A strategic management paper on Fortune Duck Residence Inn

• Main Author: Parra, Ma. Cecilia
• Format: text
• Language: English
• Published: Animo Repository 2007
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4551
• Institution: De La Salle University

Fortune Duck Residence Inn, a single proprietorship, engaged in the lodging business has been in operation since 1997. The inn is located in Tagaytay City and offers 20 fully furnished air-conditioned rooms to local and foreign tourists. Fortune Duck has been experiencing decrease in revenue for the past three years. This has resulted in serious concerns on the company's future operations. In a bid to reverse this trend, this strategic management plan will seek to improve performance through the implementation of various strategies. To do this, environmental and internal scanning were performed and analyzed, strategies were formulated and objectives were set. An implementation plan was also put in place. In year 1, professionalizing the business will be Fortune Duck's primary objective. Along with this is the implementation of cost-effective marketing strategies and the introduction of Information Technology in the business. Employee training shall also be implemented in year 1 and finally, the construction of a cafe and restaurant to address customer's growing demand for food and beverage and to serve as additional source of revenue for the inn, shall take place. Year 2 will be a critical period in this plan as year-end figures for year 1 will determine whether objectives are met through the strategies employed. Fortune Duck, however is confident that the macroeconomic situation and effective strategy implementation will spur the necessary drivers for demand and will sustain the planned growth of the company. Year 2 will therefore focus on refinements to the strategies employed during the previous year. Year 3 will be a continuation of refinements employed in the first two years of the plan. Depending on the flow of the business and changing needs of the market, year 3 will be a critical year for planning of additional amenities/facilities in the future. Fortune Duck shall be targeting a 10 percent annual increase in revenue on room rentals during the next three years and 30 percent return on investment.