Coral Diver Resort
Essay Preview: Coral Diver Resort
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SWOT ANALYSIS
Strengths
Solid reputation
Coral Divers Resort had established itself as safe and knowledgeable scuba diving resort, putting divers safety and quality of diving activities as main priorities.
Superior Location
Coral Divers Resort offered not only diving packages, but its beachfront location made it convenient for divers to explore the islands and enjoy their vacation. Moreover, the Resort offered divers more quiet and peaceful atmosphere, in which many divers prefer small resort to other crowded tourist resort.
Affiliation with PADI and NAUI
Mr. Jonathon Greywell, the owner, was a certified diving instructor by both PADI and NAUI, both international and well-recognized certifying organizations. This implies the owners diving experience and credibility of diving activity conductor.
Land availability for future expansion
Coral Divers Resort still had more available space for further expansion of facilities such as kitchen and kids playground, making it flexible to specialized in either family- or adventure oriented if it choose to.
Weaknesses
Seasonal business nature
Visitor arrivals to the Coral Divers Resort are seasonal with the up to 90% occupancy rate during peak season from December to May and as low as 50% during low season for the rest of the year. This led to unstable stream of revenue and idle capacity during down period.
Owner lacked business knowledge
Mr. Greywell was a diving instructor, not a businessman, and thus was not equipped with knowledge and management skills in running resort and inevitably performed all management functions of the Resort. The Resort thus unable to catch up with trends and competitors in attracting customers.
Ineffective marketing campaign
Ineffective marketing campaign by inexperienced owner led to The Resort having vague differentiation point and identity as compared to others aggressive diving resort operators. Increasing annual marketing, but declining booking rates and revenue is evidence of such making ineffectiveness.
Severe financial position: Risk of bankruptcy
The Resort at the moment was in severe financial positions with declining revenue, low cash liquidity, and financial inflexibility to obtain more loans. In depth analysis will be discussed in financial analysis section.
No finance officers responsible for the job specifically
Mrs. Greywell, who also lacked financial knowledge, kept accounting book and failed to foresee