Halina Mountain Resort: Case

Study
Transcript of Halina Mountain Resort: Case Study

Halina Mountain Resort

A Case Study
This figure is the approximate number of businesses failing annually.
This is according to the Department of Trade and Industry (DTI)
revelations during the Startup Awards.
80,000
I. Company Name
Blue Heights Realty and Development Corporation
Blue Heights Realty and Development Corporation
The Company
Blue Heights Realty and Development Corporation was organized in
October 1976, to own, add, improve, and manage any real estate so
acquired. The company had an authorized capital stock of P1 million
and paid- up capital of P900,000.
The corporate board is composed of
the following:
Mr. Victor E. Herrera, Sr. - Chairman
Mrs. Patricia F. Herrera - Vice - Chairman
Mr. Victor F. Herrera, Jr. - Director
Mr. Venancio F. Herrera - Director
Mr. Vicente F. Herrera - Director
The Industry
In July 1977, Victor Herrera, chairman of the board of Blue Heights
Realty and Development Corporation, was planning to launch his

company's first big project, a mineral hot spring resort at Laguna and
is to be named "Halina Mountain Resort" and will be located at Pansol,
Calamba, Laguna.
In March 1977, Victor Herrera asked his son, Victor, Jr., to take an
informal survey at the resorts nearby and gather relevant data and
information about them.
In May 1977, Victor Herrera, Sr. wrote the Ministry of Tourism (MOT) a
formal letter requesting approval for the establishment of a resort at
his 2.2 hectare land (1.5 hectares of which was inherited from his
father in 1974 and the remaining 700,000 hectares was purchased
after reaping substantial commissions from commodities trading)
stating five reasons, namely:
1. Present resorts within the area are still very inadequate to meet not
only the tourists but also the local needs and demands.
2. The first-class resort project will not be similar to and not just as
ordinary as the other existing resorts in the Pansol area.
3. The land side of the project is economically and technically best
suited for resort development as it is located on high grounds but
adjacent to the national highway.
4. Allowing a new and better resort in a certain place encourages
keener constructive competition that will result in the improvement of
facilities and services.
5. The company already enlisted the financial, technical, and moral
commitments of the business associates and friends, who have urged
and encouraged them to development such recreational resorts, that
they deem will be their future stockholders and regular patrons.
III. Statement of the Problem
Halina Mountain
Resort (A)
Halina Mountain

Resort (B)
Halina Mountain
Resort (C)
How will Blue Heights Realty and Development Corporation be able to
have enough budget to establish the Halina Mountain Resort?
What measures should be undertaken to ensure Halina's continuous
growth and increased popularity?
What alternatives can be proposed in order to make up for the
decreased income during the low months?
How would Halina Mountain Resort respond to the standardization
that the Tourist Association of Laguna given that Halina origianlly
charges only P5/person entrance fee as compared to others who
charges P7/person?
IV. Areas of Consideration
Strength
Halina Mountain Resort (A)
Halina Mountain Resort (B)
Halina Mountain Resort (C)
1. Company owned business.
1. Limited Resources.
1. Popularity gained through customers.
1. Natural disaster.
1. World class facilities and cleanliness.
2. Low months.
1. Price differentiation.
Threats
Opportunity
Weakness
Strength
Strength

Weakness
Opportunity
Opportunity
Threats
Threats
2. Restaurant inside.
Weakness
4. Resort location.
3. First resort to be reached in Laguna.
2. Safety measures.
3. The majority of the personnel.
2. Other competitors.
3. The resort is near a creek.
2. Price.
1. The personnel.
2. Other services competitors (resorts) don't offer yet.
1. Competitors started building own restaurants.
1. Developed character.
2. Lower entrance fee
3. Driveway and parking space
1. Very particular in expansion and improvement.
1. Quantity discounts and charge on the use of facilities that are not
covered by the standardization.
2. Corporate outings and school excursions
1. Standardization
2. Economy
V. Alternative Courses of Action
Halina Mountain Resort (A)

1. Blue Heights Realty and Development Corporation would pledge to

the Far East Bank and trust Company to make an agreement that the
land will stand as collateral for the loan budget.
2. Mr. Herrera could borrow budget for establishing the Halina
Mountain Resort to his relatives or friends.
Halina Mountain Resort (B)
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.
Halina Mountain Resort (C)
1. Making use of the undeveloped land in the resort such as
constructing another pool or new gimmicks such as a dining area
around the pool or developing it into a field that can be used to house
air soft, obstacle courses, and/or the like.
VII. Plan of Action
VI. Recommendation
Halina Mountain Resort (A)
Apply for the loan in order to gain enough resources to construct the
resort.
Halina Mountain Resort (B)
Focus on their competitive advantage which is the prices they offer.

Halina Mountain Resort (C)

Use the character that the resort gained over its 15 years of existence
in the are in order to fully maximize innovations that it will offer.
1. Make an Action Plan
2. Put It in Writing
3. Be Specific
4. Get SMART
Thank you for listening!
Angeles, Pia Marie
Aquino, Kim
Belvis, Almarie
Reyes, Kaila Camille
Viray, Russell Lawrence
II. Company Background