By Rodriguez & Echanis
Fundamentals of Management, Text & Philippine cases (6th Ed)
Quezon City, Philippines: Diwata Publishing, Inc., pp. 69 – 74
I. Personal Perspective To venture to another business as an answer to a growing demand could be an opportunity to grow and expand ones capability in handling business. There are so many nature of businesses and each requires keen knowledge if not thorough for it to survive in the long run or depending on how the owner sees it to be.
Even if the nature of the new business is different from the previous one yet somehow there are similarity or connection that could link the operations of these two. Moreover, both businesses are under the same generic industry. The current business is a travel agency that is under the tourism industry, while the projected business is a hotel that fall under lodging industry – in general, both are under the hospitality industry.
Its connection can be attributed to the fact that both focuses on service, when one travels he needs a place to stay. For certain reasons, these two benefits each other although running the operations for these two is a different story.
II. Case facts A certain Mr. Oscar Mendoza is an owner of a travel agency and had been experiencing shortage in the hotel accommodation of his clients especially during the peak months. This hampers his operations, as the assurance that his clients be given an accommodation is not hundred percent guaranteed. That is why when he read in the newspaper that a certain hotel, Hotel Continental, is leasing its facilities he then wanted to study whether he would bid or not as he believe that it would cover up for the room requirement that his travel agency needs during the peak months. Mr. Mendoza has not operated, since then, a hotel that is why he called his key personnel to discuss and give him data as reference before he decides