The Carnival Cruise Lines Today Tourism Essay Essay Example

The Carnival Cruise Lines Today Tourism Essay Essay Example The Carnival Cruise Lines Today Tourism Essay Paper The Carnival Cruise Lines Today Tourism Essay Paper Carnival Cruise Lines is a planetary sail company and one of the largest holiday companies in the world.A CCL generates all of its grosss from the sail industry. The company s wide-ranging merchandise offerings provide invitees with exceeding holiday experiences at an outstanding value. The success in supplying quality sail holidaies has made CCL the most profitable company in the leisure travel industry. Carnival Cruise Line s stock is dually listed on both the New York Stock Exchange and on the London Stock Exchange under symbol CCL. It is the lone company in the universe to be included in both the S A ; P 500 index in the United States and the FTSE 100 index in the United Kingdom ( Carnival Corporation A ; PLC, 2012 ) . Carnival Cruise Lines operates a fleet of 100 ships, with another seven ships scheduled for bringing between now and March 2016. With about 200,000 invitees and 77,000 shipboard employees, there are more than 277,000 people sailing aboard CCL s fleet at any given clip ( Carnival Corporation A ; PLC, 2012 ) . For the intent of our study it is important to understand how the Carnival Cruise Lines Corporation works today. We need to understand how the assorted facets of the concern are set up and how they work together. Merely after a true apprehension of the current state of affairs, we can come with proposals for betterment and bespeak the impact on current ways of working. In literature one can ticket many theoretical accounts that can be used to look at an organisation with an internal position. In appendix X we provide an overview of some direction theoretical accounts we have found in literature, with an account why, when and how it should be used. Since our study needs to cover the execution of a new IT direction scheme, we have decided to utilize McKinsey s 7S theoretical account as shown in figure Ten. This theoretical account, developed in the 1980 s, involves 7 factors, which can be categorized as difficult and soft elements. Difficult elements can be identified and influenced more easy. They would be driven by the organisation charts and describing lines within the concern and they may include the systems you use to acquire work done. Soft elements are, by their very nature, more hard to pull off and may be affected by the civilization of the organisation. But you have to use yourself to these every bit much as the difficult elements, as they provide the support construction for the successful execution of any alteration, and they are all interdependent on each other. Figure 7S model ( McKinsey ) The difficult elements in the 7S-model are Strategy, Structure and Systems ; the soft elements are Style, Shared Values, Skills and Staff. In order to understand the 7S-model better a brief account is given below. Difficult elements of the 7S-model: StrategyA by utilizing mission and vision the organisation s aims become clear. StructureA how is the organisation structured and which hierarchal beds are at that place SystemsA all formal and informal methods of operation, processs and communicating flows Soft elements of the 7S-model: StyleA this is about leading and direction manners Shared valuesA the criterions and values and other signifiers of moralss within an organisation in which vision, corporate civilization and individuality are the cardinal elements SkillsA these concern both the accomplishments of the organisation and those of the employees StaffA this is about the employees, their competencies and occupation descriptions In add-on to the above elements we added two paragraphs specifically on Information Management and Risk Management to give a complete overview of the state of affairs of Carnival Cruise Lines today. 2.1 Strategy of CCL The mission of Carnival Cruise Lines is to take the universe on holiday and present exceeding experiences through many of the universe s best-known sail trade names that cater to a assortment of different geographic parts and life styles, all at an outstanding value unrivaled on land or at sea ( Carnival Corporation A ; PLC, 2012 ) . The vision statement of CCL is the undermentioned: to systematically present merriment, memorable holidaies at a repetition value ( Carnival Corporation A ; PLC, 2012 ) . Derived from this mission and vision, Carnival Cruise Lines has set up the following strategic aims: to be the taking sail operator in allA sections entered and to keep the most up-to-date fleet of sail ships in the universe to develop new cruiseA sections and advanced sail bundles to make a larger figure of possible andA past patrol cars employ sophisticated promotional attempts toA achieve a greater consciousness by the publicA refering the handiness and afford ability ofA sail travel pull the first-time and younger patrol cars ( Carnival ) , experient patrol cars ( Holland America ) , upscale patrol cars ( Seaborne ) , and patrol cars desiring a seafaring holiday ( Windstar ) promote sails as anA alternate toA land-based holidaies supply a assortment of activities every bit good as ports of call be advanced in all respects of operations of the ship. All enterprises that are taken by Carnival Cruise Lines demand to be in line with the mission, vision and strategic aims ( Carnival Corporation A ; PLC, 2012 ) . With respect to the scheme of Carnival Cruise Lines the undermentioned strengths can be identified: Strengths Failings Dominant market portion Strong acquisition scheme Comprehensive portfolio ( aim groups ) Strength Dominant market portion The biggest strength of Carnival Cruise Lines is its immense graduated table and range. The company is twice every bit big as its biggest rival and competes in about every market and section worldwide ( Appendix X ) . This gives CCL tremendous power over the sail industry as a whole. It enables the company to set about undertakings that grow the industry, gives it a platform for continued amalgamations and acquisitions activity, and helps CCL negotiate with major makers of sail ships ( Levin, Jones, A ; Slade, 2011 ) . In all enterprises and undertakings that are undertaken by the company, the inducement is ever to maintain that dominant market portion and even to turn it farther. CCL wants to be a leader, and this will be reflected in direction determinations. Strength Strong acquisition scheme Carnival Cruise Lines has the ability to obtain companies through acquisitions. By utilizing an acquisition scheme, the Corporation has been able to place itself in each geographical market in the universe and rank itself as figure one in the cruising sector. However, this strength besides consequences in a extremely decentralized IT landscape, as described in paragraph 2.8. Strength Comprehensive portfolio ( aim groups ) The corporation has a big fleet capacity and operates 10s of the most recognizable sail trade name names. CCL s portfolio of trade name names entreaties to about every niche market, from budget minded, modern-day to luxury sails ( Marketingteacher, 2012 ) . Each sail line operates globally and is targeted at one or more nationalities ( Appendix X ) . This is linked to the fact that CCL wants to be the leader in the cruising industry and wants to maintain the dominant market portion. 2.2 Structure of CCL Carnival Cruise Lines Corporation A ; plc has two chief central offices, Carnival Place in the US and Carnival House in the UK. The constitutional Corporation and plc are separate listed companies with different stockholder organic structures, but they jointly own all the operating companies in the group. Both central offices have their ain direction squad, scheme, and IT organisation. Within Carnival Cruise Lines every trade name is seen as a separate concern unit, with its ain net income and loss statement. With respect to the construction of Carnival Cruise Lines the undermentioned strengths and failings can be identified: Strengths Failings Strong fiscal place Clear focal point on cost leading Strong selling Decentralization of concern operations Decreasing net income Over-dependence on US market Strength Strong fiscal place Carnival Cruise Lines is one of the most profitable cruising companies. The company s mean net income ( FY2005 to FY2009 ) amounted to 18.1 % compared to the industry criterion of 6.3 % ( Marketingteacher, 2012 ) . The house is double listed on the New York Stock Exchange and the London Stock Exchange under the symbol CCL. Since the company is double listed, it has the ability to raise more financess from investor than its rivals. With this besides comes greater stableness due to different markets being affected by different economic happenings, political issues, and society s positions ( Levin, Jones, A ; Slade, 2011 ) . Due to the strong fiscal place, CCL has a certain luxury to take strategic of import and cutting border determinations and, at the same clip, put the necessary financess to do it possible. Strength Clear focal point on cost leading Carnival Cruise Lines has a clear focal point on Cost Leadership, i.e. CCL offers its merchandise to the mass market. Therefore the highest focal point is put on the monetary value and maintaining the monetary value every bit low as possible. Once the client is on board the ship, extra gross is created by holding the client wage for everything that was non covered in the basal monetary value. CCL is such a big company that it has important cost advantages over most of its rivals. Unlike Royal Caribbean where the focal point is on presenting the best client experience ( Appendix X, interview Vicki Freed ) , the focal point at CCL is more on supplying the best sail for the lowest sum. Additional grosss are generated one time a client is onboard. Strength Strong selling Carnival Cruise Lines invests explicitly and efficaciously in print and telecasting media. Their publicities target the