I. Executive Summary Residence Inn Tagaytay is a business part of the Zoomanity Group which specializes on both zoo and hotel industry. The business’ visualization is to be the best animal theme park which promotes and benefits of education having enjoyment. Cited are the factors which affect the business internally and externally which will be the basis of the study. To further understand the variables, strategy formulation tools are used. Following are tools used: Internal Factor Evaluation Matrix which evaluates internal factors, External Factor Evaluation Matrix responsible for external forces and Competitor Profile Matrix wherein the business is compared with its competitors with the basis of critical success factors. To merely understand the outcome, all of which are evaluated through Internal-External Matrix, Boston Consultancy Group Matrix, Grand Strategy Matrix, TOWS Matrix and Quantitative Strategic Planning Matrix.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
I. Executive Summary
Residence Inn Tagaytay is a business part of the Zoomanity Group
which specializes on both zoo and hotel industry. The business’
visualization is to be the best animal theme park which promotes and
benefits of education having enjoyment.
Cited are the factors which affect the business internally and
externally which will be the basis of the study. To further understand the
variables, strategy formulation tools are used. Following are tools used:
Internal Factor Evaluation Matrix which evaluates internal factors, External
Factor Evaluation Matrix responsible for external forces and Competitor
Profile Matrix wherein the business is compared with its competitors with
the basis of critical success factors. To merely understand the outcome,
all of which are evaluated through Internal-External Matrix, Boston
Consultancy Group Matrix, Grand Strategy Matrix, TOWS Matrix and
Quantitative Strategic Planning Matrix. Seeing that the results are
assessed, broad strategies relevant for the success are determined.
Projected also is the action plan for the objectives. Finally, to conclude,
strategies proposed are hereby reviewed through evaluation and control.
II. Mission, Vision, Core Values
Mission“To showcase various exotic and farm animals in simulated natural setting
and to enable park visitors to have an animal encounter experience not found elsewhere in the Philippines.”
Vision“To be the best animal theme park in the country that combines visitor
entertainment and amusement with education, animal welfare and preservation.”
III. Internal & External Environment AnalysisA. SWOT Analysis
STRENGTHS WEAKNESSES
S1. Well-experienced top managementS2. Location is in a scenic placeS3. Member of Zoomanity Group of CompaniesS4. The only zoo in Tagaytay and CaviteS5. Incorporated with Paradizoo (livestock park) S6. Offer variety of amusement shows
W1. Misperceived company nameW2. Unorganized and unmaintained cleanliness on trail and animal cagesW3. Poor parking areaW4. Unattractive signage of “Residence Inn” W5. Limited room accommodations
OPPORTUNITIES THREATS
O1. Wide array of marketO2. Latest and future trends and innovations in the Zoo industryO3. Government support in educational placesO4. Cool and invigorating climate of Tagaytay City
T1. Presence of other leisure parkT2. Competitors outside CaviteT3. Extinction of some animalsT4. Rising prices of resources
B. Internal Factor Evaluation Matrix
IFE matrix is a strategy-formulation tool use to evaluate internal
factors of a business which are the strengths and weaknesses of and it
measures the business strength capabilities to respond on its
weaknesses.
IFE matrix has an average weighted score of 2.50 .It is said that if
the total weighted score is less than the average the business is weak
internally. Whereas if higher than 2.5, the business has a strong internal
position. Rating will measure the minor and major strength and weakness
of the company.
The Residence Inn IFE evaluation is shown below:
RATING: Major weakness (1), Minor weakness (2), Minor strength (3), Major strength (4)WIEGHT: .05 – Slightly affects the business
.10 – Moderately affects the business
.15 – Extremely affects the business
STRENGTH WEIGHT RATING (R) W x R
Well-experienced top management
.15 4 .60
Location is in a scenic place .05 4 .20Member of Zoomanity Group of Companies
.10 4 .40
The only zoo in Tagaytay and Cavite
.10 3 .30
Incorporated with Paradizoo (livestock park)
.05 3 .15
Offer variety of amusement shows
.10 3 .30
WEAKNESS
Misperceived company name .15 1 .15Unorganized and unmaintained cleanliness on
.05 2 .10
trail and animal cagesPoor parking area .05 2 .10Unattractive signage of “Residence Inn”
.15 1 .15
Limited room accommodations
.05 2 .10
TOTAL 1.00 2.60
The total weighted score of the Residence Inn is gathered using the IFE
Matrix. With the collected weighted score of 2.60, it says that Residence Inn
Tagaytay has a strong internal position. These means that the strengths of the
business highly correspond with the possible internal problems they may
encounter.
