Case study no.

Hotel Continental

In July 1989, Mr. Oscar Mendoza, owner of Triumph Tours read in the newspapers
an advertisement for the leasing of the Hotel Continental’s facilities. During the
last six months, Oscar Mendoza has been seriously thinking about operating a
hotel to complement his travel agency business. Oscar Mendoza had been
experiencing difficulties in getting hotel accommodations for his tour groups since
last year during the peak travel months of December, January and August.

Hotel Continental is a 27 room hotel located in Diliman, Quezon City along Don
Mariano Marcos Avenue. It has three function rooms that can seat twelve to forty
persons, a coffee shop, a fast food cafeteria, a formal dining room and a
swimming pool. During the last two years, the hotel incurred losses of about P 2
to 3 million pesos which led management to the decision of leasing out its
facilities (See Exhibit A.)

The room capacity of the hotel is just right for triumph tours requirements during
the peak months. “M y travel business can provide annual capacity utilization of
the hotel to as much as 40% only,” Oscar Mendoza told his marketing manager,
Ernesto De los Santos. ’How do we fill up the remaining 60%? Before Cory became
President, I read in the daily newspaper that most of these five-star hotels in
figuring the appropriate bid price.”

Ernesto De los Santos immediately called his staff after the meeting with Oscar
Mendoza. He told his staff to gather raw data related to the hotel industry. “Just
give me the data. It’s up to you how you will divide the work. I’ll take care of
writing the report for the boss, “he informed his staff.

Several days later, Oscar Mendoza found on his desk a packet of information
jointly submitted by two of the five staff members of the marketing department
(see exhibit B.) Ernesto delos santos immediately read the data to see if he could
prepare a preliminary report for Oscar Mendoza.
Case study no.4

The coca-cola company: diversity and a global presence

As one of the world’s best known brands, coca-cola endured some important
changes in the latter half of the 1990s. Chief executive of 17 years Roberto
Goizueta passed away in 1997. During Goizueta’s tenure at coca-cola, the market
value dramatically increased from US$4 billion in 1981 to nearly US$150 billion
today. This makes him one of the greatest value creators in history. Former chief
financial officer Douglas Ivester was appointed as his replacement. Many
inventions wondered if close continue its incredible pace in the global soft drink
market.

