EXERCISE 1 AND CASE STUDY

EXERCISE 1. Choose an H&T organization and research this company’s vision, mission, goals,
and objectives. Critically evaluate and compare them with those of other H&T companies. What
are the similarities and differences? Which aspects do you like in these statements and why?

—CEBU PACIFIC—

VISION

We envision stronger nations where cultures and communities are connected, meaningful
relationships are built, and lives are enriched by opportunities and experiences we make possible

MISSION

To move people, create opportunities, and broaden perspectives, enabling everyone to lead richer
and fuller lives

GOAL

Maintain its strong market leadership status by providing air transport solutions in key regions
throughout the Philippines and in select cities in Asia and beyond.

OBJECTIVES

The strategic objective of Cebu Pacific Airline is to be able to grow and sustain profitability even
if it offers low cost fares, since the vision tells it so. It also wishes to improve its services and
maybe able to prove to clients that it’s not low cost and low quality, but rather a money worthy to
purchase its products.

—PHILIPPINE AIRLINES—

VISION

To be the airline of choice in all markets we serve.

To be the source of pride for Filipinos everywhere.

MISSION

To deliver safe, reliable, efficient, and pleasant travel experience exceeding passenger
expectations.

To provide a satisfying career to our employees and adequate returns to stockholders.

To represent the best of the Philippines, the Best of Filipinos to the world.

GOAL

Aims to accord customers an experience which they would remember by, through a consistent
effort to enhance service delivery and regular trainings of employees. Constantly try to improve
current systems and policies with customers in mind. Their commitment to deliver the service
expected of them and which the customers rightfully deserve is a primary and foremost goal.

OBJECTIVES

-To meet the needs of the public for moving people, goods, information, and in particular for safe
and reliable travel, transport, communication, distribution, and related services.

-To offer such services at reasonable, competitive prices, and at the highest level of quality
consistent with such prices.
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 -To provide a satisfying career to its employees.

-To provide an adequate return to its stockholders; and

-To represent the best of the Philippines and the Filipino people to the world.

--Cebu Pacific and Philippine Airlines are both H&T organizations. Both have similarities and
differences. Their similarities are that they are both aiming to provide the best service to their
customers and to be able to grow much more. Their differences are in how they envision their
company and their primary goal as an airline. What I like about their statements is their
dedication to their chosen field and their planned ways to grow, serve, and be known. I also like
how they established their vision and mission because it mirrors the services that they are
providing to people. Even though both airlines or both H&T organizations have differences, their
common denominator is still to provide the best service that they can offer.

Case analysis 01 The Great Eastern hotel, a privately owned, independent, five-star deluxe hotel
located in Hong Kong’s commercial district, is faced with a turbulent external environment
owing to the current financial crisis. Since its inception six years ago, the hotel has grown in
prominence during the bustling economy from 2003 to 2007, and it has been one of the top
perfomer in the upscale and luxury market segments over the four years preceding the economic
crises. The hotel’s main target market segment is the business traveler (75 percent of room
bookings) who has no problem with paying USD 350 per night for a room. During the past six
months, however, the hotel has been a victim of the severe economic upheaval, which has led to
a significant reduction in room bookings from the business travel segment. This has reduced
profits significantly to the extent that the hotel is no longer able to cover fixed costs. The owner,
Jerry Kong, has called an executive committee meeting to discuss the future direction the
company should take in the immediate term and in the long term to sustain its competitive
advantage.

1. What issues should Jerry and the executive committee address? Why? (Hint: Make
assumptions where necessary, including mission and vision statements, as well as goals,
strategies, and objectives.) -The following are the issues that Jerry and the executive
committee should address: how to save the Great Eastern Hotel from bankruptcy; how to
encourage clients to book a room at their hotel; and how to sustain a budget to keep the
hotel running. Faced with a stressful situation, they should continue to rely on the
company's mission, vision, and goals to develop strategies and objectives that will help
keep the organization operating in the short and long term. *According to the hotel's
mission statement, the hotel and its management are committed to building long-term
connections with guests and members by providing highly personalized service and
chivalrous hospitality. *As per the hotel's vision statement, the property should be known
as a luxury premier hotel in Hong Kong's bustling city; to create an experience for their
guests that will make a grand expression for them that they will love and appreciate for a
lifetime; and to be the destination of choice for their guests, members, associates,
communities, and investors. *The hotel's goals are as follows: -Ensure guests feel valued
by providing warm, real, and engaging service. -Each and every guest should be treated
as a unique individual. -With careful and personal touches, anticipate your guests' wants.
-Never say no to a guest without first providing an alternative. -Become ambassadors for
our hotel, community, and coworkers. -Make our visitors' lives easier and more
enjoyable. *The hotel's objectives are as follows: -We are dedicated to our customers, and
we will ensure that they are completely satisfied. -We are dedicated to our personnel, and
we train and support them in order to achieve our company's goals. -We are dedicated to
our shareholders and work hard to provide excellent returns on investment. -We are
committed to leadership, and we will maintain our position as a five-star hotel in the heart
of Hong Kong's economic district while continually striving to improve. -We are
committed to Best Management Practices (BMPs) and will work toward achieving
environmental certification while remaining diligent about our environmental impact.
-We care about our community's sociocultural, environmental, and economic aspects.
*The hotel's strategies are as follows: -Reward the royal guests. -Make use of social
media to the fullest. -Technology should be utilized (Virtual Hotel Tour). -Marketing via
email. -Form a network of partnerships and incentives. -Before, during, and after the
event, there is guest service.

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 2. Given the preceding information, what are Jerry’s options? How should they be
evaluated? Make assumptions where necessary. *Based on the hotel's mission, vision,
goals, strategies, and objectives, Jerry’s options are the following: -Apply for a bank loan.
-Give up the hotel's five-star rating in order to lower prices and serve a broader range of
customers. -Create discounts or promotions that may or may not entice guests to book a
room at the hotel. -Employee retrenchment in order to cut costs. -Email companies to sell
the hotel's venue as a place for meetings, conferences, etc. -Send an email to loyal
customers and offer them a reward for their loyalty. -Re-marketing. -Form local
community partnerships. -Provide incentives or cross-sell. -Use unutilized spaces at the
hotel for different purposes.
3. What should the hotel do in the short term and in the long term? Make assumptions
where necessary to arrive at your decisions. -The hotel's plans *Short-term -During this
period of crisis, devise a fresh sales strategy. -Learn how to sell and put it to good use.
-Plan out the finest market mix during these difficult circumstances. -Innovate.
-Concentrate on the people. -Create fresh sales strategies. -Don't neglect technology. -Sell
quickly and aggressively. *Long-term -Forecast Strategy. -Developing and modifying
sales forecasts. -Analyze your competition, particularly your direct opponents.
4. Why is it difficult to answer the preceding questions? Do we have clear answers for
issues and challenges in real life? -The preceding questions are tough to answer because
we must put ourselves in Jerry Kong's shoes as the hotel's owner. Even if we can come up
with a reasonable solution, its implementation is the biggest issue. In order to keep the
firm functioning, sacrifices may be required. In real life, there are times when we may see
clear solutions to our difficulties, but there are other times when finding a solution will
take time. We can find a solution no matter how difficult the problem is, if we never give
up.
5. Do managers and executives in hospitality and tourism organizations always have
sufficient and reliable information to make decisions? -Managers and executives do not
always have access to reliable information while making choices. In some situations, fake
information can be extremely damaging to a firm. It will take some time to verify that the
information is reliable and legit. Information can be easily updated based on how
trustworthy the source is, and it can be changed in a variety of ways as it flows. That is
why making judgments for managers and executives is difficult.

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