Ocean Park Case Study

In: Other Topics

Submitted By nuratti
Words 1229
Pages 5
OP issue & Challenges
-Ocean Park was an old and tired brand and no one knew what it stood for.
-HK has few scenic endowments hence need to create own attraction which take long time and high investment
-Econ dwntn(1997) & SARs(2003) strike in Asia,fell by70%attendance,threat to close down.
External environment analysis- PEST Factors
-in 2009, the Govt of HK tourism board(HKTB) introduce removal of the quota of the Hong Kong Tour Group Scheme of Mainland tourists in 2002
-implementation of Individual Visit Scheme (IVS) enables Mainlander to visit HK as free and independent tourists without the need to apply for special visas.
As of Feb 12, high inflation rate lead to increase tickets price. From $208 (in 2009) to $280 (in 2012) .Decline in revenue will force OP to increase their retail price to sustain profit.
-caters tourist from mainlander who are not sophisticated and they require long education campaign
- Different market- locals & business group, and international tourist; family oriented
-use of latest technology in lighting, music and multimedia special effects, to enhance amazing undersea creatures.
Industrial Analysis- Application of Porter’s 5 Forces
1. Threat of entry – very high
-the entry barrier is high due to the need to invest large amount of financial resources
-required land for a full scale development

2. Bargaining power of supplier (OP) – low
-OP known in the industry hence weaken the bargain power external supplier.
3. Bargaining power of buyer(tourist)- high
-they will not able to bargain for cheaper ticket pricing, and play only selective machine that is avail.
-Cost of switching is low-DHK
-Info avail for tourist to choose from rival for $ worth.
-repeat customers
4. Threat of substitutes products – weak
-main threat of substitution is DHK, & upcoming is DSH in 2014.…...

Similar Documents

Ocean Carriers Case and Assumptions

...The Charles H. Kellstadt Graduate School of Business DePaul University FIN 555: Financial Management Thomas M Carroll Phone: 312.362.8826 Office: Loop Campus tcarroll@depaul.edu Case Study Questions Capital Budgeting In Practice Ocean Carriers These questions relate to the Ocean Carriers case in your course packet. You can find the data for this case on the course website in a spreadsheet named: Ocean Carriers Exhibits.xls. This case provides the opportunity to make a capital budgeting decision by using discounted cash flow analysis to make an investment and corporate policy decision. Ocean Carriers is a shipping company evaluating a proposed lease of a ship for a three-year period beginning in 2003. The proposed leasing contract offers very attractive terms, but no ship in Ocean Carrier’s current fleet meets the customer’s requirements. The firm must decide if future expected cash flows warrant the considerable investment in a new ship. 1. Do you expect daily spot hire rates to increase or decrease next year? Give the reasons for your choice. Which are the factors that drive average daily rates? What does this imply in terms of your cash flow projections? Daily hire rates are determined by supply and demand, as well as the size, age, and efficiency of the ships in service. Due to a high number of vessels expected to be delivered in 2001, as well as the fact that imports for iron and coal were......

Words: 883 - Pages: 4

Oceans Case

...Case 1.1 1) Five procedures an auditor should perform in determining whether to accept a client are an independence check, checking management integrity, the nature of disagreements, communication with previous auditor, and reason for auditor change. Communicating with the previous auditor, evaluating management integrity and the independence check are required by the auditing standards. 3) The following non-financial should be considered before accepting Ocean as a client are a high auditor turnover rate should be a major red flag and should be looked into. Also the new complicated computer system could effect the auditor getting all the information in a timely manner. There might be inadequate controls over the new system requiring more substantive tests. There is also a VP with a gambling problem and a new controller. Some of the non financial decisions are more important to consider than others. Like for example the fact that the client was hesitant to allow communications between auditors. This could be a cover up for a reason not to accept the client. 4) a) Barnes and Fischer will be able to provide help with the IT and financial statements audit according to the AICPA as long as they merely help implement and don't design the software. b) The situation doesn't violate the AICAP. This is because of rule 101 of the AICPA which says materiality is not to bw considered in a case of direct financial interest on the part of the auditor. If indirect......

