STRAMA PAPER (waterfront Hotel)

I.                  

Hotel industry is one of the sections in the business that is impossible to fade away because of its importance to the customers, most likely the tourists. Philippines is one of the most-seen countries in Asia because of its natural richness and it is environmentally wise. A lot of tourists from Australia, Europe, and North America go outside their countries to have a break from the busy life in the city. Philippines have enough facilities that can surely attract people from other countries to come and see the greatness, and experience the life away from the city. It also has a very colorful and deep history that people will surely want to know, see, and even feel. Every country has its own attractions and because of that, every single one of them need a place for the tourists to stay-in while they are exploring and enjoying the beauty of the country.

Waterfront Hotel and Casino is one of the leading Hotels and Casinos in Cebu, for its richness in historical sites and exciting destinations. Waterfront Hotel and Casino beckons you to catch the sights and hear the sounds of one of the most exotic venues in Asia. Feel the warmth of hospitality for which Filipinos are world-famous. Cebu proudly carries the distinct attribute of being one of the first themed casinos in the Philippines with a 19th century inspired ambiance. Its meticulously-designed interiors are reminiscent of a gaming plaza, while equipped with modern facilities meant for the total enjoyment of gaming patrons. More than all these are the courtesy and friendliness of casino staff which give customers a “Truly Southern Experience.”

      However, Shangri-La Mactan Resort and Spa is leading in the comparative analysis followed by Waterfront Hotel and Casino. The analysis suggest that even though the Waterfront Cebu City Hotel and Casino is not on the lead among its competitors, it is evidently in a good position for earning an above-average score and responding effectively in both internal and external factors, also they got above-average effectiveness in response to the functional areas of a business such as finance, marketing, operations, accounts and others that depend upon the nature of business and its size which is important. In the Strategic Position and Action Evaluation Matrix or the SPACE Matrix determines what type of strategy a company should undertake. Waterfront Cebu City Hotel and Casino has a strong competitive position in the market with rapid growth. Thus, it needs to use its internal strengths and take advantage of the external opportunities, to overcome internal weaknesses, and avoid external threats to develop a market penetration and market development strategy. In the Boston Consulting Group Matrix or the BCG Matrix, the Waterfront Cebu City Hotel and Casino is on Quadrant I, indicating that the business has a high market share in a growing market.

II.                Internal Assessment

Company Background

Waterfront Philippines, Inc. (WPI) was registered as an investment holding company for hotel, leisure and tourism businesses. WPI initially operates through its two wholly owned subsidiaries, namely, Waterfront Mactan Casino Hotel, Inc. (WMCHI) and Waterfront Cebu City Casino Hotel, Inc. (WCCCHI).

On March 23, 1995, WPI acquired Waterfront Promotion Ltd., (WPL) from Waterfront Amusement & Gaming Limited (WAGL) and became its wholly owned subsidiary. WPL was incorporated in the Cayman Islands to primarily provide international marketing and promotion of hotels and casinos.

Being an investment holding company in hotel or hospitality and gaming or recreation businesses, WPI has a strategic advantage in the marketplace. It can move and position itself to grab opportunities in hospitality industry, which is known to be highly competitive. The world class facilities that it brings to the Province of Cebu are designed to provide a diverse and complete entertainment system that will attract local, regional, and international visitors. *Source: SEC Form 17-A

Being the building blocks of the service and hospitality culture of Waterfront Hotels and Casinos, every employee is placed in the forefront of the service chain.  As the link of the organization to its customers, employees are guided to perform vital roles in realizing common yet critical and multi–faceted goals and objectives for the purpose of achieving customer satisfaction which is critical to the overall business success of the organization.

Waterfront Hotel and Casino maintained its long-standing social programs, working hand in hand with civic organizations such as the Mariquita Salimbangon Yeung Charitable Foundation whose project Operation Smile provides reconstructive facial surgery to indigent children and young adults. A special long time partner is the Kapwa ko Mahal Ko Foundation which was formed by group of media people as a public service program for under privileged, cancer-stricken children seeking medical attention. Every year Waterfront Cebu City Hotel and Casino hosts a Christmas Party for the children under the care of KKMK.

For the objective of achieving customer satisfaction, management and employees of the Waterfront Hotels and Casinos are enjoined towards strategic and collaborative efforts in maintaining the organization in competitive shape. The Waterfront Ways Program sets the framework of service and hospitality culture in the Property Hotel through which management and employees take a participatory stance in mapping out a strategic and collaborative effort to be competitive in the hospitality industry.

