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HMR (B)

Case Study
by

Paul John Laxa

on 14 September 2012

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Transcript of HMR (B)

We therefore conclude that the alternative courses of action number 1, 2, 4 & 5 are the best possible actions to take considering the circumstances because: Halina Mountain Resort (B) Case Study Point of View Jun Herrera - shares active management over the resort. The resort's performance looks promising.

"THERE IS ALWAYS A ROOM FOR IMPROVEMENT" And that in the industry,
there's a time-honored belief that
"TO GROW IS TO SURVIVE" Time Context - 1981 Lower Value of Peso
Small quantity of money in circulation
Well-developed competitors are few a.)How can Halina Mountain Resort make up for the
decreased income during the so-called ‘low months’?

b.)How can Halina Mountain Resort make sure
that it will not lose its ‘newness’ to the market,
continuous growth and increased popularity Statement of the Problem a.)To ensure that Halina Mountain Resort will not lose its ‘newness’, continue to progress, develop and improve.
b.)To come up with a solution to compensate
for the ‘low-months’.
c.)To sustain the Resort’s popularity. Objectives As what to be had from the text, the Herrera’s observed in the 1981 that the Resort is
striving in the foot of an uphill slope and that is expected to make progress given time.

The resort has 32 permanent personnel and the majority of this number are relatives of the
Herreras. It is a family-run business that owes a large part of their success to their teamwork.

The resort has eight picnic huts, 10 restrooms, a conference hall,
a 22 x 25 meter swimming pool and a restaurant.

The resort managers takes pride in the cleanliness
of the place and competitive prices.

There’s about 0.7 hectares of undeveloped land in Halina resort.

The 10 private rooms with mineral hot sring mini-pool is
responsible for a large part of the income of the resort.

The restaurant’s performance though, is satisfactorily but not up to their expectations.
There is also a problem of the restaurant’s limited customer capacity.

The months June, July and August posed a problem for the resort
because these so-called ‘low-months’ hampers the resort’s operations. Facts Case Analysis SWOT Analysis Strengths

– Good Location
– First Class Facilities
– Cohesive Personnel
– Facility Versatility
– Cleanliness
– Competitive Prices Weakness

– Seasonal demands
– Lack of Security
– Lack of marketing effort
– Low profile restaurant
– As observed in the income statement, the resort’s cash on hand and in bank is only 1.11% of the company’s total assets
– The company’s ability to pay debts is very low. The total current assets of Halina Resort amounts to only 60% of the company’s total current liabilities. Opportunities

– Further development of Laguna, where
Halina Mountain Resort is based, can greatly
increase the Resort’s attractiveness.
– Roughly 31.8% of the Resort is undeveloped
and can be used to improve the Resort’s
services and facilities.
– Laguna is a historical place of Philippines
and this can be attractive to Tourists and Locals alike. Threats

– Natural Disaster
– Competitors
– Most of the personnel are relatives and are susceptible to temptation, which can often lead to abusing the trust given to them. Alternative Solutions 1.)Invest more on advertisements. Find an advertising firm that can represent and promote the Resort especially on the ‘low-months’. 2.)During ‘Low Months’, the Resort may host seminars and exclusive use of facilities and also offer discounts 3.)Offer to rent out the rooms for shorter periods,
for as long as only a few hours. 4.)Invest more on the development of the restaurant.
Train the restaurant personnel, and exert effort on the development of the restaurant, increase its customer capacity and advertise it. The popularity of restaurant can function as added charisma to the Resort’s attraction. 5.)Develop the remaining 31.8% of the Resort’s
undeveloped land. Build another swimming pool
in it with the restaurant’s added dining area around it. •As stated before, the resort needed to be popular to be able to be attractive to its customers and the resort was simply slacking off in their marketing efforts •Hosting seminars and offering exclusive use of the facility can be a
good way to earn from unused facilities during the low months.
•Offering discounts can cause customers to choose the low months as
the time for their visitation. This can cause an increased income in the
low months and decrease in workload on the peak and normal months. •Having a competent restaurant can neutralize the low income condition of the low months because a restaurant’s attractiveness, unlike that of a resort, is not reliant to seasonal changes. •Making use of the undeveloped land in the resort canlead to more opportunities. Making a dining area around a pool may be unconventional, but it is also something new that has the potential to increase the Resort’s attractiveness. Though, because of the limited cash on hand and bank of the Resort, this is not advisable to be done right away.
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