Words: 261 - Pages: 2

Ocean Case

...years of your five years with Barnes and Fischer. Your first assignment as audit manager is to assist an audit partner on a client acceptance decision. The part¬ner explains to you that the prospective client, Ocean Manufacturing, Inc. is a medium-sized manufacturer of small home appliances. The partner recently met the company's president at a local chamber of commerce meeting. He indicated that, after some diffi¬cult negotiations, the company has decided to terminate its relationship with its current auditor. The president explained that the main reason for the switch is to establish a relationship with a more nationally known CPA firm because the company plans to make an initial public offering (IPO) of its common stock within the next few years. Ocean's annual financial statements have been audited each of the past 12 years in order to comply with debt covenants and to receive favorable interest rates on the com¬pany's existing line of credit. Because the company's December 31 fiscal year-end has already passed, time is of the essence for the company to contract with a new auditor to get the audit under way. The partner is intrigued with the idea of having a client in the home appliance industry, especially one with the favorable market position and growth potential of Ocean Manufacturing. Although there are several small home appliance manufacturers in the area, your office has never had a client in the industry. Most of Barnes and Fis¬cher's current audit clients are......

Words: 357 - Pages: 2

Case Study- Disney Theme Park

...Company is the world’s largest amusement park operator. It was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Taking on its current name Disney in 1986. Chapter 1: Case – Disney Theme Park Contents I. Case Background 1 II. Statement of the Problem 3 III. Alternatives 3 IV. Recommended Solution 3 V. Answers to the case questions 4 Question No. 1: 4 Question No. 2: 4 Question No. 3: 5 Question No. 4: 5 VI. Leanings 5 I. Case Background The Walt Disney Company is the world’s largest amusement park operator. It was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Taking on its current name Disney in 1986. And Disney has 5 theme parks outside the USA; there are Tokyo Disneyland (1983), Tokyo DisneySea (2001), Disneyland Paris (1992), Hong Kong Disneyland (2005) and Walt Disney Studios (2002). Disney is motivated to set up parks throughout the world to expand its sales of merchandise goods as well as attendance to their theme parks. After lunched Hong Kong Disneyland in 2005, Disney has signed a letter of intent to build another park in Shanghai China in 2008; The Park will attract different potential visitors in Shanghai. Overview Disney Theme Park - Points of Interest (Michael Sandberg's Data Visualization Blog) Getting people excited about their data one visual at a time * Walt Disney had infinite confidence in his new park and unapologetically......

Words: 1698 - Pages: 7

Park Resort Case Study

...A Critical Review of ‘Park Resort’ Case Study Relating To Motivations of Employees Performance Introduction Motivation in work place is important since it is one of the key roles play in productivity growth, achieving goals and business objectivity (Stanton 1983; Vempati 2013) as well as a sign of successful organization (Huczynski and Buchanan 2013). When employees are highly motivated, they will put more effort on the job and enhance their productivity and the quality of their performance (Chiang and Jang 2008). This work is aimed to critically review the ‘Park Resorts’ case relating to motivation aspect of employee and the management’s insight. Both hotel employees and the management acknowledge the importance of employee motivation (Chiang and Jang 2008). This case presents critical learning points on what motivates and drives employee of Park Resort from various motivation theory, namely McGregor’s Theory X and Theory Y, Maslow’s Pyramids of Needs and Amabile & Kramer’s inner work theory, and how does the company sees the importance of such motivation for its benefit. ‘Park Resort’ Case In order to know what is happening in his business, Andy Edge – Marketing Director of Park Resorts – going undercover for a 10-day period in 2 resorts of the group. During his stay, he was joining cleaning departments. He found that there was different performance of the cleaning staffs at the two resorts. The staffs in the first resort were not enthusiast, complaining......

