Halina Mountain Resort (B)

September 4, 2017 | Author: SuzetTe Olmedo | Category: Advertising, Equity (Finance), Economics, Business, Finance (General)
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Olmedo, Asucina T. BSA 1I

Case Study: Halina Mountain Resort (B) Time Context September 1981 Abstract 

Halina Mountain Resort, a family owned business, had been picking up during 1980 though it suffered a net loss of P335, 499.69 as shown in the financial performance of Blue Heights Realty and Development Corporation.

Halina Mountain Resort is manage by Jun Herrera, son of the owner Victor Herrera together with his cousin Benjamin Estacio that acts as resort manager.

Majority of the 32 permanent personnel are relatives of Herrera which reside in Calamba or in nearby towns. The family as a whole had been working together, thus creating a good team for the business.

Halina Mountain Resort is in a good location, has first class facilities, observed cleanliness and has a cohesive personnel that make them outstanding and competitive among other resorts.

Not all months of the year have the same operation level, during June, July and August are the low level, September, November, January, and February are in normal operation, while the peak season are the month of March, April, May, October, and December.

I. STATEMENT OF THE OBJECTIVE 1. Short-range Objectives:  

To ensure Halina’s continuous growth and increased popularity. To make up for the decreased income during “low months”.

2. Long-range Objectives: 

To be able to sustain Halina Mountain Resort’s growth even if it is no longer new to the public.


How will the management of Blue Heights Realty and Development Corporation can make up the decreased income of Halina Mountain Resort during the low months? How will Blue Heights Realty and Development Corporation ensure its continuous growth and increases popularity?

V. AREAS OF CONSIDERATION (SWOT Analysis) 1. Strength     

Good location First class facilities and complete amenities Cleanliness observant Cohesive personnel Competitive prices

2. Weakness    

 

Lack of security measures No sufficient cash on hand and in bank Lack of effective advertisement and promotion Analyzing the financial statement of the company, the company’s ability of paying debt is very low, thus in every P1 of liability, they only have ¢.60. This is a negative indication to the suppliers or short term creditors. Deficit in the stockholders’ equity. The restaurant is of low profile.

3. Opportunity  

Mt. Makiling is endowed with nature’s beauty where Halina is located at the foot of it, making it ideal for all types of nature tripping. Further development of Laguna by the local government helps Halina gain customers.

 

Laguna is one of the historical places in the Philippines making it attractive especially to the students. Further development of the resort can accommodate more customers.

4. Threat  

  

Natural Disaster like typhoon, earthquakes and others. Other Competitors in the area that was patronized by people, or may have a low price. The Resort is near a creek, this may cause the land to be soft. Death or riding horses may decline customer’s attraction. Most personnel are relatives; they may abuse the trust given to them. Changes of customers taste and preferences.

VI. Alternative Courses of Action (ACA) 1. The Blue Heights Realty and Development Corporation would invest

more on advertisement, representation and entertainment especially during the low months. Advantage  Halina will gain more customers that will help them recover the decrease of income during the low months. Disadvantage  Representation and entertainment is another expense in their part. 2. The management would operate longer hours or they would have 24

hours service. Advantage  Customers will be willing to stay at Halina especially those who came from far places.  Customers may have meaningful experience since the stayed longer at the resort and may share it to other people and it acts as an advertisement. Disadvantage  Increase consumption of utilities  Personnel may work longer hours and there will be a corresponding increase in their salary.  Operational expenses will increase.

3. During low months, Halina may host seminars and exclusive use of facilities and also offer discounts. Advantage  More customers will avail discounts.  Income may increase

Disadvantage  They can’t cater or render service if customers will avail the discounts at the the same time.  Operational expenses will increase. V. Strategy Formulation I therefore conclude that alternative course of action no.1 & 3 are the best solution to the problem because of the following reasons: 1. People usually go to resorts for some sort of relaxation. Even if it is not

summer or peak season they are willing to stay at the resort especially when going there will entertain them and for awhile let them forget the stressful life in the city. Halina will have a better edge when they have entertainment in the resort. 2. It is beneficial for the company even if they will incur an expense because what they are up to is popularity and sustainable development even if the resort is no longer new to the public. 3. To offer discounts is a good strategy since people in nature wants to enjoy and relax with less cash payout from their pocket. 4. To host a seminars and exclusive use of facilities is another good strategy because through it, they can incur a lumpsum income compared to small group of people. VI. Action Plan 1. Plan how to implement the advertisement. 2. Start considering package tours, exclusive use of facilities, hosting seminars or discount rates offers. 3. Since customers are particular about cleanliness, maintain the cleanliness performance of the resort. 4. Monitor the personnel properly even most of them are relatives. It is very important to make sure that they are performing well as what the company has expected from them.

VII. POTENTIAL PROBLEM 1. What if the representation and entertainment is not effective, thus it only increases the expenses of Halina Mountain Resort? 2. What if only few customers will avail the discounts? 3. What if to consider a package tours, exclusive use of the facilities and hosting seminars doesn’t help Halina Mountain Resort make up for the decreases income during low months?

VIII. Contingency Plan 1. Since Halina is managed by a family member, the management must consider the help of a third party. This will help them gain new ideas and strategies. 2. More advertisement must be implemented. Advertising is the most

important in the world of competition. Advertising helps to keep the costumers informed about whatever services are available or offered by Halina Mountain Resort. It helps to spread awareness about services that are of some use to customers or potential market. Thus, the main aim of advertising, many believe is to sell. Advertising on the whole helps business as well as the economy to prosper and make the consumer aware of the various choices that are available to him. 3. Develop new attractions that will make them unique among all the

resorts in the vicinity.

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