Case Study Assignment
Barnes Scuba Diving Case
James and Rob were relaxing with some friends on the patio of James’ new apartment in Surfer’s
Paradise, Queensland, Australia.
Just that morning they had looked over their business’s profit
statement and were feeling very pleased with what they saw.
Barnes Scuba Diving (Barnes), the
business they’d started in 2000, had made profits for the last six months that exceeded their expectations. While both were pleased that their business had apparently done so well, they admitted that they didn’t really know why, because they had experienced a number of issues throughout the period1 that were expected to negatively affect profit.
“You …show more content…
This information is as follows.
The number of courses undertaken was actually 3364.
Barnes actually charged participants on average $375 per course.
A batch of certification cards was unusable as Barnes’s name was spelt incorrectly. PADI, which provides the certificates, is denying responsibility saying that Barnes provided the incorrect spelling. Barnes’s new administrative assistant, Mia Fault, has admitted that she
Note that each course had six (6) participants, as budgeted.
might have been responsible. As a result of this mistake, 403 additional certificates had to be purchased to replace those that were unusable.
PADI unexpectedly increased the price of certification cards. This resulted in an actual cost of these cards being on average $1.50 more than standard.
During the period Barnes decided to use a different printer for its Open Water Manuals in order to reduce costs. Actual costs per manual were $2.50 lower than standard. However when the manuals were delivered there was concern that the quality of the manuals was not satisfactory.
Concern about the quality of the Open Water Manuals was warranted, as a number of participants’ manuals fell apart during their courses and had to be replaced free of charge.
This resulted in the average number of manuals used per participant being 25% higher than standard.
Use of the Dive