Words: 1542 - Pages: 7

Case Ocean Carriers

...Discoount rate Ship life (years) Scrap value Initial investment M€ Depr./year 9% 25 6720000 39000000 1291200 Pinja Ruonala 241364 Case Ocean Carriers Since the consulting firm fee (200 000 USD) and internal marketing study expenses (150 000 USD) already occurred and thus are sunk costs, they are not taken into account in the investment calculations. Those expenses will realize, no matter whether the investment will be done or not, so they are not relevant. Net present value calculation was done in order to give a recommendation for Ocean Carriers whether to purchase of the $39M capsize. Only change in new working capital was taken into account in the calculations. I used the provided expected daily hire rates for the revenue calculation for the lifetime of the vessel. Annual hire revenue ( expected income) was calculated by deducting the days the vessel spent in maintenance and multiplying the remaining days with the daily hire rate. Annual growth of 4,03% was taken into account in the operating costs. Depreciation was added back in the calculations because of it not having a cash flow effect. Depreciation was added back in the calculations because of it not having a cash flow effect. Since the NPV of the investment is negative in the first setting (when tax rate is 38%), I advise Ocean Carriers not to purchase the capesize. However, in Hong Kong setting when there is no requirement to pay tax on profits, the investment is very profitable. Year Initial investment......

Words: 1260 - Pages: 6

Ocean Study

...9-202-027 REV: APRIL 18, 2002 ERIK STAFFORD KATHLEEN LUCHS ANGELA CHAO Ocean Carriers In January 2001, Mary Linn, Vice President of Finance for Ocean Carriers, a shipping company with offices in New York and Hong Kong, was evaluating a proposed lease of a ship for a three-year period, beginning in early 2003. The customer was eager to finalize the contract to meet his own commitments and offered very attractive terms. No ship in Ocean Carrier’s current fleet met the customer’s requirements. Linn, therefore, had to decide whether Ocean Carriers should immediately commission a new capesize carrier that would be completed two years hence and could be leased to the customer. Ship Operations Ocean Carriers Inc. owned and operated capesize dry bulk carriers that mainly carried iron ore worldwide. This type of vessel ranged in size from 80,000 deadweight tons to 210,000 deadweight tons of cargo carrying capacity. Capesize carriers were too large to transit the Panama Canal and therefore had to sail around Cape Horn to travel between the Atlantic and Pacific Oceans. In January 2001, there were 553 capesizes in service in the world. Ocean Carriers’ vessels were mostly chartered on a “time charter” basis for a period such as one year, three years, or five years, although the spot charter market was used on occasion. The company that chartered the ship was called the “charterer.” The charterer paid Ocean Carriers a daily hire rate for the entire length of the contract,......

Words: 2508 - Pages: 11

Case Study Donna Shader Manager of the Winter Park Hotel

...Case Study Donna Shader Manager of the Winter Park Hotel http://homeworkfy.com/downloads/case-study-donna-shader-manager-of-the-winter-park-hotel/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) Case Study Donna Shader, manager of the Winter Park Hotel, is considering how to restructure the front desk to reach an optimum level of staff efficiency and guest service. At present, the hotel has five clerks on duty, each with a separate waiting line, during the peak check-in time of 3:00 pm and 5:00 pm. Observation of arrivals during this time show that an average of 90 guests arrive each hour (although there is no upward limit on the number that could arrive at any given time). It takes an average of 3 minutes for each front-desk clerk to register each guest. Donna is considering three plans for improving guest services by reducing the length of time guests spend waiting in line. The first proposal would designate one employee as a quick-service clerk for guests registering under corporate accounts, a market segment that fills about 30% of all occupied rooms. Because corporate guests are preregistered, their registration takes just 2 minutes. With these guests separated from the rest of the clientele, the average time for registering a typical guest would climb to 3.4 minutes. Under plan 1, non-corporate guests would choose any of the......

