Republic of the

Philippines City of Taguig

Taguig City University
General Santos Avenue, Central Bicutan, Taguig City

ASYNCHRONOUS ACTIVITY 03
STRATEGIC MANAGEMENT IN TOURISM AND HOSPITALITY

ACTIVITY 2.1 Classifying Strategies (3 PTS

each) Purpose:

This exercise can improve your understanding of various strategies by giving you experience
classifying strategies. This skill will help you use the strategy-formulation tools presented later.
Consider the following 8 actual year-2009 strategies by various firms:

1. Microsoft developed a new video camera for its Xbox 360 console that allowed players to
control games with the movement of their bodies, rather than by holding a plastic wand in their
hands, as required with Nintendo’s popular Wii game console.

2. Hilton Hotel and Suites began to “tweet”—post messages of 140 characters or less on
Twitter.com, so guests could see product features. Hotels are also putting marketing videos on
YouTube.

3. The Philippine’s huge broadcasting firm, ABS-CBN Broadcasting Corps., cut 7,000 more
jobs on top of the 11,000 the prior year.

4. Best Western Hotels & Resorts has acquired the World Hotels brand, adding a collection of
approximately 300 hotels and resorts to the company’s global portfolio. No price was reported for
the deal.

5. News Corp. sold off many of its television stations.

6. Two regional airlines that fly feeder flights for United, Delta and American airlines will halt
operations in the next few weeks, marking the first US carriers to be grounded by the coronavirus
outbreak.

7. GOLDEN SKY TRAVEL AND TOURS CORPORATION is a Philippine-based Travel

agency established on March 20, 1997 at Ermita, Manila Philippines. This travel agency started
with a team of five staffs to serve the travel requirements of the missionaries and
their families in the Christian community. In 2002, another office in Quezon City was opened to
cater to its expanding client base.

8. Casa Madrona Hotel in New York used mobile augmented reality to show tourists walking
the street the impressive balcony views of one of its 360-degree suites.

9. Atmosphere Resort and Spa located in Dauin, Negros Oriental meets nearly every green
benchmark set converted the property into Eco-Friendly Hotels or Green Practices. The resort
uses solar energy for power and water and inverter appliances for maximized energy efficiency.

10. Bicol Isarog, one of the largest Bus Company in the country, offer a bus service with high
end accommodation. Travelling Manila going to Bicol make it easy since the passenger can sleep
and relax for long travel hours.

Instructions

Step 1: On your MS Word, number from 1 to 10. These numbers correspond to the
strategies described.

Step 2: What type of strategy best describes the 10 actions cited? Explain Why. Indicate your
answers.

NO. STRATEGY ANALYSIS/EXPLANATION

1 PRODUCT DEVELOPMENT In the statement given, there is an inovation or

improvement in the product. They were able to
developed a camera that has greater features that
the old cameras that they are producing. By that,
people will get curious about the new and special
feature of the new product that they launched.
2 MARKET PENETRATION In this situation they are increasing the
advertisement for them to cover a large of number
of people through social media. They are
spreading informations to get the attention of other
people on what the hotel could offer.
3 RETRENCHING In this situation, since the company is facing
difficulties against the government for them to be
finally shutdown, the company are downsizing the
number of people that are working there since the
company is no longer meeting the usual sales and
its production.
4 MARKET DEVELOPMENT Here, the company is introducing their present
products to other new geographic areas. In this
case they were able to introduce it to the other
environment and will not be just sticking to one
place that has a possibility of the customers be
losing interest of their usual products or services.
5 DIVESTITURE The News Corp. Sold off many of its televisin
stations. In this case, the DEVISTITURE is the
strategy that they used here. They will not stop the
production and still continue, but they need to sell
other stations that are not really profiting or
gaining sales in order for them to still have the
financial to still continue the production in some
areas.
6 LIQUIDATION In this case, the strategy that they used here is the
LIQUIDATION, where they really stopped the
operation for good since they can no longer pay
the entire operation in the company because of the
pandemic situation that we are facing right now.
7 MARKET DEVELOPMENT MARKET DEVELOPMENT strategy also applied
in this case, since, they are expanding their service
and cater other people in another place than their
usual.
8 UNRELATED DIVERSIFICATION The strategy that the Casa Madrona Hotel used is
the UNRLATED DIVERSIFICATION. The
reason is that, they are adding unrealted services
that could help the hotel to attract and have that
extra attraction that could really help the
increasing number of sales that the hotel could
have.
9 PRODUCT DEVELOPMENT In this case, the Atmosphere Resort and Spa is
introducing their new eco friendly source of
electricity and water in the resort. It could result to
a good image of the resort, and might increas its
sales, because of their unique and eco friendly
service that they are offering to their guest.
10 PRODUCT DEVELOPMENT The strategy that the company used in this case is
the product development. There is a new feature
that was introduced to its passenger. There is an
improvement in the service they are offering.

ACTIVITY 2.2 Formulating Strategy Scenario

Direction

1. You will be given set of Strategies. We’ve learned all the strategies in our discussion.
2. You have to indicate an appropriate example of the given strategies. You can gather the
situation through extensive research in the Internet.
3. Each example should be related to Tourism and Hospitality Industry.
4. See Example below:

Example
NO. STRATEGY APPROPRIATE EXAMPLE ON THE
STRATEGY
1 Retrenchment Hilton announced on Tuesday it will lay off
approximately 2,100 corporate employees across
the globe in an effort to reduce its cost structure
amid COVID-19. It will also extend previously
announced furloughs, reduced hours and corporate
pay reductions for 90 more days.

Hilton today announced additional measures to

reduce its cost structure, including the intended
reduction of approximately 2,100 corporate roles
globally, and the extension of previously announced
furloughs, reduced hours, and corporate pay
reductions for up to an additional 90 days.

STRATEGY WORKSHEET

NO. STRATEGY ANALYSIS/EXPLANATION

1 Diversification
2 Market Penetration To maximize revenues and growth in these current
markets, the company applies market penetration by
opening more company-owned stores or
licensed/franchised café locations. For example,
Starbucks aims to open more stores in countries
where the business has a weak presence, such as in
Africa and the Middle East.
3 Product Development For example in jollibee, they are offering several
products. As time goes, people will get tired of
seeing usuala and unimproved kind of products. So
jollibee cahnged their packaging and also introduced
several improvements to their products, such as the
spicy chicken. Those limited offers, such as
strawberry fries and many products that was changed
and improved could be the one example that we could
give as an example to this strategy.
4 Backward Integration Ramar Foods announces the launch of chicken inasal
under the Magnolia brand to be available in different
Asian grocery outlets by the end of the year. 
Chicken Inasal is a marinated chicken inspired by the
popular grilled chicken originating from Bacolod City
Philippines. The term “inasal” means to “roast” or
“chargrilled” marinated with a mixture of ingredients
and spices typically served with rice and vinegar.
Magnolia Chicken Inasal will be ready to grill or bake
for families in the community to enjoy. 

5 Divestiture Jollibee Foods Corporation (PSE:JFC) discloses that

the divestment of shares acquired by its wholly-
owned subsidiary, Jollibee Worldwide Pte. Ltd.
(JWPL), in Chow Fun Holdings LLC was completed.
In a disclosure to the Philippine Stock Exchange
(PSE) filed on behalf by Valerie Amante, JFC Vice
President, stated that Chow Fun has paid JFC wholly-
owned arm $1.6 million to redeem its 2,900 Class A
Membership units. This clearance of assets eliminates
JWPL’s 80.55 percent stake in Chow Fun.