Question 1

The Fleet team structure of 24 members as outlined in Table 1 above gives support to our vessels, clients and other stake holders as well as having the ability to be expanded to 10 ships per team if required. It is designed to be focused on one class/type, flag state and classification society but it is not limited to this and fleet teams can offer support to each other as required. 

In addition outside of and supporting the Fleet Teams as outlined in table 1 the below office administration staff are recommended. 

1 x CEO

1 x Fleet Director

1 x Technical Director

1 x Naval architect

1 x Special projects role (example PMS improvement) 

1 x HSEQ/Quality Assurance Director

1 x Finance/Commercial Director

1 x Accounts Payable 

1 x Front desk reception 

1 x CEO Secretary 

2 x junior office staff (interns) 

3 x dry-dock repair subject matter experts (Electrical, Piping/steel and coatings etc.) 

1 x IT (with most of IT subcontracted out) 

Fleet team personnel = 24

Total = 40

Office space required = 20 x 40 = £800 square foot 

Cost per month = 800 x £10 = £8000 per month 

Average cost per person per month = £8000 / 40 = £200

Cost per year = £8000 x 12 months = £96000 per year 

Average cost per person per year = £96000 / 40 = £2400

The above numbers does not take into account expansion. If the office lease if for 2 years I would factor in a 10% expansion over this time and would therefore work on floor space for 44 office staff.

Office space required = 20 x 44 = £880 square foot 

Cost per month = 880 x £10 = £8800 per month 

Average cost per person per month = £8800 / 44 = £200

Cost per year = £8800 x 12 months = £105600 per year 

Average cost per person per year = £105600 / 44 = £2400

Question 2 A

Strengths

1.Diverse industry coverage (ULCC, Bulk Carriers & Container)

a.As the company currently operates in the VLCC, Bulk and container markets CSC is not exposed to or relying on one segment of the market. We also have management and operational experience in all 3 markets and can capitalise on different segments of the market as the opportunities arise. 

2.Average age of fleet is 2012 

3.Skilled workforce 

4.Experienced business units 

5.Domestic market 

Weakness

1.Brand portfolio 

a.Due to having a small fleet of vessels to manager/own the brand is not as well-known as it could be. This is also compounded by having only one main office and no regional officers.

2.Fluctuating profit margins 

3.Future profitability 

4.Competitive market 

5.Market exposure 

Opportunities

1.Expand customer base geographically 

a.Due to having a small fleet and only one main office we have potential to expand into different geographical areas that we are currently not exposed to.

2.New acquisitions 

3.New products and services 

4.Venture capital 

5.Global markets 

Threats 

1.Economic slowdown

a.The shipping industry is highly dependent on the state of the economy not only in its geographical operating area but is also exposed to the global economy. If a global slowdown is experienced it could have a significant impact on our company and potential clients that we have no control over as a ship owner/management company.  

2.Changing regulations 

3.Rising costs of business 

4.Growing competition and lower profitability 

5.Price / day rate changes

Question 2 B

By using the SWOT analysis above we can recognise several areas where we could improve our market share and attract new clients. 

Continue our market diversification

This can be done by elevating new operational areas

Diversifying our client base in current operational areas

Look at a new building plan for specific clients, operational areas, capitalise on new fuels or transit routes, products or new parts of the market 

Determine if it is variable to develop regional offices where our clients are based

Look at developing regional offices in new operational areas within our current market areas

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