The document discusses the growing trend of luxury vineyard resort developments that offer fractional ownership opportunities to affluent wine enthusiasts. Several developers are profiled who are establishing these types of resorts in premier wine regions around the world like Napa Valley, Tuscany, and the Okanagan Valley. Updates are provided on sales and marketing strategies at various vineyard resort properties.
Residencial Casa Linda (RCL) is one of the safest and most secure gated communities on the north coast of the Dominican Republic, located between the popular beaches of Sosua and Cabarete. RCL is the fastest growing subdivision in the area, with over 175 villas already built and sold across 6 phases. Phases 7 and 8 offer over 220 homes and villas starting at $167,800, with many amenities like a clubhouse, sports courts, walking trails, and security services. The community has seen strong rental occupancy and real estate value increases of around 10% annually.
Cape Samana Golf Resort is a proposed luxury resort development in Samana, Dominican Republic. The 257 acre development will include a championship golf course, up to 1,000 hotel rooms across three hotels, villas, townhomes, condominiums, and a timeshare component. It will be constructed in phases over 5 years. Investors are attracted to the project due to the Dominican Republic's booming tourism industry, Samana's natural beauty and resources, and the expected high returns on investment within 3 years of the resort opening. The master planned development aims to create an luxurious and unforgettable experience for visitors by capitalizing on Samana's pristine beaches, cliffs, and proximity to
This guide provides routes for exploring Southern Mexico, Guatemala, Belize, and Honduras by bicycle. It recommends maps from ITMB and Rough Guides to use with the guide. The guide describes the best times to visit, transportation options for arriving and departing, costs, safety considerations, and health advice. It provides an overview of the region's history, culture, landscapes, and advantages to bicycle touring in the area.
Caraballo Island Grande Development Corporation is proposing an eco-tourism development on Carabao Island, Philippines consisting of a hotel-casino, luxury villas, and retirement villages. The presentation outlines plans for a world-class resort development across 120 hectares, and seeks a partnership with Merlino Group for investment and development. Key details include the island's location, land area, proposed master plan layout, and vision to establish an eco-tourism destination on par with top beaches and resorts worldwide.
This document provides a proposed master development plan for Carabao Island in Romblon Province, Philippines. The plan envisions transforming the island into a grand leisure resort and war museum through several phases of development. This will include hotels, villas, theme parks, a golf course, retiree village, business center, and other amenities. The goal is to capitalize on the island's natural beauty and proximity to popular Boracay Island to develop a world-class tourism destination that will boost the local economy. The project proponents believe Carabao Island has great potential given the success of Boracay and could become another top Philippine tourist attraction.
Verde Island Business and Leisure Estate Inc. is proposing a residential and leisure development project on Verde Island in Batangas, Philippines. The project would redevelop an existing 11-hectare beachfront resort, Verde Island Resort, and develop an additional 100 hectares of land. The resort currently has 32 rooms in Casa Maharlika and 12 rooms in Casa Condesa that need repairs, as well as restaurants, pools, and other facilities. The property is located on Verde Island Passage, known for its diving spots. The development aims to create an exclusive resort catering to local and international markets, leveraging trends of growing tourism and real estate in the Philippines.
The Marriott's King Kamehameha Kona Beach Hotel is undergoing a $35 million renovation to become the newest Marriott Resort Courtyard property. This will include approximately 33,000 square feet of new retail, dining, and service spaces. The hotel has historically maintained high occupancy rates between 75-80% with average room rates of $100 per night. The renovation and rebranding is expected to drive further demand and profitability for the hotel.
The document discusses the growing trend of luxury vineyard resort developments that offer fractional ownership opportunities to affluent wine enthusiasts. Several developers are profiled who are establishing these types of resorts in premier wine regions around the world like Napa Valley, Tuscany, and the Okanagan Valley. Updates are provided on sales and marketing strategies at various vineyard resort properties.
Residencial Casa Linda (RCL) is one of the safest and most secure gated communities on the north coast of the Dominican Republic, located between the popular beaches of Sosua and Cabarete. RCL is the fastest growing subdivision in the area, with over 175 villas already built and sold across 6 phases. Phases 7 and 8 offer over 220 homes and villas starting at $167,800, with many amenities like a clubhouse, sports courts, walking trails, and security services. The community has seen strong rental occupancy and real estate value increases of around 10% annually.
Cape Samana Golf Resort is a proposed luxury resort development in Samana, Dominican Republic. The 257 acre development will include a championship golf course, up to 1,000 hotel rooms across three hotels, villas, townhomes, condominiums, and a timeshare component. It will be constructed in phases over 5 years. Investors are attracted to the project due to the Dominican Republic's booming tourism industry, Samana's natural beauty and resources, and the expected high returns on investment within 3 years of the resort opening. The master planned development aims to create an luxurious and unforgettable experience for visitors by capitalizing on Samana's pristine beaches, cliffs, and proximity to
This guide provides routes for exploring Southern Mexico, Guatemala, Belize, and Honduras by bicycle. It recommends maps from ITMB and Rough Guides to use with the guide. The guide describes the best times to visit, transportation options for arriving and departing, costs, safety considerations, and health advice. It provides an overview of the region's history, culture, landscapes, and advantages to bicycle touring in the area.
Caraballo Island Grande Development Corporation is proposing an eco-tourism development on Carabao Island, Philippines consisting of a hotel-casino, luxury villas, and retirement villages. The presentation outlines plans for a world-class resort development across 120 hectares, and seeks a partnership with Merlino Group for investment and development. Key details include the island's location, land area, proposed master plan layout, and vision to establish an eco-tourism destination on par with top beaches and resorts worldwide.
This document provides a proposed master development plan for Carabao Island in Romblon Province, Philippines. The plan envisions transforming the island into a grand leisure resort and war museum through several phases of development. This will include hotels, villas, theme parks, a golf course, retiree village, business center, and other amenities. The goal is to capitalize on the island's natural beauty and proximity to popular Boracay Island to develop a world-class tourism destination that will boost the local economy. The project proponents believe Carabao Island has great potential given the success of Boracay and could become another top Philippine tourist attraction.
Verde Island Business and Leisure Estate Inc. is proposing a residential and leisure development project on Verde Island in Batangas, Philippines. The project would redevelop an existing 11-hectare beachfront resort, Verde Island Resort, and develop an additional 100 hectares of land. The resort currently has 32 rooms in Casa Maharlika and 12 rooms in Casa Condesa that need repairs, as well as restaurants, pools, and other facilities. The property is located on Verde Island Passage, known for its diving spots. The development aims to create an exclusive resort catering to local and international markets, leveraging trends of growing tourism and real estate in the Philippines.
The Marriott's King Kamehameha Kona Beach Hotel is undergoing a $35 million renovation to become the newest Marriott Resort Courtyard property. This will include approximately 33,000 square feet of new retail, dining, and service spaces. The hotel has historically maintained high occupancy rates between 75-80% with average room rates of $100 per night. The renovation and rebranding is expected to drive further demand and profitability for the hotel.