Launching of the Waterfront Ways Program officially starts the process of shaping the service and hospitality culture of Waterfront Hotels and Casinos in a Property Hotel. The program is maintained and distributed through the Waterfront Ways Leaflets which bears the mission statement of Waterfront Hotels and Casinos, slogan and the featured “Waterfront Way”or “Ways to go” featured for the day and the Waterfront Ways Posters, designed to capture thoughts, images and ideas conveyed by the Waterfront Ways Program. These are displayed in areas where these are highly visible to employees for their awareness about the Waterfront Ways Program to be reinforced constantly and be reminded all the time of the call to collaborative actions.

A. Mission/ Vision

MISSION

To provide equal opportunities and fair treatment to all employees for growth and advancement. To pursue relentlessly a means to capture and augment business with the highest level of integrity in the pursuit of profitability. To carry out company plans and programs with the highest degree of professionalism. To spearhead community based projects for the development of the tourism industry. To reach out to every customer with utmost passion, dedication and excellence.

VISION

To be the leader in the Tourism industry committed to provide the gracious Filipino hospitality towards total customer satisfaction.

B. WPI Board of Directors

 Board of Directors

 RENATO B. MAGADIA
Chairman of the Board 

KENNETH T. GATCHALIAN
President 

ELVIRA A. TING
Director & Treasurer 

ARTHUR M. LOPEZ
Independent Director 

LAMBERTO B. MERCADO, JR.
Director 

DEE HUA T. GATCHALIAN
Director 

RENO I. MAGADIA
Director 

SERGIO R. ORTIZ-LUIS, JR.
Independent Director

RUBEN D. TORRES
Independent Director 

WPI Officers

RENATO B. MAGADIA

Chairman

KENNETH T. GATCHALIAN

President

ELVIRA A. TING

Treasurer

ARTHUR R. PONSARAN

Corporate Secretary

ARSENIO A. ALFILER Jr.

Assistant Corporate Secretary

PRECILLA TORIANO

Compliance Officer

RICKY L. RICARDO

Corporate Affairs Officer

C. Organizational Chart

D. Corporate Objectives/ Functions

Our objectives are straightforward and seek to ensure we run a professional, profitable and ethical company, building relationships with customers, suppliers and investors, driving business at the hotels and developing the business as a whole.

In summary, we aim to:

Operate hotel properties, furnished and equipped to the top classification standards, and   maintain them at this level.

• Build relationships with investors, secure hotel management contracts and successfully manage the hotel investments, underpinning asset values.
• Further reinforce our position in the market place as a recognized and trusted Hotel Management Company.
• Achieve levels of profit sufficient to provide for reinvestment and suitable returns to shareholders and investors.
• Within each hotel operation, provide complete satisfaction to clientele in terms of facilities and service standards, food and beverage and related products, at a fair price.
• Manage hotels by human resource policies which encourage and reward individual and unified effort and achievement, provide training and personal development opportunities and create a working environment in which staff can feel a real sense of job involve
• Market the hotels through recognized and trusted Brands (if appropriate), selected agencies and direct marketing initiatives from the hotels, to high standards of ethics and taste.
• Adopt best commercial practice and ethical standards in dealing with clientele, suppliers of goods and services and other contacts.
• Seek to comply with all statutory legislation and other external relevant authorities. Define and keep under review Company policy, allowing flexibility for local requirements.

E. Product and Services

Rooms

A combination of elegance and style, Waterfront Cebu City Hotel & Casino features 561 exquisitely designed guest rooms.  

Lull yourself to sleep and leave the world behind in the comfort of a home away from home.

Dining

The pleasure and celebration of dining is a year-round sentiment at Waterfront Cebu City Hotel & Casino. The Chefs in its diverse roster of restaurants are dedicated to whipping up any culinary wishes, exactly how guests want it. The cobblestone strip, flanked with hand-painted scenic walls, teems with international cuisine choices. Each restaurant is unique in concept and flavor, but the common thread that unites them all is a level of originality and passion that ensures a memorable dining experience.

Amenities

Waterfront’s well-thought-of facilities ensure that your stay in the hotel is comfortable, and your needs are well attended to.

Fitness & Wellness

CITIGYM is the only 24-hour gym in the city with state-of-the-art fitness and Cybex equipment, a sauna and steam bath, a boxing ring and trainers, and a nutritionist. CITIGYM also offers dynamic and innovative group exercise classes and personalized exercise programs.

 Bask in the sunshine in a gorgeous swimming pool right outside the gym, or enjoy a 24-hour in-room massage service to soothe body and nourish the soul.

