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Introduction

Mr. Oscar Mendoza is the proprietor of a travel business and has been mulling over the possibility of launching a hotel.
With the good fortune, the Hotel Continental was open to potential tenants. He is contemplating owning a hotel so that he
can provide accommodations for all of his visitors. It goes without saying that he won’t just pick one option; rather, he’ll
have to think about a lot of different things, such as the setting, the leadership, the employees, and, most crucially, the
potential dangers. Therefore, by the time we reached the conclusion of this report, we would have learned both the
advantages and disadvantages, as well as the potential alternatives and the ultimate choice.
Mr. Mendoza investigated the possibility of leasing the Hotel Continental, which has suffered tremendous financial losses
over the course of the past two years as a direct result of inefficient management. In the district of Diliman in Quezon City,
the Hotel Continental can be found on Don Mariano Marcos Avenue. The fact that the Hotel Continental is equipped to
accommodate large tourist groups, particularly during the busiest travel months of December, January, July, and August,
is one of the many wonderful things to be said about this particular establishment. The hotel has a total of 27 guest rooms,
three event rooms with capacities ranging from 12 to 40 guests each, a coffee shop, a café that serves quick meals, a
formal dining room, and an indoor swimming pool. However, there are a large number of other venues to choose from that
serve as the main competitors, such as hotels, inns, resorts, apartments, pensions, lodges, and other types of locations
that cannot be classified.

In this case study, we will analyze the primary problem that Mr. Mendoza, the owner of Triumph Tours, is facing difficulty
securing hotel accommodations for his customers, particularly during the peak travel months that were indicated in the
previous paragraph. Now, the big question is, should Mr. Mendoza put in a bid for Hotel Continental in order to solve the
problem of his clients’ lack of suitable hotel accommodations and, consequently, increase his profits? In addition to putting
more emphasis on the primary issue, there are a few other difficulties that need to be emphasize, such as booking hotel
rooms for his tour groups. Given that they have very little to no experience in the administration of hotels. Facilities are
underutilized. Lastly, in terms of filling the remaining 60 percent of the annual capacity usage.
Objectives
This study will analyze current statistics and construct a convincing argument to determine whether or not Mr. Mendoza’s
lease of the Hotel Continental is profitable and sustainable. This study is intended to serve as a supplement to Mr.
Mendoza’s travel agency.
SWOT Analysis
To further put emphasis on the situation, SWOT analysis will be presented on this paper determining its Strength,
Weakness, Opportunities and Threats.
Strength
The fact that Triumph Tours possesses a marketing department illustrates the company’s level of experience and
competence in the sector. The Hotel Continental has everything that is required to serve the Triumph Tour tourist groups,
particularly during the months of December, January, July, and August, which are the months with the highest travel
volume. At the Hotel Continental, guests have access to a coffee shop, a restaurant that serves quick meals, an elegant
dining room, three event rooms with space for a total of twelve to forty people, and a swimming pool. The number of
tourists, and therefore the amount of money brought in by those tourists, rises during the months that are considered to be
the busiest for travel. Mr. Oscar Mendoza is in a position to manage his finances well given that he is able to sign a lease
on a hotel. Because to the improvement in law and order brought about by President Cory Aquino’s administration, the
number of tourists visiting the Philippines has increased. It is expected that as the economy continues to recover from the
Marcos administration, tourists will once again be able to travel across the Philippines without fear, which would lead to a
significant boost in revenue for hoteliers and restaurant owners.
Weakness
Due to the fact that Mr. Oscar Mendoza and his marketing staff have very little to no expertise in hotel administration,
there is a possibility that this will lead to poor management and monetary losses. In the event that they do not want to
lease the property, Triumph tours may have trouble offering their passengers with hotel accommodations, which is
especially problematic during the high-demand travel season. The fact that many tourists only visit at certain times of the
year may result in the facilities at Hotel Continental being underutilized. Finding employees who possess the necessary
skills and demeanor for the hotel is a priority. Consideration will now be given to the remaining sixty percent of the hotel’s