The document summarizes plans by Range Developments to build the Black Bay Hotel, an ultra-luxury 5-star hotel, in St. Lucia. The 180-room hotel will be part of a larger Black Bay master planned development including villas and amenities on 180 acres of land. Range Developments has experience developing luxury hotels around the world and the Black Bay Hotel is expected to open in 2018, boosting the local economy during construction and employment over 600 people once operational.
Whether you are looking to buy on or off plan property in the Cape Verde islands, The Horizon Property Group have a wide selection of Cape Verde property for sale from villas to apartments and land to business premises throughout the archipelago to suit your needs.
Well established as both a professional and friendly company The Horizon Property Group should be your number one choice for Cape Verde real estate . We have property in most of the Cape Verde Islands.
As the leading Cape Verde estate agents we pride ourselves on being able to offer you a service second to none, identifying your Cape Verde property needs and meeting them in a relaxed but efficient manner.
If you can not find what you are looking for then please send us an email with your information and we will be happy to look for you.
Tourism is the main economic driver for the islands of St. Kitts and Nevis and Tenerife. It has largely replaced former industries like sugar production and brought economic benefits through job creation and revenue. However, overdependence on tourism leaves the economies vulnerable to downturns and tourism has also caused environmental issues through pollution, overdevelopment, and stress on resources.
This document outlines two concepts for the Travelers Inn project. The first concept is called "Lost & Found" and aims to mimic foreign landscapes through design elements and a color palette contrasted by white surrounds. It seeks to provide an escape for changing users to pause and be revived. The second concept is called "The Oceans Drift" and focuses on fluidity, movement and the passage of time through a wavy, drifting design approach and blue color palette. Both concepts explore ways to transport users through design.
This document is a resume for Jose G. Rodriguez Colon. It summarizes his experience as Director of Resort Operations at Wyndham Grand Rio Mar Beach Resort & Spa from 2014 to 2016, and previously as General Manager of several hotels in Puerto Rico and the Caribbean from 2000 to 2014. It also lists his education and interests.
This document provides an overview of Puerto Rico as a destination for meetings and events. Some key points:
- Puerto Rico is a U.S. Commonwealth with no passport or visa required for U.S. citizens. Its currency, language and infrastructure are the same as the U.S.
- It has over 400 weekly domestic flights and 600 international flights into its capital, San Juan.
- Attractions include rainforests, bioluminescent bays, beaches, caves, zip lining, scuba diving and the historic district of Old San Juan.
- It features several luxury resorts and hotels that are suitable for meetings and events, including newly renovated or planned properties.
- Outdoor
Cristal Beach Resort offers luxury oceanfront condominiums and amenities in Cabrera, Dominican Republic. The development features 60 furnished units ranging from 2 to 3 bedrooms, including penthouses. Residents and guests have access to amenities such as pools, a restaurant and bar, spa, and concierge services. The goal is to provide an unmatched resort experience while also offering owners income generation and capital appreciation opportunities.
Cabarete, Dominican Republic is a town known for its world-class wind and water sports like kiteboarding and windsurfing due to its warm waters and perfect wind conditions. It has become a popular tourist destination since the late 1990s for activities like surfing, kiteboarding, and windsurfing. Cabarete offers white sandy beaches, clear waters, a variety of accommodation options, and nightlife centered around bars and restaurants. It has the potential to diversify its tourism industry beyond sun and beach to activities like ecotourism, cultural attractions, and adventure sports to attract younger travelers.
The document summarizes the history of two hotel chains - the Casino Group of Hotels in India and the Hyatt Corporation internationally. It traces the Casino Group's inception in Kerala, India and expansion to include multiple properties across scenic locations in India. It then outlines the founding of Hyatt in 1954 by Hyatt von Dehn, its innovative design of the first airport hotel and atrium lobby designs, expansion internationally and several new brands over the decades to become a global hospitality leader with over 434 hotels worldwide today.
The document summarizes the history of two hotel chains - the Casino Group of Hotels in India and the Hyatt Corporation internationally. It traces the Casino Group's inception in Kerala, India and expansion to include multiple properties across scenic locations in India catering to nature lovers. It details the founding of Hyatt Corporation in 1954 by Hyatt von Dehn and its growth into a global hospitality leader with over 434 hotels worldwide and innovative designs like the Hyatt Regency Atlanta featuring an atrium lobby. It chronicles Hyatt's expansion overseas with properties in Hong Kong and brands like Grand Hyatt and Park Hyatt established in the 1980s to cater to modern luxury travelers.
The document summarizes the history of two hotel chains - the Casino Group of Hotels in India and the Hyatt Corporation internationally. It traces the Casino Group's inception in Kerala, India and expansion to include multiple properties across scenic locations in India catering to nature lovers. It details the founding of Hyatt Corporation in 1954 by Hyatt von Dehn and its growth into a global hospitality leader with over 434 hotels worldwide and innovative designs like the Hyatt Regency Atlanta, establishing Hyatt's first overseas hotel in Hong Kong in 1969. It chronicles Hyatt's expansion through acquisitions and introduction of brands like Andaz, Hyatt Regency, and Park Hyatt targeting various market segments.
Cape Coral is hidden gem on the Florida’s Gulf Coast with buzzing nightlife, fine dining restaurants, beautiful beaches and tons of family friendly outdoor recreational activities. Fishing, boating, kayaking, biking, and fossil hunt are popular tourist activity in Cape Coral. Spacious and well-furnished Cape Coral Vacation Rentals by Owners are ideal place to stay with family in the pristine Cape Coral environment. The vacation rentals in Cape Coral are fully loaded with all modern day amenities and services to the comfort of the guests.
YOUR BUSINESS IS YOUR PROFITABILITY IN CONCEPT HOTEL FUTURIST. SEE YOUR FUTURE AS YOUR PRESENT AND INVEST IN CREATIVITY THAT MAKES SENSE AND REALITY FOR BOTH GUESTS, MANAGEMENT AND STAFF. A NEW VISION AT SHORT TERM, MID TERM OR LONG TERM QUALITY AND TECHNOLOGY HOSPITALITY INDUSTRY.
Punta Mita is a gated community located on a peninsula in Mexico developed by DINE, Mexico's top real estate developer. It has high-end residential and resort properties with amenities like golf courses, spas, and beaches. The Four Seasons was the first resort built and more luxury brands like Rosewood and St. Regis are planned. Properties include villas, estates, condos and resorts ranging in price from millions for homes to thousands per night for rentals. The area has perfect climate and infrastructure to attract American and international investors looking for luxury second homes and resort experiences in Mexico.
This 10-day Eastern Caribbean cruise departs from and returns to Fort Lauderdale, Florida on February 6-16, 2012 aboard the Emerald Princess ship. The itinerary includes visits to Antigua, St. Lucia, Barbados, St. Kitts, St. Thomas, and Princess Cays. Cruise prices range from $1,225-$2,185 per person depending on cabin type, with balcony cabins and mini-suites costing more than interior or oceanview cabins. A deposit is required to reserve a cabin.