life styles of each group of clients ( Marketingteacher, 2012 ) . This scheme enables CCL to acquire name acknowledgment in every market section, therefore the different sail lines under the trade name. Failing Decentralization of concern operations Historically, CCL has been run by the Arison household as a alliance of mostly independent concerns. Each sail line mostly manages its ain clients, selling, distribution, gross revenues, ports, and logistics. This attack has had benefits: internal competition means that each line operates better than any would in isolation. The annual capital planning procedure happens on both the US side as on the UK side, which might take to duplicate of attempt. The concern operations of the sail lines are non centrally managed. Better coordination of these concern operations could bring forth extra benefits for Carnival Cruise Lines ( Levin, Jones, A ; Slade, 2011 ) . Figure Organization chart Carnival Cruise Lines Figure X gives the high-ranking organisation chart of CCL. On the left manus side all the 10 trade names with their presidents are listed, with a direct line to Mickey Arison. As stated above, although there is a direct coverage line to Mickey Arison, every trade name is managed as a concern unit with its ain net income and loss. On right manus side all the back uping maps, such as HR, legal, IT, aˆÂ ¦ are listed with their CxO or caput of section. These sections have a direct coverage line to Mickey Arison every bit good, but in every concern unit there is an ain representation of each back uping map with a coverage line to the president of the trade name. The communicating between the concern unit representation and the CxO of the back uping map is non ever seamless, which can take to duplicate of attempt. Failing Decreasing net income The net income of CCL has diminished over the last old ages. The net net income was $ 1,790 million in FY2009, a lessening of 23.2 % as compared to 2008. The net income recovered some in 2010 and 2011 but neer reached the degree of 2008 ( see appendix X ) Another failing is that Carnival Cruise lines studies their fiscal statements in dollars. About half of their gross is generated in a non-US currency, but is reported in footings of US dollars. The value of the dollar against Euro appreciated from 1.60 in January 2010 to 1.53 by April 2010 against the Pound. If the dollar strengthens it would enter a lower gross than is really earned ( Marketingteacher, 2012 ) . The force per unit area on net income will maintain on adding force per unit area on taking the right direction determinations and puting in the right chances. Failing Over-dependence on US market Carnival Cruise Lines derives a bulk of its gross ( about 52 % ) from US clients. In 2009 the gross from the North American market registered a dual digit diminution. The over-dependence on the US market makes CCL vulnerable to the economic fluctuations of the American economic system and this company is dependent on clients disposable income ( Marketingteacher, 2012 ) . All sail companies, CCL every bit good, are traveling their focal point from the US market to Europe and Asia. Particularly in Asia there is a immense growing potency. 2.3 Systems within CCL This paragraph gives a high degree overview of systems as mentioned in the 7S theoretical account: all formal and informal methods of operation, processs and communicating flows. In paragraph 2.8 we focus on Information Technology systems and the current IT landscape. With respect to the systems of Carnival Cruise Lines the undermentioned strengths and failings can be identified: Strengths Failings IT incorporated in company consequences No prioritization procedure in topographic point No benefits tracking No incorporate CRM procedure Strength IT incorporated in company consequences In some companies IT is considered as free of charge, since IT is non incorporated in the company consequences. This leads to a deformed position of company/business unit consequences. However, Carnival Cruise Lines incorporates the costs of IT in the company/business unit consequences, which allows both the company/business unit itself to acquire a more realistic position of the consequences, but besides the market gets a more trusty position of the consequences. This leads to a more positive ranking in the market. Failing No prioritization procedure in topographic point Since every concern unit is set up as an ain net income and loss centre, every concern unit deems their ain undertaking to be the most of import. Presently, there is no prioritization procedure in topographic point on the concern side, which leads to a uninterrupted flow of undertakings that need IT resources. Failing No benefits tracking Many undertakings get kicked off and assure benefits. However there is no procedure in topographic point to mensurate these benefits after the undertaking has been delivered. This allows the concern to maintain on making extra undertakings to present the same thing, once more leting concern addition costs alternatively of cut downing costs. Failing No incorporate CRM procedure Carnival Cruise Lines does non hold an integrated CRM procedure in topographic point for the whole corporation. This leads to the fact that clients from the one sail line are nt recognized as a repetition client with a different sail line within the group, this has an immediate consequence on the pricing for repetition clients. Besides, due to the deficiency of this procedure, the organisation can non aim specific clients groups, based on their old behaviour on the sail, since that information is merely disconnected available. 