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 Analysis A. SWOT Analysis WEAKNESSES W1. Misperceived company name W2. Unorganized and unmaintained cleanliness on trail and animal cages W3. Poor parking area W4. Unattractive signage of Residence Inn W5. Limited room accommodations

STRENGTHS S1. Well-experienced top management S2. Location is in a scenic place S3. Member of Zoomanity Group of Companies S4. The only zoo in Tagaytay and Cavite S5. Incorporated with Paradizoo (livestock park) S6. Offer variety of amusement shows OPPORTUNITIES O1. Wide array of market O2. Latest and future trends and innovations in the Zoo industry O3. Government support in educational places O4. Cool and invigorating climate of Tagaytay City

THREATS T1. Presence of other leisure park T2. Competitors outside Cavite T3. Extinction of some animals T4. 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 Well-experienced top management Location is in a scenic place Member of Zoomanity Group of Companies The only zoo in Tagaytay and Cavite Incorporated with Paradizoo (livestock park) Offer variety of amusement shows WEAKNESS Misperceived company name Unorganized and unmaintained cleanliness on

WEIGHT .15 .05 .10 .10 .05 .10

RATING (R) 4 4 4 3 3 3

WxR .60 .20 .40 .30 .15 .30

.15 .05

1 2

.15 .10

trail and animal cages Poor parking area Unattractive signage of Residence Inn Limited room accommodations TOTAL

.05 .15 .05 1.00

2 1 2

.10 .15 .10 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 Wide array of market Latest and future trends and innovations in the Zoo industry Government support in educational places Cool and invigorating climate of Tagaytay THREATS Presence of other leisure park (indirect competitors) Competitors outside Cavite Extinction of some animals Rising prices of resources TOTAL

WEIGHT .15 .15

RATING (R) 4 4

WxR .60 .60

.10 .10

4 3

.40 .30

.15 .15 .10 .10 1.00

1 2 1 2

.15 .30 .10 .20 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 firms 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) .05 Slightly Important .10 Moderately Important .15 Extremely Important WEIGH T RESIDENCE INN R .15 .15 .15 .15 .15 .10 .10 .05 1.00 3 2 3 2 2 1 3 2 WxR .45 .30 .45 .30 .30 .10 .30 .10 2.30 2 1 2 1 4 1 1 3 PEOPLES PARK IN THE SKY R WxR .30 .15 .30 .15 .60 .10 .10 .15 1.85 3 2 3 2 4 2 3 3 PICNIC GROVE R WxR .45 .30 .45 .30 .60 .20 .30 .15 2.75

WEIGHT:

CRITICAL SUCCESS FACTORS (CSF) Theme parks /Amusement Service Quality Customer Satisfaction Innovation Brand Name Advertising Facilities Cost TOTAL

The total weighted score of the three companies in the same industry has been computed using the Competitive Profile Matrix. The score of 2.30 of Residence Inn compare to Peoples Park in the sky with 1.85 weighted score means that the Residence Inn has greater competitive advantage, whereas to Picnic Grove with 2.75 score shows that they need make advance strategies to overpower the competitor. These statistics shows that Residence Inn has good competence when it

comes to theme park industry provided that there are still developments that they may accomplish to innovate.

IV.

Long-Term Objectives To be recognized as one of the top 10 companies in Zoo industry and uphold enjoyment with educational benefits. To be recognized in the animal theme park industry as one of the top 5 companies in Luzon and eventually top 10 in the country.

V.

Strategy Formulation A. Strategy Formulation Matrices a.) Internal-External Matrix IE matrix is a formulation tool that helps the management make decisions in relation with the status of their company. It portrays three options, to grow and build, hold and maintain or harvest and divest. IFE

4 E F E 2 3 Grow and Build

Hold and Maintain Harvest or Divest 1

The IFE (2.60) and EFE (2.65) weighted score intersects at the 5th cell which is part of the hold and maintain strategy. The Internal-External Matrix shows that the Residence Inn should hold and maintain their strategies on business operations to attain higher market share and service development for their economic survival. b.) BCG Matrix

Boston Consultancy Group Matrix shows the relation between the business relative market share and industry sales growth. It also illustrate four quadrants which states the strategies needed by Residence Inn to make decisions on how to improve their business and what to prioritize: the stars (high market share, high sales growth), the question mark (low market share, high sales growth), the cash cow (high market share, low sales growth), the dogs (low market share, low sales growth).