Coca-Cola’s global dominance

The larger a company is the harder it is ,the harder it is to continue to grow at a
steady pace. This was the major challenge facing . The coca-cola Company in the
late 1990’s .The US had already been well developed , with an average of 296
servings of Coke products consumed by every man ,women and child. But the
company had not introduced a major new product in nearly ten years . Demand
for diet drinks – the fastest growing soft drinks of 1980’s –had levelled off, and
demand for cola-flavored drinks had begun to decrease. According to a former
Coke Executive . The problem was that Diet Coke was driving engine and
everybody was living off that.
Meanwhile , the competition had not been sleeping, Pepsi was test-marketing a
colourless cola . Crystal Pepsi, in response to consumer interest in clear flavoured
waters and seltzers Pepsi , had also come out with a new advertising campaign
and slogan. Neither company turers . However, consumers were drinking more
and more new types of beverages and, in the USA, traditional juice companies
such as Very Fine and Ocean Spray had begun to package their products in single
serving can in addition to the traditional bottles or juice boxes. Snapple, once
owned by Quaker Oats and now by Triarc Beverages Group, developed a new
process for bottling tea that required no preservative and expanded its product
line from juices into seltzers other natural sodas
Zyman led the introduction of new packaging – the plastic contour bottle based
on Cokes traditional glass shape. He also emphasised the importance of
marketing the products in ways other than just traditional advertising. One new
idea was ‘fast lane merchandisers” – coolers of Coke at the end of checkout
counters designed to attract people standing in lane. The company also signed an
agreement with Rutgers University paying US$10 MILLION ten-year to be the
exclusive supplier of softdrinks and juices , including to vending machines,
cafeteria, convenience stores and student centres. A similar Pepsi contract with
Pennsylvania State University was expected to earn Pepsi US$14 MILLION over
ten years. In addition to their sales, both companies valued these contracts
because of their ability to reach and influence younger cola drirnks.
The Coca-cola Company also actively began to develop new products. It
introduced POWERADE, challenging Gatorade in the US$1.2 BILLION sports drinks
market, and promoted in with free samples at the World Cup soccer matches
troughout the USA . OK Soda a highly mixtures of fruit flavours such as cranberry
lemonade , for the alternative beverage market.
Chief executive Goizuela and president Ivester were also concerned with
expanding Coke’s international base. In 1993 , more than 6.3 billion unit cases of
Coke and Coke Classic were sold worldwide in more than 195 countries . Diet
Coke , also known as Coke Light , was the number one lower-calorie soda in the
world , available in 117 countries . However 80 percent of these cases were four
markets ,all English speaking Fanta was the only global brand in orange sodas,
available in 170 countries, and Sprite , available in 168 counties , was the fifth-
largest selling in the world . Coke was also the largest marketer of juice-drink
products in both the USA (with brands including minute maid and Hi-C) and the
world . However , Goizuita felt that there was still room to grow.
To manage the scope of its business . The Coca-cola Company is devide into two
soft drink business sectors – the North America Business Sector and
Internationnal Business Sector . The North America Business Sector is made up of
coca-cola USA ,Coca-Cola Ltd., which is responsible for soft drinks operations in
Canada ,and Houston-based Coca-Cola Foods , which produces and markets juices
and juice drinks.
The international Sector is divided into four Operating groups , each of which is
responsible for the geographic region of the group . The Greater Europe Group
manages the countries of the European Union , Central and Eastern European ,
Scandinavia and the former Soviet Union .The Latin America group Overseas
Mexico and Central and South America . The Middle and Far East Group
Manages the countries of the Pacific and the Middle East . The Africa Group is
responsible for sub-Saharan Africa.
Traditionally ,The Coca-cola main technique for entering and building foreign
markers had been through independent bottlers , to whom it sold its “secret
formula” in the form of syrup or concentrate . However , this meant relying on the
local bottlers to distribute and market . Coke products soon after he became chief
executive , Goizuita was asked by John Hunter , his regional Manager in the
Phillipines , to consider becoming an active partner in the Philippines bottler ,
which had been neglecting Coke and concentrating on the beer it bottled .Coke
invested US$13 million ,becoming the controlling partnerin a joint venture with
the bottler. Goizueta and his managers made this their model for international
expansion. When entering a new market, the company would seek to establish
distribution of Coke products in key population centres developed relationships
with the important rettail channels . It would look for well capitalised business
with local know-how and visibility and eligible for promotion.
These strong experienced partner companies helped Coke move quickly into
Eastern Europe in the 1990’s . On one tour , Goizueta attended the opening of
plants in Prague (with anchor bottler Coca-cola Amatil of Australia ), Warsaw
(with anchor bottler Ringnes of Norway )and Bucharest . When the USA ended its
ban with Vietnam in 1994 , Coca-cola had already signed a joint venture two
agreement for atleast two plants and was prepared to start operations within
weeks . Coke re-entered the market in Indian government pushed for local
ownership . This time , Coke formed a strategic alliance with Parle Exports , a local
company with its own soft drinks brands and a network of 60 bottling plants. The
company saw India’s 896 million people and fast-growing middle class as a
significant growth opportunity . Coke also began a joint venture with thw Swiss
Company ,Nestle , to produce and market canned coffee and tea drinks .
Case study No.5
Agri-Tech Production Company
On October 12,1989, Dr.Renato Melgar of the Institute of Biotechnology of an
Agricultural College located in Northern Luzon approached the Agri-Tech Products
Company for the production and marketing of Rapidgrow , a biotechnology
product developed by the institute faculty . Rapidgrow is a soil treatment in
pellet form (1/4 of an inch long ) which increases the growth rates of two tree
species commonly used in reforestation in Asia countries by 30-70 percent in a
span of six to eighteen months . In addition , the survival rates of these trees are
expected to double from the usual 40 percent to 80-85 percent . A simple
treatment for seedlings with Rapidgrow can substitute for the 500-70 percent
fertilizer requirements for these species.
Aqri-Tech is a firm that specializes in the production and marketing of Rapidgrow,
Dr. Melgar is asking for P340,000.00 payable upon signing of the contract and
royalties based on gross sales.
Rapidgrow will require a new machine for pellet production costing $35,000. No
tariffs and Taxes will be paid related to the importation of the machine if the
product is registrered with Board of Investments as exportable.
In the local or Domestic market , the potential buyers of Rapidgrow are the
following:
1. Timber Licences – th timber licenses are expected to plant with the two
tree species in 10% of their reforestation program or an approximate area
of 3,326 hectares annually.
2. Department of Environment and Natural Resources (DENR) , an
approximate area of 4,677 hectares or 155 of 31,180 hectares per year
reforested are expected to be planted with said tree species.
3. Other Private Istitutions – an approximate area of 15% of 18,710
hectares/year is targeted for Rapidgrow.
4. Foreign-Assited Projects – Foreign governments or institutions that fund
the reforestation of the country , the Asian Development Bank (ADB) . The
ADB has provided $100 million for the Philippine Government for the
rehabilitation of the country’s forests .
The foreign market (ASEAN Countries ) of Rapidgrow is estimated by Dr.Melgar to
be about 1.5 million hectares per year 93% of which is for Indonesia and the rest
for Thailand and Malaysia .
The product direct costs is estimated at P0.0288 per tablet, (0.26 for materials
and j0.028 for labor ) .The labor component include wages for collectors of spores
who collect an average of 16kg of fresh spores per day or 352 kgs/month (at 22
days per month ) . These 352kgs of fresh spores equivalent to 176kgs. Of dried
spores is equivalent to 176kg of dried spores (8kg. Of dried spores can make
1million tablets ) . Other labourers required are the tabletting machine operators
who are paid the minimum wage of P89/day . The new machine will require one
operator only . During the introductory stage for the product in 1988, 1.1 million
tablets were sold at P0.10 each to DENR.
QUESTION:

