4.1.

1 ECONOMIC FORCES

The Asian Development Bank (ADB) forecasts that the economy in the Philippines will continue to grow
by 4.5 percent this year 2021 and 5.5 percent in the year 2022. Before the fire incident, there were an
increasing number of visitors from both local and foreign countries; therefore, the company’s income
continued to grow. But, after the fire incident that occurred last March 18, 2018, Acesite (Phils.) Hotel
Corporation has been temporarily closed resulting zero revenues and later the reconstruction was
discontinued due to COVID-19 pandemic outbreak for the period. In accordance with the parent
company Chairman’s message which stated in their annual report for the year 2020, the company
experienced the worst economic crisis in the field of tourism industry due to the COVID-19 pandemic. In
addition to his message, wherein during pre-pandemic, travel and tourism ranked as the third-largest
category worldwide in terms of revenue. With the historical data of the industry, the Chairman of the
company believes that there are profound chances of recovery for the company once the situation gets
better.

4.1.2 SOCIAL, CULTURAL, AND DEMOGRAPHIC FORCES

Acesite (Phils.) Hotel Corporation operates and owns the Manila Pavilion Hotel, now Waterfront
Manila Hotel and Casino (WMHC), as its primary business. According to the Condor Ferries, a
European operator of passenger and freight ferry services, travel statistics by age group
presents that those travelling over the age of 30 showed the largest increase in numbers from
2007, going up from 10% to 17%. The data also shows significant differences in the booking
habits of individuals depending on age. The demographics reported that baby boomers and
millennials tend to spend more in exchange for accommodation comforts and worry-free trips
while Generation Z opt to go for cheaper accommodation deals and spend more on fun and
adventure travel activities. The company’s stunning revival and transformed the new
architectural and exterior design of the property as a brainchild of world-renowned hospitality
design firm HBA. The interior design was the product of Emesae Design that could help attract
customers from the fact that a prestigious Filipino-led interior design firm has made its mark in
the world’s top hotels and resorts.

4.1.3 Environmental/Ecological Factors

Acesite (Phils) Hotel Corporation is compliant with the emission standard set by the Clean Air
Act, the Solid Waste Management Act, and the effluent standard of wastewater. Moreover, the
hotel obtained a clearance from the Pollution Control Department of the Laguna Lake
Development Authority (LLDA). And the compliance of the hotel permits fees for garbage
collection, sewage cleaning, and maintenance. The company purchased an initial batch of 1,300
doses of Moderna vaccines to be distributed among the employees and their respective families
by which the company gives an assurance to protect guests and clientele by having a fully
vaccinated environment.

4.1.4 Political, Governmental, and Legal Forces

Acesite (Phils) Hotel Corporation is duly registered under the Securities and Exchange
Commision (SEC) and abides by the Philippine Corporation Law. The casino segment of the
 company is under the supervision of the Philippine Amusement and Gaming Corporation
(PAGCOR). The hotel holds a BFAD license to operate restaurants as evidence of full
compliance with the requirements of the Bureau of Food and Drugs (BFAD). The company
initiated different activities to protect its stakeholders such as the fulfillment of the vaccinations
among employees in order to continue the combat of the crisis.

Financial/Accounting Dimension 
A. acquisition of equipment for installing necessary tools to reconstruct such as generator set,
chiller equipment, air handling equipment by which partially delivered during the year 2021,
ventilating equipment, water heating system (Heat Pump), potable water pumps, and fire
pumps, hotel management software costs, and human resource costs for the reconstruction of
the building due to the previous fire incident. Thus, as shown in the table the debts that incurred
by the company to finance acquisition of those equipment for the project of reconstruction.

B. Financial modeling with projections

The company has in their best performance during 2017 but, when the fire incident
happened last 2018, company’s revenue has been reduced due to the occurrence of
the fire incident and until now it is not in their state to resume operation. stated by the
Chairman of the parent company, in his message expressed that he strongly believes
that after the reconstruction of the building it will be back in its normal operation.  
Moreover, in the year 2020 month of September 30, total assets were increased to 2.4
billion compared to its preceding year 2019 in which the company’s total assets were
2.38 billion. However, by getting the average percent of 2017-2018 and 2019-2020,
projected revenue during 2022 is assumed to increase from 2018- 54.34million to
526.54million in 2022. It is assumed by the company to have an annual growth rate of
17% in their gross revenues generated from both services and products. The base year
in computing the revenue is the year 2018 since there is no revenue for the past 2 years
which is the years 2019 and 2020.

However, in the years 2020 and 2021 as presented by ph.investing.com, that Acesite
Phils. Hotel Corporation (ACE) has been generating zero revenue because the
operation is not yet resumed and expenses continue to increase as the company
continually pushes through the project of reconstruction to the hotel building.

7.0 Implications to the strategic agenda

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Production/Operation/Technical department will focus on the customers’ perspective on how to
increase sales and seek growth to market share including customers’ behavior, characteristics, and
standards from one marketplace to the other to meet their satisfaction, retention of their common
hospitality practices of serving guests as well as improvement to some facilities, amenities and
enhancing technical needs to improve the progress of operation. Safety precautions and measurements
will carried in operation to obtain the progress considering feedbacks from customers that help
company to ensure proper way improvement process.

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Research and Development department will evaluate employee’s performance and commitments to the
company as well as the extent of their knowledge to determine proper work positioning and also to
provide them the proper training. Also, factors that may provide negative impacts to company’s
marketing plans thus, includes characteristics, and market/cultural behavior, and evaluate the certain
services offered if these were aligned to the company’s prospects of satisfying customers considering
the difference between local and foreign standards.

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Financial Projections and the Goal Settings

In coming up with financial Projections, historical method of analysis was used by comparing the two
years 2019 and 2020 existing data and 2019 data were used to be the base year in order to come up
with percent change of the amount for certain accounts. This helps to determine either certain accounts
have an increase or decrease value for the process of the business transactions and the cycle.

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So, given those results of the comparison we get this projected balance sheet with its assumptions
wherein accounts affected we’re increase of cash and cash equivalents due to collections of currents
receivables, reduction of current receivables and assumed to increase for the following years since
company could operate normally, and so on. As flashed in the screen, the company balance sheet
increases with each respective assumptions that company would still be able to pay short-term and
long-term obligations.

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Using the same process, we get this projected income statement with it’s assumptions wherein as we
can see, 2021 has zero revenues since company is still under reconstruction, but for the expected
resumption in year 2022, it is assumed an annual growth of revenue by 20% that could apply to either
product/service offered. Thus, certain accounts affected by the operation from 2021 to the following
years of resumption which includes, increase of gross revenue, increase of costs to expenses due to
acquisition of materials needed for the operation, and other. We projected that the company would
have an increasing income for the years of operation 2022 and 2023.
EXECUTIVE SUMMARY

To summarize our study, Acesite Phils Hotel Corporation is doing a business under a name and style of
Waterfront Manila Hotel and Casino that formerly known as Manila Pavilion Hotel. The company face
struggles as the fire incident happened last 2018 with the cause of failure to have a proper electrical
wirings as mentioned by the news from inquirer.net and thus, leads them to temporary closure of it’s
operation.

The proponents here is to evaluate the internal and external factors of the company using the matrices
includes IFE, EFE, IE, SWOT, SPACE, BCG, CPM, and the Grand Strategy Matrix with the results that
suggested an intensive strategy which are the market penetration, market development, and product
development.

These strategic will be taken into action to each department to further enhance and improve business
model to captivate and attract more customers to gain or increase market share.