Words: 463 - Pages: 2

Ocean Park

...ADMN 4076 International Business Management Topic: Individual 5th Case Assignment (Ocean Park Fights Disneyland) Question 1: Why was Ocean Park able to turn a threat into an opportunity? Ocean Park was able to turn a threat into an opportunity because they understand their value and they were a local company in Honk Kong who stick with their cultural heritage. They focus on animals and nature , they were about reality whereas Disney was about fantasy. They did not try to compete with Disney but stick to their core competencies, roots and focus on nature and wildlife with many animal related activities and make a few changes such as: • They position themselves as a world class attraction • By letting the resident of Hong Kong know they were a home grown park who cater to families from children to grandparents • Strengthen its core competency in real nature as compared to Disney’s strength in cartoon characters. • By introducing annual pass to boost attendance. • By differentiating itself from the competition • By not trying to compete with the competitor and sticking to core competencies. • Did a create campaign that tapped into the locals psyche for seasonal holidays. • Adding to wild life by adding 33 new species of animals. • They revamp their product line. • Improve its brand image. Question 2: Ocean Park made the decision not to compete head –to-head with Disneyland. Will this strategy always work when local companies face......

Words: 477 - Pages: 2

Ocean Manuf Case Study

...Ocean Manufacturing Case Solutions Acct 4080 Ocean Manufacturing Case 1. 1) Obtain and review financial information about the prospective client: annual reports, interim statements, registrations statements, Form 10-k’s, and reports to regulatory agencies. 2) Detailed criminal background checks of senior managers. 3) Evaluate the public accounting firm’s independence with regard to prospective clients. 4) Inquire of the prospective clients’ bankers, legal counsel, underwriters, analysts, or other persons who do business with the entity for information about the entity and its management. 5) Consider the need for individuals possessing special skills or knowledge to complete the audit (e.g., IT auditor, valuations specialist, industry specialist) 2. Overall, after calculating a few of Ocean Manufacturing ratios and comparing them with the industry, the company’s figures are not performing up to others in the industry. ROE = NI/Stockholder Equity (2011,2010)= 8.9% and 7.1% ROA = NI/Assets= 4.5% . 3.8% Both return on equity and assets are lower than industry ratios but are improving. Accounts Rec Turnover—could not calculate without % of credit sales from cash sales. Profit Margin = Operating income/ Sales(rev) = 5.5%, 6.0% PM are also low compared to the industry average. 3. There are a few non-financial items the company should consider. a) The VP of finance was charged with a misdemeanor related to illegal gambling. ......

Words: 318 - Pages: 2

Case Ocean Carriers

...Case 1: Ocean Carriers   Our first case study is entitled Ocean Carriers (HBS Case No. 9‐202‐027) by Erik Stafford et al. Please go to the Harvard Business Publishing website http://hbsp.harvard.edu . The case is copyright‐protected and can be purchased after registration. Please register at the Harvard Business Publishing website with a student account. After login, make use of the following link: http://cb.hbsp.harvard.edu/cbmp/access/42497623. Integrate answers/discussions to the following questions into your memo (Please don’t write separate answers for each question, and also the order when you answer them is not relevant. Your memo should consist of one comprehensive and well‐structured text.) Assume that Ocean Carriers uses a 9% discount rate for its investments. Questions: 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive average daily hire rates? 3. How would you characterize the long‐term prospects of the capesize dry bulk industry? 4. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First, assume that Ocean Carriers is a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profit made on cargo uplifted from Hong Kong. 5.......

Words: 252 - Pages: 2

Ocean Park

...amió Mateu    OCEAN PARK CASE STUDY     INTRODUCTION  Ocean  Park  Hong  Kong  is  a  marine  animal  theme  park   located  in  the  Southern  District  of  Hong  Kong.  It  was   inaugurated  in  1977  by  the  Government  with   the  intention  to   bring  somewhere  where  Hong  Kong citizens could feel some sense of space as a large part of the  population  lived  in  a  crowded  locality.  So   it  was  inaugurated as a nonprofit organization that  aimed  to  provide visitors a unique experience in entertainment, education, and conservation.  Firstly,  in   the  absence  of competition, Ocean Park became really popular but existed without  direction  and  focus.  When  Hong Kong's officials  signed an agreement to bring Disneyland to  Hong  Kong  in  1999,  the  Ocean  Park's  viability  started  to  be   questioned.  By  2005,  when  Disneyland  Hong   Kong  was  inaugurated,  Ocean  Park was unprofitable and widely expected  to  lose  out.   Nevertheless,  the   Park  responded  with  a  development  plan  and  showed  their  abilities  for  adaptation  and  turn  threats  into  opportunities.  It  expanded  the  number  of  attractions  and  rides,  raising  the  number  of  visitors,  becoming  the  world's  13th  most  visited  theme  park  and  the  largest  theme  park  in  Asia  in  2014.  Since  2012  Ocean  Park's  is  in  a  similar  situation,  however,  not  just  regarding  one  competitor  but many. So how  can the......

