Halina Mountain Resort

Case Study #11

Halina Mountain Resort (A)

Submitted by:

Dela Rosa, Robie Rosslyne M.

Submitted to:

Prof. Lacerona

BMG 114 MWF 9:30-10:30

Halina Mountain Resort (A)

In July 1977, Victor Herrera, chairman of the board of Blue Heights Realty and Development corporation, was anxious to launch his company’s first big project, a mineral hot spring resort at Bucal, Calamba , Laguna. Herrera was confident that the resort, dubbed Halina Mountain Resort, would compete favorably against the established ones in the area. However, he wondered whether Far East Bank & Trust Company, the bank from which he applied for a P1.3 million loan project, would recognize the merits of his proposal.

Time Context: July 1977

I. Objectives

• To be able to find the company a sufficient fund for the operations of Halina Mountain Resort.
• To establish a resort and be one of the first class resorts in the country.
• To create a resort that will satisfy the customers by giving a good quality of services and complete facilities.

II. Central Problem

Where will the Blue Heights Realty and Development Corporation get their enough funds for them to establish the Halina Mountain Resort?

III. Areas of Consideration (SWOT Analysis)

Strength

1. Have restaurant inside
2. Halina Mountain Resort is a company owned business
3. Only resort to be establish in Laguna

Weaknesses

1. Lack of budget
2. Family owned which may result to relationship conflict
3. No safety measures

Opportunities

1. High demand
2. Tourism
3. Popularity gained because of their customers who shares their experiences, pictures and videos to other people

Threats

1. Competitors
2. The resort is near to creek
3. Natural disasters like typhoon and earthquake

IV. Alternative Courses of Action

1.The company should continue to loan from the Far East Bank and Trust Company.

Advantages:

• They can borrow money from Far East Bank and Trust Company
• They can have a budget to do the operations of the resort

Disadvantages:

• They may not be approve to loan
• The cannot support the full operation of establishing the resort

2.Find a potential investors.

Advantages:

• Company can have an investors who are willing to fund their operations

Disadvantages:

• Finding investors may consume a lot of time
• Getting investor that will fund a business can result to  potential of loss of control over the enterprise.

3.Borrow a budget that will help them in establishing the resort from their relatives or friends.