POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SAN PEDRO CAMPUS

BUSINESS POLICY
AND STRATEGY
Sweetest Dreams Inn Case Study
Submitted to:
Prof. Minerva Ferranco

Submitted by:
Bandojo, Rizabelle V.
Barbieto, Lou Monica B.
BSA 3 1
I.

OVERVIEW

Mai Phan, the owner of Sweetest Dreams Inn, is thinking whether to make
some operational changes or improvement with his motel or join the motel chains
such as Days Inn or Holiday Inn because his current operation is about to lose money.
In the beginning, the day-to-day operations went fairly smoothly. However,
after two years of operation, his occupancy rates decreased and continued to be below
average while his operation goes on. Thats why he decided to look for ways to solve
his problem. Although he offers lodging at very low price, his motel lacks something
in which customers are looking for. Also, there is no specific target market identified
and he has a poor marketing strategy.
Joining the Holiday Inn would require capital investment and upgrade of some
facilities. On the other hand, joining Days Inn would not require a major capital
investment. It is targeting people interested in lower priced motels. Both companies
have their national names, central reservation system and good promotional or
marketing strategies.

II.

STATEMENT OF THE PROBLEM

The main concern in this situation is the strategy that Mr. Mai Phan will use in
order to attract many customers. The issue that he faces is to authorize operational
changes for Sweetest Dreams Inn or join one of the motel chains such as Days Inn
or Holiday Inn. Since he is currently losing money, he should take into
consideration some things and analyze which best method he will choose to be
able to satisfy the customers needs and wants.

III.

SOLUTION STATEMENT
Mr. Mai Phan is considered to be extremely production-oriented probably due to
the fact that he has held a job as a production manager for a company producing
industrial machinery for many years. He focuses only on developing his products
which he sold at the right price, but he has insufficient attention to what it is that
customers really need and want. By assuming that all customers want what he
himself wants when traveling, he created a product (a plain but modern room with
a comfortable bed, standard bath facilities, and free cable TV) without any
research done to either support or deny his ideas. He took the easy route when
deciding on whether or not to include additions such as a pool and a restaurant,
deeming them unnecessary.

 It is likely that Mr. Mai Phan lacks marketing strategy since he has only two
advertising signs to promote his inn. He should also offer website in order people
to easily find his hotel destination, rate, amenities, quality rating and availability.
The use of internet is very helpful in promoting his business. Offering advanced
reservation can be very useful since the research made by the regional tourist
bureau showed that 40% of the visitors plan their vacations and reserve rooms
more than 60 days in advanced.
The research made by the regional tourist bureau showed a high percentage of
visitors which indicate that recreational facilities were important in their choice of
accommodations. Mr. Mai Phan thought of it as unnecessary since he felt that a
relatively plain but modern room with a comfortable bed, standard bath facilities,
and free cable TV would be just enough to the customers. In order to gain lots of
customers, he should make improvement by having these recreational facilities.
But he is currently losing money and making these changes will likely put him in
greater debt. He can just join Days Inn since it does not require a major capital
investment unlike Holidays Inn. Joining Days Inn can be an advantage to him
because of its national names, central reservation systems and excellent
promotional strategy.
IV.

SWOT ANALYSIS

SWEETEST DREAMS INN

STRENGTHS

Reasonable rate
Free cable television
Continental breakfast
Comfortable
Good location

OPPORTUNITIES

WEAKNESSES

No diversified marketing
Only two advertising signs
Unappealing look of motel
Location
Lack of facilities and other services
Lack of Workforce

THREATS

V.

Joining Days Inn or Holiday Inn

Market development
Improvement in operation
Increase market share within the
industry due to offered lowest price

Many competitors located in area

(existing and new entrants)
Does not provide recreational
facilities and restaurant to customers
Rapid Economic changes
Growing competitor that also offer
low lodging rate

RECOMMENDATION

Make use of advertisement so that travelers may be aware of his motel and
what they are offering.
Offer unique services that are appealing to the customers.
Offer flexi rate services (Optional services) e.g. add-ons services with
additional reasonable price.
Tie up with Days Inn of America, Inc. which also offers economy lodgings
and is a known lodging chain.
Add amenities that are usually needed by customers.
Offer various choices that the customer can choose from.