A Case Study on

SOFITEL HOTEL
For the subject of
Strategic Management
(MGTN12B)

In Partial Fulfillment

Of the Requirements of the Degree

Bachelor of Science in International Travel and Tourism

Management

BUAN, MA. PATRICIA ANDREA

EVANGELISTA, KHATE RAVEN

GARCIA, ROI JOSEPH

MEDINA, AMIEL KIRK

2022
 TABLE OF CONTENTS

About the Company 1

Background of the Study 1-2

Viewpoint 2

Time Context 2-3

I. Statement of the Problem 4

II. Statement of the Objectives 4

III. Areas of Consideration 5-8

 Internal Environment 5-6

 External Environment 6-7
 Competitive Analysis 7-8

IV. Assumption 8

V. Alternative Course of Action 9

VI. Analysis 10-12

 Pestel Framework 10
 Porter’s 5 forces 11-12

VII. Conclusion 12

VIII. Plan of Action 12-13

IX. References 14-15

 ABOUT THE COMPANY

On the gorgeous Manila Bay, the Sofitel Philippine Plaza Manila is a tastefully elegant and

utterly modern resort. It was built in 1976 as the Philippines' first international-standard hotel,

and it was designed by Philippine National Artist Leandro Locsin.

The resort was purchased by multinational hotel operator Accor in 2007 and transformed

into the luxury bayside refuge it is today. Beautiful scenery, opulent contemporary interiors, and

a luxurious spa.

BACKGROUND OF THE STUDY

Elections have brought tremendous impact in the Filipino citizens today, which is why

many Filipinos adhere to the fact regarding the conduct and execution of candidate’s debate in

order for them to sophisticatedly make a rational decision on whom to vote. However, Comelec’s

debate contractor stated that the scheduled debate of presidential and vice-presidential candidates

will be postponed due to the emerging misunderstanding with its partner Sofitel. Sofitel, the

contracted partner of the poll body’s sponsor Impact Hub Manila pressurize the Comelec debate

contractor regarding the cancelation of the schedules debate due to the failure of Impact Hub

Manila to settle its unpaid dues that is amounting to ₱14 million (Noriega 2022).

The initiatives between the two private companies have made a massive impact to the public and

therefore have publicized both of their statements for transparency. As stated by the management

of Sofitel that the company will suspend all of its remaining obligations to their client if the

unpaid due that is a total of ₱14,095,000 has not been settled by the 12 th noon of April 21, 2022

(CNN Philippines 2022).

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 Impact Hub Manila has released its statement that they are now privately resolving the

issue and thus refrains from any divulging specific confidential matters in which they and Sofitel

together with its stakeholders will discuss. Omitting the consequences of the said action, Sofitel

Manila bravely cancels that important event for the sake of their financial reassurance.

VIEWPOINT

Sofitel Philippines Plaza Manila, Front Office Department, and Accounting Department

are the viewpoint of this case since they are responsible of providing solutions on how Sofitel

Company is able move forward to its company’s goals. This is expected to them in able for them

to properly execute their responsibilities and control the negative impacts of this issue to their

organization. Furthermore, the success of this case heavily relies on the expected people’s

knowledge and skills in positioning and acquiring relevant information to support their actions

for the welfare of the whole organization.

TIME CONTEXT

The table below represents the time context of how the unfortunate event unfolded.

March 09, 2022 Comelec debate contractor entrusted the search for presidential and

vice- presidential debate to the poll body’s sponsor Impact Hub Manila
March 10, 2022 Impact Hub Manila has entered into a 20.6 million contract with Sofitel

for the accommodation, banquet arrangements and technical

requirements for the debates.

March 16, 2022 Installment of 4 million is expected to be acquired from Impact Hub

Manila. This installment is paid to Sofitel.

April 20, 2022 The lawyers for Sofitel owner Philippine Plaza Holdings Inc. (PPHI)
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 demanded that the company of Impact Hub Manila must settle its

unpaid obligations amounting to about P14 million, or 68.4 percent of

the total contract price for staging the debates in the hotel.
April 22, 2022 Comelec Commissioner George Erwin M. Garcia announced the

postponement of the Pilipinas Debates: 2022, saying there are

“unforeseen circumstances that’s impossible for the Commission to

proceed with the debate by Saturday and Sunday.”

April 25, 2022 Comelec is investigating the possible criminal liability of its executives

involved in an allegedly “grossly disadvantageous” deal with Impact

Hub Manila, the private firm tapped to organize the presidential and

vice-presidential debates sponsored by the poll body.

