quick Ratio
Long Term Debt to Equity
Inventory Turnover
Total Assets Turnover
Accounts Receivable Turnover
Average Collection Period
Gross Profit Margin
Net Profit Margin
Return on Total Assets (ROA)
Return on Equity (ROE)
2012
0.25
0.19
0.30
39.44
0.39
21.07
17.32
0.89
0.08
0.03
0.05
2013
0.37
0.27
0.34
21.47
0.37
18.49
19.74
0.90
0.07
0.03
0.05
2014
0.41
0.30
0.39
19.08
0.38
17.61
20.72
0.90
0.07
0.03
0.05
2015
0.43
0.32
0.44
18.46
0.38
17.42
20.95
0.90
0.06
0.02
0.04

49. CONCLUSION
As Carnival Corporation and PLC continues to
improve the safety and security among our cruise
brands throughout the world, we hope our
consumers will regain the trust of the cruise industry
by cruising with us. The corporation needs to focus
on the internal and external factors in an effort to
further improve its operation and ultimately the
return to the shareholders of the company.

50. APPENDIX
I. Recommendation Notes
1- 10 cruise brands/ 10 new safety officers at $100K salary per year for 3 years
2- Due to increasing passengers carried in cruise industry market we believe that unveiling six news ships will help meet the demand of passengers
wanting to travel (North American, EAA, UK, Costa)
3- Legal fees/ reimbursing guests costs from Costa Concordia Tragedy
4- Create this marketing campaign similar to BP the marketing campaign after the oil spill; to reassure our consumers of the safety/security measures we
are taking on our cruise ships (Quote is from Chernoff/Newman Advertising Agency in Columbia, SC)
5- We are going to offer our employees an online training certificate program in safety and security measures for our ships; offered for one week; you
have to take an online test at the end of session to receive certificate
6- Due to the Costa tragedy we will donate $1Million to the Coral Reef Alliance to help our public images and social responsibility.
7- Install safety security devices throughout on all vessels -101 ships at 20 buttons per ship at $5,000 each -Cruise ships are designed and operated in
compliance with international and federal regulations specifically designed to maximize the safety of passengers and crew. 101 ships x20= 2020
8- Hiring consultants for customer service, send out brochures, postcards etc. to offer additional support to our guests.
9- Install exhaust gas cleaning technology on 32 ships, making it the first company to use this scrubber technology in restricted spaces on existing ships.
10- Smart Phone App to keep passengers in the loop while traveling with our company; such as what activities are going on and specific times; which our
rival firm implemented this a few years ago.
II. Notes for Projected Income Statement
Total Revenue Decrease:
Cost of Revenue:
Research and Development:
Selling and GA:
Non- Recurring:
Others:
Total Other income/ Expense:
Interest Expense:
Net Income:
Decrease is 2013 due to customer skeptic of cruising because of recent events within the cruise industry (i.e.- cruise
wrecks, fires, drowning's, etc.)
67% of revenue
Worldwide Advertising Campaign for 3 years @ $100M
Includes CSO, Legal Fees, Guest Support, Smart App
Donation to Coral Reef Alliance
Employee Training (1.2M)
Decrease in 2013 due to revenue decrease; increase 14, 15 due to increase revenue
Interest Expense from EPS at 112
Reason for decreasing net income, is due to the implementation of recommendations/ strategies for the safety/security
of our passengers and employees of Carnival PLC ; advertising campaign; Costa Concordia Debt; New ships
Hopefully through our positive feedback and reinforcement from our recommendations, we will see NI begin to
increase in 2016
III. Notes for Projected Balance Sheet
Property Plant Equipment:
Intangibles:
Accounts Payable:
Short Term Debt:
Other Current Liabilities:
Long Term Debt:
Other Liabilities:
Additional Paid in Capital:
Treasury Stock:
New Ships, Security Device, Scrubber ($5.625M per 32 ships)
Increase because of trademarks on six new ships ($84M - 6x$14M trademark cost)
Due to increase in ships and procedures
3% increase
2% increase
Increase debt 1,241 per year to cover recommendations 100% debt
2% increase unforeseen problems with new ships/programs
Using all debt, but could change depending on cash flow
Not buying back as much due to trying to implement recommendations