The document discusses mass tourism, providing characteristics and examples of its development. It describes how formerly small fishing villages in Spain were transformed into large resorts catering solely to tourists. A card sorting activity identifies both economic and environmental gains and losses from mass tourism. Gains include job creation and infrastructure development, while losses include damage to environments and local cultures.
Technological Progress and Dealing With Clients In Consulting EnvironmentHabib Abou Saleh
This document discusses how disruptive technologies will change management consulting. It identifies mobile internet, automation, IoT, cloud computing and robotics as technologies that will significantly impact businesses. As these technologies provide clients new analytical capabilities, consulting firms will need to adopt new technologies to provide differentiated insights. Clients will also demand more specialized expertise. The rise of virtual work will change how consulting services are delivered and how clients and consultants interact. To survive, consulting firms will need to continually reinvent themselves by embracing new technologies, specializing expertise, standardizing prices, and adapting to virtual environments.
Management Consulting Expertise in triggering and stimulating creativity with...Habib Abou Saleh
It outlines the best practices in Management Consulting Expertise, mainly when it comes to triggering and stimulating creativity within organizations. It sheds the light on what really influence our creative thinking and how it would affect businesses’ products and services provided within an innovative work frame. It highlights the role of organizations’ culture, the working environment, managers’ roles, in addition to our surroundings in shaping our creativity.
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The document summarizes plans by Range Developments to build the Black Bay Hotel, an ultra-luxury 5-star hotel, in St. Lucia. The 180-room hotel will be part of a larger Black Bay master planned development including villas and amenities on 180 acres of land. Range Developments has experience developing luxury hotels around the world and the Black Bay Hotel is expected to open in 2018, boosting the local economy during construction and employment over 600 people once operational.
Whether you are looking to buy on or off plan property in the Cape Verde islands, The Horizon Property Group have a wide selection of Cape Verde property for sale from villas to apartments and land to business premises throughout the archipelago to suit your needs.
Well established as both a professional and friendly company The Horizon Property Group should be your number one choice for Cape Verde real estate . We have property in most of the Cape Verde Islands.
As the leading Cape Verde estate agents we pride ourselves on being able to offer you a service second to none, identifying your Cape Verde property needs and meeting them in a relaxed but efficient manner.
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Tourism is the main economic driver for the islands of St. Kitts and Nevis and Tenerife. It has largely replaced former industries like sugar production and brought economic benefits through job creation and revenue. However, overdependence on tourism leaves the economies vulnerable to downturns and tourism has also caused environmental issues through pollution, overdevelopment, and stress on resources.
This document outlines two concepts for the Travelers Inn project. The first concept is called "Lost & Found" and aims to mimic foreign landscapes through design elements and a color palette contrasted by white surrounds. It seeks to provide an escape for changing users to pause and be revived. The second concept is called "The Oceans Drift" and focuses on fluidity, movement and the passage of time through a wavy, drifting design approach and blue color palette. Both concepts explore ways to transport users through design.
This document is a resume for Jose G. Rodriguez Colon. It summarizes his experience as Director of Resort Operations at Wyndham Grand Rio Mar Beach Resort & Spa from 2014 to 2016, and previously as General Manager of several hotels in Puerto Rico and the Caribbean from 2000 to 2014. It also lists his education and interests.
This document provides an overview of Puerto Rico as a destination for meetings and events. Some key points:
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- Attractions include rainforests, bioluminescent bays, beaches, caves, zip lining, scuba diving and the historic district of Old San Juan.
- It features several luxury resorts and hotels that are suitable for meetings and events, including newly renovated or planned properties.
- Outdoor
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Cabarete, Dominican Republic is a town known for its world-class wind and water sports like kiteboarding and windsurfing due to its warm waters and perfect wind conditions. It has become a popular tourist destination since the late 1990s for activities like surfing, kiteboarding, and windsurfing. Cabarete offers white sandy beaches, clear waters, a variety of accommodation options, and nightlife centered around bars and restaurants. It has the potential to diversify its tourism industry beyond sun and beach to activities like ecotourism, cultural attractions, and adventure sports to attract younger travelers.
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The Inn on Cortes Island - 2015 - Expansion Challenges & Opportunities
1. The Inn on Cortes Island - 2015
- Expansion Challenges & Opportunities
2. The Inn on Cortes Island
CEO Business Diagnostics -2- Grenoble DMC Case Study – 2015
Introduction
Another crisp fall morning saw a refreshing breeze coming in from across the Pacific Ocean.
It was mid October 2012 and as he paused to look out to sea, at the halfway mark of his
daily jog, Jonathan Armitage wondered whether he would ever realize his expansion plans
at the Inn on Cortes Island.
Since its grand opening two years ago, most of his energies had been spent managing the
operational and human resources aspects of the organization. These challenges had
become increasingly more complex, and were complicated by a recent decision to launch
an aggressive expansion of the resort.
Tourism in British Columbia
Tourism within British Columbia had become one of the most important industries in the
province, growing steadily since Expo ’86, and more recently the 2010 Winter Olympics,
which showcased the beauty of Vancouver and BC to the world. In 2011, annual tourism
revenue in the province was $6.5 billion, accounting for just over 4% of the provincial GDP.
British Columbia’s main markets for tourism were BC’s own residents, visitors from other
parts of Canada, and visitors from international locations, most importantly the United
States, Asia, and Europe.
Human Resources issues in played a major role within the B.C tourism industry with a
strong perception that tourism jobs did not pay well, along with challenges associated
with recruitment, retaining workers, and training/ development issues. A significant
related concern was the tendency for tourism businesses to promote from within, which
often launched employees into management positions without any preparatory training
in business skills or supervising others.
The Inn on Cortes Island
Cortes Island is about 25 km long, 13 km wide and 13,000 hectares in area with the
southern half lying in the rain shadow of Vancouver Island, creating a drier climate than
the northern half of the island. Most of the island's population lives on the southern
end, graced with Arbutus and Manzanita trees that cling to imposing bleached granite
bluffs.
Cortes Island (pronounced Cortez) and nearby Hernando Island were named after the
Spanish conqueror of Mexico, Hernando Cortes. The Spanish cartographer, Valdez, who
charted the local waters in 1793, established this unusual link. The Spanish never settled
the area, but Cortes and other Spanish names remained.
3. The Inn on Cortes Island
CEO Business Diagnostics -3- Grenoble DMC Case Study – 2015
The island is located on the northern end of the Strait of Georgia, between Campbell
River on central Vancouver Island and the mainland coast of British Columbia and is
accessed via ferry from Heriot Bay on the east coast of Quadra Island.3
The Inn on Cortes Island (ICI) was located just outside the hamlet of Squirrel’s Landing, an
anchorage facing Desolation Sound.
