STRAMA Hotel Sogo

FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

Business Administration Department
HOTEL SOGOHOTEL SOGO

HOTEL SOGO
A Strategic Management Paper
Presented to
the Faculty of Business Administration Department
Institute of Accounts, Business and Finance, and Institute of Tourism and Hospitality
Management
Far Eastern University – Manila
In Partial Fulfillment
of the Requirements for the subject BME1102 – Strategic Management
By
ACUEZA, EARL DARYL
ATIENZA, DEREK JACOB
ESGUERRA, PAMELA ANGELINE
PARRO, RHONEL MICHAEL ANGELO P.
RAMIREZ, TANLEY XAVIER
RUSTIA, SEAN
DEE, LYNONNE
ZUNIGA, QUWIE
I FORGOT SINO UNG ISA
30 March 2023
Hotel Sogo Page |2

TABLE OF CONTENT
I. CASE ABSTRACT.........................................................................................................2
II. VISION & MISSION STATEMENT ...............................................................................4
III. EXTERNAL & INTERNAL ENVIRONMENT ANALYSIS ..................................................5
A. External Factors Evaluation Matrix ........................................................................5

B. Internal Factors Evaluation Matrix..........................................................................6
IV. COMPETITIVE PROFILE MATRIX .............................................................................10
V. MATCHING STAGE .................................................................................................12
A. SWOT Analysis.......................................................................................................12
B. Strategic Position and Action Evaluation (SPACE) Matrix .....................................15
C. Grand Strategy Matrix...........................................................................................18
D. IE Matrix................................................................................................................20
VI. DECISION STAGE ...................................................................................................21
A. Quantitative Strategy Planning Matrix (QSPM) ...................................................21

B. Recommendation .................................................................................................26
C. Implementation ....................................................................................................28
VII. REFERENCES ........................................................................................................34
Page |1
I. Case Abstract
A hotel firm that owns the Icon Hotel and Eurotel hotel chains also owns
the Hotel Sogo in the Philippines. Hotel Sogo is a component of such a hotel
corporation. It was founded in 1992 by a collaboration between two intelligent
and successful businesspeople. These individuals are hotel industry enthusiasts
and have more than two decades of experience working as managers in various
motel chains. Reynaldo Malaca is the current Chief Executive Officer of Hotel Sogo.
In addition, this company founders are commercial developers and a registered
contractor in Asia and the Pacific. There are 46 locations spread out over the
country, each of which offers themed rooms and services for a quick stay.
To put it simply, the company got its start in the hotel construction
business with the notion that its establishments will deliver superior customer
service through a combination of factors including orderliness, creativity,
promptness, politeness, self-control, and collaboration. Following that, the
company came to the conclusion that the name "Sogo," which translates to
"harmony," was most appropriate given its focus on Japanese tradition. There is
no doubt that the manner in which a Sogo fan is used to cover the mouth is a
symbol of courtesy and service. The way the letters in the word "Sogo" are
entwined with one another represents cooperation and togetherness. People that
work at Hotel Sogo are represented by the sticks of the fan, and the paper that
holds the fan together is a symbol of the collaborative effort that the Hotel Sogo
family puts out in order to maintain its position as the industry leader in the walk-
up hotel business.
Most individuals have an unfavorable view of Sogo Hotels, despite the fact
that they are continuing to open in new locations. Because the first thing that
comes to mind when you hear the name "Sogo Hotel" is a hotel where couples
Hotel Sogo Page |2

typically go to have sexual fun or for a short time, the reason for this is that when
you hear "Sogo Hotel," you immediately think of that. You might have heard about
couples who went to Sogo Hotels and had sex there, which is why the idea crossed
our minds; similarly, we might have known people who went to Sogo Hotels since
we knew people who went there. (Bulatao, et al., 2017) The term "Sogo" refers to
a "short time," "quickie," as well as a place to get closer to someone in Manila.
When it comes to the overall success of an organization, having a solid

image for one's brand is really necessary. In this article, the focus is on developing
tactics that will help the establishment realign its reputation with its primary
objective and vision, which is to manage the accommodation business while also
providing lodging options for customers.
Hotel Sogo Page |3

II. Vision & MIssion Statement
Mission Statement
To operate a growing chain of lodging facilities profitably throughout the country

exceeding the expectations of earning loyalty of guests through excellent accommodation
and superior service and we do it as a team.
Proposed Mission Statement
To operate a growing chain of lodging facilities and to offer to mass market the
expectations of guests and earning trust, loyalty, and solid reputation through excellent
accommodation, wide-range of product services, superior services, and personalized
experiences.
Vision Statement
We dominate the lodging industry in the Philippines.
Proposed Vision Statement
To dominate the lodging industry and set the standards in service quality of
affordable lodging and inspire connection to the mass. Our staff are qualified, trained,
motivated and exude compassion to guests. Ensure an atmosphere of positivity,
greatness and excellence that will last an impression. We also want the changes in the
modern market and attract tourism marketing to be the hotel lodging’s first choice.
Hotel Sogo Page |4