C. External Factor Evaluation Matrix
EFE Matrix is the same method as IFE matrix but differs in factors to
evaluate the business. It uses external factors which are the opportunities
and threats and it measures the business’ ability to respond on external
factors.
EFE matrix has an average weighted score of 2.50 .It is said that if
the total weighted score is less than the average the business is weak to
take action on external factors. Whereas if higher than 2.5, the business
has a strong potential to respond. Rating will measure the minor and
major opportunities and threats of a business.
The Residence Inn EFE evaluation is shown below:
RATING: Major threat (1), Minor threat (2), Minor opportunity (3), Major opportunity (4)
WIEGHT: .05 – Slightly affects the business.10 – Moderately affects the business.15 – Extremely affects the business
OPPORTUNITIES WEIGHT RATING (R) W x R
Wide array of market .15 4 .60Latest and future trends and innovations in the Zoo industry
.15 4 .60
Government support in educational places
.10 4 .40
Cool and invigorating climate of Tagaytay
.10 3 .30
THREATS
Presence of other leisure park (indirect competitors)
.15 1 .15
Competitors outside Cavite .15 2 .30Extinction of some animals .10 1 .10Rising prices of resources .10 2 .20
TOTAL 1.00 2.65
The total weighted score of the Residence Inn is gathered using the EFE
Matrix. The score of 2.65 which is above average indicates that Residence Inn
has a greater ability to respond on external factors. This means that the company
has enough strategies to take action on the forces that affects the company
externally.
D. Competitor Profile Matrix
CPM is a tool use to compare the firm’s critical success factors with
its competitors. Critical success factors are the main aspects of a business
that must go well to achieve success.
CPM has ratings that weigh the response of the business to the
critical success factors of a theme park.
The Residence Inn competitive weighted score is shown below:
RATING: response is poor (1)response is average (2)response is above average (3)response is superior (4)
Residence Inn has weak market position and has high market
growth. Although there is a rapid growth of market, they are unable to
compete because of weak market position that is why quadrant II offers 5
options that the business may acquire to develop their competitiveness.
a.) Market Development: through this strategy, Residence Inn may
target new segment of the market to increase sales and help to
improve market position provided that they offer another
business which is the hotel. Along with this is the idea of
creating a new benefit that customers may get from their animal
theme park and that is not just fun but learning. This strategy
will also correspond with the objective of being at the top 10
company in the Zoo industry.
b.) Market Penetration: large market will not help Residence Inn to
have strong market position unless it has been penetrated. To
achieve this they must gain the competitor’s market share.
Another is through advertising they may persuade new
segments of the market.
c.) Product/Service Development: Residence Inn may attain this
kind of developments by having innovations with the animal
theme parks (technological driven) and with the management of
their employees.
We don’t consider the 4th and the 5th options as we aim to achieve
the long-term objectives.
d.) TOWS Matrix
TOWS Matrix is a tool use to generate strategies needed by
matching up the internal and external factors of the company. It uses
the SWOT and constructs the SO strategies, ST strategies, WO
strategies and WT strategies.
External Factors
Internal Factors
OPPORTUNITIESO1. Wide array of marketO2. Latest and future trends and innovations in the Zoo industryO3. Government support in educational places O4. Cool and invigorating climate of Tagaytay
THREATST1. Presence of other leisure park in TagaytayT2. Competitors outside CaviteT3. Extinction of some animalsT4. Rising prices of resources
STRENGTHSS1. Well-experienced top managementS2. Location is in a scenic placeS3. Member of Zoomanity Group of CompaniesS4. The only zoo in Tagaytay and CaviteS5. Incorporated with Paradizoo(livestock park) S6. Offer variety of amusement shows
SO STRATEGIESS1-O1, O2S2-04S4-O3S6-O2
ST STRATEGIESS4-T1S3-T2S5-T3S1-T4S6- T1
WEAKNESSESW1. Misperceived company nameW2. Unorganized and unmaintained cleanliness on trail and animal cagesW3. Poor parking areaW4. Unattractive signage of “Residence Inn”W5. Limited room accommodations
WO STRATEGIESW1-O1W1-O3W2-O2W3-O2W4-O2W5-O4
WT STRATEGIESW4, W3,W2-T1 W5-T1
SO STRATEGIES
S1-O1, O2: Top management will be responsible on what decision
to take for the business advancement to penetrate the market.
