You have just been hired as a top-management executive of a traditional, family-owned shipping company headquartered in Athens, Greece which has been inactive in shipping over the past few years. You are being highly involved in the strategic decision-making process and the strategy formation of this firm which has secured a line of financing totalling $120 Million, for the development of a fleet through the acquisition of new vessels. The owners have asked you to prepare an outline plan concerning this potential investment, focussing on the following critical business aspects: You have just been hired as a top-management executive of a traditional, family-owned shipping company headquartered in Athens, Greece which has been inactive in shipping over the past few years. You are being highly involved in the strategic decision-making process and the strategy formation of this firm which has secured a line of financing totalling $120 Million, for the development of a fleet through the acquisition of new vessels. The owners have asked you to prepare an outline plan concerning this potential investment, focussing on the following critical business aspects:
• Suggest in which shipping sector it would be better making an investment acquisition given the current market conditions and outlook. You should consider the purpose and sizes of the ships and discuss how your choice would influence the budget.
• Would new-building or second-hand vessels be a better option considering the condition of the shipping and shipbuilding markets? Justify your rationale with reference to the applicable market driving forces and their net impact on the market fundamentals.
• Discuss the advantages and disadvantages of outsourcing ship management to third-party companies and suggest the appropriate management model for the new acquisitions. Discuss how your choice would influence the operating budget with reference to economies of scale.
• Suggest the appropriate organization structure for the company managing the ship including the necessary resources and capabilities that you will utilize. You need to support your proposal by providing an indicative organizational chart, illustrating the reporting relationships between functions/departments/divisions and vessels of the company. You should include a description of hierarchy/layers/decision-making models, by appropriately justifying their implementation based on management literature.
• Suggest in which shipping sector it would be better making an investment acquisition given the current market conditions and outlook. You should consider the purpose and sizes of the ships and discuss how your choice would influence the budget.
• Would new-building or second-hand vessels be a better option considering the condition of the shipping and shipbuilding markets? Justify your rationale with reference to the applicable market driving forces and their net impact on the market fundamentals.
• Discuss the advantages and disadvantages of outsourcing ship management to third-party companies and suggest the appropriate management model for the new acquisitions. Discuss how your choice would influence the operating budget with reference to economies of scale.
• Suggest the appropriate organization structure for the company managing the ship including the necessary resources and capabilities that you will utilize. You need to support your proposal by providing an indicative organizational chart, illustrating the reporting relationships between functions/departments/divisions and vessels of the company. You should include a description of hierarchy/layers/decision-making models, by appropriately justifying their implementation based on management literature.