III. External and Internal Environment Analysis
A. External Factors Evaluation Matrix

The External Factors Evaluation Matrix (EFE) is a tool in strategic
management used to analyze the external conditions of a company, as well as
identify its strengths and weaknesses. It is a tool created by Fred R. David in his
book Strategic Management, in order to help companies take advantage of the
actual opportunities as well as identify and minimize the threats to the company.
Hotel Sogo Page |5

As shown on the matrix above, the collaboration with various influencers ex.
Celebrities and vloggers was rated the highest among the external factors which weighted
the score of 0.10- as it was observed that if Hotel Sogo collaborated with such influencers,
more customers will go and check in with Hotel Sogo. The influencers will help the hotel
advertise and promote their brand as well as their offerings.
On the other hand, the increasing cost in building construction and raw materials
weighted only the score of 0.01, it received the lowest rating among the external factors
as it was observed to be the least priority of the Hotel Sogo hence the response of the
company to it was poor.
Based on these findings, the proponents are recommending Hotel Sogo a strategy
that will focus on brand development as the company may have a brand expansion where
they could take advantage constructing hotels in visayas and mindanao, and to offer new
amenities to customers.
B. Internal Factors Evaluation Matrix
The Internal Factor Evaluation Matrix (IFE) is a strategic management tool that
helps organizations assess their internal strengths and weaknesses. It involves identifying
key factors such as resources, capabilities, and organizational culture, and assigning
weights to each factor based on its relative importance. The IFE matrix then allows
organizations to evaluate their overall internal performance and identify areas for
improvement. By using the IFE matrix, organizations can develop effective strategies that
leverage their strengths while addressing their weaknesses.
Hotel Sogo Page |6

Strengths
S1 to S6 had a rating of four (4) as the proponents’ concluded, based on their
assessment, that these are Hotel SOGO’s major strengths. The company’s strategic
locations for its hotels are the most important major strength since better locations lead
to higher sales and brand recognition, and notably, its branches are highly accessible.
Next is Hotel SOGO’s 46 branches. Having many establishments, the company dominates
Hotel Sogo Page |7

the competition. It also implies that the company has the capital and is producing revenue
by maintaining its branches. Coming after is the fact that Hotel SOGO is a well-established
brand. Repeat purchase is guaranteed when a company has built a reputation, making
the company highly recognizable. Promotional discount rates are the 4th major strength
of Hotel SOGO. Consumers, in general, prefer low-cost yet high-value products and
services. With the hotel's economical price for its room and services, any additional
discounts further entice its customers. The 5th major strength is the strong social media
presence and marketing by Hotel SOGO. Interaction between the company and its
customers improves the relationship between the two and keeps the brand alive and
recognizable, which could lead to a further increase in sales. The last major strength of
Hotel SOGO is its multiple awards, as more awards fortify the brand itself. On the other
hand, the company's minor strengths are the following: CSR activities, family-friendliness,
themed rooms, and food variety. All of the aforementioned strengths, with a rating of
three (3), are helpful to the company but are not as impactful as the major strengths.
Weaknesses
W1 to W6 had a rating of one (1), indicating that these are the major weaknesses
of Hotel SOGO. Coming from the top is the ill-defined public image. It is the number one
(1) major weakness, as there is a stigma about Hotel SOGO being only for making love. It
is an image that the people have developed about the company. Although it is not harmful
to the company's sales, it impacts the way the company is perceived, which could lead to
a decrease in perceived class and quality. The inconsistent quality service, outdated
rooms, facilities, and amenities are the second and third major weaknesses of Hotel
SOGO. These could harm the company's image, customer loyalty, and sales. Next is the
lack of a unique selling point and the poor structural features of economy rooms. The
company lacks the elements which could entice its customers over its competitors. The
poor structural features of economy rooms contribute to the lack of a unique selling point.
Although economy rooms are relatively cheaper, they shouldn't cost the room's vibrance
Hotel Sogo Page |8

and design. The last major weakness of Hotel SOGO is its non-responding to customer
feedback. Ignoring customer feedback could harm the company's relationship with its
customer and could lead to a decrease in loyal customers and brand recognition. On the
other hand, the company's minor weaknesses are the following: low ratings, outdated
website, unstable internet connection, and lack of sustainability. All of the
aforementioned weaknesses, with a rating of two (2), are harmful to the company but are
not as impactful as the major weaknesses.
Hotel Sogo Page |9