2.4 Style within CCL The leading manner at Carnival Cruise Lines can be called family-like. This family-like leading manner is a direction manner that Ted Arison already used when he was still maneuvering the company. Ted Arison had a non-hierarchical attack to direction, significance that he delegated a batch of work downwards in the organisation, leting him to supervise the bigger image ( Managementparadise, 2012 ) . With respect to the manner of Carnival Cruise Lines the undermentioned strength can be identified: Strengths Failings Leadership manner authorising people Strength Leadership manner authorising people Peoples with the right accomplishments are hired and are giving the support and room to make their occupations right. Peoples are encouraged to be hands-on and take deliberate hazards. Taking hazards besides means that errors can happen, nevertheless CCL uses a no blasted civilization through which people feel empowered ( Managementparadise, 2012 ) . 2.5 Shared values of CCL Derived from the mission and vision of Carnival Cruise Lines ( see 2.1 ) the company has set some company values that were a high precedence. With respect to the shared values of CCL the undermentioned strengths can be identified: Strengths Failings Strong company values Focus on the environment Strength Strong company values The company values are: honestness, unity, equity, cordial reception and teamwork. The values are deemed of import to make their occupation in a right mode. Strength Focus on the environment Carnival Cruise Lines, as all other sail lines in the industry, takes much pride in the focal point they put on the environment. They invest to a great extent in wellness and safety, both for clients and for employees. There is a really strong focal point on the environment and to work in a greener manner. Charity is besides one of the cardinal constituents of their societal duty scheme. 2.6 Skills at CCL Working in the leisure industry requires some specific accomplishments that you can non ever learn. Most of import accomplishments that person working in the leisure industry would necessitate, are the undermentioned: client focused, empathy, squad work, emphasis immune, multi-cultural, service orientation and multi linguistic. With respect to the accomplishments of Carnival Cruise Lines the undermentioned strengths can be identified: Strengths Failings Strong attending for accomplishments A ; attitude Loyalty plans in topographic point Strength Strong attending for accomplishments A ; attitude Since Carnival Cruise Lines wants to be seen as the sail line that delivers fun, the attitude of the employees is really of import as good. The employees need to be cheerful and enthusiastic. CCL puts great attempt in exciting the coveted accomplishments and attitude of the employees. Strength Loyalty plans in topographic point CCL has its trueness plans in topographic point. The company introduced a new trueness plan in 2012 supplying past invitees with a assortment of value-added benefits and characteristics, including precedence boarding and disembarkation, guaranteed supper nine reserves and dining times, personalized letter paper and custom-designed CCL logo points ( Carnival, 2012 ) . Contrary to what is stated in the concern instance, Carnival Cruise Lines has now its trueness plans in topographic point. 2.7 Staff at CCL Cruise ships typically operate with three categories of crew. The first is the officers: these professionals are extremely paid and given ultimate bid of the ship. The 2nd is entertainers and wait staff: typically lower-paid, but from the same states as the patrol cars that they serve. Finally, most of the ships crew is drawn from developing states. While wage is low, the wage can stand for an attractive chance for these workers, who frequently work 10-month contracts without being able to see their places and households. Employee turnover is high, and few of the crew sees working on a sail ship as a feasible long-run calling. Staff remains 24/7 on board of the ship, have their ain cabins at the lowest two decks of the ship. Lone officers are allowed to blend between invitees, this at particular occasions and in formal garb. Other crew members have dedicated times during which they can be present on guest decks. With respect to the staff of Carnival Cruise Lines the undermentioned strengths can be identified: Strengths Failings