• Questions 1 – 3 must be answered within the timeline of the case.
• Questions 4 – 5 must be answered with the latest available information.
Questions
1. Briefly describe Carnival’s corporate-level strategy, and its business-level strategy.
2. Using Porter’s Five Forces Framework, evaluate the industry in which Carnival competed
as of 2010. Attach a diagram of a strategic group map (SGM) of the industry that shows how the companies are clustered at that time. Make sure that the strategic groups are labeled.
3. Draw a Value Chain Analysis diagram for Carnival in which you identify the key primary and support activities that give them competitive advantage (an attached VCA diagram suffices for this part). For the narrative part of this question, discuss whether or not Carnival’s competitive advantage is sustainable as of 2010.
4. Using the Carnival Corporation’s filings available in the Internet, extend the figures in Exhibit 5 and Exhibit 6 by adding columns with figures from the years 2010 through 2019. (Attach spreadsheets – titled Exhibit 5A, and Exhibit 6A – that contain the extended versions of Exhibits 5 and 6)
5. From the spreadsheet constructed in Question 4, conduct a financial ratio analysis for Carnival Corporation over the years through 2019. In your essay comment on the key fluctuations seen in your ratio calculations and give an evaluation of their performance over this period. (Attach a spreadsheet – titled Financial Ratio Analysis – to show your calculated ratios).
6. Now fast-forward to April 30, 2020. What is the most significant macro-economic event to have occurred in the global environment? What impact will this event have on this industry? What strategies do you think Carnival should adopt in to ensure its long-term survival?
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