Week 5 Case Analysis: Labadee Decision

Week 5 Case Analysis: Labadee Decision

In
January 2010, the island nation of Haiti was devastated by an earthquake.

Royal
Caribbean International, a major cruise line, owns a private beach in Haiti,
which is typically a port of call on several of their Caribbean cruise
itineraries. The private port, known as Labadee, is about 80 miles away from
Port au Prince. The beach was unaffected by the quake.

In
the days following the earthquake, the company wrestled with several issues as
they determined whether to continue to stop in Labadee or temporarily abandon
the port of call.

Their objectives would be to 1) ensure guest satisfaction; 2) protect the
brand; and 3) maximize profitability.

Some
of the consequences they considered as they tried to determine whether the
cruise line should continue to make a stop in Haiti in the midst of this crisis
are as follows.

• Will cruise passengers be
  interested in relaxing on a beach when hundreds of thousands are homeless
  and hungry just 80 miles away? Could this impact new reservations or cause
  people to cancel? Based on research and consulting with others, you
  believe there will be minimal impact.

• Because the community near the
  beach depends financially on the cruise line for income, would suspending
  the stop in Haiti make the country worse off? Based on your analysis,
  there is a high likelihood that the area would be negatively impacted if
  the line pulled out of Labadee.

• How would the media respond? Would
  they get bad press for continuing to stop in Haiti and be perceived as
  profiting in the midst of this tragedy, or will the public perception be
  worse if they suspend sailing to Haiti during this crisis? You determine
  that there is a higher chance that the company would get bad press if the
  company suspended services than if they continued to include it on
  itineraries.

Using
a risk profile such as the one below, define the uncertainties and make the
recommendation for a decision for the Labadee Case.

For
additional resources pertaining to this assignment, please review the How to
Draw a Simple Decision Tree Video found under the Week 5 Lecture tab, the
Developing a Decision Tree Video found under the Week 4 Lecture tab, and the
Labadee Decision Video below.

Submit
your definition of the problem in a MS Word document to the Week 5 Case
Analysis Dropbox. Input your responses in the template found here. This document is
also available in the Doc Sharing tab.

MGMT530 –Labadee
Decision

Week 5
Case Analysis Template

The
objectives for the assignment were to define the uncertainties using a risk
profile and make the recommendation for a decision for the Labadee Case.

Students will
have a wide variety of responses based on the limited information provided in
the case.

Risk Profile

Uncertainty 1: List
Outcome:	Chance	Consequences:
Uncertainty 2: List
Outcome:	Chance	Consequences:
Uncertainty 3: List
Outcome:	Chance	Consequences:

Decision Recommendation

Decision Recommendation
Alternative Recommended	Summary Rationale