Operational excellence A ; experience Endowment development plans in topographic point Strength Operational excellence A ; experience Carnival Cruise Lines has achieved below-industry-average costs and above-average gross historically. This is mostly due to the company s huge experience in owning and operating sails, every bit good as some smart strategic dramas. That advantage makes spread outing into new markets immensely easier for CCL than for a smaller participant or nouveau-riche house. CCL has the largest pool of informations to pull on to find what does and does non work and has the most experient sellers of sails in the universe. These soft advantages let CCL potentially section its clients more expeditiously than rivals ( Levin, Jones, A ; Slade, 2011 ) . Strength Endowment development plans in topographic point CCL has a separate preparation and development section set up in the organisation. The corporation invests to a great extent in coaching of high potencies by giving them larning chances that are fit for their personal demands. 2.8 Information Management The current IT landscape of CCL is much diversified. First of wholly, the IT landscape is split in the shore side systems and the shipboard systems. This split between on shore and shipboard adds a dimension to the complexness of the landscape, since most of the shipboard systems need to be able to pass on to the shore side systems. An extra challenge in the current IT landscape is the usage of bequest systems. Since there are fundamentally merely three chief rivals in the sail industry, there is non truly a seller that specializes in cruise industry systems , therefore all the sail companies use their ain developed systems. Old ages ago, this was non truly a job, but nowadays with the globalisation of industries, restrictions of these bequest systems refrain CCL to be every bit nimble as they would wish to be. Figure X gives a high degree overview of the current IT landscape within Carnival Cruise Lines at the clip of the instance description One can presume that due to acquisition s between 2006 and 2012 this landscape has grown in complexness even more. Another type of systems now in the current landscape which were non described in the instance are the hazard direction and internal control systems. For this CCL uses IBM OpenPages Financial Controls Management and IBM OpenPages Operational Risk Management ( IBM Corporation, 2011 ) . Figure Information systems within CCL With respect to Information Management the undermentioned strength and failings can be identified: Strengths Failings Excellent engagement system for travel agents Decentralized systems Bequest systems No overview of undertaking portfolio Weak resource direction TCO for IT non in topographic point Outsourcing degree 2 A ; 3 support hard Strength Excellent engagement system for travel agents From a travel agent s position CCL is easy to make concern with: travel agents will state that Carnival is much easier to work with than Royal ( Appendix X, interview Vicky Freed ) . Carnival Cruise Lines has upgraded the engagement engine within its travel agent web portal, to assist agents salvage clip when booking reserves online. A streamlined and simplified procedure for pull offing engagements, every bit good as an synergistic toolbar that provides easier pilotage between different constituents of the engagement engine, do it easier for agents to book sails for their clients. In add-on to an wholly new design and pilotage, the upgraded engagement engine offers convenient links to several applications ( Travel Agent Central, 2012 ) . The updated engagement engine is designed to reflect the changing concern theoretical accounts of travel agents and represents the latest sweetening to this comprehensive portal which serves as a one-stop-shop for travel agents to carry through all of their gross revenues and selling demands ( Lynn Torrent, senior frailty president of gross revenues and guest services CCL ) . Failing Decentralized systems The decentalisation within Carnival Cruise Lines translates into a decentalisation of systems as good. Decisions are nt ever communicated from one sail line to the other, which leads to duplicate of attempt. This decentalisation of the concern organisation translates to the IT organisation every bit good. Every trade name has its ain IT section with ain systems and substructure. Failing Bequest systems There are many legacy systems. Since there are nt many participants in the cruising sector, most of the strategic of import applications are custom made. This leads to a spaghetti landscape in which integrating is really hard and which affects the clip to market significantly. Failing No overview of undertaking portfolio Undertakings can get down within a concern unit or on a corporate degree within CCL. Since the concern is set up in separate concern units, with their ain IT departments, there is a batch of duplicate of attempt. There in non one planetary IT Program Management Office that