Weekend Feb 16 2013
Most gamblers realize the 35 to 1 odds of betting on one number of the roulette wheel. But seeking to lower their fixed cost per person, cruise lines have bet on ever larger ships. We study cost behavior in managerial accounting. This past week on the Carnival Triumph teaches both financial and socionomic lessons.
My wife and I took an Alaskan Cruise on Holland America a few years back. The ship took 1200 passengers as I recall. It was simply wonderful and I highly recommend that trip. Holland America has incredibly high quality standards.
But cruise lines and airlines have both bet on ever larger carriers. This past week a fire destroyed mega ship Triumph's , 3,141 passengers, power source. It made th news every day and had to be towed back to Mobile Alabama. Presumably that is where it will be repaired. Every day became a PR nightmare for
Carnival as stories of raw seawage and leaking everything made headlines. Photos show disembarking passengers kissing the ground. Well actually the whole thing sounds like the Middle Ages come back to life, no indoor plumbing in close quarters.
The managerial lesson here is that when one puts all the eggs in a bigger basket, one really needs to watch that basket. Now Carnival has cancelled future cruises as they must fix Trimph which of course represents a gigantic investment.
Socionomics holds that social mood dictates social action. In this case two different groups developed different moods resulting in 'two ships.'
Read the hyper link for the tale of two ships. One group of passengers drank too much at the Open Bar and Fought and Caroused. The Bar Closed.
Another group developed self support structure. interestingly there were two groups of alums from San Antonio's Churchill High School They guys built the girls a shanty town place to sleep on deck.
Times change, people don't. Some develop survival skills, others self destruct. Some civilizations survive, others disappear. There is nothing new under the sun.
Professor Elam 