After thorough evaluating the advantages and disadvantages of the three courses of

action it has come to conclusion that the third option will be pushed through based on its
feasibility and effectiveness.

Number 1, downsizing the staffs to 50% and reoperate at 75% would significantly reduce
costs for Aqua Cove. In rehiring, we would consider skills as the top priority so that it can
alleviate the smaller number of man labor. And of course, they would be compensated
reasonably. In reoperating, we would reduce 25% of the bed space, water sports and team
building activities. Cost cutting all of these would result to higher funds that will be allocated to
areas in the company that requires it to remain competitive.

Number 2, Implementing safety protocols required by the government for the new
normal operations. They should submit and comply requirements to the local government unit in
Laiya, Batangas, install sanitary stations in the resort, implement social distancing, temperature
checks and wearing of face masks and face shields. With this, they could ensure safety,
improve morale, stronger engagement, and higher productivity.

Number 3, Promote advertising campaigns on facebook page would be an efficient way

to announce the reopening of Aqua Cove. Why facebook instead of other social media apps?
According to statistics, 96% of the internet users in the Philippines accessed facebook on year
2020. While other social media apps like Instagram and twitter have 9.6% and 7.8%
respectively. Thus, with the use of facebook we could generate more customers and improve
brand awareness.

Number 4, Accepting customers who have done complete bookings only, would
effectively manage the operations. Having a prior list of customers would ensure that there is
enough capacity to cater all guests considering the new normal operations.

Number 5, Increase price offering of the resort using competition-based pricing would let
them keep up with their competitors, and most especially the main objective of the company
would be to maximize profit. They should assess the latest prices of rivals and come up with a
price that is higher than their last rate but not that far from what their competitors offer.

Number 6, Highlighting the strengths of Aqua Cove would build a positive brand image.
Given their Instagram-worthy architectures, magnificent view for sight-seeing and their well-
known restaurant for its mouthwatering dishes, it would not be difficult for them to attract
customers, instead they should improve it more to achieve corporate advantage.

Meanwhile, Aqua Cove Beach Resort has allotted a contingency fund of 500,000 pesos for their
reopening. Here is the breakdown of their reopening funding summary.

Renovations and Improvement cost 200,000

 We have allotted this amount since it will be only minor renovations and improvements.
Given the strengths of their resort, it will only require minimal touch ups.

Fixtures, Build-out & Furnitures 50,000

  This will include minimal changes in furniture and fixtures. With the one year of
shutdown without maintenance, somehow some furniture will require substitute to
ensure safety and promote quality.

Developmental Start-up Expense 30,000

 This will include expenses on necessary processing of papers, payments to the

operating team and legal fees.

Maintenance & Other Expenses 45,000

 This will include the cost on clean up, sanitation and other necessary expenses for the
start up.

Working Capital (2 months) 175,000

 This will include the salary and daily operations expenses of the business.

Total 500,000

For Aqua Cove’s financial projection, we based it on the effects of the course of action chosen
and the intuitive guess of the previous financial report. We have come up to an income of 85%
from previous report and 70% expenses from previous report.

Wherein the derivation of an income of 85% compared from previous report is from the decision
of operating at 75% of the resort and an additional percent for the mark-up of prices. Which then
leads to 85%.

The projected expense of 70% from last report is an average projected rate of the salary
expense of 60% and the operational expenses of 80%. We have come up with the 60% salary
since only 50% of the staffs will be rehired plus the reasonable compensation that will be
offered. Next, the operational and other expenses was derived from the 75% of operations and
additional expenses for new normal operations such as sanitation.

To further understand, we have come up with a sample comparative illustration. Wherein in

measuring the profit we use the formula of PROFIT MARGIN, Profit divided by Income.

If given that for the last reporting period, they have generated an income of…

Financial Performance Projection

Last Reporting Period Projected Rate Projected Amount

Income 500,000 (100%) 85% 425,000

(100%)

Expense 350,000 (70%) 70% 245,000 (58%)

PROFIT 150,000 (30%) 180,000

(42%)
Steps of implementation:
Step 1: Mr. Delos Santos together with the Board of Directors will held a meeting concerning
departments, operations, staffs, finance, health, and renovations.

Details: Planning on which departments will do the needed tasks. Which operations will remain
including the rooms, amenities, and activities? Who will be rehired, how many, and what will be
the basis of rehiring? By how much will they allocate to each department given the limited fund.
How will they implement safety protocols and what are the necessities needed to implement
such? Lastly, prioritizing which part to renovate. (Time allotment: 3 days)

Step 2: Detailed budget and pricing planning

Details: They must plan and allocate the fund according to profitability and necessity. Prioritizing
and highlighting the most known and profitable activities or amenities and knowing how much
the mark-up price and compensation increase would be. (Time allotment: 1 day)

Step 3: Proceed with renovations and innovations.

Details: Design rooms for lesser bed capacity, improve the buildings, architecture, and
amenities based on planned budget and priority. (Time allotment: 3 weeks)

Step 4: Comply necessary requirements for new normal operations.

Report to the local government unit for processing of papers for the new normal operations.
(Time allotment: 3 days)

Step 5: Hire and orient skilled and experienced staffs.

Only hire experienced and skilled workers who accepts the demand of workload but with
reasonable compensation. After being hired, they will proceed to a brief orientation. (Time
allotment: 3 days)

Step 6: Marketing and Promotions

Promote the resort through posting on facebook page, featuring the highlights of the resort
which are the beautiful scenery, Instagram-worthy architecture, mouthwatering dishes, and the
different recreational activities. (Time allotment: As long as it’s operational)
Step 7: Reopening

Step 8: Evaluation

Finally, the expected date of completion or the date of reopening of Aqua Cove Beach Resort
Inc. will be on April 9, 2021 Araw ng Kagitingan. We targeted this date since it is when families
are on a holiday and have free time to go on a vacation.

With all that being stated, we are certain that we have targeted all the case objectives of this
proposal.

To end this, let us all remember that there is a way out in every crisis. As Einstein stated, “Let’s
turn crisis into Opportunities”.