1.What are the major determinants of success in the hotel Business ?

 A good relationship between the owner/management to his/her

subordinates . A good service to the costumers that make them satisfied
.Sharing ideas ,respect and love what given task to you.

2. Who are the competitors of Hotel Continental ?

 Hotel Continental most competitors are the Hotel’s that was a Five-Star
Hotel ,that makes led to a hard situations for Mr.Mendoza . In deciding to
him on what strategy to make his business more successful.
QUESTION:

1.What are the management functions performed by Roberto Goizueta, John

Hunter and Douglas Iveter ? How do their responsibilities differ ?

 Goizueta (former chief executive ,Company president ) and responsible in

performing and recognizing the problem of the company .While Hunter
(regional manager/new appoint chief executive) responsible on cotrolling
partner and active partner in the Philippines bottler, And Ivester is the one
who advertising ,market plan, promotions and giving flyers.

2.Describe the changes in Coca-cola environment once Roberto Goizueta

became CEO and then after his death .

 When Goizuita holds the Coca-cola before he passed away , the market
value dramatically increased a lot. But after Mr. Ivester replace as a Chief
Executive .The market had not introduced a major new product had caused
them for levelled off. So they decided to expand Coke’s into International
base and it more sold worldwide . and makes the demand of the company
rise again ,and adding some technique in markets that they called “secret
formula” and by also advertising , campaigns and promotion .

3.How is the Coca-cola Company changed to adapt to its environment ?

 By adapting the new trend’s that makes them unique and attract the
buyers to their products .And by the helped of their strong partnership that
makes their product more known and makes them quickly growth
increases.
QUESTION:

1.Should the Agri-Tech Produtcs Company accept the proposal of Dr. Melgar to
produce and Maket Rapidgrow ? Justify your answer.

 Yes, Beacuse as long as it keeping helps and improves our environment

,trees go faster it maybe had a chance to accept it .And as long as they use
it in a good way it s all woth it . But lets keep those cut trees having a seed
replacement so that our environment is keep clean and well groom . Aside
from that it also helps us to increase our income . And a lot of good
products that are develop and useful .

