A Proposal for Coral Diver Resort

A proposal for Coral Diver Resort

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Introduction

In the Caribbean islands, more so the Bahamas, scuba diving is regarded to be the most common sport and public activity among many other within the beautiful beach surrounding the area. This being a very attractive sports activity, it posed a business niche of which Jonathon Greywell in conjunction with his wife were able to notice and have been exploiting it over the past decade. In more than ten years, Greywell and Margaret have been controlling as well as operating the Coral Divers resort which happens to be located in the New Providence Island, Bahamas (Beamish & Neupert, 2008).  The couple made a fortune when they set up a small resort for scuba diving which is also currently well known for its uttermost reputation and dedication towards knowledgeable and safe scuba diving. Moreover, the resort is a favorite to many tourists and scuba divers due to its exclusivity as well as a beautiful and attractive scene of its beachfront. This beachfront suits the guests well with a perfect opportunity to carry out the various scuba activities as they may prefer. Having beach access, the resort also sits on a three acres’ piece of land and has six cottages. Moreover, the company owns three boats which are used for the diving activities. Despite the fact that the coral diver resort is regarded as a small diver resort, it ended up receiving quite a higher number of guests than expected since the other Caribbean resorts happen to be crowded (Beamish & Neupert, 2008).

Due to the declining revenues, Jonathon, the owner this small scuba diving resort is revising his strategies and the direction to propel the business to soar higher. Unfortunately for the past several years, the industry has been stricken by some losses. The losses incurred and experienced have attributed to the reduced bookings. According to Beamish & Neupert (2008), the number of guests making the reservations have notably decreased even during the vacations when compared to the time past, and this has not only hit the resort but also the scuba diving business. The has been efforts to find the panacea of the enigma in existence to rescue the situation. Amongst the efforts being made include one of a travel company, Rascals, who mostly deal with family diving vacations. Rascals have indicated some interest in aiding Jonathon with the earlier highlighted situation by stretching a hand for partnership whereby they would do some changes that will make the resort more suitable for family diving. Some other efforts include venturing into shark diving or even shifting location to some other parts of the island. However, it is essential to think that any form of change has its consequences. Therefore, it is crucial to consider impacts of the transition to know how to handle them. That is the primary reason why Greywell wants to know whether or how his company would be influenced by such changes (Beamish & Neupert, 2008).

The decrease in bookings have significantly affected the business and has continually incurred losses. This, therefore, calls for a quick decision as well as action to be made. The options include; conversion of the resort into a family vacation resort, the inclusion of more adventure diving, or just maintain the present operations but improve them without making any significant changes (Beamish & Neupert, 2008). Despite the efforts to do some renovations and trying to offer the best accommodation services, there seem to be some other factors that are a stumbling block to the resort’s success. Just like any other business, there exists both internal elements as well as external factors that affect the resort. Considering this, it is, therefore, necessary to come up with a business plan that would increase the revenue of the resort altogether with the activities of Coral Divers Resort. In making the strategic business plan, there lies the need to evaluate the external environment of the business extensively in line with a proper review of the company’s internal resources.

Current situation of the company

In the past couple years, some specific circumstances have led to the current situation. Tracing way back to 2006, Coral Diver Resort owner was faced with a loss regarding finances which in turn reflected the business, reposting significant losses. Here was another challenge. The first part of the year has always been considered to be the high season for the company. Before 2008, the bookings used to hit up to 90% of the resort’s capacity, but it was unfortunate that by 2008, there were reports of reduced activities within the resort and the booking were not hitting the same numbers as before. On noting this, Greywell knew he had to act and do something before the business got any worse. However, he was not decided on what to do since he had several options in mind. He was not sure of whether of turning the company into a kind of family-oriented resort, relocate to another place, shift to more adventurous types of diving or instead distinguish his resort from other resorts by addition of specialized features.

On that note, Rascals then offered Coral Divers Resort a partnership to convert the resort into a family oriented resort. Rascals is a travel company in Paradise that deals with planning as well as coordinating family diving vacations. Rascals are well known for their expertise with regards to conducting family vacations in most major resorts. Another contribution to rascals’ reputation is that they have some added services in the packages they offer. This includes babysitting as well as in-place amenities for the young ones while their guardians and parents are having fun out there by the seashore. Rascals have been able to persuade Coral Divers Resort and base their standpoints since they are planning to show Greywell the location’s demographics plus what is required to accommodate kids, the cost to be incurred as well as advise him on how to enact this plan (Beamish & Neupert, 2008).

Moreover, Rascals have also extended their hand to offer consultation services to Coral Divers Resort but in two options. The first choice is that Rascals will offer Coral Divers Resort consultation which will include training, implementations and a well-written report at a daily charge but at the end, CORAL DIVERS RESORT will have a chance to decide if they want to be listed for the next bookings with Rascals. The other consultation service option involves one with no charge, but at the end, all family bookings will be directed to rascals.