Virgin Vacation Cruise Line William spent a number of years working for the Department of Fisheries and Oceans, visiting coastal communities up and down Canada's East and West Coasts. He fell in love with the scenery, the marine and coastal wildlife, and the hospitality of the local communities. When William was visiting his parents one summer, he heard his parents and their retired friends lamenting that they had to find a new means of vacationing. The group had been frequent cruise vacationers, travelling yearly to the Caribbean, southern United States, or Hawaii. They have not been comfortable booking a cruise recently because of the volatile U.S. dollar, long air travel, insurance costs, and border crossings. As one friend noted, "The Alaska cruise out of Vancouver is the last relatively hassle-free option, and it's beautiful, but how many times can you wander around Juno? And I'm getting tired of the buffet." William saw an opportunity in this group of active and adventurous, but older, travellers. He gathered three other investors with interests similar to his own, and Virgin Vacation Cruise Line (Virgin Vacation) was born. William and the other investors combined the pleasures of cruising with their love of the coastal communities; all of the investors have ties to a coastal region. They set up a small cruise line that operates with boats that hold a maximum of 12 guests and a crew of eight. Each boat has a full-service kitchen, and meals are gourmet, featuring local ingredients and recipes sourced from communities along the way. Guests can sample rare specialties that do not appear on typical cruise menus. Every evening, there is an entertaining and educational social event that allows guests to learn about the arts and culture of the region to appreciate the communities they visit. Virgin Vacation prides itself on sustainability and environmental responsibility, and this focus is apparent at every level of the organization. Its boats use the latest safety and environmental systems to ensure that pollutants are not released into the water. Rainwater collection, solar power, and wind power are used to the fullest extent possible, and food is sourced locally, minimizing waste. All of these safeguards are seen as essential, in part because environmental legislation is expected to become increasingly strict over time, particularly based on the political mandate of the various levels of government currently in power. Virgin Vacation operates in some coastal areas that are considered highly environmentally sensitive because of the endangered and threatened species living there. Virgin Vacation extends its focus on sustainability to partner communities as well. Where possible, staff are hired locally from these communities. An important goal is for the visited communities to benefit from the visits. These benefits are important to the coastal communities. For example, the Eastern Seaboard is home to 40,000 km of beautiful coastline, but climate change and shifting weather patterns cause issues for air, water, and wildlife. The intensity, frequency, and duration of North Atlantic hurricanes, as well as the frequency of the strongest (Category 4 and 5) hurricanes, have all increased since the 1980s Furthermore, the Atlantic region has been suffering from the closure of fisheries, the lack of economic growth, high unemployment, and an aging population. The communities enjoy sharing their heritage and showcasing their traditions, while also gaining an opportunity for tourism, which is rare because no other organized tours visit so many of the communities. In addition, the cruise boats even act as emergency delivery services - Virgin Vacation previously brought medical supplies to a community that faced a sudden shortage. Virgin Vacation is now into its fifth year of operation, with an active fleet of four cruise boats. After the start-up phase, the popularity of the cruises grew steadily, and the company is now providing a reasonable and steady return. Guests from past cruises rave about their experiences in small fishing villages, the hospitality of the northern Indigenous peoples, and the scenery and wildlife spotted along the way. The small boat size, the unique experiences that few others have had, and the remoteness of the locations are some of the features most often commented on. William often says that guests want a memorable and meaningful experience - not just cheap entertainment. Many guests return several times, and new guests often choose Virgin Vacation because of positive online reviews and word-of- mouth referrals from previous guests. The board of directors of Virgin Vacation consists of willim and the three other investors, all of whom are active and knowledgeable with respect to the business's operations. On the rare occasion that a cruise has an empty spot, one of the board members fills the vacancy and uses the opportunity to strengthenpartnerships with the communities and to ensure that the quality of service on board meets Virgin Vacation's high standards. The board is considering approaching additional investors and growing the business, with the idea of the cruise line's doubling its active operating fleet to eight boats in the next two years. Current research indicates that demand would be sufficient to keep the boats operating at near capacity, especially if the target market were broadened beyond the current focus on retirees. Virgin Vacation has hired you to help explore the idea of expanding the business. In your first discussion with William, you advised him of the importance of identifying the stakeholders of the business and understanding their needs. Required: a) William has asked you to prepare a list of at least five key stakeholders and determine what they are likely to expect from Virgin Vacation. List the stakeholder expectations under both the current model and the potential future expansion model. Use the following headings to assist in preparing your analysis. (15 marks) Key stakeholder (1 mark each) Expectations of Coastal Expectations of Coastal Vacation now (1 mark each) Vacation under expansion (1 mark each) 6) Based on your analysis in part (a) above, explain to william how the expectations are likely to differ among stakeholder groups (a minimum of four points), and how these differences might affect the board's decision-making with respect to the expansion (a minimum of four points). (8 marks)