Diving Operation in the Bahamas

The owner of a small scuba diving operation in the Bahamas is reassessing his strategic direction in the light of declining revenues. Among the changes being considered are shark diving, family diving, exit and shifting operations to another Caribbean location. These options are not easily combined, nor are they subtle.

A bridge is a structure which provides passage over a gap. Strategy can be seen as building a bridge for the future. With a bridge form follows function. A bridge takes you from point A to point B, from where you are to where you want to go. A well built bridge that is maintained can survive and serve it's function for centuries. With strategy form and function go hand in hand. Porter states that "strategic positions should have a horizon of a decade or more, not of a single planning cycle...frequent shifts in positioning are costly." As with a bridge a well formulated strategy should withstand the test of time; it should consider where you are now and where you want to be in the future, always looking ahead. Mintzberg views strategy "as a plan, a "how," a means of getting from here to there". If you have a strategy which fits nicely with your goals but makes false assumptions about where you are now, you will get nowhere fast. If you have a strategy that works well with the present and points you in the right direction but does not consider where you want to be in the future, then you might as well not have had a strategy at all. With the coral divers case they needed to assess their current position in the market and make a decision about where they wanted to be in the future. They needed to figure out whether they wanted to focus on adventure diving or be family oriented, this decision would be reflected in their strategy with regard to where they want to be in the future.

Coral Divers Resort can solve the restaurant problem by asking the only restaurant move to their place, This is a good use of game theory in looking for opportunity to add value on the resort, and solve the potential problem on competitor. This strategy is a Win to Win strategy base on move the beneficial on both sides.

1. What do you think Greywell should do?

a. Spend the necessary capital to enter the family diving trip business.

b. Spend the necessary capital to enter the shark diving business.

c. Relocate to another area.

d. Pursue operational efficiencies.

e. A combination of the above.

f. No action is necessary.

2. What external factors is Greywell facing and how should he evaluate those factors in making his decision?

3. How is Coral Divers doing in the last 3 years and what is the trend? Why has Greywell not run