IV. Competitive Profile Matrix (CPM)
According to Bhattacharjee & Dey (2015), the Competitive Profile Matrix (CPM) is
a tool for analysis that gives vital information about a competitive advantage based on
important success elements and forms the cornerstone of a company's strategy. The
profile matrix identifies the main rivals of a company and contrasts them using crucial
success characteristics specific to the sector. The analysis also identifies the relative
strengths and weaknesses of the company in comparison to its rivals. As a result, a
business can quickly determine which areas need improvement and which ones need to
be protected (Sridharan, 2018).
As seen in the matrix above, Hotel Sogo achieved six (6) highest ratings focusing
on their strength. The following are the strengths of Hotel Sogo: Brand Reputation,
Market Penetration, Media Communications and Management, Brand Expansion,
Advertising, and Customer Relations. Hotel Sogo effectively utilized several advertising
Hotel Sogo P a g e | 10
strategies, such as newspapers, billboards, flyers, online advertisements, etc., among its
competitors. Even though the hotel garnered a negative reputation among the Filipino
people due to their perception of the business and the people's conservative nature, the
company still gets a positive reputation from those staying in their branches. Since the
hotel is already well-established, expanding to various locations and provinces in the
country helped them gain a competitive advantage over its competitors. It helps them
maximize the profit they can earn across all branches. However, Hotel SOGO needs to
improve on Customer Service and Manpower Development as it got the lowest ratings
showing that it is one of the company's weaknesses. Unlike its competitors, Hotel SOGO
must focus on developing its staff through different training and seminars. It is a way for
them to address the poor reviews they garner from booking websites regarding the
service they provide to customers.
On the other hand, Victoria Court garnered five (5) highest ratings among its competitors.
It focuses on Product and Service Quality, Sanitary, Customer Satisfaction, Manpower
Development, and Customer Service. Compared to its competitors, Victoria Court
provides the best service to customers along with its product offerings. The establishment
ensures that the staff is accommodating toward guests to give them a pleasant
experience during their stay. The last competitor, Nice Hotel, only got one (1) high rating,
which is Price Competitiveness. It has the cheapest price offered to consumers compared
to the two previous companies.
V. Matching Stage
A. SWOT Analysis
Strength Weaknesses
1. The branches have 1. Ill-defined public image
accessible locations. 2. Inconsistent quality
(Situated near LRT and service in different
MRT Stations) branches based on
2. Hotel SOGO expanded feedback and reviews.
and currently has 46 3. Outdated room amenities
branches nationwide. and facilities that are
3. Hotel SOGO is a well- small and old, which
established brand. creates a negative review
4. The hotel provides daily in the guest's experience
promotional discount 4. Lack of unique selling
rates in various branches. points (offers the same
(QR Code Promo, products as its
Discount Card, Hotel competitors) rooms
Sogo VIP Promo) offering
5. The hotel has a strong 5. Low quality structural
social media and features of economy
marketing presence rooms
through Facebook, 6. Not responding and
Instagram, Tiktok, taking actions on
Billboards, etc. customer feedbacks and
6. The hotel is recognized complaints
with multiple awards. 7. Low-rating reviews in
7. Hotel SOGO’s CSR booking websites
Activity (SOGO Cares). 8. Hotel’s website is
8. Family-friendly by outdated
starting a campaign in 9. Unstable connection of
offering and promoting Wi-Fi and poor signal in
rooms that caters to the establishment
family rooms, leisure 10. In terms of transitioning
services, etc. to sustainability, the hotel
9. The hotel has creative is way behind and hasn't
themed rooms. (ex. changed its amenities,
Pirates, Cars, Armory, services, and facilities to
Mascara, Casino, etc.) be eco-friendlier and
10. Variety of food offerings more sustainable
such as seafood,
vegetables, pasta,
sandwiches, salads, etc.
Opportunities SO Strategies WO Strategies
1. Collaboration with 1. Develop a content 1. Focus on