Two years prior to the Inn’s opening in March of 2010, Jonathan Armitage had been
vacationing on Cortes Island, taking a well-earned break from his successful financial
management company. Wanting to really get away from it all, he decided to investigate
the area and immediately fell in love with the ruggedly beautiful setting.
During the trip, acting on an impulse, Jonathan acquired an 8-acre parcel of land that had
been in foreclosure. He felt the setting had great development potential and after closing
the property purchase, he commenced a complex rezoning process, which involved the
local council, the federal Fisheries department, and the Islands Trust.
It took almost one year to obtain all of the necessary approvals. With the rezoning process
complete, Jonathan worked closely with his accountants and tourism industry consultants
to undertake a detailed feasibility analysis, prior to commencing construction.
Based on the appraised value of the project, on a completion basis, he was able to secure
$3 million financing for the $6 million construction project, with the balance funded by a
$3.5million equity contribution from Jonathan (cash and the clear title property). After only
one year of construction, the Inn opened for business in March 2010.
Jonathan’s vision for the resort was realized - situated right on the beachfront, each of the
28 rooms faced the water, with lapping waves seen and heard from all balconies. The
rooms all featured Jacuzzi tubs, fireplaces, IPod docking stations and high quality linens.
The interiors had been completed in a theme of earth tones, and featured paintings and
prints done by local artists. A gourmet restaurant and bar completed the experience,
allowing guests to choose from a wide variety of fresh, local food without having to
venture away from the resort. Not a single corner had been cut in creating a resort
experience with a focus on excellence.
In terms of market positioning, the ICI was depicted as a comfortable and elegant
“boutique inn” experience for an upscale clientele. A sophisticated web site presence was
built which accurately reflected the spirit of the relaxed setting. Recognizing the value of
repeat business, marketing efforts were focused on developing and retaining a loyal
clientele who would be willing to return to the Inn, and to refer friends and colleagues as
well.
4. The Inn on Cortes Island
CEO Business Diagnostics -4- Grenoble DMC Case Study – 2015
A media-consulting firm was engaged to initiate a ‘soft opening’ strategy of press releases
and industry familiarization (FAM) tours, resulting in favorable publicity, prior to and soon
after, opening their doors for business.
Organizational structure
Jonathan was in his early 50s, single and had extensive business interests in nearby
Vancouver. He was the sole shareholder and CEO of the ICI but had employed a General
Manager to oversee the day-to-day operations. The resort had four main functional
areas: front desk, housekeeping, maintenance and grounds, and food services. Each
department had its own manager.
To prepare for the opening in 2010, a mother and son team had been hired into the two
most prominent positions at the Inn: Anna was brought on as the General Manager, and
her son, Lloyd became the Chef. Both had extensive experience working in a high-end pub
in the English Lake District and appeared to be a close knit and effective team.
However, after 18 months of operations, it became apparent that this ‘family team’ was
not working effectively - there had been a litany of operational and HR problems which
seemed to flare up without warning, Resolving these issues became both stressful and
time-consuming for Jonathan as he juggled his various corporate and ownership
responsibilities.
After considerable deliberation, the mother and son management team were terminated
one stormy November night. In protest, several other members of the staff resigned at the
same time. Jonathan commented:
“Here I was in midst of a cold and wet November with no management support and three
other outraged staff also marching out of the door. Luckily, the consulting firm that I had
used to assess the Inn’s initial feasibility was able to provide some solid professional advice
to source a new GM and replacement staff for the resort.”
Within a few weeks, Edward Bourgogne, an experienced, no-nonsense manager of
European heritage was hired. To replace the departed chef, Edward hired Jackie
Newcome. Coming to ICI with impeccable training and some good experience, she was a
better kitchen manager than Lloyd had been, and she got on well with the kitchen staff
team. Edward resolved to give her a chance to develop into a “star” chef that would focus
additional attention on the resort and enhance its reputation.
Customer Profile
The Inn was open year round with the late spring, summer and early fall being the
strongest revenue season. Despite the inclement B.C winter weather, a secondary
5. The Inn on Cortes Island
CEO Business Diagnostics -5- Grenoble DMC Case Study – 2015
‘storm watching’ season had evolved with couples seeking escape from their busy urban
environments, to enjoy the warmth and shelter of the Inn while it was pounded by
strong winds out of the south east.
The primary profile of the visitors to the Inn could best be described as affluent middle
class couples, taking a long weekend or couple of weeks, to recharge in a pristine,
secluded environment. There was also an interesting trend towards family weddings
where the Inn would be taken over for a whole weekend to accommodate the event.
While a strong cash flow generator, there had been some push back from ‘regular’
clients who sometimes were unable to book for a return trip on their desired weekend.
Jonathan also felt that there was potential for more family style vacations and had been
investigating the merits of adding high end cottage style accommodations to serve the
‘three generation’ boomer families that were now seeking to travel together.
The Competition
Despite the unique ambience of the Inn, there were a few upscale competing operations
both on Cortes, and on nearby Quadra Island.
On Cortes, the world-renowned Hollyhock retreat resort had built a strong reputation
for quality with its ocean-side private rooms and more rustic dorm rooms built in earthy
West Coast style. It was further differentiated with unique tent sites, complete with a
cedar bathhouse, which made camping feel like a luxury. (www.hollyhock.ca)
On Quadra Island, April Point Resort (www.aprilpoint.com) had also built a formidable
reputation as a desirable resort location, offering glorious sunset views over the ocean
channel across to nearby Campbell River. The resort was a 10-minute water taxi ride
from the main Island, and had positioned itself as an upscale fishing lodge, offering a
mix of adventure and relaxation for couples, families, groups, and anglers of all ages.
There were also a number of Cortes based smaller, ‘funkier’ operations, more down
market than the ICI, who actually collaborated with each other and the resort, especially
during the peak seasons when double bookings sometimes occurred.
Operations and HR issues
In the fall of 2012, the Inn employed 30 permanent staff complemented by an additional
10 summer season employees. The four department managers - front desk,
housekeeping, maintenance and grounds, food services – all reported directly to Edward
6. The Inn on Cortes Island
CEO Business Diagnostics -6- Grenoble DMC Case Study – 2015
Bourgogne. Since the resort opened, staff turnover had been a critical issue, despite the
provision of on-site staff housing right at the resort. Jonathan reflected:
‘In the beginning, initial staff hiring and training had been completed quickly but faced with
the relatively isolated rural area of Cortes, there was only a small local population from
which to hire, so we had to source a high number of staff from outside of the area. We
thought that staff housing was the solution but we continued to lose staff on a regular
basis.
With Edward coming on board six months ago, the situation has stabilized somewhat. He
seems to possess decent leadership and inter-personal skills, although, just last week, he
and Jackie had a major altercation over menu items, which has evolved into a rather
troubling feud. I am not sure how to resolve this issue and I sense that the kitchen staff are
becoming more truculent and distant from their colleagues’
Financial performance
First year projected revenues were $2.2 million, based on expected occupancy of 64% and
an average room rate of $225.00. Actual results came in close to plan with a small
operating loss recorded.
