Question

In: Operations Management

You are the owner of the second largest cruise line in the world. You have 7...

You are the owner of the second largest cruise line in the world. You have 7 different cruise ships that sail all areas of the globe. As second, one of your main goals is to become #1. Your company prides itself on customer service and you believe that this avenue affords you the best opportunity to become #1.

Your largest ship, the "World Traveler" can accommodate 10,000 passengers. During a November cruise in the Southern Caribbean, while docked at Barbados Islands, 5,500 passengers became sick from food poisoning. People from America, Mexico, France, Germany, Japan, and Italy were all part of those who got sick. As it turns out, over 3000 people reported sick but only after returning from excursions on the island.

This situation could represent a possible setback to achieving your #1 position in the world unless it is handled properly. So after extensive discussions with your board of directors, it was decided to not only fully refund all passengers that were aboard this cruise (whether they got sick or not), but to provide for a free cruise on any of your ships at any time throughout the year in any part of the world for up to a 7 days and 8 night’s cruise. Passengers are responsible for the cost of getting to and from the point of debarkation to meet the ship.

Assignment Instructions

Answer the questions listed below:

According to you, what is the issue and who are the various parties/stakeholders affected by it

Present evidence to support your view of the problem as explained previously. The evidence can be from the case as well as outside research.

How would you resolve this issue? Why? Can there be more than one solution?

Solutions

Expert Solution

answer-

according to me, issue was cruise company was trying to achieve the fisrt position in criuse industry by its exceptional customer services to passengers but in november trip to Southern Caribbean 5500 passengers got sick cause of food posioing & company had to maintained its reputation so they give benefits to all passaengers whether they got sick or not like refund all passengers & free cruise trip on any of your ships at any time throughout the year in any part of the world for up to a 7 days and 8 night’s cruise.

the affected stakeholders were-

  • board of directors & shareholders of the cruise as they have to refund the money to all passengers & suffer the loss of money as well as reputation.
  • employees as the refund of money to all passengers may have affect on the salary & compensations of employees.
  • passengers are affected in terms of health but they got benefited because of such decision as they can get free cruise trip from any ship all around the world & got the refund of november trip.
  • food management team as passengers got sick of food poisioning discussed in given case.

according to me,

i would resolve the issue differently. if i were on the board of directors , i would inquire the cause of food poisioning because around people may have got sick from following reasons-

  • some passengers may have thier own food supplies in thier luggage & got sick of that.
  • some passengers may be sick of travelling on ocean.
  • around 3000 passengers came from Barbados Islands so those passengers may have got eaten something from that island like wild fruit or insect bite can cause some vomiting & fever like situation.

so i would either have given the benefits to people got sick or give the free goodies or gift vochers to compensate the situation as this decision did not benefit the customers but affect others in some adverse ways.

*above answer is wriiten in my own words from the given case.hope this answer would help you.good luck & rate.


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