Business Center

The Business Center is equipped with modern office equipment, state-of-the- art computers, audio polycom service, WI-FI access and full convention and secretariat support. The Business Center also has two private boardrooms for smaller meetings. 

Ambassador Club Floor

The premier 18th floor has 24 enhanced guest rooms and suites with classy, modern amenities designed for utmost convenience and a two-floor Club Lounge built exclusively for the floor’s guests. It offers an exclusive, higher level of service and amenities that provide balance and comfort.

Gaming

            Located at the castle-like Waterfront Cebu City Hotel and Casino, PAGCOR – Cebu proudly carries the distinct attribute of being one of the first themed casinos in the Philippines with a 19th century inspired ambiance. Its meticulously-designed interiors are reminiscent of a gaming plaza, while equipped with modern facilities meant for the total enjoyment of gaming patrons. More than all these are the courtesy and friendliness of casino staff which give customers a “Truly Southern Experience.”

Corporate & Social Packages 

 Waterfront is the foremost gathering place in the city for milestone events.

F. Three Business Functions

1.      Management

Waterfront Hotel management processes include the board of directors and the administrative body. They are the one in charge of the decision making for the hotel. The hotel’s direction is in the hands of the board and administrative body.

 2.      Marketing

Waterfront Hotel’s Sales and marketing department past and current activities to provide special packages to guests are the followings:

Wedding Package

Package includes overnight for a two Bridal Suite, breakfast in bed or buffet breakfast at UNO for two, three layered wedding cake, ice carving, one gift certificate for an overnight stay for two on the first wedding anniversary (room only), bridal car for a maximum use of 2 hours, floral centerpieces for guest tables, use of the venue for a maximum of six hours, and a wedding bell with a pair of doves

Birthday Package

Package includes an overnight stay in a standard room, a gift certificate for two at La Gondola or Mizu worth PHP 1,000.00, birthday cake (10X12), floral centerpieces for guest tables, and guest book

 Debut Package

Public Address system, 18 roses, 18 candles, guest book, floral centerpieces for guest tables, dance floor (subject to availability)

 Party Package

One round of soft drinks, Public Address system, dance floor, complimentary use of the venue for a maximum of six hours

Marketing and sales have taken on greater sale responsibilities. In facilities with meeting space, the sales department is responsible for convention bookings, group sales, and banquet event sales.

3.      Operations

Hotel operations can be divided by five areas. There are front office, Housekeeping, marketing and sales, Human Resource and food and beverages.

The key responsibilities of the front office include reservations, registration, guest services, and checkout. The responsibilities of the front desk are successfully accomplished by numerous staff members, including the front office manager, assistant front office manager, reservation manager, concierge, front desk agent: key, mail and information clerks; bell staff, door staff, and baggage porters.

The housekeeping department, which is essential to the successful operation of every other department in the hotel, may have more employees than other departments. This department is responsible for inspecting all public and guest areas.

Marketing and sales have taken on greater sale responsibilities. In facilities with meeting space, the sales department is responsible for convention bookings, group sales, and banquet event sales. Other marketing functions include advertising and promotions.

In human resource department is responsible for recruitment and employment, training and replacement, and compensation and employee relations. Monitors the legal environment and establishes guidelines that are in compliance with equal employment and affirmative action.

The food and beverage department is complex and diverse. Its subunits can include a food production (kitchen) department, a food service, beverage and room service.

4.      Management Information Systems

Waterfront Hotel is a Wi-Fi Hotel. You don’t have to interconnect different cable wires to set up a unit. Waterfront would be offering free wireless and with greater consistency. Waterfront has its own website that updated regularly for the users.

G. FINANCIAL RATIO

The table shows different ratios which are profitability ratio, liquidity ratio and activity ratio for Waterfront Cebu City Hotel and Casino. Further interpretations are added after graphs.

Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.  In the graph, it shows as the years passed by, investment in Waterfont is slowly declining and it reached to the point it is negative.

Return on Assets (ROA) measures how profitable a company is relative to its total assets. In turn, it measures how efficiently a company uses its assets. Again as you can see here in the graph, Waterfront is not using well its funding to convert into earnings. They need to be more careful of their investments.

The figure shows the current ratio trend of Waterfront Cebu City Hotel and Casino from 2007-2009. The company shows its ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

Asset turnover measures a firm’s efficiency at using its assets in generating sales or revenue - the higher the number the better. In 2009, Waterfront’s asset turnover declined by 12%.  Maybe it is because it has a higher profit margin, and high profit margins have low asset turnover.