In the following year, revenues increased by 10% reflecting stable occupancy and higher
off-season rates as the storm watching weekends came into vogue. Profitability still
remained elusive due to higher than anticipated marketing costs and staff severance
packages that had to be funded during the year.
Latest interim financials showed improved performance against plan (both revenue and
profitability), which Jonathan greeted with relief and optimism as he contemplated his
resort expansion plans.
From a Balance Sheet perspective, the company was reasonably well capitalized. Amicable
relations with the First National Bank were reported despite some recent overdue term
loan payments and unforeseen overdrafts. Jonathan commented:
‘The First National were enormously supportive when we put together our first construction
financing package for $3 million and also extended an operating line of $500,000 to us as
well. However, over the past few months, we have been at the limit of the credit line.
We are experiencing tightening cash flow despite just completing the summer season and
our apparent strong interim profit performance. I am mystified by this phenomenon and
worry that relations may be getting strained with the bank – incredibly poor timing as we
meet soon to request increased financing for our cottage expansion.
7. The Inn on Cortes Island
CEO Business Diagnostics -7- Grenoble DMC Case Study – 2015
On a more hopeful note, we continue to receive very positive reviews from our clients who
are becoming huge fans of our upscale dining room and world-class menu. I attribute these
accolades to our decision last year to substantially expand our wine cellar with more
selections from B.C wineries and Chile. Of course, from a financial standpoint, this is also
very positive news, as we derive excellent gross margins from our wine sales’
The expansion plans
Over a few glasses of exquisite Marley Farms 2008 Pinot Grigio, Jonathan and Edward had
resolved to press ahead with the cottage expansion. Edward had also pressed hard for the
development of a full service luxury spa facility but this was temporarily shelved due to the
projected cost ($750K) to set up such an operation. Buoyed by the encouraging interim
financial results, Jonathan decided to put forth a brief financing request to the Bank,
summarized as follows:
The resort expansion would consist of 15 luxury cottages with an estimated cost of $110K
per unit for a total of $1,650K. The cost estimate included both hard (construction and
fittings) and soft (architect, design) costs.
Bank financing was requested for $1.8 million that included an additional $150K to cover
working capital needs during the six months construction period.
Jonathan reflected optimistically:
‘While I have a number of internal challenges, especially on the H-R side, I feel that the
timing is right to undertake the cottage expansion, as part of our differentiation strategy. It
is going to be a tough sell to the bank but I feel that we can make a compelling case.
The first thing we need to do is get a current fix on our present corporate health, by
considering both our external environment and also our internal operations. I also need to
resolve our staff turnover problems and address the deteriorating relationship between
Edward and Jackie.
Then, we need to put a financing application package together for the bank and
demonstrate our capability to generate positive, sustained cash flow to service and repay
the debt – our revenue and earnings projections will have to withstand intense scrutiny by
the bank! ‘
As he turned back towards the resort to finish his morning run, he began to anticipate the
next steps in moving from the planning stage to the actual resort expansion.
8. The Inn on Cortes Island
CEO Business Diagnostics -8- Grenoble DMC Case Study – 2015
The Next steps:
1) Based on the case and accompanying financial statements/ratio analysis, use the
provided ‘size up’ work sheets to complete an External and Internal evaluation of the ICI
operations.
Mark allocation - 50%
2) Based on your overall assessment of the ICI resort and its future prospects, should
Jonathan proceed with the cottage expansion at this time?
Please provide a detailed rationale for either decision.
Support your decision by way of a risk assessment in the following areas:
Financial:
Market:
Operations:
Construction:
Management:
Mark allocation - 50%
References
1 Starting a Tourism Business. Tourism British Columbia, 2003.
2
Tourism Indicators British Columbia Tourism - October 2011
3
Cortes Island reference (www.Vancouverisland.com)
9. The Inn on Cortes Island
CEO Business Diagnostics -9- Grenoble DMC Case Study – 2015
Exhibit 1
Statement of Income & Retained Earnings (Unaudited)
10. The Inn on Cortes Island
CEO Business Diagnostics -10- Grenoble DMC Case Study – 2015
2011 2012
Interim -
6 months
Revenues
Rooms 1380 1518 860
Food and beverage 828 911 512
$ 2208 $ 2429 $ 1372
Departmental expenses
Rooms 516 543 260
Food and beverage 636 730 420
$ 1152 $ 1273 $ 680
Departmental Gross Profit $ 1056 $ 1156 $ 692
Undistributed expenses
Administration and general 267 289 141
Marketing 198 218 106
Utilities 34 44 25
Maintenance 28 34 17
$ 527 $ 585 $ 289
Income before fixed charges $ 529 $ 571 $ 403
Fixed expenses
Property and business taxes 78 96 45
Insurance 45 56 27
Provision for capital replacement 50 55
173 207 72
Income available for debt service $ 356 $ 364 $ 331
Depreciation 292 277 145
Bank Interest 214 207 109
Net Income before Tax $ -150 $ -120 $ 77
Income Taxes 24
Net Income $ -150 $ -120 $ 53
Inn on Cortes Island Ltd
STATEMENT OF INCOME AND RETAINED EARNINGS
For the Year Ended March 31st
11. The Inn on Cortes Island
CEO Business Diagnostics -11- Grenoble DMC Case Study – 2015
Notes to Statements
Rooms:
Revenues relate to room sales usually paid for by charge card.
Expenses include staff wages/benefits, cable, laundry, guest services and travel agent
commissions.
Food & Beverage:
Revenues consist of Food ($660K), Beer ($30K), Wine ($195K) and Liquor ($26K) sales.
Expenses consisted of Cost of Sales - $346K (average 38%), and Departmental expenses
- primarily wages and operating supplies.
The operating losses for the first two years - $150K and $120K - were attributed by
Jonathan to higher than forecast marketing expenses
12. The Inn on Cortes Island
CEO Business Diagnostics -12- Grenoble DMC Case Study – 2015
Exhibit 2 Balance Sheet (Unaudited)
2011 2012
ASSETS
Current Assets
Cash $ 5 $ 4
Accounts Receivable 65 137
Inventories 230 367
Prepaid Expenses 5 4
Total Current Assets $ 305 $ 512
Fixed Assets
Land $ 750 $ 750
Buldings 4838 4596
Less Accumulated Depreciation -242 -230
4596 4366
Furnishings & Equipment 890 845
Less Accumulated Depreciation -45 -42
845 803
Computers 90 85
Less Accumulated Depreciation -5 -5
85 80
Total Fixed Assets $ 6276 $ 5999
Total Assets $ 6581 $ 6511
LIABILITIES
Current Liabilities
Bank Overdraft $ 27 $ 104
Accounts Payable 154 101
Customer Deposits 50 76
Current Portion of Long-term Debt 150
Total Current Liabilities $ 231 $ 431
Long-term Liabilities
Bank term loan $ 3000 $ 2850
Shareholder loan J.W Holdings Inc 2750 2750
Total Liabilities 5981 6031
SHAREHOLDERS' EQUITY
Share Capital $ 750 $ 750
Retained Earnings -150 -270
Total Shareholders' Equity 600 480
Total Liabilities & Shareholder Equity $ 6581 $ 6511
The Inn on Cortes Island Ltd.