various influencers. (ex. marketing strategy: Creating quality: Stive for
celebrities, vloggers, content such as blog posts, excellence in
content creators) videos, infographics, and other customer service,
2. Increase branch types of content can help providing a top-notch
expansions especially in attract new customers and experience for guest
Mindanao and Visayas. strengthen customer by investing in quality
3. Increase in demand relationships. Content is a employees, training,
during seasonal events. great way to share the story of and regular
(ex. Valentine’s Day, the hotel and highlight its maintenance of areas,
Christmas, New Year’s unique points of difference. amenities, and
Eve, etc.) (S5, S3, S8, O1, O3) facilities. (W2, W3,
4. Conducting and 2. Increase Revenue: W5, W6, W7, W8,
providing staff with Introduce new services, W9, O4, O5, O7, O8,
training and workshops technology, amenities and O10)
to improve customer enhance services and room 2. Develop a
service. quality to increase revenue Competitive
5. Improve and maintain from current and new Advantage:
cleanliness and sanitation customers. (S9, S10, S4 O5, Developing a unique
in the establishment. O7, O8, O10, O6) point of different such
6. Incorporate as hospitality services,
technological equipment 3. Build Brand Recognition: meeting and event
such as kiosks for Invest resources in building planning packages, or
additional service and preserving brand providing unique
options. recognition through amenities to stand out
7. Improve safety of advertising, public relations, in the industry. This
employees and guests by employee retention and can help SOGO Hotel
improving the security engagement on social media. differentiate itself
within and outside of the (S6, S7, O4, O9) from competitors and
establishment in various give it an edge in the
branches. 4. Optimize Location: marketplace. (W4,
8. Improve room service Leverage geographic O2, O3, O6)
especially in bringing intelligence to identify high- 3. Adopt
guest requests and traffic areas and business Sustainable Practices:
orders. clusters and strategically SOGO should adopt
9. Improve CSR Activities expand and open new sustainable practices
by incorporating locations in those areas. (S1, such as energy
sustainable projects that S2, O2) efficiency, water
help the community. conservation, waste
10. Enhance the quality of management, and
the facilities and green procurement.
amenities. (W10, O9)
4. Leverage user-
generated content:
Encourage guests to
post photos and videos
about their experience
at the hotel to create a
positive “buzz” about
the brand. (W1, O1)
Threats ST Strategies WT Strategies
1. Inflation surge and 1. Communicate 1. More
decrease in the hotel as a competitor's
consumer spending. welcoming and outperformance in
2. More competitors hospitable amenities and
are emerging from accommodation facilities that are
time to time to be place for tourists. time to time to be
updated to the (S5, S8, S10 T3, updated to the
trends. T5) trends. (W3, W5
3. Rebranding of 2. Bank on W9, T2, T4)
competitors. (ex. accessibility and 2. Competitors
Victoria Court to affordability have more
Hotel Ava) relative to amenities that give
4. Growth of the competitors. (S1, convenience which
gives the company
sharing economy. S2, S4, T1, T7,
a negative
(ex. Airbnb) T9)
impact. (W3, W5,
5. Continuous change 3. Invest and
W8, W9, T2, T5,
in customer demand focus on the
T6)
and preferences. improvement of
3. A Droste effect
6. Competitors have existing branches
of the public image
more amenities that in emerging that change in
give comfort and accommodations customers demand
convenience to the and the brand and preference.
guest. ( ex. Indoor itself. (S3, S6, S9, (W1, W3, T3, T5)
pool and function T2, T4, T6, T10) 4. Low quality
rooms) 4. Building a features that
7. Competition among name in a competitors can
other hotels community, not outperform the
providing low rates. just in brand but in company thru
(Hotel Ava, Red the time of needs. updated trends
Doorz, Eurotel, During the halt of time to time. (W5,
DreamWorld, etc.) the operations, W7, W8, T2, T6,
8. Natural calamities SOGO can help T7)
and outbreaks that who were victims
would force hotels to of the calamities.
halt their operations. (S7, T8)
9. Competition on price
point (ex. Sogo 995
php and Hotel Ava
995 php)
10. Increasing cost in
building
constructions and
raw materials
B. Strategic Position and Action Evaluation (SPACE) Matrix
The graph below is the Strategic Position and Action Evaluation (SPACE) Matrix. It
has four (4) quadrants, each containing a set of strategies based on the framework. The
company that lies under a specific quadrant must follow the given strategies. The graph
has two (2) internal and two (2) external dimensions. Internal includes Financial Position
and Competitive Position, while Stability Position and Industry Position are external
dimensions. The variables representing the internal dimension are rated from +1 (worst)
to +7 (best) based on the company assessment made by the proponents. On the other
hand, variables of external dimensions are scored between -1 (best) to -7 (worst)
according to the proponents' judgment (Daniels, 2020).
As shown above, Hotel Sogo’s total axis X score is 2.4, while its axis Y score is 2.2.
The company lies under the Aggressive quadrant. With the strategies given by the
framework, Hotel Sogo will be utilizing market development and product development.
The company has plans to engage in a new market and improve its hotels. The strategies
under the said quadrant are the following: backward, forward, and balanced integration,
market penetration, market development, product development, and diversification