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annual capacity utilization. When the period of the lease is up, Mr. Mendoza will no longer have any legal claim to the
property. Since Mr. Mendoza takes on all of the operational responsibilities as well as all of the financial liabilities, he is
solely responsible for the full of the company’s losses in the event that the firm is unsuccessful.
Opportunities
The potential promotions that will be established in order to attract travelers, and if they are successful in the promotion,
they will be able to fill up the remaining 60% of the hotel that is not already occupied. Because of the new administration,
tourists now have more freedom, which means that they will need to look for the most promising hotel out there. As a
result, Hotel Continental will need to think of ways in which to get the most out of the tourists. As a result of the gradually
improving security situation, there has been a steady rise in the number of tourists visiting the country. As a result of the
improved economic conditions, a rise in hotel occupancy rates is anticipated. Assuming that the hotel continental will be
hired, Triumph Tours would be able to guarantee that their customers would have somewhere to stay.
Threats
Given that the hotel has only 27 rooms, which is quite a small number for a hotel, and the guests would prefer a larger
hotel “because bigger is better,” as they would say, the other hotels will also investigate ways to attract the guests. This is
because the prospects for Hotel Continental are opportunities for all, so the other hotels will investigate ways to attract the
guests. Facilities may slip into underutilization. Increase the number of hotels and travel businesses that are in
competition with one another. When it comes to hotel management, having little to no experience might make the risk of
incurring significant financial losses quite high. In the event that hotels sustain enormous losses, there is a significant
possibility that the travel agency will be forced to shut its doors. If the economy continues to struggle, it will likely have a
negative impact on the travel industry, which will likely discourage tourists from traveling to the country. Inflammation will
inevitably take place if the economy continues to suffer, which will ultimately result in a lower purchasing power rate..

Various Other Possible Courses of Action

Locating additional hotels to lease

Benefits:
It’s possible that the winning bid will be lower than the price of the Hotel Continental. There is a possibility that the hotel
will feature more convenient amenities than Hotel Continental. It’s possible that the hotel has more spacious rooms. It’s
possible that you’ll find motels in more desirable and convenient locations.
Detriment:
It’s possible that finding other motels will take a lot of time. It’s possible that the opportunity to bid on the Hotel
Continental may be lost.

Establishing own hotel

Benefits:
Mr. Mendoza’s enterprise is growing. All income goes to Mr. Mendoza. All tourists will find somewhere to lay their heads
on. Maintain full control over the establishments and the way they operate.
Detriment:
It will require a significant investment of both time and money. Due to the fact that Mr. Oscar Mendoza and his marketing
staff have very little to no expertise in hotel administration, there is a possibility that this will lead to poor management and
monetary losses. Finding employees who possess the necessary skills and demeanor for the hotel is a priority. It will be
tough to increase the percentage of time that hotel facilities are used. In addition to taking on all financial liabilities, Mr.
Mendoza is responsible for all operational responsibilities as well; if the company is unsuccessful, Mr. Mendoza will be
held accountable for any financial losses.

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Collaboration with the other hotels
Benefits:
Even during the busiest travel months of December, January, July, and August, Triumph Tours can accommodate all of its
customers. This can eliminate the possibility of financial losses for the hotel, should one occur. This will gradually enhance
Triumph Tours’s reputation. Mr. Mendoza can concentrate on enhancing his travel business without having to worry about
the hotel. Due to the contractual nature of a joint venture, they are allowed to choose whether or not to extend the
contract.

Detriment:
Mr. Mendoza may be unable to meet Hotel Management’s demand for a large number of tourists. It requires time and
effort to cultivate the proper relationship. The stakeholders’ objectives for the joint venture are diverse. There is a disparity
between the amount of skill, money, and assets that each partner brings to the enterprise. Poor integration and
cooperation emerge from diverse cultures and management styles. Early on, the partners do not provide sufficient
leadership and support.