oversees all the current undertakings and their demands for IT. This has both an impact on the IT resource direction as on the IT landscape that runs the hazard to acquire even more diversified. Failing Weak resource direction Due to the deficiency of a prioritization procedure for undertakings, the first-in-first-out rule is frequently used, this means that resources get allocated either to the undertaking that came in the grapevine foremost or either to the undertaking that has a concern proprietor or undertaking director who is really persuasive. Without the prioritization procedure in topographic point, it is really hard for the IT direction to make up ones mind where to apportion resources to. The deficiency of prioritization leads to defeat on the concern side, because there is the perceptual experience that IT is non able to present in clip. Failing TCO for IT non in topographic point To truly understand the entire cost of IT for the concern all costs of IT should be made transparent and apprehensible for any concern proprietor. Currently CCL has no entire cost of ownership for IT in topographic point. Reasons for non holding TCO for IT in topographic point are assorted ; it is really hard to truly acquire cost like web transparent, an IT service catalogue needs to be in topographic point, IT direction needs to be committed, aˆÂ ¦ However implementing TCO for IT will assist the IT direction acquire the battalion of costs as a consequence of duplicate of attempt seeable to the concern. Failing Outsourcing degree 2 A ; 3 support hard As already stated above, most of the applications of CCL are custom made. This in-house development induces resources with a really specific cognition. Often, this cognition is both on the system side as on the concern procedure side and hence confidential. Outsourcing degree 2 and 3 support is really hard, due to these specific cognition. 2.9 Risk Management Enterprise Risk Management is a procedure, effected by an entity s board of managers, direction and other forces, applied in scheme scene and across the endeavor, designed to place possible events that may impact the entity, and manage hazard to be within its hazard appetency, to supply sensible confidence sing the accomplishment of entity aims ( COSO, 2004 ) . Organizations which manage hazard efficaciously and expeditiously are more likely to accomplish their ends and to accomplish this at a lower overall cost. Risk direction is hence good direction. Risk direction should be a multi-faceted subject: frequently referred to as endeavor, integrated, holistic or practical hazard direction ( The Institute of Risk Management, 2012 ) . The aim of a hazard direction model is to assist guarantee that appropriate proficient and administrative controls are identified and implemented to protect information resources and assist guarantee continuity of concern operations ( Hillson, 2006 ) . With respect to Risk Management the undermentioned strengths and failings can be identified for CCL: Strengths Failings Enterprise Risk Management in topographic point Good models Strong focal point on security A ; privateness ordinances Poor safety record Strength Enterprise Risk Management in topographic point Carnival Cruise Lines has introduced the Enterprise Risk Management ( ERM ) plan. This plan is designed to place, buttocks, manage and describe the most important concern and strategic hazards faced by the company to senior direction and the Board of Directors. The ERM plan is overseen by a squad within the Corporate Risk Advisory A ; Assurance Services Department, based in the Miami central office. CCL besides maintains onsite squads at each of its trade names, in order to remain aligned with the corporation s by and large decentralized direction construction and to develop on-site audit expertness at each of the major trade names. ( IBM Corporation, 2011 ) . Within CCL s concern units risk direction and internal control is an on-going procedure. It is designed to place, measure and pull off the important hazards faced by the units and is embedded in each of the operations. A system of internal controls has been established to be capable of reacting rapidly to germinating hazards in the concern. It includes processs for the direct coverage of material internal control deficiencies together with the appropriate disciplinary action. The corporate executive direction squad receives periodic information sing internal control issues originating at the concern units. The primary focal point of this facet of the system is the corporate Management Advisory Services ( MAS ) Department. MAS is responsible for supervising the procedure, guaranting that issues common to more than one concern unit are identified and that all relevant affairs are brought to the attending of the boards as a whole. The MAS Department is supported by the Corporate Finance and Corporate Legal Departments, every bit good as the CEO, COO and the CFO ( CCL, 2010 ) . Strength Good models CCL has adopted the