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Jonathon Greywell locked the door on the equipment shed and began walking back along the boat dock to his office. He was thinking about the

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Jonathon Greywell locked the door on the equipment shed and began walking back along the boat dock to his office. He was thinking about the matters that had weighed heavily on his mind during the last few months. Over the years, Greywell had established a solid reputation for the lCoral Divers Resort as a safe and knowledgeable scuba diving resort that offered not only diving but also a beach'ont location. Because Coral Divers Resort was a small but wellregarded. allaround dive resort in the Bahamas. many divers had come to prefer Greywe11\"s resort to the other crowded tourist resorts in the Caribbean. However, over the last three years. revenues had declined; for 20133. bookings were at for the first half of the year. Greywell felt he needed to do something to increase business before the situation worsened. He wondered whether he should add some specialized features to the resort to help distinguish it from the competition. One approach would be to focus on family outings. Rascals in Paradise (Rascals), a travel company that specialized in family diving vacations, had offered to help him convert his resort to specialize in family diving vacations. Rascals had shown him the industry demographics indicating that families were a growing market segment (see Exhibit 1] and suggested the changes that would need to be made at the resort. Rascals had even offered to create childrents menus and to show the cook how to prepare the meals. Another potential strategy for the Coral Divers Resort was to focus on adventure diving. Other resort operators in the Bahamas were offering adventureoriemed deepdepth dives. shark dives and night dives. The basic ingredients for adventure diving (i.e.} reef sharks in the waters near New Providence and famous deepwater coral walls) were already in place. However. either of these strategies; creating a family vacation resort or an adventure diving resort would require changes and additions to the current operations. Greywell was not sure whether any of the changes was worth the time and investment or whether he should instead try to improve on what he was already doing. A nal optiom and one that he had only recently considered: was to leave New Providence and relocate elsewhere. At issue here was how much he might be able to recover if he sold Coral Divers Resort and whether better opportunities existed elsewhere in the Bahamas or around the Caribbean

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