(related or unrelated). Opposite to Hotel Sogo, Nice Hotel lies in the Conservative
quadrant as it uses market development through advertisements and geographical
expansion. Victoria Court, on the other hand, is under the Aggressive quadrant, as the
company utilizes market penetration and diversification through its rebranding. The
space matrix of Hotel Sogo is based on the researcher’s study of the following positions:
financial, competitive, stability, and industry.
Aggressive:
● Backward, Forward, Horizontal Integration

● Market Penetration
● Market Development
● Product Development
● Diversification (related or unrelated)
C. Grand Strategy Matrix
The Grand Strategy Matrix is a tool used by businesses and organizations to help
assess their current strategic position, identify and evaluate alternative strategies, and
determine the best course of action. It plots various strategies on a four-celled grid, with
each cell representing one of four main strategies: market penetration, market
development, product development, and diversification. By evaluating a business's
strengths and weaknesses, goals, and resources, a company can identify which strategy
is best suited to its current situation and environment. The Grand Strategy Matrix also
helps to identify potential opportunities and threats, consider the potential impacts of
each strategy, and make decisions about the future direction of the business.
According to the interpretation of the matrix above, the hotel is located in

Quadrant 1, where it is thought to be in an outstanding strategic position and has access
to a rapidly expanding market. Additionally, the restaurant is in Quadrant 2, which has
relatively little tough competition. Even though that restaurant is a part of the Hotel Sogo,
it is unable to compete effectively in the market because its setup is limited to the Hotel
Sogo Avenida. With these, Hotel Sogo must determine why the current strategy is
ineffective and how to improve their marketability. The best strategy for Hotel Sogo is
through product and market development since the hotel falls under the first quadrant.
It will help the business to boost its sales while attracting more customers by getting more
recognition.
D. IE Matrix
An internal-external matrix is a tool for analyzing the various layers within an
organization. It is used to evaluate the allocation of resources, the effectiveness of
processes, and the overall structure of the organization. The matrix can also be utilized to
assess the relationships between different departments and their level of engagement
with internal and external stakeholders. The matrix is divided into four quadrants which
can be used to describe the internal and external aspects of the organization. The internal
quadrant of the matrix includes the organization's resources, capabilities and processes.
This includes internal operations, technology, training, recruitment, and the staff which
make up the organization. The external quadrant includes the external factors that affect
the organization, such as the competition, customers, suppliers, and government
regulations. The internal-external matrix is a powerful tool for assessing how an
organization is structured, how it is managed, and how it functions. It helps identify areas
of opportunity, identify weaknesses, and develop strategies and solutions that can
improve the organization's performance.
Hotel Sogo only has two divisions, the hotel, and the restaurant. The matrix above
shows that the two divisions of Hotel Sogo fall between the middle of the second and fifth
quadrants. These quadrants include the grow and build and hold and maintain strategies.
It means that the hotel and restaurant divisions are in an average market position. The
company must focus on the hold and maintain strategy that proposes the company to
focus on product development and market penetration.
VI. Decision Stage
A. Quantitative Strategy Planning Matrix (QSPM)
The QSPM is a type of strategic management tool utilized for reviewing the best strategy
options for the business and which of them shall be given the most priority.
Strengths
For the Market Development Strategy, S1, S2, S5, S6, S7, and S9 are rated as one
(1) or “not attractive” because these strengths have little impact on the geographic
strength of Hotel Sogo. For S8, it is rated two (2) because it is only somewhat attractive,
as it is somewhat related to providing services to different branches or locations.
Meanwhile, S4 and S10 possessed “highly attractive” remarks as it has great relevance
and importance to Hotel Sogo’s entrance to a new market. Finally, S3 is rated zero (0) as
this strength is not applicable and does not necessarily have an effect on the strategy.
For the Product Development Strategy, S10 is rated four (4), because product
development strategy is about improving the current product or service of the company,
or offering new varieties of products or services. It greatly fits the company’s product
development strategy, which made the said strategy highly attractive. As for S9, it is rated
three (3) as Hotel Sogo offering themed rooms could boost customer satisfaction and it is
about offering services to customers by providing service that would match their
preferences. The rest of the strengths gained a low rating score due to its relevance and
impact on Hotel Sogo’s product development strategy.
Weaknesses
For the Market Development Strategy, all weaknesses had low scores ranging
from one (1) to two (2). It is mainly because the proponents deemed that the weaknesses
had little to no impact and relevance to Hotel Sogo’s plan to engage in a new market. For
the Product Development Strategy, on the other hand, W2, W6, W7, W8, and W9 were
given the score of four (4) and regarded as “highly attractive” by the proponents as these
are Hotel Sogo’s weaknesses that could hinder the company’s strategy in developing its
product. W1 and W10 had a rating of three (3), although these two weaknesses were not
given the highest score by the proponents, they are still identified as major flaws in the
company. The rest of the weaknesses were given a low score as they are weaknesses that
do not pose a huge disadvantage to the company and are the most manageable.
Opportunities
For the market development strategy, O10 is rated as four (4) as these could be
the greatest opportunities Hotel Sogo could have is to increase branch expansion in
visayas and mindanao as this could be a great potential for Hotel Sogo to expand their
hotels outside luzon to have more market. While O1 is rated as three (3) second to the
highest as this could be another great opportunity for the hotel to gain more customers
by collaborating with various influencers such as celebrities, vloggers and other
influencers as they could be an ambassador/ambassadress for Hotel Sogo and can help
the hotel gain more valued customers. The majority of opportunities were given a score
of one (1) by the proponents as these opportunities have little to no application to Hotel
Sogo’s development strategy.
For the product development strategy, O2, O3, O4, and O5 were rated as four (4)
because these focus on the improvement of the services that they offer, the cleanliness
and the overall sanitation of the building and enhancing the overall quality of facilities
and amenities. Developing this product will attract more customers. O6 and O8 were
rated as three (3) as improved safety and technological advancement will serve the
company well, which is why the two are regarded as “somewhat attractive.”
Threats
For market development strategy, T4 and T10 are rated as four (4), as these are
the threats that would certainly affect the expansion of the business to a wider
geographic area. The rest of the threats that are rated lower score, does not necessarily
have a significant attractiveness to the strategy. These threats are relevant to the
company and the strategy but only have minimal to no attractiveness.
For the product development strategy, T5 and T6 are rated as four (4), because
these threats focus on customer preferences which will have consequential attractiveness
to the strategy. As for the T2, T7, and T9 are rated three (3), because these threats affect
the improvement of the services the business offers. Finally, T3 is rated zero (0), because
rebranding of the competitors is not applicable in improving the quality of service of Hotel
Sogo.
B. Recommendations
The proponents advise Hotel Sogo to implement or utilize the following strategies.
Strategy 1: EMPLOYEE TRAINING
An employee is one of the vital assets of a business. Having well-trained and