H. Internal Factor Evaluation (IFE Matrix)

The factors with the greatest importance in the organizational performance should be assigned with the highest weights. Total weighted scores well below 2.5 point shows the business is internally weak. Scores significantly above 2.5 indicate a strong internal position. In this chart, it shows that Waterfront Cebu City Hotel and Casino has a good internal position.

A.    Market Position: Market Shares

Basis # 1        

Survey results from 100 respondents ages 18-50 years old that is already tried to check-in on four hotels which is Shangri-La Mactan Resort & Spa, Waterfront Cebu City Hotel & Casino, Cebu Holiday Plaza Hotel and Hilton Cebu Resort and Spa.

1. Market Leader – Shangri-La Mactan Resort & Spa             

2. Market Challenger – Waterfront Cebu City Hotel & Casino

3 Market Follower – Cebu Holiday Plaza Hotel

4. Market Nicher –Hilton Cebu Resort and Spa

Basis # 2

            Hotel Company’s Financial Statement submitted to the Securities and Exchange Commission.

Company                                                                               Net Income

1. Shangri-La Mactan Resort & Spa                                       244,936,847

2. Waterfront Cebu City Hotel & Casino                                 50,218,550               

3. Cebu Holiday Plaza Hotel                                                     1,322,199       

4. Hilton Cebu Resort and Spa                                                     987,827

B.    Porter’s Five Forces Model

C. External Factor Evaluation (EFE Matrix)

Waterfront hotel got a total weighted score of 3.32 that indicates the organization is responding in an above average way to existing opportunities and threats in the industry.

D.    Competitors Profile Matrix (CPM Matrix)

Based on the research and analysis the result of the comparative profile matrix shows that Mactan Shangri-La Hotel and Resort is the most Competitive but having a total weighted score of 3.25 for Waterfront Hotel and Casino shows that they also have a good position in Hotel Industry. Waterfront Hotel and Casino needs to be more focus on their weaknesses to improve its competitive position.

Market Share

            Market share is one of the most important objectives of business like the Hotel Industry because without a large number of shares of the market, it is nearly impossible to reach a large enough number of customers to promote the services for expansion. Most customers go to Mactan Shangri-La, Holiday Plaza and Hilton Cebu Resort and Spa and other hotels.

Price Competitiveness

            Price is the amount of money that is paid for a product or service. In order to insure maximum value to the consumer, the price should be lower than that offered by the competitors or the same price but more attractive because of added incentives, such as longer payment terms.

Service Quality

            It involves a comparison of expectations with performance. Generally the customer is requesting a service at the service interface where the service encounter is being realized, and then the service is being provided by the provider and in the same time delivered to or consumed by the customer.

Product Design

            The facilities of hotels are built specifically to create a captive trade like casinos and holiday resorts. Though of course hotels have always been built in popular destinations, the defining characteristic of a resort hotel is that it exists purely to serve another attraction.

Globalization of Business

            The generalized expansion of international economic activity which includes increased international trade, growth of international investment (foreign investment) and international migration, and increased proliferation of technology among countries. Globalization is the increasing world-wide integration of markets for goods, services, labor, and capital.

Technological Leadership

            Technological leadership goes beyond managing the day-to-day logistics of a strategic technology planning process. It is about a social-change process. An effective technology leader should be a public advocate of the mission-driven use of technology, maximizing relationships with various groups, both within and outside of the organization, and empowering others to get invested and involved in planning for and deploying technology.

Customer Loyalty

            The degree to which a brand or company name has meaning to a customer, Customer Loyalty describes the tendency of a customer to choose one business or product/services over another for a particular need. Customer Loyalty is the goal of every business that will not only give profits but shows customer satisfaction.

Financial Position

            The status of a firm’s assets, liabilities and equity positions at a specific point in time, these will enable the company to add new business related activities such as advertisement, additional services, etc., and a good financial position is an advantage for the business entity.

I.            Strategy Formulation

A.    SWOT/TOWS Matrix

Strength:

1.      Strong Brand recognition

Waterfront Cebu City Hotel and Casino have a long established history in Cebu; they are well known for quality & reliable service also has a history of minimal service complaints.  And they are second largest Hotel and Casino Company in the Philippines.

2.      Experienced management team

Waterfront Cebu City Hotel and Casino have various senior staffs that had previous experience at higher quality hotels were truly customer service orientated. Senior staffs provide proper training for their newly hired staff. Waterfront takes pride in its training and development programs. In fact, Waterfront sets a high standard of achieving 70 training hours per person every year.

Supervisors and managers are enrolled in our Supervisory and Managerial Development Programs which equip them with both basic and advanced skills to help them effectively perform their roles as leaders of the organization. Those peers among the ranks with strong potentials and aiming for better positions in the organization are also encouraged to enroll in preparation for bigger responsibilities and challenges. 