Committee of Sponsoring Organizations of the Treadway Commission ( COSO ) counsel for implementing its internal control model as portion of the Sarbanes-Oxley Act SectionA 404 conformity program ( CCL, 2010 ) . The COSO model for ERM provides cardinal rules and constructs, a common linguistic communication, and clear way and counsel for organisations to measure and better their endeavor hazard direction ( COSO, 2004 ) . Carnival Cruise Lines has a structured attack to monitoring and pull offing operational, fiscal and conformity hazard across the corporation s spectrum of sail trade names. The system allows a high grade of comparison across the trade name portfolio while acknowledging the differences that make each person runing company unique ( IBM Corporation, 2011 ) . The key to CCL s attack to scrutinizing hazard is the conceptualisation of each of its trade names as a set of concern procedures. Despite the differences in organisational constructions, IT infrastructures and market sections, Carnival Cruise Lines operating companies all operate chiefly in the sail industry, which enables the organisation to set up a common analytical model. CCL has identified over 300 single procedures that are organized into 13 subdivisions as shown in figure X ( CCL, 2010 ) . 1. Understand markets and clients 2. Design merchandises and services 3. Market and sell cruise/tour merchandises 4. Deliver cruise merchandise and services 5. Pull off supply concatenation 6. Procedure gross Billingss and aggregations 7. Pull off fiscal resources 8. Pull off physical assets 9. Develop and pull off HR 10. Manage information resources and engineering 11. Manage environmental wellness, safety, and security 12. Manage support services 13. Pull off other non-cruise operations Figure Sections ERM model ( CCL, 2010 ) A hazard categorization strategy was established in concurrence with the direction. This strategy identifies and assesses the hazards associated with each procedure. The full theoretical account contains hazards that are categorized as fiscal, operational or compliance-related. For each major sail trade name are about 1,200 hazards identified ( IBM Corporation, 2011 ) . One of our cardinal ends has ever been to corroborate that controls and processs are designed and run efficaciously both shipboard and shore side. Our process-based attack to monitoring hazard is an effectual internal tool that gives us the confidence of a comprehensive, consistent position of hazard factors across all our assorted trade names. It is a great manner to gestate our concern ( Richard Brilliant, Sr. Vice President and Chief Audit Executive CCL ) . A individual package platform ( IBM OpenPages Operational Risk Management ) is implemented to guarantee planetary consistence. Strength Strong focal point on security A ; privateness ordinances CCL is a member of the Cruise Lines International Association ( CLIA ) . CLIA members are required to follow with all international, flag and port province criterions and ordinances to guarantee the safety and security of riders. Figure Regulations and Compliance in sail industry ( CLIA, 2012 ) Privacy is about the claim of persons and the social value stand foring that claim, to command the usage and revelation of their information ( Faden, 1993 ) . Privacy and Data Protection are typically interpreted in footings of criterions for the intervention and airing of certain types of personal information ( Movius A ; Krup, 2009 ) . CCL strongly aims to follow with security and privateness ordinances ( beginning ) . Appendix X provides an overview of international ordinances that deal with security and privateness. Failing Poor safety record Pull offing reputational hazard in the sail industry has neer been smooth seafaring. See that the universe s most well-known luxury sail of all clip is the 1 that struck an iceberg and claimed the lives of 1,523 riders and crew ( Risk A ; Insurance, 2012 ) . There is no public database of major sail accidents, but CCL has a notably worse safety record than other sail companies. The Costa Concordia calamity has been the most recent in the company s safety sufferings. The Center for Disease Control does track all major viral eruptions on sail lines. In the 2009-2011 period, CCL-owned companies accounted for 56 % of all viral eruptions, compared to a 48 % mean market portion. The company is besides thought to hold a worse safety record for individuals lost at sea, particularly in the Carnival trade name: of the 179 disappearings since 2000, CCL entirely accounts for about 30 % of them ( Levin, Jones, A ; Slade, 2011 ) . In 2009, Carnival Cruise Lines experienced bad imperativeness when three riders fell off ships in a three hebdomad period. There were a sum of 22 incidents of riders falling overboard in 2009. In December 2008, riders on the CCL owned Oceania sail ship were attacked by Somali plagiarists. The media attending when something happens on a sail ship reflects negatively on the company and the industry. ( KORTER )