For the Year Ended March 31 $000's
BALANCE SHEETS (Unaudited)
13. The Inn on Cortes Island
CEO Business Diagnostics -13- Grenoble DMC Case Study – 2015
Notes to the Balance Sheet
Accounts Receivable - relates to outstanding payments from wedding
receptions/conferences with increase in 2012 $70K primarily due to B.C Vintners
retreat with payment in full promised by calendar year end.
Inventories - 2012: Food supplies $154K, Beer & Wine supplies $200K, increase year
over year primarily due to $120K shipment of Chilean vintage wines.
Fixed Assets - the resort property was independently appraised for bank financing
purposes at $7.2 million in April 2010
Shareholder loan - due to Jonathan's holding company with proceeds contributed
towards the cost of the resort construction and subrogated (postponed) to the
bank. The postponement allows this liability to be re-stated as equity for ratio
calculation purposes.
14. The Inn on Cortes Island
CEO Business Diagnostics -14- Grenoble DMC Case Study – 2015
Exhibit 3 - Revenue and Expense Projections
2013 2014
Rooms
Number of rooms 28 28
Average Room Rate $ 229.00 $ 233.00
Occupancy 70.0% 75.0%
Room Nights Available 10,220 10,220
Room Nights Sold 7,154 7,665
Cottages
Average Room Rate $ 136.00
Occupancy 70.0%
Number of rooms 15
Room Nights Available 5,475
Room Nights Sold 3,832
Revenues
Rooms 1,645$ 1,785$
Food and beverage 990 1,070
Cabins - 520
Total 2,635 3,375
Departmental expenses
Rooms 615 660
Food and beverage 762 824
Cabins - 182
Total 1,377 1,666
Departmental gross profit 1,258 1,709
Undistributed expenses
Administration and general 295 325
Marketing 180 240
Utilities 50 70
Maintenance 40 55
565 690
Income before fixed charges 693 1,019
Fixed expenses
Property and business taxes 125 135
Insurance 65 75
Provision for capital replacement 50 50
240 260
Income available for debt service 453$ 759$
Forecast annual Term loan payments 464
Coverage 1.64
The Inn on Cortes Island Ltd.
BALANCE SHEETS (Unaudited)
For the Year Ended March 31 $000's
15. The Inn on Cortes Island
CEO Business Diagnostics -15- Grenoble DMC Case Study – 2015
Notes to Projected Revenues and Expenses
Jonathan's accountants prepared the two year forecasts based on detailed discussions
with Edward and his senior staff. A sensitivity analysis was completed with three
scenarios examined - best, expected and worst case. The forecast presented here is the
'expected case'
The bank was subsequently presented with a detailed package of supporting materials
including revenue and cost breakdowns for the Rooms, F& B and Cottage components.
Revenues and Expenses associated with the Inn core operations - Rooms and F&B were
forecast on the basis of the encouraging interim results to September 2012.
The Cottage forecast Revenues were based upon the completion of 15 units within a four
month construction window. A nightly room rate of $136 was selected, based upon
other similar operations on Vancouver Island. A modest 70% occupancy rate was chosen
for the first year.
The bank term debt is forecast at $4.8 million, with $1.8 million additional financing
covering the cottage hard and soft construction costs.
Annual principal and interest payments are forecast at $38,700 per month, based on a 20
year amortization and a fixed interest rate of 7.5%
The resultant debt service coverage is a comfortable 1.64x - if the amortization is
reduced to 15 years, the coverage reduces to approx. 1.42x
An updated Appraisal has been completed, rendering an increased valuation of $9.3
million which reflects the $1.8 million cottage expansion. Proposed bank term debt ($4.8
million) will be 52% of the appraised value.
16. The Inn on Cortes Island
CEO Business Diagnostics -16- Grenoble DMC Case Study – 2015
Exhibit 4 - Historical Ratio Analysis
2011 2012 2013 forecast 2014 forecast
Gross Revenues 2208 2,429 2,635 3,375
GPM 48% 48% 48% 51%
EBITDA 356 364 453 759
Working Capital 74 81
Current ratio 1.32 1.2
Debt: Equity ratio 0.96 1.02
Total Debt/EBITDA 9.08 9.01
Inventory turns 132 days 184 days
A/R Collection 10 days 21 days
(thousands of dollars)
INN ON CORTES ISLAND LTD
RATIO ANALYSIS HISTORICAL & FORECAST 2011 T0 2014
17. The Inn on Cortes Island - 2015
Student Name: Habib ABOU SALEH
18. THE BUSINESS ENVIRONMENT
Opportunities Threats
Political Winter Olympic and Expo’86 loosened
the political climate in the country
which that attracts more local and
foreign investments.
Potential for governmental support in
the tourism/service sector?
Possibility of new regulations from the
federal fisheries department, local
council, and the Island Trust which might
threaten the business?
Economic Winter Olympics 2010 and Expo’86
boosted tourism, and demand for
hotel/resort services and created
more jobs.
Increase in tourism contribution to
GDP.
Low interest rates as per the
Canadian Press, which would
stimulate borrowing and investment.
Low Inflation Rate, and was kept
steady below 2.5 %.
Recovering from a strong recession with
relatively high unemployment and
enormous governmental fiscal deficit as
per Statistics Canada, Financial Flow
Accounts.
Adverse exchange rate movements –
Canada Dollars vs. US Dollars?
Canadian Dollars vs. Euros/GB Pounds?
Societal Winter Olympics and Expo’86
changed the social attitude from
apathy to involvement. Infrastructure
development, and new community
identity, image and quality of life took
place.
Increase client’s awareness of finding
a balance between their busy urban
life and enjoying their personal life.
Not Available.
Technological Continuous technological
advancement which enhances
interaction with clients and improve
the quality of the services provided
within a short time frame.
B2C enhancement in relationships.
Potential ability of clients to turn int
competitors – Backward Integration.
Increasing pace of technological change
with needs for frequent continuous
updates and follow up.
19. INDUSTRY COMPETITIVE CONDITIONS
High Neutral Low
Threat of new entrants
Based on the business maturity and the nature of the
resort, threat of new entrants shows a low position.
High capital costs to set up a luxury resort.
X
Bargaining power of customers
It is true that the customer’s main concern is to escape
their busy urban environment, recharge in a pristine
secluded environment, and enjoy warmth and shelter
alone or with their beloved ones, but cost will always be
an issue. As a result, consumers’ bargaining power is
high.
X
Bargaining power of suppliers
The bargaining power of a supplier is low, as they have
to set their prices based on the current market prices
which is constrained by competition.
X
Threat of substitutes
Even though the Resort
offers a variety of other leisure activities on their
resort properties due to the availability of small funkier
operations, more down market than ICI, and other
luxury resorts in Cortes and Quadra Island which
provide the same services.