Words: 4372 - Pages: 18

Ocean Park Analysis

...five tourism clusters to increase the attractiveness of Hong Kong to tourists including of Ocean Park. The mandate of Ocean Park Corporate was to manage Ocean Park as a public and recreational park and to provide facilities for education, recreational and conservation activities to the public on a self-financing basis. The Chinese government launched the individual Visit Scheme (IVS), lifting restrictions on the travel of mainlanders to Hong Kong in response to the impact of SARS. The scheme allowed mainlanders from designated cities to travel to Hong Kong in an individual capacity rather than only on a business visa or in a group tour as before. The government also reshuffled the Park’s board of directors and appointed new members to replace half of the board. Economic Factor: The park was dealt with the outbreak of the Severe Acute Respiratory Syndrome (SARS). As tourists shunned Hong Kong and Hong Kongers stayed home as much as they could, attendance at the Park fell by about 70%. Investors in the theme park industry had increasingly turned their eyes to Asia. Analysts forecasted industry growth for Asia at 5.7% between 2005 and 2009. Asia has population of more than 3.7 million. The management saw the opportunity to boost the Park’s revenue by increasing in-park spending up from 15% of total revenue. In terms of economic benefits to the territory, the revamping of the park was expected to contribute with 0.5% of Hong Kong’s GDP by 2010. Social......

Words: 4168 - Pages: 17

Theme Park Case Study

...Business Management Extended Case Studies (Set 1) [INTERMEDIATE 2] [pic] The Scottish Qualifications Authority regularly reviews the arrangements for National Qualifications. Users of all NQ support materials, whether published by LT Scotland or others, are reminded that it is their responsibility to check that the support materials correspond to the requirements of the current arrangements. Acknowledgement Learning and Teaching Scotland gratefully acknowledge this contribution to the National Qualifications support programme for Business Management. © Learning and Teaching Scotland 2006 This resource may be reproduced in whole or in part for educational purposes by educational establishments in Scotland provided that no profit accrues at any stage. Contents Introduction 4 Case Study 1: Alton Towers 7 Case Study 2: The Royal Mail Processing Centre, Edinburgh 11 Case Study 3: Soled Out? 16 Case Study 4: Border Tweed to Border Tea’d 21 Introduction This resource is to support the learning and teaching process for Business Management at Intermediate 2 level. It consists of four case studies, each of which is accompanied by a number of questions. Each question has been allocated marks and, in each case, the total number of marks is 25. There are also suggestions on the type of answers that could be considered as a suitable response to the question. The case studies The case studies have a number of......

Words: 4929 - Pages: 20

Ocean Park vs Disneyland

...Individual Assignment You are required to prepare a case analysis of the case that you choose to present (2000 words, +/- 10%, excluding references). Submission deadline: 1:00pm, Friday, 29th April 2016. In this assignment: * You are required to address all the case questions. * You need to demonstrate in-depth understanding of the case, the questions and the theories covered in the lectures. * You are expected to relate the case to the relevant theories discussed in the lectures and also use relevant additional materials from a range of sources, including journal articles, books, conference proceedings etc., when formulating your assignment. * You are encouraged to update the information on the case when analysing the case, if necessary. * You are also encouraged to use additional examples or cases to compare and contrast when analysing your case. * Your case analysis has to be a coherence piece of work. Submission procedure: You are required to submit an electronic copy via KLE. No hard copy submission is required. Students submitting their work after the 1:00pm deadline on the same day will receive a 5% penalty. Students submitting their work up to seven days after the due date will be marked to a maximum of 40%. Essays submitted more than seven days late, without good cause will be marked at 0% and lead to a failure of the module, with the possibility of re assessment with a maximum mark of 40% overall. If you are ill......

Words: 347 - Pages: 2