Royal Caribbean Cruise - Essay Example

ROYAL CARIBBEAN CRUISE CASE Introduction A work system is one where humans or machines conduct work using information technology and other resources to produce results that are positive for both the internal and external clients. The modern day organizations have systems that are used for procurement, supply, production, marketing, financial report production, hiring of employee coordination of work processes across departments among other crucial organizational undertakings. The work system method can be used to analyze the Royal Caribbean Cruise Case. The company was designed to create cruise ships especially for pleasure in the warm-water Caribbean. Royal Caribbean Cruise Case sailed not only in the Caribbean but also in many other parts of the world (AirGuide Business 216). The Work System Framework Following the work system framework, the company can be analyzed by its activities and processes, information, technologies, products and services, the environment, strategies and infrastructure. Below is a detailed analysis following the criterion. Processes and Activities There were several activities that could be identified within the Caribbean work system. The processes were aimed at enhancing the customer experience, reducing costs, and increasing revenue. As such, activities such as deployment of ships to the US ports – a new development in the industry, carrying out promotion including giving huge discounts to customers have been witnessed in the company. The aim is to entice customers to travel and in the long run realize higher revenue. Another key process in the company is a distribution which is mainly done using the Travel Agent Channel. The participants in the Caribbean who ensure that these processes and activities are promptly and conveniently accomplished include the employees in the organization (The Cruise Industry News Quarterly 24). The company like any other is composed of the management, technical staff, travel agents and many other participants that work strongly to ensure that the objectives of the company are vehemently met (Applegate, Austin and McFarlan 56). Information Information plays an increasingly significant role in the Royal Caribbean Cruise case work system. This has particularly followed the realization that information is perhaps the most powerful tool that any organization can use to remain relevant in the wake of competition witnessed in the dynamics of the society. The Caribbean realized this and took a significant step in using the resource in marketing their services. This is a way to enhancing their competitive advantage and is in line with their objectives of increasing revenue. Technologies Technologies were not left behind. At a time when technologies sweep the globe at a rate never witnessed before, the Caribbean realized that it is perhaps the only way to stand the test of time. Consequently, the issue of connectivity was very fundamental. Satellite was used to facilitate communication to the onshore purchasing agents and to the vendors. Ship-to-shore synchronization was also ensured at least four times a day. JDE system was used for financial gains of the company. This system was particularly critical in the accounting inventory and in the management of cash. The nature of the ship management was very diverse and required a special information subsystem to fulfill these special needs. AMOS was developed by developed by the Xantic Software Company again in the realization of the need for information technologies for the Caribbean. The information system was specifically designed for ship maintenance purposes. It was fully implemented. However, there was significant work needed to standardize the parts database. Other technologies also formed part of this reputable ship management processes. As a result, technological equipments were fundamentally utilized to ensure that the ship met the legal and safety requirements and standards. Galley equipment, engines, valves, electrical systems, and even consumable items such as paint and chlorine were therefore utilized a great deal. Products and Services, Customers and the Environment The company’s products and services were mainly those related to travel. As such there were experienced travel agents ready and willing to provide professional services to the customers. This attracted the potential clients to use this wonderful ship. Services such as giving discounts to customers were greatly ensured. The main customers were travelers. Services were targeted at both the potential and real travelers. The company like any other operated under an environment surrounded by legal requirements, technical needs such as the information systems and the ship maintenance equipment. Politics and economical aspects were also significant components of this environment (Applegate, Austin and McFarlan 56). Moreover, the cultural issues could not be ruled out. The ship had staff and travelers from different parts of the world and therefore it had to operate under the diverse socio-cultural environment. There was also the competitive environment that propelled the company to invest heavily in the modern information systems in order to counter the stiff competition that was streaming from the other travel agencies. It was driven by a desire to achieve a competitive advantage over these other companies. The Strategies The strategy for the case was mainly a corporate kind. It was referred to as a three legged strategy since it aimed at fulfilling three fundamental issues. Firstly, the strategy was aimed at enhancing the customer and the travel trade experience. Another branch of it was a cost reduction strategy aimed at enticing more travelers. This would lead to the third strategy which was to increase revenue. It is true that the company could not exist without its clients. The strategy was mainly based upon the recognition that the sole purpose of existence of a company is its customers and not vice versa (The Cruise Industry News Quarterly 2011:15). They also built the notion that it is the company that needs the customer and not the other way round. As a result, the strategies revolved around being passionate to the customers, enticing, welcoming and retaining them. The Infrastructure The Infrastructure of the case was one made up of equipment, machinery, the ship maintenance tools and other vital information system equipment. Another very vital infrastructure that goes without saying is the human resource. The management, the technical team and travel agents played a fundamental role in the realization of the Caribbean goals. It is this significant infrastructure that assisted the Caribbean to perform the travelling tasks effectively and efficiently while guaranteeing the safety of the travelers and the employees and at the same time meeting the legal and statutory requirements. Without the established infrastructure, these would have been rendered absolutely impossible (Prensky 45-6). Opportunities and Constraints Using the work system method in this analysis, the opportunity is the Caribbean traveling investment and possibility of attracting and retaining customers by the use of modern systems and technologies. In the work system of the Royal Caribbean Cruise Case, one department that had a problem was the information systems (Supply Chain Management Review 145-9). Even though they had put in place a good accounting and cash management system, this could not suffice the kind of spatiality that was required. As a result this was a major constraint. Recommendation for Improvement If the Caribbean wanted to improve its services to the clients and ensure higher revenue, the cash management system was supposed to be a specialized one contrary to the accounting system that was in place. Again, on the issue of connectivity, the satellite position was supposed to be such that it ensured full time connectivity. These would ensure even better and superior customer experience in line with their strategies and objectives. Works Cited "Company Watch - Royal Caribbean Cruises." AirGuide Business 1 Oct. 2012: 214-6. Print. "Royal Caribbean Cruises: slicing excess inventory in half. (Building A Better System).(Brief Article)." Supply Chain Management Review 1 May 2002: 145-160. Print. Applegate, Lynda M, Robert D. Austin, and F W. McFarlan. Corporate Information Strategy and Management: Text and Cases. Boston ; Montre?al: McGraw-Hill/Irwin, 2007. Print. Prensky, Marc. Teaching Digital Natives: Partnering for Real Learning. Thousand Oaks, Calif: Corwin, 2010:45-6. Print. The Cruise Industry News Quarterly. New York, N.Y: Nissen-Lie Communications, 2011. Print. Read More