S2-04: These two factors give Residence Inn an exceptional
distinction among other Zoos as they are rendering amusement
with relaxation.
S4-O3: As the national government supports the educational
places, the city government may also promote Residence Inn as it
is the only educational animal theme park in Tagaytay City.
S6-O2: To come up with the future trends in the Zoo industry,
Residence Inn may offer additional services that will bring
enjoyment to the customers like movies/TV shows starring the
animals, animal rides and etc. for the customer’s greater
satisfaction.
ST STRATEGIES
S4-T1: The business must have put great emphasis that above all
leisure parks in Tagaytay City, only Residence Inn offer to their
customer an encounter with the wildlife.
S3-T2: Competition outside the town will still be penetrated by the
other members of Zoomanity Group.
S5-T3: Paradizoo may help in nurturing the wildlife resources.
S1-T4: Well-experienced top management will already know
how to respond on some with the cost incurred in the business
operation to cope up their sales.
S6- T1: For competitive advantage, residence inn may use
their amusement shows to compete with other leisure parks in
Tagaytay City.
WO STRATEGIES
W1-O1: These opportunity may help the company makes clear
indication of what their business is into through ‘word of mouth’ of
these wide array of market.
W1-O3: As Residence Inn portray amusement with learning,
government will support this matter.
W2-O2: Innovations on theme park/Zoo industry may bring the
management the idea to have total quality of services in delivering
a supreme satisfaction to their customer.
W3-O2: Along with the innovations and changes that the business
may take is the reconstruction of their parking area.
W4-O2: To market well the changes that may be made in their
business operation, the business may pursue development with
their signage.
W5-O4: The cool distinctive climate of Tagaytay City may persuade
the market in manila and in other tropical areas to accommodate
Residence Inn hotels, through these possible demand, additional
rooms are needed to be developed for better customer satisfaction.
WT STRATEGIES
W4, W3, W2-T1: These negative factors may affect the general
sale of Residence Inn because customer may not get satisfied with
their quality service and may choose to visit other leisure parks in
Tagaytay City. With these problems, Residence Inn must develop
service quality and renovate their facilities and signage to avoid
waning of market share.
W5-T1: By offering another business which is the hotel, they may
use this to make an advantage with their competitors.
e.) Quantitative Strategic Planning Matrix
QSPM helps the management to formulate alternatives that
the business may practice to support improvement and
competence. It uses the SWOT or CSF as the basis to weight and
rate the strategy options. Ratings measure the relevance and
acceptability of the SWOT/CSF in the alternatives.
STRENGTH Well-experienced top management .15 4 .60 4 .60 4 .60Location is in a scenic place .05 1 .5 3 .15 2 .10Member of Zoomanity Group of Companies
.10 1 .10 1 .10 0 .0
The only zoo in Tagaytay and Cavite .10 1 .10 2 .20 2 .20Incorporated with Paradizoo (livestock park)
.05 2 .10 2 .10 1 .05
Offer variety of amusement shows .10 4 .40 4 .40 2 .20WEAKNESSMisperceived company name .15 3 .45 4 .60 2 .15Unorganized and unmaintained cleanliness on trail and animal cages
OPPORTUNITIESWide array of market .15 4 .60 4 .60 1 .15Latest and future trends and innovations in the Zoo industry
.15 4 .60 3 .45 3 .45
Government support in educational places .10 4 .40 3 .30 1 .10Cool and invigorating climate of Tagaytay .10 2 .20 2 .20 0 .10THREATS.Presence of other leisure park (indirect competitors)