Strategic Options Available To Coast4Life For The Upcoming Fiscal Year

This subject outlines the st gaitgic options available to semivowel4Life for the upcoming fiscal year. Through my research, I contract identified the current situational analysis that is necessary to be considered for the options that allow for be provided in this report.Current situational analysisVision Coast4Life sack upvas will be the first-year choice for vacationers who argon seeking a safe, enjoyable and quaint cruise experience in the northeastern Pacific Ocean. Mission Coast4Life meets the needs of vacationers by dischargeering safe, enjoyable and unique cruises along BC coast at affordable prices and at a high whole tone of service. Coast4Life strives to minimize the sentry go effects of cruising on ecology and maximize the guard of customers, staff and naval life by ensuring ships are well maintained and environmental and precaution regulations are exceeded.PreferencesThe Board of Directors( strain) preference is to be profitable and maintain a positive net income in light of upcoming economic downturn. The customary Manager of the Fraser dry dock believes it defines the reputation 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 FactorsCoast4life cruises wants to provide high quality services to the passengers. Refer to the passenger/crew ratio in relation to industry averages(see Appendix 3-1).Current Financial Analysis(See Appendix 1- Financial Ratios) Ongoing enlarge to Coast4lifes abilities to meet its short-term obligations. In light of the slight cast up of acquiring additional assets, our receipts streams still continues to outmatch this on a steady basis however, the incremental revenue is declining with each year. Our service offerings prove generating incremental income each year nevertheless, Coast Native and Natural sheen gross margins are the same, and each offers different services. gilds ability to coer interest is growing ove r the years, and our debts are declining. Coast4Lifes ability to convert coronations into profit has profitd. Strategic Options To cut costs.Option1 Divesture of the Fraser dry dock Pro(s) Gain on sale of $7,274,000 in prefer of BOD preferences and in line of providing the necessary funds to maintain incremental pecuniary markers for upcoming economic downturn(see Appendix 3- 2).Con(s)Against general managers preference, as can affect the reputation of the telephoner the quality of safety regulations the company adheres to. Option 2 Registering Coast4Lifes ships in LiberiaPro(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 boot statement Hiring unskilled labour can potentially accession management expenses(Additional Training). Minor options For materiality purposes with respect to revenue sources the fo llowing are minor options to generate additional revenue Option 1 replacement customer target marketsPro(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 group can afford a more uniqueexperience given industry annual family income of $78,000. For ages 40 -60 Industry is higher(prenominal) by 8% so we have space to grow and target this age group (see Appendix 3-4).Con(s)By changing target thither is no guarantee that revenues will be maintained throughout the downturn in the following fiscal year even with growth in tourism industry in Canada.Option 2 Implement a web-based battle systemPro(s) Can potentially save the company up to $1,341,250 ($2,146,00010% reduction)/16% after tax rate of return in travel agent commissions over the life of the company and assist in further increasing the companys activity ratio Can be paid off in less th an 4 months. The payback formula proves that no funds is needed to be spent, as through the incremental savings this investment will be recouped(see Appendix 3-5).ConsDecrease word of mouth advertizement via travel agents. Increase global competition due to the online presence.RecommendationGiven the uncertain prox 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 meshing 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.