Leasing Hotel Continental

Benefits:
Continually monitors and controls every aspect of the entire operation. The Hotel Continental has everything that is
required to serve the Triumph Tour tourist groups, particularly during the months of December, January, July, and August,
which are the months with the highest travel volume. At the Hotel Continental, guests have access to a coffee shop, a
restaurant that serves quick meals, an elegant dining room, three event rooms with space for a total of twelve to forty
people, and a swimming pool. It would be the responsibility of Triumph Tours to find suitable lodging for its customers. Mr.
Oscar Mendoza saw an increase in his profits.
Detriment:
Because Mr. Oscar Mendoza and his marketing staff have very little to no expertise managing hotels, this may lead to
poor management decisions and financial losses. Finding employees that possess the skills and mentality the hotel is
looking for is a challenge. Considering that only sixty percent of the hotel’s annual capacity has been utilized so far. W h e
n t h e l e a s e te r m e x p I r e s Mr. Mendoza has abandoned his claim to the land. Mr. Mendoza is liable for all financial
and operational obligations, which means that he will be held accountable for any and all losses incurred by the company
in the event that it is unable to generate profits.
Conclusion and Recommendations

If Mr. Mendoza decides to form partnerships with further hotels, he may be able to locate one of these establishments that
possesses superior managerial abilities, thus enabling him to protect the name of his agency. On the other hand, the
other hotels may have high quota pricing, knowing that Mr. Mendoza’s agency is not yet very well-known, which means
that he may have a difficult time competing with them. Another option is for him to build his own hotel, which would give
him complete command over the operation of the establishment from the bottom up. The drawback is that he will require a
significant amount of money for it, and he cannot construct a hotel because his business is still growing at this time. As a
result, we came to the conclusion that Mr. Mendoza will not submit a bid for Hotel Continental based on the information
that we gathered. This is due to the fact that he has very little to no experience managing hotels. In addition, Mr. Mendoza
is taking on an unacceptable level of risk; he must refrain from investing in anything that carries an unacceptable level of
risk, or else he runs the chance of suffering irreparable losses, which might force him to close his travel business. It is our
opinion that the best course of action for him would be to investigate a variety of hotels, set aside a sizable sum of money,
build up the reputation of his travel agency, and then construct his own hotel. This would give him full control over the
establishment, including its administration, its finances, and so on.

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Guide questions:
1. What are the advantages and disadvantages of taking in Messrs. Bince and Antonio as co- owners of solid
Agricultural company? What form of business organization do you suggest?
Disadvantages
*Koh’s Mastery in agricultural development.
* Family owned company. Managed by Manuel who completed his degree in General Management at well known Manila
University
* Debt free, the owner does not resort to borrowed funds.
Advantages
* Enough production of supply requirements of the pig finisher farms in Antipolo and Bulacan .
* Limited resources, do not resort in using borrowed funds .
* Low Return on Investment (1.4%) and Net profit Margin (0.62%)
* Large amount of working capital especially on cost of funds.
2. What are the advantages and disadvantages of setting up a new company for the Nivaliches farm only? What
form only? What form of business or organization do you suggest? Why?
Advantages
* Sell to other small piggery farms in two provinces where it now operates.
* Proposed Novaliches farm may house the administration operations of Meycauayan farm, increasing the production of
the letter.
* Feed mill in Novaliches can produce the feeds for the expanded needs of the Antipolo and Meycauayan farms.
* Increased population in Metro Manila and strong purchasing power increase demand.
* Novaliches is near to major markets of manila.
* Expansion in expected to increase revenues and decrease cost of sales.
Disadvantages
* High cost of feeds and price control on pork
* Novaliches farm do not guarantee success.
* To set up a new company for the Novaliches farm only.
* To consider borrowing from the bank.

Guide questions:
1. What are the fixed of the cooperative?
 Fixed are terms the cooperative will using during normal operations, such as buildings, machinery, and
equipment. Liabilities are shown in two categories current or long term.
2. If you were a bank, lend the cooperative the P2 or P3 million it needs to rehabilitate its canteen? Why or why not?.
 Donating to the causes you care about not only benefits the charities themselves, it can be deeply rewarding for
you too. Millions of people give to charity on a regular basis to support causes they believe in, as well as for the
positive effec it has on their own lives.
3. How should the Board of Directors Cooperative improve the participation of its members during the meetings of
the General Assembly?:
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Cooperative appoint boards of directors similar to corporations and non profit organizations, and the duties of cooperative
boards are much the same as their counterparts in other organizations. Regular and associate are required to attend the
meetings for the purpose of exercising all the rights and performing all the obligations pertaining to them, as provided by
the code, Articles of Cooperation and By laws. Section 4. Regular General Assembly Meeting

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