UNIVERSITI TEKNOLOGI MARA CAWANGAN MELAKA KAMPUS BANDARAYA

PRINCIPLES & PRACTICES OF MANAGEMENT

(MGT420)

GROUP ASSIGNMENT:
PRINCIPLES CHALLENGES FOR MANAGEMENT IN A GLOBAL ENVIRONMENT

NAME OF COMPANY:
HOLIDAY INN RESORT, BATU FERRINGHI, PENANG

PREPARED BY:

GROUP MEMBERS STUDENT ID

ILHAM AL-HAZIM BIN HANOR 2022898348

NUR AINA’ NABILAH BINTI MOHD NOOR 2022604446

SHAIBATUL HAMDI MOHD NAZRI 2022824504

NURNABIHAH BALQIS BINTI NARZRI 2022842026

WAN MASTURA AMEERAH BINTI WAN AHMADI 2022495376

GROUP:
BA240 1B

LECTURER’S NAME:
MISS NURUL AMYRA BINTI MAT ISA
 TABLE OF CONTENTS
INTRODUCTION 3
1.1. PROBLEM STATEMENT 4
 1. INTRODUCTION

In 2019, all countries around the world have been affected by the pandemic of Covid-19 and
Malaysia is not an exception. There are many things that have been put on hold due to the
seriousness of the virus. Although the countries are recovering, they have had to experience
countless losses, especially the lives of millions of people. This tragedy is noted as the most
deadly event in history. The economy of Malaysia has been severely affected by the virus and
there are several consequences that Malaysia has to bear with e.g. a lot of start-ups have gone
failed and businesses have gone bankrupt and almost all of the countries are currently
experiencing an economic recession due to the implementation of the movement control order
that was made before. This causes many economic sectors to be disrupted.

Batu Ferringhi is one of the famous resort areas with pleasing scenery of its surrounding area.
Batu Ferringhi is located along the coastal road north west of Georgetown and it is filled with
highest rating resorts. However it has given a nightmare to the tourism industry. Covid 19
pandemic has had a huge impact on Malaysia, including the tourist area in Batu Ferringhi, Pulau
Pinang where the Holiday Inn resort located at Batu Ferringhi had to close its operation after
almost 41 years since its opening. The resort is known to experience financial distress after the
Malaysia government introduced a movement control order (MCO) in order to provide protection
of the netizens. This resort is one of the most attractive resorts in Batu Ferringhi. Equipped with
350 rooms with a modern chic concept, lounge, bar, larged swimming pool and restaurant,
Holiday Inn Resorts meets the needs of every visitor who wants to relax by the beach while
enjoying the other luxuries of life.

Nevertheless, Holiday Inn had to shut down its operation on June 30, 2020 due to the Resort
not making any profits during the movement control order. The result was confirmed by
Malaysian Association of Hotels (MAH) Penang chapter chairman Khoo Boo Lim. The reason
for its closing is due to the restrictions made to curb the spread of covid 19, it has made it
difficult for tourists from abroad and within the country to come and stay at Holiday Inn Resort.
2. DISCUSSION AND FINDINGS

2.1. PROBLEM/OPPORTUNITIES IDENTIFICATION

Malaysia's hotel industry has taken one of the hardest hits since the
implementation of the Movement Control Order (MCO). After failing to stay
in business, many hotels have announced their permanent closure. The
tourism industry suffered a huge loss especially for the hotel industries.
One of the hotels that have been affected during the pandemic covid-19 is
Holiday Inn Batu Feringghi. During the pandemic covid-19, our
government have been announced that international border closures and
cross-country bans and that make many businesses need to shut down their
business, like Holiday Inn Batu Feringghi. The main problems that Holiday Inn
Batu Feringghi being suffered is because that pandemic covid-19 that
have been affected the global facing is because their revenue being drop
in the third quarter in pandemic covid-19 restrictions the travelers to kept
at their home. Since Covid-19 was declared a global pandemic, the
company has implemented extensive cost-cutting measures.
 2.2. CHALLENGES
Webcjhsbvhbshsbvhb

2.3. OTHER RELEVANT ISSUE RELATED TO THE TOPIC

- How it affect the company

For the past two years, the tourism industry in Malaysia has been having a very
difficult time. Many hotels and tourists’ attractions worldwide were not able to
welcome guests as strict rules and regulations were charged. Hotels in Malaysia
including Holiday Inn Resort, Batu Ferringhi, Penang unable to operate for the
time being since Covid-19 was declared a global pandemic. According to Harilela
Group based in Hong Kong, regarding to this pandemic, the management had to
make decision to shut down although they were strived to finding various ways to
stay survive in tourism industry

Hence, the effects of the shutdown of this hotel are the workers at the resort.
Hotel workers’ union bothered with the sudden closure of the Holiday Inn Resort
in Batu Ferringhi and is considering legal action over the retrenchment and
termination of hotel workers. Moreover, the management did not mention
entitlements or benefits for its workers as the consequence of this crisis has
proven to be uncontrollable and the continuation of business is no longer an
effective idea. It has many implications around the world with the travel and
leisure sectors being particularly impacted by Holiday Inn Resort as the market
for the hotel failed to proceed.