Exotic Adventures Inc

In: Business and Management

Submitted By daisygirl
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Exotic Adventures Inc.
Case Synopsis
Exotic Adventures Inc. (EAI) is a travel company that offers voyages to the Arctic, Antarctica, islands in the South Pacific and Atlantic, and the Amazon River during the high water season. EAI has begun offering voyages to the Amazon River during the low water season due to a high interest by naturalists who think the voyage would be more interesting. EAI has become concerned with the depth of the water in the Amazon River during the low water season. The company has received conflicting information from Brazilian and Peruvian Pilots on the whether or not it is safe to maneuver through the river. (Shaw & Hulland, 1999)
State the Assignment Question
Should EAI cancel the voyages scheduled on October 8th or should they continue the voyages with the possibility of completing the voyage, cancelling the voyage at Manaus or turning back before Iquitos?
Case Analysis
EAI has to make a decision on whether to cancel their voyage through the Amazon river or to attempt to navigate through the river with a chance of having to cancel the trip early. Each of the options that EAI has poses a monetary loss in income to the company except for the decision of continuing through the river and completing the voyage. Canceling the trip or not completing the voyage at Iquitos not only poses a monetary loss for EAI, but also for Brazil and Peru. (Shaw & Hulland, 1999)
The agents in Brazil have advised EAI that their pilots will not take EAI’s ship past Manaus. They have stated that the water levels in the river are too low to navigate the ship all the way to Iquitos. On the other hand, the agents in Peru have advised EAI that the water levels in the river are safe enough for the ship to travel all the way to Iquitos and back. In both of these countries, tourism accounts for a great share of the national revenue. (Sinclair &…...

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