Part I: Case
Presentation â Royal Caribbean Cruise
Using publicly available informationfor Royal
Caribbean Cruise, respond to the following.
Organizational Business Model: Provide a
context in which the company operates.
Discuss the industry, supplier and customer markets. What stage of
the life cycle is the industry and the company? What is the strategic
position of the company? What is its market share?
Discuss the risk implications for these
external threats. How do these
strategic, operating or compliance risks affect financial reporting risk?
Specifically, what financial statement accounts are likely affected?
Wrap up: Would you want to own Royal Caribbean
Cruiseâs stock? Why or why not?
What are the pros and cons?
At what price points would your decision change and why?
II Document supporting financial
statement and risk analysis
Describe the main industry in
which your company operates. Are there any unique features about your
industry? Where does your company
fit in the national and global industry? Does it have a niche? Assess the
companyâs competitive strengths and weaknesses, its opportunities and
threats. Describe their key products and customer base.
Examine the Income Statement.
Describe how profitable the company is and what is causing net income/loss
to be higher or lower than it was last year.
Examine the Balance Sheet. Is
the company larger than it was last year?
What significant changes occurred in the balance sheet from last
year to this year?
Additional Ratio Analysis
category of ratios provides a window on the business. Identify and discuss
business risks associated with
these ratios. If you can learn anything about the nature of the
hierarchical structure or managementâs style (fat and bureaucratic, lean
and mean, laissez faire, hands on micromanagers, ethical â quality
oriented, aggressive and innovative
v. status quo, family or nonprofit objectives v. profit driven, high/low
regulation environment) or the quality of corporate governance please
bring that into the presentation. Magazines like Forbes, Barrons, Fortune,
Business Week tend to do exposes on major companies and are often good