3.      Corporate culture

Waterfront values speak of work culture where teamwork, respect for the individual, passion for success and excellence is highly encouraged and nurtured. They emphasize their TEN WATERFRONT WAYS in everyday work scene. They are committed to personal and professional development through extensive and well-defined professional trainings. 

4.      Financial ratios

Waterfront has a good income statement in the past few years, it increases every year, making them very competitive in their industry compare to other hotel and casino.

5.      Hotel Condition/Cleanliness

            This neo-classical structure design is a purpose-built international class hotel offering distinctive convention and business facilities, catering to the needs of the business and leisure community. Take the Lobby Lounge, as an example.  It is one of the largest around, but there is no feeling of being overwhelmed by its vastness. Instead, one tends to lose oneself in its warm ambience amidst high ceilings and tastefully hand-crafted Cebuano furniture. In fact, you will feel “upbeat” when seeking a place for a quick snack or just gab.

6.      Room Comfort/Standard

A combination of elegance and style, Waterfront Cebu City Hotel & Casino features 561 exquisitely designed guest rooms. Lull yourself to sleep and leave the world behind in the comfort of a home away from home. All rooms are fully carpeted; central air-conditioned, equipped with IDD phones, cable TV, mini-bar, safety deposit box, shower and bath, and has an unobstructed view of the city or the mountains. 

7.      Food/Dining

The pleasure and celebration of dining is a year-round sentiment at Waterfront Cebu City Hotel & Casino. The Chefs in its diverse roster of restaurants are dedicated to whipping up any culinary wishes, exactly how guests want it. Restaurant row at the Hotel is referred to as “The Gourmet Walk”. The cobblestone strip, flanked with hand-painted scenic walls, teems with international cuisine choices. Each restaurant is unique in concept and flavor, but the common thread that unites them all is a level of originality and passion that ensures a memorable dining experience. 

8.      Gaming

Located at the castle-like Waterfront Cebu City Hotel and Casino, PAGCOR – Cebu proudly carries the distinct attribute of being one of the first themed casinos in the Philippines with a 19th century inspired ambiance. Its meticulously-designed interiors are reminiscent of a gaming plaza, while equipped with modern facilities meant for the total enjoyment of gaming patrons. More than all these are the courtesy and friendliness of casino staff which give customers a “Truly Southern Experience.”

9.      Prime Location

At the center of the Queen City of the South is Waterfront Cebu City Hotel & Casino, one of the Philippines’ famous landmarks. Located 30 minutes from Mactan international Airport, and a stone’s throw away from the city’s financial district and best attractions, Waterfront Cebu city Hotel & Casino is the place to go and stay.

Weakness:

1.      Little access to international market

Waterfront is strictly a local company because most properties are located in Philippines.

2.      Little diversification

They do not distribute investments among different companies or securities in order to limit losses in the event of a fall in a particular market or industry.

3.      Ineffective promotions and advertisements

Waterfront Cebu City Hotel and Casino is not really active when it comes to advertising or promoting their company which makes the general public have lack of awareness of them.

4.      Age of the building

Most competitors of Waterfront Cebu City Hotel and Casino designed and renovated their facility to a much modern designs, which really makes the facility of Waterfront look old and uncomfortable.

5.      Poor service

Based on the comments, some customers did not really like the slow check out process. Also some of the customers experienced terrible room service when they ordered food.

6.      Poor staff

Some staffs are afraid to make decisions on their own. Staffs have to refer to the senior staff before they can give a service. Some customers find it really hard to deal with them, which is why some customers directly go to senior staffs if they needed something.

Opportunities:

1.      Recent majestic upgrades

Waterfront Cebu City Hotel and Casino can upgrade their buildings to attract high end customers. 

2.      Economic status

According to the Tourism Statistics in the Philippines, Tourist volume in the country’s major destinations from January to May 2010 totalled to 3.65 million for an increase of 5.37 % vis-à-vis the same period in 2009.  The movement of foreign tourists in key tourist areas expanded by 12.81% compared to the travel of domestic tourists which posted 2.12% growth.

3.      Environment

Our country has many attractive tourist spots. Waterfront Cebu City Hotel and Casino beckons you to catch the sights and hear the sounds of one of the most exotic venues in Asia like the Magellan’s Marker, Magellan’s Cross, Fort San Pedro, Lapu-Lapu Monument, etc. Feel the warmth of hospitality for which Filipinos are world-famous.

4.      Corporate sponsorships

Sponsorships can help Waterfront Cebu City Hotel and Casino to be known locally around the Philippines.