X
Intensity of competition
Upscale competing operations on both Cortes and
nearby Quadra Island.
Hollyhock resort has a strong reputation for quality, and
differentiated facilities such as rustic dorm rooms and
unique tent site which made camping a luxury.
April Point Resort has a formidable reputation offering
glorious experience, outdoors activities for couples,
families, groups and anglers of all ages.
Presence of a number of Cortes based smaller funkier
operations, more down market than ICI.
X
Key success factors?
Sophisticated web site which reflects the spirit of the relaxed setting, in addition to
providing customers with an easy accessible online booking service.
Adopting a market strategy which is focused on developing and retaining a loyal
clientele.
20. Providing a high quality and luxurious escape for clients from their urban busy life to
enjoy warmth and pristine secluded environment.
Resort connection and strong reputation among others in the Island and nearby.
Presence of Strategic thinking, and planning though a future vision which is presented
by the expansion plan.
FINANCIAL SIZE-UP (Year One = 2011, Year Two = 2012)
Strengths Weaknesses
Profitability
and Cash Flow
Positive Profit (EBIT) and (EBITDA)
during the first two years and last
interim.
Increase in ROE from year 1 to last
interim.
Increase in net profit/revenue
ratio from year one to last interim,
and ending with positive net profit
during the last interim.
Moderately high and stable GPM.
Increase by 10% in revenues from
year one to year 2.
Improve in revenues and
profitability during the last
interim.
Decrease in annual expenditure
from year 1 to year 2 when it
comes to furniture and
equipment.
Elusive profitability due to higher
than anticipated marketing costs
and staff severance packages.
Ineffectiveness in anticipating
marketing expenses.
Increase in administrative and
general expenses by 8.2% from
2011-2012. Why? What can we do
about it?
Currently suffering from tight cash
flow despite the strong interim
profit performance.
Liquidity Positive current Ratio although it
slightly decline from year one to
year two but it remains positive.
Short period of A/R collection
which is a good sign for the
business as it implies fast cash
inflow.
Current assets/current liability > 1,
shows ability to pay debts to some
extent (should be >2).
High inventory, plus inventory terms
and cycle is relatively high, it reflects
inability to turn inventory into cash in
a short period of time. We need to
break down the inventory to make a
good judgment?
A/R composition?
Stability The company is highly geared
which implies that the market is
willing to lend them more via long
term loans. Resort should issue
Decrease in shareholder equity.
Project loan for expansion with tight
service coverage (1.42x to 1.64x) –
depending on the payment terms.
21. more shares to collect more cash.
Good relations with the bank.
Earnings are fully invested, no
dividends paid out.
Overdue term loan payments and
unforeseen overdrafts.
Efficiency A/R collection is fast (Days Sales
outstanding, DSO Ratio) which
implies efficacy in collecting the
money – source of cash.
Double period in collecting A/R. why?
Reasons behind it?
Increase in inventory turnover by
39% from year one to year two.
Why? What can be done?
Additional costs for keeping
inventory in the warehouse.
Growth Revenue increase from year one
to the second by 10%, in addition
tremendous projection increase
in revenues if the expansion plan
is implemented.
Increase in earning growth.
Decrease in Shareholders equity
between year one and two.
Increase in current and total Liability
from year one to two.
22. MARKETING SIZE-UP
Strengths Weaknesses
ANALYSIS
Product/Services Review
Market Segment Assessment
Unmet Customer needs?
Positive feedback from
customers and working with
those feedback by assessing
the product and services for
better quality (Expand wine
cellar with more selections
from B.C and Chile).
Potential trends toward
family wedding events.
Expansion planning for
cottage constructions to
meet customers’ needs and
expectations.
No formal/management review
with business development
department when it comes to
products/services, and customer
needs. Improvements mainly
comes from customer’s feedback.
Detailed segmentation analysis
for existing and proposed new
markets is required.
MARKET POSITIONING
Competitor Evaluation
Pricing considerations
Product mix issues
Placement (Distribution)
Promotion requirements
People needs
Partnering opportunities?
Potential entrance to new
and diverse markets?
High quality service which
provide a pristine and warm
environment.
Premium price as it reflect
luxury and quality of services
provided.
On spot service placement or
online. Immediate service.
Sales success through
sophisticated website that
reflect the high quality spirit
of the resort. In addition to
the use of media consulting
firms and press release when
needed to promote and push
sales forward.
Availability of experienced
management staff.
Potential increase in competition
in the island.
No feasibility studies when it
comes to competitors and their
effects in the short run and the
long run?
Absence of price evaluation. At
least it was not clear in the case?
Effect of suppliers on the
business?
Absence of web development
plan?
Absence of promotion plans?
Inefficient marketing and sales
function, thus higher anticipated
marketing costs and
sales/revenues.
Need to solve employees’
turnover, and lack of experience.
Evolve employees’ relationship
with each others.
No sign of business alliances
with resorts/suppliers.
23. OPERATIONS SIZE-UP
Strengths Weaknesses
Operational capability
Process management
Facilities management
Inventory management
Quality management
Risk management
Project management
Well-structured management
hierarchy.
Relatively simple management
Process (Booking …ect).
Good knowledge in B2C.
As it is a luxury resort, they should
have a relatively modern.
Equipment ( Boilers, Pumps, HVAC
Generators, Kitchen tools
Computers…etc)
Standard Luxury services for the
moment.
No ISO 14001 Certification in
Hospitality and Environmental
Management.
Questionable ability to expand. Is
It a good timing? Do they have
efficient resources? Can they
afford a more loans? are they
financially fit?
Too much inventory in the
Warehouse due to the absence
of Inventory management. Lose
cash flow.
Inventory write downs.
Absence of formal Quality
Management systems ISO 9001
Certification and Quality Control
Procedure.
Key person insurance in place?
Business loan insurance in place?
Business interruption insurance in
place?
No board of directors or council.
No formal PM process in place.
Legal issues Owner is the sole shareholder and
CEO.
The Land is bought with the help of
A bank loan. Better than being
Rented.
Possibility of having legal issues
With the bank if the resort is
Unable to secure debts in the
Short and long run. Even the fact
It won’t happen but it still exist.
Use of technology They have the latest updated
Technology and equipment as a
Luxury resort/hotel.
Sophisticated web development
And design to reveal the luxury
Spirit.
Absence of proper Management
Information system.
No information on equipment
maintenance plans.
24. HUMAN RESOURCES SIZE-UP
Strengths Weaknesses
Human Resource function
Recruitment and Hiring
Training and Development
Compensation, Performance
and Incentives
Excellent connection with
consulting firm which
provided solid professional
advice when it comes to
management and staff
replacement.
Relatively simple
compensation plans – Casual
wages and hiring process.
Employees’ turnover which
has been a critical issue.
Small local population in an
isolated rural area which lower
the chances of hiring skilled
and experienced employees.