competent staff, especially in hospitality establishments, provides guests with a pleasant
experience. Hotel Sogo must focus on the employees they are employing to ensure that
they are qualified. Providing various training and seminars helps ensure that employees
develop the necessary skills to be effective in the workplace.
Strategy 2: SHIFTING OF TARGET MARKET
Currently, the target market of Hotel Sogo is consumers who are looking for a
quick stay or couples. That is why it contributes to the negative perception that they get
from people. The researchers propose a gradual shift in its target market and fully
embrace families and travelers. Not only will it help in the change of perception of people,
but it will also allow them to cater more to a wide range of consumers.
Strategy 3: ADVERTISING
One of Hotel Sogo's strengths is its advertising strategies and campaigns. Although
the majority of their advertisements only highlight their promotional discounts and
seasonal promotions. The proponents recommend the hotel in improving their
promotional materials that highlight its product offerings, such as rooms, themes, food,
and amenities. Collaborating with various social media influencers, celebrities, and
vloggers are also suggested since it helps promote the business and help with its image.
Strategy 4: BUSINESS EXPANSION
Hotel Sogo already has numerous branches across the country. Most of the
establishments are around Luzon. The proponents advise the company to expand and
open hotels in Visayas and Mindanao, specifically near tourist destinations, to maximize
revenue generation. Placing their branches where people can easily see or access them is
ideal since it helps attract and retain consumers. Opening new branches allows them to
utilize untapped markets.
Strategy 5: SOGO CARES EXPANSION
Hotel Sogo already has a corporate social responsibility program. The hotel has
given back to the community through various programs such as donation drives, relief
operations, and medical missions. The proponents suggest the company expand its
current program by adding more programs, specifically in its environmental initiatives.
Incorporating sustainable practices will help the business lessen expenses and also help
in addressing the harmful impacts on the environment and community.
C. Implementation Stage
Activity Tactical Plan Target Goal Expected Results
Strategy 1: Employee Training
Human Resource Hotel SOGO is a hotel Hotel SOGO's goal in In the next 6 months
that implements well- this strategy is not to
thought-out business provide them with
strategies. The low-cost products.
human resource Their main goal is to
strategy is being provide a highly
implemented skilled workforce and
throughout the differentiate their
organization, and accommodations in a
Hotel SOGO is competitive market.
improving its Hotel SOGO is
accommodation and concerned about its
ensuring proper managers' and
customer satisfaction employees' ability to
because of this be more innovative
strategy. This strategy and develop their
is extremely skills to meet high
important to the task goals and
Hotel SOGO and its objectives.
employees. It assists
them in developing
their rooms and
accommodations and
services for their
customers, as well as
in all branches where
they operate the
hotel.
Strategy 2: Shift of Target Market
Families/ business, Hotel SOGO will Hotel SOGO’s Goal is In the next 6 Months
conference meetings create a more family not just to provide by identifying and
(Offer more family themed room as they the need of the catering to a new
themed room / offer are targeting to make target market but to audience, Hotel
business meetings more families stay at provide them the full SOGO can increase its
like having a their hotels. As more experience of staying customer base and
conference hall or an families are looking at a luxurious hotel revenue.
events hall) for an affordable but paying for an Additionally, it can
place to stay. affordable price help the business
Another is that Hotel stay relevant and
SOGO will offer the adapt to changing
customers a place to trends in the market.
hold their conference
or business meetings.
Strategy 3: Advertising
Develop Advertising Hotel SOGO will The target goals for In the next 5 months
Messages create persuasive and this activity are as
(Focuses more on compelling messages follows:
highlighting what that communicate
Hotel SOGO can the unique selling ● To differentiate
offer) proposition of a Hotel SOGO from
product or service to its competitors. By
a target audience. It highlighting their
involves identifying unique selling
the key benefits of proposition, hotels
the product or can attract
service, customers who
understanding the are looking for a
target audience, and specific type of
crafting messages experience.
that resonate with ● To build brand
the audience. recognition for the
Developing hotel. By using
advertising messages consistent
is a critical part of messaging across
advertising strategy, all advertising
as it directly channels, hotels
influences the can build a strong
effectiveness of brand identity and
advertising increase brand
campaigns. The awareness.

