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.

II. CENTRAL PROBLEM

 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.