5.      Offer an array of distinctive and specialized services to the high end guests and high rollers 

Striving with their best efforts to be the number one hotel and casino in the Philippines, Waterfront Cebu City Hotel and Casino can try to adapt the methods from some of its global competitors so that they can be at the same level.

6.      Rising Online Reservations Business

Waterfront Cebu City Hotel and Casino has to emphasize more on their services. One of the services is the online reservations which they really have to make it easy for customers to make reservations whenever customers are far away in Cebu. 

7.      Growth In Hospitality Industry

As other hotels are trying to make the customers aware of their company, it also comes to the point that customers are looking for the right service for them to enjoy life. Customers really become sensitive when it comes to royal treatment.

Threats:

1.      Hotels near the venue

There are competitors that can compete with Waterfront. It becomes a saturated market because of price war and services.

2.      Inflation

Any increase of price in the commodities can affect their pricing because of the costing.

3.      Increasing of taxes in country or city

They should make adjustments in their pricing if there is any necessary increase of tax in the Philippines, particularly in Cebu. The city the casino is located in will receive a large amount of tax dollars from the casino, thus making that city wealthier. The state will also be getting a cut from the profits, from taxes and any fees the casino might need to pay to the state’s gaming commission in order to stay operational.

4.      Worker strikes

Give the best benefits to the employees so that they can avoid job withdrawals and any distraction that can affect the company.

5.      Terrorism

  An example of this is the September 11^th that was a major blow to the hotel industry. A similar event could result in another down turn.

6.      National disaster

An example of this major threat is typhoon Ondoy that occurred September 26, 2009. They should be careful and be ready if there is any new one coming because it can affect the sales of the hotel.

Two strategies were formulated from the TOWS Matrix: Market penetration and service development. Waterfront Cebu City Hotel and Casino needs to penetrate the market by advertising or promoting their company and also they have to develop their service like the international hotels.

  B.    Strategic Position and Action Evaluation Matrix (SPACE Matrix)

   The Strategic Position and Action Evaluation (SPACE) Matrix of Waterfront Cebu City Hotel and Casino show that its position is in Quadrant 1 or the aggressive side which means that the company has to use its internal strengths to develop market penetration and market development strategies.

C.    Boston Consulting Group Matrix (BCG Matrix)

  The company is on Quadrant I that shows high market share in a growing market. They are one of the leaders in the business but still need a lot of support for promotion a placement. If market share is kept, Waterfront Cebu City Hotel and Casino are likely to grow into cash cows.

D.    Internal and External Matrix (IE Matrix)

  The result in the graph shows intensive and aggressive tactical strategies. The strategies should focus on market penetration, market development, and product development. From the operational perspective, a backward integration, forward integration, and horizontal integration should also be considered.

E.    Grand Strategy Matrix (GSM Matrix)

As figure identify that Waterfront Cebu City Hotel and Casino comes in the 1^st quadrant. The company management must focus on current market and achieve growth by adopting product development, market development and market penetration strategies. The company has abundant resources and competitive advantage through which it can achieve growth by adopting the backward and forward integration strategies.  Waterfront Cebu City Hotel and Casino can also adopt the related diversification strategy to reduce its risk with broad portfolio or product line. Waterfront Cebu City Hotel and Casino can afford to take benefit of external opportunities in many areas. It can also take risks being aggressive when necessary. 

F.    Quantitative Strategic Planning Matrix (QSPM Matrix)

The results showed that market penetration strategy is more desirable than service development. The scores of the two strategies are similar that they can be both implemented by the company.

V.            Conclusion

Based on the statistical outcomes of the different matrices, the following conclusions have been made:

In the Internal Factor Evaluation Matrix or the IFE Matrix, the Waterfront Cebu City Hotel and Casino garnered a total weighted score of 2.98 which represent its above-average effectiveness in response to the functional areas of a business such as finance, marketing, operations, accounts and others that depend upon the nature of business and its size. It also advises that the firm has strong position in terms of its internal issues, maintain its strengths, and is careful in balancing and improving its weaknesses.

In the External Factor Evaluation Matrix or the EFE Matrix, the Waterfront Cebu City Hotel and Casino got a total weighted score of 3.32 which indicates that the business is responding in above-average effectiveness in the external environment or macro environment of the firm such as economic, social, technological, government, political, legal and competitive information.