messages need to be
clear, concise, and ● To connect with
memorable, and potential
should highlight the customers and
key features and build a
benefits of the relationship with
product or service them. By creating
being advertised. advertising
Developing messages that
advertising messages resonate with the
requires a deep target audience,
understanding of the hotels can
target audience, their increase customer
needs, wants, and engagement and
motivations, as well build a loyal
as an understanding customer base.
of the competitive
landscape. The ● To help increase
messages need to be bookings by
tailored to the promoting the
specific audience and hotel's amenities,
should be services, and
communicated special deals. By
through various providing
channels, such as incentives for
print, digital, social customers to book
media, and broadcast directly with the
media. Effective hotel, hotels can
advertising messages increase their
can help businesses revenue and
differentiate reduce their
themselves from their reliance on third-
competitors, attract party booking
new customers, and platforms.
increase sales.
● To improve Hotel
Sogo’s reputation.
By highlighting
positive reviews
and customer
satisfaction.
Strategy 4: Business Expansion
Establishing Hotel The notion of Within the next nine

Sogo Beach / Resort Going to the beach expanding the to fifteen months,
has always held a target market Hotel Sogo will see an
special allure for increase in revenue
from normal
Filipinos, and this and is likely to have
couples to schedules that are
continues to be the families and completely full for
case. The majority of travelers is an their beach resorts
people visit these idea that is in and hotel services. In
places with the line with the addition to this,
purpose of relaxing growth of whenever an
with their families individual visits their
Hotel Sogo to
and making new establishment, they
beach areas will have a positive
memories together. and leisure reputation.
This will be a break activities. This
from the notion that assures that
Hotel Sogo is only the reputation
used for sexual and intention
activities, and it will for Hotel Sogo
instead be presented are entirely
to the public as a for
tourism hotel accommodati
accommodation. on, leisure,
The business will have and
constructed several
entertainmen
kinds of beach resorts
in the provinces of t purposes.
Batangas, La Union, It's possible that
Pangasinan, Cebu, Hotel Sogo
and Boracay island if may enter the
at all possible. These market as a
resorts may be beach
front or located near competitor to

bodies of water. It is other beach
possible that a resorts and
significant amount of
hotels by
money will be
required, but if it is offering rates
successfully carried that are the
out, the investment cheapest and
will be worthwhile. least
The product and expensive
service offering will available.
continue to be
comparable to
common operations
of Hotel Sogo, and
prices will continue to
be kept at an
affordable rate. The
Hotel Sogo may,
depending on its
location, provide
access to pools,
beaches, and perhaps
be the only lodging
option for beach
areas. The hotel
features a bar, a pool,
and beachfront
access in addition to
its standard
amenities, which also
include a bathing area
Strategy 5: Sogo Cares Expansion
Incorporate Hotel Sogo has been Hotel SOGO’s goal In the next 6 months
Sustainability Goals in continuously with this strategy is
CSR Activities extending their to widen and
humanitarian incorporate the CSR
services with their of “SOGO Cares”
Corporate Service which is to bridge the

