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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 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. MGMT530 – Labadee Decision Using a risk profile such as the one below, define the uncertainties and make the
recommendation for a decision for the Labadee Case. I do appreciate that you have limited information to complete this week’s case analysis, so
here’s tips on how to complete it: 1) Since the probability numbers were not provided, indicate whether the Chances are “low likelihood”,
“moderate likelihood” or “high likelihood”. If you also decide to use percentages, one would assume that: – 30% is low likelihood; – 50%
moderate likelihood; and – 80% or higher is high likelihood. Note that the percentages are not totaled. 2) Under “Consequences” state the likely
changes/or not to the business. 3) There should be 4 outcomes for each uncertainty. Remember also that for this particular case analysis, you
are concentrating on uncertainties, outcomes, and result of the outcome and not on alternativ

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