Relative Market Share High High STARS Industry Sales Growth Low CASH COWS DOGS QUESTION MARKS Low

Residence Inn has low relative market share and high industry sales growth every year and it falls to the Quadrant I which is the Question Mark. For stability strategies, they may utilize additional

investments, retain the current marketing strategies and maintain the high generation of profit to achieve stars.

c.) Grand Strategy Matrix Grand strategy matrix is a strategy-formulation tool use to evaluate alternative strategies. It shows the relation between the strengths and weakness of its competitive position and the flow of its market growth. It has four quadrants and each quadrant has list of strategies the company must take. Competitive Market Position weak Market Growth rapid
Market development Market penetration Product development Divestiture Liquidation Market development Market penetration Product development

strong

slow

Retrenchment Concentric diversification Horizontal diversification Conglomerate diversification Liquidation

Concentric diversification Horizontal diversification Conglomerate diversification Joint ventures

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 competitors 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 dont 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

OPPORTUNITIES O1. Wide array of market O2. Latest and future trends and innovations in the Zoo industry O3. Government support in educational places O4. Cool and invigorating climate of Tagaytay

THREATS T1. Presence of other leisure park in Tagaytay T2. Competitors outside Cavite T3. Extinction of some animals T4. Rising prices of resources

STRENGTHS S1. Well-experienced top management S2. Location is in a scenic place S3. Member of Zoomanity Group of Companies S4. The only zoo in Tagaytay and Cavite S5. Incorporated with Paradizoo (livestock park) S6. Offer variety of amusement shows WEAKNESSES W1. Misperceived company name W2. Unorganized and unmaintained cleanliness on trail and animal cages W3. Poor parking area W4. Unattractive signage of Residence Inn W5. Limited room accommodations

SO STRATEGIES S1-O1, O2 S2-04 S4-O3 S6-O2

ST STRATEGIES S4-T1 S3-T2 S5-T3 S1-T4 S6- T1

WO STRATEGIES W1-O1 W1-O3 W2-O2 W3-O2 W4-O2 W5-O4

WT STRATEGIES W4, 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 customers 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. Attractiveness Score: Not relevant (0) Not acceptable (1) Possibly acceptable (2) Probably acceptable (3) Most acceptable (4) WEIGHT: .05 Slightly Important

.10 Moderately Important .15 Extremely Important Alternative 1 Market Development Alternative 2 Market Penetration Alternative 3 Product/ Service Developm ent AS x W AS AS x W 4 2 0 2 1 2 2 4 4 4 3 .60 .10 .0 .20 .05 .20 .15 .20 .20 .60 .15 2.15 .15 .45 .10 .10 .45 .45 .10 .10 1.90 4.05

CSF

WEIGHT

AS STRENGTH
Well-experienced top management Location is in a scenic place Member of Zoomanity Group of Companies The only zoo in Tagaytay and Cavite Incorporated with Paradizoo (livestock park) Offer variety of amusement shows WEAKNESS Misperceived company name Unorganized and unmaintained cleanliness on trail and animal cages Poor parking area Unattractive signage of Residence Inn Limited room accommodations TOTAL OPPORTUNITIES Wide array of market Latest and future trends and innovations in the Zoo industry Government support in educational places Cool and invigorating climate of Tagaytay THREATS. Presence of other leisure park (indirect competitors) Competitors outside Cavite Extinction of some animals Rising prices of resources TOTAL Total Attractiveness Score .15 .05 .10 .10 .05 .10 .15 .05 .05 .15 .05 1.00 .15 .15 .10 .10 .15 .15 .10 .10 1.00

AS x W

AS

4 1 1 1 2 4 3 0 0 1 4

.60 .5 .10 .10 .10 .40 .45 .0 .0 .15 .20 2.15 .60 .60 .40 .20 .30 .30 .10 .10 2.60 4.70

4 3 1 2 2 4 4 4 3 3 2

.60 .15 .10 .20 .10 .40 .60 .20 .15 .45 .10 3.15 .60 .45 .30 .20 .60 .45 .10 .20 3.00 6.15

4 4 4 2 2 2 1 1

4 3 3 2 4 4 1 2

1 3 1 0 3 3 1 1

In regards with the results gathered in the Grand strategy matrix, we arrived at the alternatives of Market development, Market Penetration and Product/Service Development given in the tabulated form drawn above. With the sum total attractiveness score calculated, Alternative 2 which is Market Penetration yielded the highest score of 6.15 whereas alternatives 1 and 3 with lower score of 4.70 and 4.05. The further results mean that Residence Inn has to focus on pushing the service offered in the market through pertinent strategies in achieving long term goals.