2. If Agri-Tech accept the proposal ,should it purchase the equipment or

subcontract the product of Rapidgrow ? what are the advantage and
disadvantages of each alternative .

 Yes,
Advantages for this is increases the growth of a two tree species .that
keeps product immediately done .Aside from that no tariffs and taxes will
be paid for the importation of the machine .And the Disadvantages of ,are
too expensive in requiring a machine for Rapidgrow .And cutting of trees
makes nature’s in danger.
 UNIVERSITY
OF CEBU
HRM31
BUSINESS ORGANIZATION AND MANAGEMENT
Group1-Business and its Environment
(Case Study)

Members:
Maica A. Nudalo
Jocel E. Espejo
John Eve Z. Barbolino Mr. Earl Rocha
Dianne Bolo TEACHER
Case Study No.10

Starbucks-Quality Plus Social Conscious Sells Around The World

Starbucks was started in 1971 by three academicians in Settle . Ten years later ,
Howard Schultz joined the company .During his trip to Italy , he realized that the
coffee house could be much more than that of a simple place where you drink
coffee . However , his ideas were not accepted by the owners of the company .
Being frustrated , Howard Schultz looked for investors eventually bought the
company ventured outside the Pacific Northwest , the company first experienced
disappointments which were followed by mixed to moderate success.

Howard’s dream was to not only provide a friendly environment for its costumers
,but also for its employees providing friendly service. This meant taking good care
of its employees providing health care benefits not only for its full-time
employees, but also for those working hours or more . Moreover ,employees
could also purchase stocks in the company. In a nutshell company pay and
benefits attracted motivated employees with good skills.

Starbucks aim was “to build a company with soul” . This meant that employees
had to listen carefully to what costumers want and meet their expectations . The
customer-oriented philosophy was expressed in mission statement which also
emphasized that employees treating one another who dignity, enjoying diversity
in the workplace , reflecting the local community . In a nutshell company having
high standard for coffee, being a good member of the community , and being of
course profitable.

The mission statement resulted in strategies that led one only to domestic , but
also internal expansion . In 2006 , the starbucks website displayed its presence 16
international countries including Beijing, Shanghai , and Hongkong. The long-term
goal was to have some 25,000 stores in various location . To achieve this long-
range aim, Starbucks designed stores with pleasant ambiance which customers ,
surrounded by coffee aroma, have been really enjoying . Also, since 2002, the
company worked with T-mobile USA by providing internet access in the coffee
shops . Besides offering caffeinated beverages, a great variety of speciality coffees
as well as teas are offered. Customers can also get juices, pastries , coffee mugs ,
coffee-making equipment, and even CD’s . Moreover , Starbucks partnered with
PespiCo and Dreyer’s Grand Ice cream and engaged in licensing agreements with
Krafts Foods . Coffee is also offered at warehouse clubs, Marriot Host
International , United States , and Wells Fargo Bank . Catalog sales were tried but
did not succeed and consequently were discontinued .Starbucks also invested in a
number unsuccessfully in a number of dot.com companies.

The sense of social responsibilities guided the company’s action. Not only did the
firm participate in local charities to “give back” to the community in which it
operates , but also applied this sense of responsibility to its purchasing practises .
Most of its retail stores and hotels with which the company had licensing
agreements , used Fair Trade Certified coffee.

Clearly , the company has been successful despite completion from coffee makers
such as Proctor & Gamble ,Nestle , and Kraft General Foods. How , the, will
Starbucks meet those and other challenges in the future.
Question

1.Why was Starbucks so successful ?

 Because of they treating his/her subordinates good. Aside from that a good
service to his employees to their customers . A good determination on
looking forward whats the best thing to do when time of crisis .And a good
responsibilities guided the company that leads them to success .And their
motivated aim “ to build a company with soul” which you can expect a
good service to the customers .

2.How does Starbucks differ from other coffee house ?

 Whats makes them unique is that when you get in to their store you can
feel the good ambiance ,nice facilities , an aroma of a coffee you smell and
a great variety coffees offered and a internet access to their shop . And the
employees that serve you a satisfied service .