According to the Competitive Profile Matrix or the CPM, the Shangri-La’s Mactan Resort and Spa is on the lead in the comparative analysis with the total weighted score of 3.78 and followed by the Waterfront Cebu City Hotel and Casino with the total weighted score of 3.25. The analysis suggest that even though the Waterfront Cebu City Hotel and Casino is not on the lead among its competitors, it is evidently in a good position for earning an above-average score and is responding effectively in both the internal and external factors.

The Strategic Position and Action Evaluation Matrix or the SPACE Matrix determines what type of strategy a company should undertake. The Waterfront Cebu City Hotel and Casino got an Environmental Stability  (ES) Average of -3.2, Industry Strength (IS) Average of 3.67, Competitive Advantage (CA) Average of -2.17, and Financial Strength (FS) Average of 3.8 which lead to Directional Vector Coordinates of +1.5 in the X-Axis and +0.60 in the Y-Axis. After plotting the values in the matrix, it was concluded that The Waterfront Cebu City Hotel and Casino positioned in Quadrant 1 which suggest that the company should pursue an Aggressive Strategy. This means that the Waterfront Cebu City Hotel and Casino has a strong competitive position in the market with rapid growth. Thus, it needs to use its internal strengths and take advantage of the external opportunities, overcome internal weaknesses, and avoid external threats to develop a market penetration and market development strategy.

In the Boston Consulting Group Matrix or the BCG Matrix, the Waterfront Cebu City Hotel and Casino is on Quadrant I that indicates that the business has a high market share in a growing market.

The Internal and External Matrix or the IE Matrix is an important strategic tool which comes under the portfolio management considered much similar to BCG Matrix. The IE Matrix for Waterfront Cebu City Hotel and Casino tells that the business should grow and build its position by engaging in an intensive and aggressive tactical strategy that focuses on market penetration and market development. From the operational perspective, a backward integration, forward integration, and horizontal integration should also be considered.

Strategy Implementation

1. Marketing

The company should put focus on possible accessibility to the international market for potential global expansion and market penetration outside the domestic market. They should be assertive enough to put more effort on advertising and promotion for both domestic and international opportunities for the general public to gain much awareness. 

2. Finance

The company’s financial statement show that the company is in a stable position financially. They should divert generated profit to fund the Research and Development department and Marketing programs.

3. Research and Development

        The Research and Development department will play a major role if the strategies recommended are to be implemented. After a successful market penetration, the company should be able to satisfy more demands after increasing domestic and global expansion and promotion.

Financials

This section will show how the company will spend the proposed budget of PHP 4,300,000 for a span of 1 year. The breakdown and the summary of marketing expense budget will be shown.

Marketing-Expense Budget Breakdown 

The group therefore concludes that with proper implementation of the information presented above subjected to kaizen. The Waterfront Cebu City Hotel and Casino will have its publicity in to a wider extent.

I.            Appendices

Physical Structure

Sample Survey Question

Survey

            *Respondents who are already experienced the services of the 4 hotels in Cebu:Mactan Shangri-La Hotel and Resort,Cebu Holiday Plaza, Waterfront Hotel, Hilton Cebu and Spa.

 1. In what hotel or resort do you often stay when you’re on vacation?­

2. What Hotel has the good price and at the same time a good service rendered?

3. What hotel has the minimal waiting time in line at “check-in?”

4. What hotel has courteously greeted you at front desk?

5. What hotel has the best reservation before you arrive?

6. What hotel has a good bell person promptly after “check-in”?

7. What hotel has a good housekeeping service timely and efficient during your stay?

8. The best hotel service with courtesy and helpfulness of the person that will take care of your room service order.

9. What hotel has the best service?

10. What would encourage you to come back to this Hotels?

Strama paper(Waterfront: Internal Analysis 4)