B.

Broad Strategies a.) Improve the Brand we suggest the owner to change the idea of the business name to something (e.g, Residence Inn Tagaytay Zoo) that will represent their prioritized field on business industry which is the zoo so that the customers, once heard the name, will easily perceive what commerce the business is into which is the animal theme park industry. b.) Front Renovation improve the signage Residence Inn Tagaytay in front of the mini-zoo and then make their known giant statue of Gorilla face the Aguinaldo Highway so that the passersby may recognize the zoo as it is their business main concern. c.) Expand and Innovate As one of the members of Zoomanity Group which is a leading company in the industry of theme parks, we suggest the management to give importance on the preservation and innovation of their zoo, amusement and other recreational activities to build greater competitive advantage with other theme parks in Tagaytay City like Peoples Park in the Sky and Picnic Grove which has cheaper cost as they are operated by the city government. d.) Amusement with Learning Residence Inn must have great focus on learning benefits as well as an exceptional enjoyment to their

customers. This may be done by creating recreational activities with educational benefits that will catch the interest of the market and will give them incomparable experience afterwards to create a market position.

VI.

Action Plan

Functions

Actions May Aug Nov Sep Dec Mar Feb Jun Jan Apr Oct Jul

Objective 1: Product/ Service Development

- Research and Development - Human Resources - Finance

-collect information about the latest and future trends and innovations in the Zoo industry. -funding for the acquisitions of resources or materials needed. -acquire necessary resources needed for the innovation. -allocating financial support for the production/operations team. -conceptualizing of new product/service offerings. (product/service development) -allocating budget for the promotion of additional

- Research and Development - Finance - Purchasing -Finance

- Production/ Operations

-Finance

offerings
- Marketing

-promotions of new offerings. -monitoring the sales

Throughout the Operation
Objective 2: create market position

- Finance/ Accounting

- Marketing

-address the primary focus in the brand (re-branding) -research on the latest trends in the zoo industry -innovation and development of current strategies

- Research and Development -Top Management - Marketing - Research and Development -Marketing

-actively participate in social media Throughout the Operation

- ??????

-having a management -correspond competition

good

top Throughout the Operation

- Top Management - Finance - Marketing - Other functions - Marketing

with

the

Throughout the Operation -attaining a market position competitive

Throughout the Operation

VII.

Evaluation & Control Plan Strategic evaluation is use to measure the effectiveness of the companys current strategies that helps them achieve their long-term objectives. And as we analyze and study the Residence Inns current strategies we observe that they can actually survive the daily operations of the business. Their strategies are often focused on their stability, whereas the long-term objective of being the best animal theme park is not being pursued. We suggest them to take some corrective actions to avoid errors and to make sure that their strategies are aligned to their objective that will bring them to success.

Having a well-experienced top management, Residence Inn must improve their marketing strategies. They must give credits to their strengths and grab each opportunity to come to reach a high competitive position. We recommend improving the company name to avoid contingencies like misinterpretation of the market with it. Having a profound definition of what they really offer will make them give their company a position in the market. Along with this, we suggest them to make some changes with their positioning plan. It may be an incomparable concept if they pursue the idea of promoting that there is fun in learning about wild life. We propose that they may take these corrective actions throughout their operation.

A STRATEGIC PLAN FOR THE COMPANY RESIDENCE INN TAGAYTAY

A Term Paper Presented to the Business Science Cluster Rogationist College

In Partial Fulfillment of the Requirements for the Subject Strategic Marketing

Bustamante, Daries Mae Hernando, Mari Nikko Layugan, Monica Manalo, Raymart Medina, Krizzia Odal, Mary Anne Rozul, Aileen Gale Silvan, Ron Lester