Essay about Coral Divers Resport

987 Words Nov 26th, 2010 4 Pages
Coral Divers Resort

Mr. Jonathan Greywell is contemplating a business decision in which there are four realistic options. He is the owner of Coral Divers Resort, located in the Bahamas on the island of New Providence. He caters to customers looking for a resort package that includes diving. This case discusses a decline in revenues for the three-year period of 2005-2007. His options include: selling the resort, partnering with another business, focusing on higher margin business, or improve his current business to be more competitive.
Selling Coral Divers Resort
The most significant reason to sell the business is the declining revenues. However, Greywell would need to find another means of income such as another
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Improving Existing Coral Divers Resort
Greywell should look at running the business more efficiently to see where he can lower expenses such as operating costs and both fixed and variable costs. However, improved efficiency alone will solve Greywell’s current problem of reduced revenue. He needs to be looking at additional revenue sources by bringing in more customers for existing business or new offerings. While it is a good benefit to customers to get free services such as afternoon rides, many of those customers would also pay to go. If he had an average of 9 free-ride customers per week pay only $25 for the ride, he would generate another $225 per week in revenue. He could add a box lunch for purchase, a snack package, or a cocktail option. Having more offerings will help to increase revenue. Although I don’t expect these food and beverage items on the boats to bring in much revenue and could be more work for too little reward. Greywell would certainly not want to be distracted from his core business.
Greywell should go with the Rascals in Paradise partnership. They can help rebrand and market the resort driving up occupancy rates. While increasing profits through occupancy and additional revenue streams are a positive move, Greywell will still need to solve his issue of high debt in order to make the renovations needed. In addition, he should already be running the business efficiently and regularly seeking out ways to maintain a

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