External audit on Carnival Corporation

When considering what type of environment abbreviation to do certain liaisons should be taken into consideration this is do to with the position that different industries will sop up different requirement. For example amusement park in a multinational company so it may be more concerned with political issues then local client perceptions or the customer demographics. Johnson & Scholes (1999), David (2001) and kill (2000) all cope with that organisations or managers should ad in force(p) and change match to an environment compend.Mullins (1999), Johnson & Scholes (1999) and Lynch (2000) all agree that a good first point for an external analysis would be the PEST analysis. PEST means political, economic, socio-cultural and technological (see supplement 1). The PEST analysis is only a very oecumenic analysis of the external environment. This is wherefore another audit should be used to set forth and guide analysis (Johnson & Scholes, 1999 104).If a company wants to plan for the future Johnson & Scholes (1999), Lynch (2000) and Mintzberg, Ahlstrand & Lampel (1998) all agree that the scenario planning is all most the long term. Johnson & Scholes (1999) and Lynch (2000) agree it is one bearing to help companies looking into the future. One thing that companies moldiness understand is that scenarios argon concerned with peering into the future, not predicting the future (Lynch, 2000 111)Scenario planning is ab come forth considering factors that could affect the company for example if there was a terrorist attack in the future on one of the Carnival cruise liners. What steps could be taken to prevent the attack or to make sure that the customers be safe?In all industries customers are the ones that buy the product or use the inspection and repair this may be other companies or the general public. This is why analysing the customers and commercialise segmentation is very alpha. It is classic for organisations to understand that customers be pos sessed of different characteristics and needs (Johnson & Scholes, 1999 129).Lynch (2000) states that there are three important issues that should be conceded when analysing the organisations customers. The first is to identify the organisation customers and nourishment market. The second is its segmentations and its strategic implications. The pass away(a) one is the role of the customer service of process and quality.Porters Five Forces model (see attachment 2) is a more in-depth analysis of an organisation it focuses more on dodge so companies house develop opportunities and protect them self from threats. The five forces are1. The bargaining power of suppliers2. The bargaining power of buyers3. The threat of potential youthful entry4. The threat of substitutes5. The extent of competitive rivalry.(Lynch, 2000125)One of the best enchant potbellyal to describe Porters Five Forces Model is a high force can be regarded as a threat becauseit is likely to reduce profit. A low force, in contrast, canbe viewed as an opportunity because it may allow thecompany to earn greater profits.(Wheelen & Hunger, 1998 61)It is argued that customers are the most important part of the businessCustomers demand satisfaction and expect more.It is no lengthy sufficient to merely satisfy customersThey need to be delighted, both internally andExternally.(Mullins, 1999 869)This is why customer analysis is so important to Carnival with out any customers the company would not generate any revenue. One thing that they do know it that the disposable income of young couples and families has increased over the last fifty years. What they are trying to do it tell the target market that cruising is an alternative vacation available for everyone.Carnival believes that 93 percent of northwestern Americans have not taken a cruise at some(prenominal) stage. This gives then a target of almost 100 percent of sexual union Americans that they can attract, to go on one of their cruises. Th is is due to the fact that they can try and attract the people that have already been on a cruise.Carnival is the first modern Cruise Company and tries to promote its ships as fun ships. With a price that can compete with record found vacation resorts. This is why they are the leaders and innovators of the cruising industry. They know that the cruising industry have three main market segments. The first is contemporary then aid and finally luxury this is why they have entered into all three market segments.One thing that is very important to Carnival is the customer service that they provide. As well as a high level of service they want to offer a product that will attract the customers. This is why they offer a package that will allow passengers to stop at exotic ports of call as well as a necropsy restaurant service. What they are trying communicate is that the ship is not just a means of transport but the vacation it self and the ports of calls are bonuses for the customers. This is why they offer such entertainment as live music, dancing, night-clubs, movies as well as a casino this is the entertainment in the evenings.Carnival wants to offer a high level of service this is why their holidays pass away when you bags are tagged for the ship. After that moment you would not need to collapse your bags up because it would be delivered to your cabin. When on board waiter on the ship will offer you drink while they help you to find your way around. With a restaurant service that could rival any top land based restaurant in terms of variety in food and wine. With this sort of service they can keep on attracting the customers that in pass create the profits that the organisation wants.