Halina Mountain Resort B

Topics: Resort, Ski resort, Operating expense Pages: 6 (1127 words) Published: August 13, 2010
Case Analysis: Halina Mountain Resort (B)

Time Context

September 1981


▪ Halina Mountain Resort, a family owned business, had been picking up during 1980 though it suffered a net loss of P335, 499.69 as shown in the financial performance of Blue Heights Realty and Development Corporation.

▪ Halina Mountain Resort is manage by Jun Herrera, son of the owner Victor Herrera together with his cousin Benjamin Estacio that acts as resort manager.

▪ Majority of the 32 permanent personnel are relatives of Herrera which reside in Calamba or in nearby towns. The family as a whole had been working together, thus creating a good team for the business.

▪ Halina Mountain Resort is in a good location, has first class facilities, observed cleanliness and has a cohesive personnel that make them outstanding and competitive among other resorts.

▪ Not all months of the year have the same operation level, during June, July and August are the low level, September, November, January, and February are in normal operation, while the peak season are the month of March, April, May, October, and December.


1. Short-range Objectives:

▪ To ensure Halina’s continuous growth and increased popularity. ▪ To make up for the decreased income during “low months”.

2. Long-range Objectives:

▪ To be able to sustain Halina Mountain Resort’s growth even if it is no longer new to the public.


▪ How will the management of Blue Heights Realty and Development Corporation can make up the decreased income of Halina Mountain Resort during the low months? ▪ How will Blue Heights Realty and Development Corporation ensure its continuous growth and increases popularity?


1. Strength

▪ Good location
▪ First class facilities and complete amenities
▪ Cleanliness observant
▪ Cohesive personnel
▪ Competitive prices

2. Weakness

▪ Lack of security measures
▪ No sufficient cash on hand and in bank
▪ Lack of effective advertisement and promotion
▪ Analyzing the financial statement of the company, the company’s ability of paying debt is very low, thus in every P1 of liability, they only have ¢.60. This is a negative indication to the suppliers or short term creditors. ▪ Deficit in the stockholders’ equity.

▪ The restaurant is of low profile.

3. Opportunity

▪ Mt. Makiling is endowed with nature’s beauty where Halina is located at the foot of it, making it ideal for all types of nature tripping. ▪ Further development of Laguna by the local government helps Halina gain customers. ▪ Laguna is one of the historical places in the Philippines making it attractive especially to the students. ▪ Further development of the resort can accommodate more customers.

4. Threat

▪ Natural Disaster like typhoon, earthquakes and others. ▪ Other Competitors in the area that was patronized by people, or may have a low price. ▪ The Resort is near a creek, this may cause the land to be soft. ▪ Death or riding horses may decline customer’s attraction. ▪ Most personnel are relatives; they may abuse the trust given to them. ▪ Changes of customers taste and preferences.

VI. Alternative Courses of Action (ACA)

1. The Blue Heights Realty and Development Corporation would invest more on advertisement, representation and entertainment especially during the low months.

▪ Halina will gain more customers that will help them recover the decrease of income during the low months.

▪ Representation and entertainment is another expense in their part.

2. The management would operate longer hours or they would have 24 hours service.

▪ Customers will be willing to stay at Halina especially those who came from far places. ▪...
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