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Strama Paper

Strama paper(Waterfront: Internal Analysis 1) I. Executive Summary Hotel industry is one of the sections in the business that is impossible to fade away because of its importance to the customers, most likely the tourists. Philippines is one of the most-seen countries in Asia because of its natural richness and it is environmentally wise. A lot of tourists from Australia, Europe, and North America go outside their countries to have a break from the busy life in the city. Philippines have enough facilities that can surely attract people from other countries to come and see the greatness, and experience the life away from the city. It also has a very colorful and deep history that people will surely want to know, see, and even feel. Every country has its own attractions and because of that, every single one of them need a place for the tourists to stay-in while they are exploring and enjoying the beauty of the country. Waterfront Hotel and Casino is one of the leading Hotels and Casinos in Cebu, for its richness in historical sites and exciting destinations. Waterfront Hotel and Casino beckons you to catch the sights and hear the sounds of one of the most exotic venues in Asia. Feel the warmth of hospitality for which Filipinos are world-famous. Cebu proudly carries the distinct attribute of being one of the first themed casinos in the Philippines with a 19th century inspired ambiance. Its meticulously-designed interiors are reminiscent of a gaming plaza, while equipped with modern facilities meant for the total enjoyment of gaming patrons. More than all these are the courtesy and friendliness of casino staff which give customers a “Truly Southern Experience.” However, Shangri-La Mactan Resort and Spa is leading in the comparative analysis followed by Waterfront Hotel and Casino. The analysis suggest that even though the Waterfront Cebu City Hotel and Casino is not on the lead among its competitors, it is evidently in a good position for earning an above-average score and responding effectively in both internal and external factors, also they got above-average effectiveness in response to the functional areas of a business such as finance, marketing, operations, accounts and others that depend upon the nature of business and its size which is important. In the Strategic Position and Action Evaluation Matrix or the SPACE Matrix determines what type of strategy a company should undertake. Waterfront Cebu City Hotel and Casino has a strong competitive position in the market with rapid growth. Thus, it needs to use its internal strengths and take advantage of the external opportunities, to overcome internal weaknesses, and avoid external threats to develop a market penetration and market development strategy. In the Boston Consulting Group Matrix or the BCG Matrix, the Waterfront Cebu City Hotel and Casino is on Quadrant I, indicating that the business has a high market share in a growing market. II. Internal Assessment Company Background Waterfront Philippines, Inc. (WPI) was registered as an investment holding company for hotel, leisure and tourism businesses. WPI initially operates through its two wholly owned subsidiaries, namely, Waterfront Mactan Casino Hotel, Inc. (WMCHI) and Waterfront Cebu City Casino Hotel, Inc. (WCCCHI). On March 23, 1995, WPI acquired Waterfront Promotion Ltd., (WPL) from Waterfront Amusement & Gaming Limited (WAGL) and became its wholly owned subsidiary. WPL was incorporated in the Cayman Islands to primarily provide international marketing and promotion of hotels and casinos. Being an investment holding company in hotel or hospitality and gaming or recreation businesses, WPI has a strategic advantage in the marketplace. It can move and position itself to grab opportunities in hospitality industry, which is known to be highly competitive. The world class facilities that it brings to the Province of Cebu are designed to provide a diverse and complete entertainment system that will attract local, regional, and international visitors. *Source: SEC Form 17-A Being the building blocks of the service and hospitality culture of Waterfront Hotels and Casinos, every employee is placed in the forefront of the service chain. As the link of the organization to its customers, employees are guided to perform vital roles in realizing common yet critical and multi–faceted goals and objectives for the purpose of achieving customer satisfaction which is critical to the overall business success of the organization. Waterfront Hotel and Casino maintained its long-standing social programs, working hand in hand with civic organizations such as the Mariquita Salimbangon Yeung Charitable Foundation whose project Operation Smile provides reconstructive facial surgery to indigent children and young adults. A special long time partner is the Kapwa ko Mahal Ko Foundation which was formed by group of media people as a public service program for under privileged, cancer-stricken children seeking medical attention. Every year Waterfront Cebu City Hotel and Casino hosts a Christmas Party for the children under the care of KKMK. For the objective of achieving customer satisfaction, management and employees of the Waterfront Hotels and Casinos are enjoined towards strategic and collaborative efforts in maintaining the organization in competitive shape. The Waterfront Ways Program sets the framework of service and hospitality culture in the Property Hotel through which management and employees take a participatory stance in mapping out a strategic and collaborative effort to be competitive in the hospitality industry. Launching of the Waterfront Ways Program officially starts the process of shaping the service and hospitality culture of Waterfront Hotels and Casinos in a Property Hotel. The program is maintained and distributed through the Waterfront Ways Leaflets which bears the mission statement of Waterfront Hotels and Casinos, slogan and the featured “Waterfront Way” or “Ways to go” featured for the day and the Waterfront Ways Posters, designed to capture thoughts, images and ideas conveyed by the Waterfront Ways Program. These are displayed in areas where these are highly visible to employees for their awareness about the Waterfront Ways Program to be reinforced constantly and be reminded all the time of the call to collaborative actions. A. Mission/ Vision MISSION To provide equal opportunities and fair treatment to all employees for growth and advancement. To pursue relentlessly a means to capture and augment business with the highest level of integrity in the pursuit of profitability. To carry out company plans and programs with the highest degree of professionalism. To spearhead community based projects for the development of the tourism industry. To reach out to every customer with utmost passion, dedication and excellence. VISION To be the leader in the Tourism industry committed to provide the gracious Filipino hospitality towards total customer satisfaction.