Sourcing high number of staff
from outside the area.
Deteriorating relationship
between employees due to
top management disputes and
disagreements.
Non-sufficient time for proper
training as it is done quickly.
Lack of ongoing training and
development programs.
Lack of performance
motivational incentives, and
employees’ performance
assessment and compensation
plans.
Leadership issues
Organizational Structure
Skills Development
Teams and Teamwork
Management Capabilities
Appreciative Inquiry
potential
Mentoring opportunities
Good organizational
structure divided into four
functional areas, reporting to
a GM who reports as well to
the CEO.
Good skills and experience
on a management level (GM
and Kitchen Manager).
Management capabilities –
“Hands on” style, they know
all aspects of the business.
Questionable professional
support and absence of proper
training or development
programs from top – down.
Lack of teamwork spirit and
absence of teamwork
development workshops.
Iron hand from CEO, and
strong relationship with the
bank.
No board of directors or
advisors.
Lack of succession plan.
25. TECHNOLOGY SIZE-UP
Strengths Weaknesses
Technology concept
and product
Sophisticated web site
presence was built to reveal
the relaxed settings.
Modern technology concepts
and products to
maintain/support the high
level of luxury service
provided.
Need a comprehensive
technology maintenance plan
to keep all equipment running
without any malfunction.
Intellectual property
issues
Services provided doesn’t
require IP which saves the
business from extra costs.
Risks of competitors who
might attempt to copy
kitchen recipes and website
design.
Risks of competitors who
might attempt to copy
interior architecture and
design.
Potential risk factors
Potential of losing employees
to competitors.
Potential of not being able to
resolve the employees’
turnover.
Unable to find skilled
employees.
Deteriorating relationships
among employees due to
management differences.
No intentions to get
management/hospitality
certifications.
No customer
complains/feedback
department as the business
deals with clients directly.
New Technology
Assessment?
No R&D when it comes to
wince boutique, research of
investment opportunities,
technical-economic valuation,
market assessment, advisory
26. and price analysis, operator
selection and promotional
activities of communication
and promotion.
EXPANSION DECISION
– PROCEED OR DO NOT PROCEED?
Based on your overall assessment of the ICI resort and its future prospects, should Jonathan
proceed with the expansion at this time? Please provide a detailed rationale for either
decision.
Support your decision by way of a risk assessment in the following areas:
Financial:
Market:
Operations:
Construction:
Management:
27. STARTEGY REVIEW (1)
OPPORTUNITIES THREATS
Present Course (Status Quo)
Resort on Cortes Island which
is a destination for storm
watching, and pristine
secluded luxury environment.
Enhancement when it comes to
ISO certification in hospitality
and environmental management.
Enhancement when it comes to
Employees turnover and
disturbed relationship among
each other.
Enhancement in management
leadership and interpersonal
skills.
Enhancement in Operation
management (external/internal)
and purchasing.
Further Leverage industry
connections and reputation.
Necessity to increase R&D when
it comes to wince boutique,
research of investment
opportunities, technical-
economic valuation, market
assessment, advisory and price
analysis, operator selection and
promotional activities of
communication and promotion.
Potential ability for clients to
turn into competitors.
Vulnerability to be copied when
it comes to interior design, web
site design and kitchen secret
recipes.
Alternative Directions?
Expansion plan to add high
end cottage style
accommodation to serve the
three generation boomer
families that were now
seeking to travel together.
Expand the resort to include high
end cottage style
accommodation which would
give a competitive advantage
and be differentiated.
Enjoy the benefits of both
market and revenue expansion
opportunities.
No research has been for
alliances.
No consultancy feasibility study
to be on the safe level.
Need more research about
investment opportunities,
technical-economic valuation,
market assessment, advisory
and price analysis, operator
selection and promotional
activities
Attention need to be taken care
of when it comes to adequate
financial, managerial and
operational resources.
28. Best Direction
I would go with the expansion plan but I would be more conservative in the way I make my decision
by hiring a consultant who will investigate and do internal and external assessment of the situation
before I make up my mind. The future of the resort as it is seems promising in the following years
and the expansion plan seems a good step to be differentiated and have a competitive advantage.
Rationale
In general, the resort seems to be promising even the difficulties confronted during the first and
second year as it is a normal for a startup business to have. Even with the available factors that need
to be addressed and evaluated in order to fix the current corporate health along with other
challenges such as adequate financial, managerial and operational resources, the resort will be
generating profit and able to secure current and future debts. Personally, I would have hired a
consulting firm to be on the safe side and not to take too much risks in my decision. The owner
might be taking additional risks but I have a feeling that the business will survive the expansion plan.
STARTEGY REVIEW (2)
Resources to achieve goals?
Financial
Market
HR/Operations
Construction
Management
Increase bank credit and possibility to sell shares in
order to secure the necessary resources for the future
expansion and marketing plans.
Consider need for external consultant to complete the
market development plans.
Consider the need for ISO 9001 and 14001
certifications in order to enhance the corporate health
and other operational challenges.
Consider the need for employment motivations to
enhance their commitment to work and enhance their
incentives to stay and not to turn into a competitors.
Consider the need for professional consultant and
contractors in construction who will handle the design
plan along with the construction implementation
plans.
Need to explore potential management training by
consultant and schedule continuous training and
workshop to enhance leadership and interpersonal
skills along with embracing the corporate spirit by all
29. employees.
Best Practices to adopt? Assess needs for ISO certification in hospitality
management and environmental management.
Assess need for consulting in the domain of
construction, HR, management and operations.
Need for R&D for better service/business performance
STARTEGY REVIEW (3)
Finance
Market
HR/Operations
Key Action Items
Provide the bank with Financial summary review in
order to obtain the necessary financial resources for
the expansion plan.
Provide A/R, A/P and inventory listings along with the
interim financial statement to the bank in order to
negotiate possible loans and extension of current
ones.
Analyze inventory position and type. The type of the
inventory would reveal more critical information
which might or not cause some concerns.
Investigate the possibility of issuing shares in order to
generate money.
Prepare a formal marketing plan with a consultant
who will assess the internal/external challenges along
with full assessment of competitors in the same
industry.
Complete ISO 9001 and 14001 in Quality
management, hospitality and environmental
management.
Arrange key person and business interruption
insurance through insurance broker.
Establish a board of advisors with members selected
for their ability to add value to the expansion plan
and investment raising initiatives.
30. Construction
Management
Consider adding a marketing manager and a finance
manager once the expansion plan is implemented.
Set a formal operation process with Edward, and
employment motivation and incentive plans in the HR
department.
Arrange expansion with consulting firm, contracting
and subcontracting firms to make sure everything is
done professionally after opening a bidding process
to minimize costs and expenses.
Set workshop with consulting firm in order to train
employee and top managers when it comes to
leadership, and interpersonal skills which would
enhance the relationship among employees and
allow them to embrace the corporate spirit.
Implementation Steps? The priority, responsibility and timing to implement
the above actions should be allocated between
Jonathan and Edward.