Strategic management paper for Ferra Hotel Premiere by JG managed by Hospitality Business Group Inc / Jefferson S. Marcelo. 6

Thesis (M.A.)-- Pamantasan ng Lungsod ng Maynila, 2019.;A strategic management paper presented to the faculty of College of Business and Government Management, Graduate School of Business in partial fulfillment of the requirements for the degree Master in Business Management. 56

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EXECUTIVE SUMMARY: Ferra Premiere by JG formerly known as Ferra Hotel Boracay is one of the fastest growing hotels in Boracay Island. The market direction of the property is to be present the market of different destination islands in the Philippines. Ferra Premiere is a Boutique Hotel boasts its 37 guestrooms amply fitted with travel essentials by offering different amenities and facilities to the guests. The hotel offers a personal touch to every guest usually located at center city or in a very trendy area. Ferra Hotel Premiere is not only about rooms but also it gathers people because it is trendy and cool to gather in some part of the facilities of the hotel. Ferra Group of Hotels and Restaurants was formed with the vision and dream of the Lim Brothers to build comfortable, classy and customercentric accommodations all over the country. The company name was called Jengroup Leisures, Inc. (JGLI), the Jen name taken from the first business of the Lim brothers, Jenny's Graments. Jengroup Leisures Inc. was registered to the Securities and Exchange Commission last April 23, 2014 and after which the stockholders decided to put up the first brand of hotel in one of the famous Beaches in the world, Boracay Island, Philippines, bringing the brand close to the world. It was called Ferra Premier by JG. The President of the said company is Mr. David Lim. Ferra Group of Hotels and Restaurants is managed by Hospitality Business Group, Inc. (HBG). The management team is willing to share its learning with business owners who want to mold their hotel business into their unique brand, reflecting their identity and individuality, a brand fit to their very business sense. HBG is headed by MR. Dante C. Cruz. He is also known as Doctor of Customer Care because of his expertise in taking care and delighting guests. The most significant external force that the company should take in consideration is increase of 6.8% international visitors/ tourists arrivals annually in exchange of P675.1 billion expected generating expenditures. The Philippine travel and tourism industry contributed a total of P2.85 trillion to the local economy in 2016, equivalent to 19.7 percent of the country's gross domestic product (GDP), according to the latest report of the World Travel and Tourism Council (WTTC). The council expects it to rise by 9.5 percent this year and grow by 4.4 percent annually over the next 10 years to P150.2 billion in 2027, or 2.5 percent of total investments. The Ferra Hotel Premiere has a very high potential of growth in the industry. The industry has a low threats of new entrants, high bargaining power of buyers, moderate bargaining power of suppliers, moderate threat of substitute, and high rivalry among the existing competitors. These forces allow the company to increase revenue without playing around with the inflation rate, provide competitive advantages with employees, and high growth rate with the hotel industry. The Ferra Hotel Premiere in terms of financial and strategic objectives as follows: 1. FINANCIAL OBJECTIVES: a) To achieve an average of 25% increase in the revenue for the projected years of operations. b) To earn additional net income after tax with an average of P9,378,712 for the 3 years projection using the strategies to be implemented. c). Increase net operating profit with triple digit growth in order to produce high net income after tax. 2. STRATEGIC OBJECTIVES a). Increase market share from the industry with 23% average increase. The strategic formulation process used the input tools to analyse external and internal factors and the matching tools to generate strategy options for the university and its strategic business units. The Strategic Position and Action Evaluation (SPACE) matrix indicated quadrant 1 or aggressive strategies (Market Development, Market Penetration, and Service Development) for FHP. The Boston Consulting Group (BCG) matrix classified the strategic business units of rooms into star and the food and beverage and other services segment into a question mark. The Internal-External matrix indicated grow and build strategies for rooms and food and beverage services, hold and maintain strategies for other services. The Grand Strategy (GS) matrix indicated quadrant 1 for all the business units in which falls down for market development, market penetration, service development, forward integration, backward integration, horizontal integration, and related diversification as the strategies. Among the strategies generated by the SPACE matrix for PWU, the decision tool, Quantitative Strategic Planning Matrix (QSPM) heavily Market Development, Market Penetration and Service Development as the recommended strategies to use for the performance of the company. This paper recommends market development and market penetration for Ferra Hotel Premiere because they support the corporate financial and strategic objectives as they improve profitability and generate sales and expand the market share segment of the company. The paper is also recommending product/ service development as one of the supporting strategy along with the two above-mentioned strategies. With the successful implementation of the strategies, the companies will increase its revenues with 23% average growth equivalent to 210 million revenue for 3 years projection. The company will generate also a P26 million net income after tax for the 3 years projection with triple digit growth compared with the audited FS.

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