Responsibility gaps and build better
Program “Sogo communities.
Cares.” Hotel Sogo
will expand Sogo
Cares by
incorporating
sustainable practices
and activities to the
current actions taken
by the Sogo Cares.
These activities still
includes the donation
of linens, pillow
cases, and bath
towels (SogoCares,
2023), in addition to
these, Sogo Cares will
be conducting Sex
Education following
their medical
missions in
cooperation with
medical facilities, this
is in order to educate
the masses and attain
good health and
wellbeing.
References:
Bhattacharjee, D., & Dey, M. (2015). Competitive profile matrix: A theoretical

review. ABAC Journal. Retrieved May 1, 2023, from
http://www.assumptionjournal.au.edu/index.php/abacjournal/article/view/3022#
:~:text=A%20Competitive%20Profile%20Matrix%20(CPM,basis%20for%20an%20or
ganization's%20strategy.
Daniels, R. (2020). What Is Space Matrix? Discuss Strategic Position And Action Evaluation.
Business Study Notes. https://www.businessstudynotes.com/finance/strategic-
managment/space-matrix-strategic-position-action-evaluation-matrix/
David, F. R., & David, M. E. (2023). Strategic Management: A Competitive Advantage

Approach. Pearson.
Hotel Sogo. (2020). Accomplishments. SogoCares. https://sogocares.ph/aboutus
Sridharan, M. (2018, March 20). Competitive profile matrix (CPM) - a tool for rivals
analysis. Think Insights. Retrieved May 1, 2023, from
https://thinkinsights.net/strategy/competitive-profile-matrix/
United Nations. (n.d.). Sustainable development goals: 17 goals to Transform Our World.
United Nations. https://www.un.org/en/exhibits/page/sdgs-17-goals-transform-
world

STRAMA Hotel Sogo

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

STRAMA Hotel Sogo

Uploaded by

Copyright:

Available Formats

FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

HOTEL SOGOHOTEL SOGO

Hotel Sogo Page |2

II. VISION & MISSION STATEMENT ...............................................................................4

III. EXTERNAL & INTERNAL ENVIRONMENT ANALYSIS ..................................................5

A. External Factors Evaluation Matrix ........................................................................5

IV. COMPETITIVE PROFILE MATRIX .............................................................................10

V. MATCHING STAGE .................................................................................................12

VI. DECISION STAGE ...................................................................................................21

A. Quantitative Strategy Planning Matrix (QSPM) ...................................................21

VII. REFERENCES ........................................................................................................34

Hotel Sogo Page |2

When it comes to the overall success of an organization, having a solid

Hotel Sogo Page |3

II. Vision & MIssion Statement

To operate a growing chain of lodging facilities profitably throughout the country

Proposed Mission Statement

We dominate the lodging industry in the Philippines.

Proposed Vision Statement

Hotel Sogo Page |4

III. External and Internal Environment Analysis

A. External Factors Evaluation Matrix

Hotel Sogo Page |5

B. Internal Factors Evaluation Matrix

Hotel Sogo Page |6

Hotel Sogo Page |7

Hotel Sogo Page |8

Hotel Sogo Page |9

IV. Competitive Profile Matrix (CPM)

1. Collaboration with 1. Develop a content 1. Focus on

B. Strategic Position and Action Evaluation (SPACE) Matrix

market penetration, market development, product development, and diversification

● Backward, Forward, Horizontal Integration

C. Grand Strategy Matrix

According to the interpretation of the matrix above, the hotel is located in

VI. Decision Stage

A. Quantitative Strategy Planning Matrix (QSPM)

Strategy 1: EMPLOYEE TRAINING

An employee is one of the vital assets of a business. Having well-trained and

Strategy 2: SHIFTING OF TARGET MARKET

Strategy 4: BUSINESS EXPANSION

Strategy 5: SOGO CARES EXPANSION

Activity Tactical Plan Target Goal Expected Results

Strategy 1: Employee Training

Strategy 2: Shift of Target Market

campaigns. The awareness.

Strategy 4: Business Expansion

Establishing Hotel The notion of Within the next nine

front or located near competitor to

Strategy 5: Sogo Cares Expansion

Corporate Service which is to bridge the

Bhattacharjee, D., &amp; Dey, M. (2015). Competitive profile matrix: A theoretical

David, F. R., & David, M. E. (2023). Strategic Management: A Competitive Advantage

Hotel Sogo. (2020). Accomplishments. SogoCares. https://sogocares.ph/aboutus

You might also like

Bhattacharjee, D., & Dey, M. (2015). Competitive profile matrix: A theoretical