April 27, 2022 In relation to the said investigation, Sofitel associates to Comelec

regarding the investigation and further discussed the continuation of

scheduled debate on April 30, 2022.

I. STATEMENT OF THE PROBLEM

This part of the case study will focus to comprehend the problems arising from the

chosen industry.

1. How should Sofitel handle the failure of Impact Hub Manila on settling their

unpaid dues?
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 2. How the involvement of Sofitel does do contributes to the further discovery of

impact hub’s contingent liability and fraud.

3. Does the publicized issue affect Sofitel’s reputation specially with their clients

and partners?

II. STATEMENT OF THE OBEJECTIVES

The case study aimed to determine the ways of Sofitel to deal with this company ordeal

that potentially contributes great impact to the company’s acknowledgement.

Specifically, it caught to:

1. Measure significant ways of Sofitel to handle the misunderstanding with Impact

Hub Manila

2. Analyze the company’s strategy to get the attention of the public brought by the

conventional issue connected to politics.

3. Assess the corporate technique of Sofitel to manage their relation with their

clients and partners.

III. AREAS OF CONSIDERATION

INTERNAL ENVIRONMENT (SW)

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This is the internal factors that provide the Sofitel Hotel with advantage and disadvantages in

serving the needs of its target market and key objectives that offer the firm an advantage in

satisfying the demands of its target markets is referred to as strength.

STRENGHT

 They offered their customers a cost-effective service.

 Managed by Accor Properties - the world's largest hotel operator and Europe's market

leader, with more than 3,700 hotels in 92 countries.

 Luxury Brand - Manila's only 5-star luxury hotel. In the midst of an opulent tropical

environment, stands a famous property.

 They place a greater emphasis on private cultural events.

 Location - With its signature mix of Filipino friendliness and the French joie de vivre, the

hotel continues to draw both local and foreign guests.

 Facilities - 609 rooms, including 46 suites, 17 event rooms, a lagoon pool, recreation, and

spa are among the hotel's amenities.

 The best loyalty programs at Accor hotels are well known.

WEAKNESSES

 Location - Natural calamities, like as typhoons and storm surges, are common in this

area.

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  Human Resources - employee movement and advancement are slow.

 In some areas, the department hierarchy is not complete.

 Rooms -The majority of the rooms are ancient and in need of renovation.

 Quality of Promotion - Lack of marketing experience affects the quality of promotions.

EXTERNAL ENVIRONMENT (OT)

Events occurring outside of Sofitel Hotel, in the border market. You can seize chances and

protect yourself from threats, but you cannot change them. Consider rivals, raw material prices,

and client shopping tendencies.

OPPORTUNITIES

 A diverse brand portfolio with a wide range of alternatives ranging from premium to

budget.

 To ensure long-term expansion, Hotel Service (operation and franchising) and Hotel

Invest (ownership and investment) have been established.

 Advertisements on social media sites such as Facebook, Instagram, TripAdvisor, and

blogs.

 The hotel has hosted royalty, celebrities, and chiefs of state, all of whom have helped to

improve the hotel's public image.

 Planet 21 Program — a pledge to alter production and consumption patterns in order to

protect our planet, its people, and their surroundings.

THREATS

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  New hotel nearby - Solaire, City of Dreams, Tiger Hotels, Conrad, and more new hotels

are built nearby.

 Other five-star hotels, such as Shangri-la and Peninsula, are in a price war with each

other.

 The latest craze is to stay at a casino hotel.

 Modern elements can be seen in newly opened hotels.

 Social Media feedbacks

COMPETITIVE ANALYSIS

COMPETITIVE PROFILE MATRIX (CPM)

Sofitel Shangri-La Solaire Dreamplay

Philippine Hotel and Resort & City of
Plaza Resorts Casino Dreams
Critical Success Wt. Ratin Score Ratin Score Ratin Scor Ratin Scor
Factor g g g e g e
Advertising 0.1 4 0.56 4 0.56 3 0.42 2 0.28
4
Product Quality 0.1 3 0.39 4 0.52 3 0.39 2 0.26
3
Price 0.1 3 0.36 3 0.36 2 0.24 3 0.36
Competitiveness 2
Management 0.11 4 0.44 4 0.44 3 0.33 3 0.33
Financial Position 0.1 3 0.45 4 0.60 2 0.30 2 0.30
5
Customer Loyalty 0.1 4 0.40 3 0.30 2 0.20 2 0.20
0
Global Expansion 0.1 2 0.20 4 0.40 3 0.30 2 0.20
0
Market Share 0.1 3 0.45 4 0.60 3 0.45 3 0.45

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 5
Total 1 3.25 3.78 2.63 2.38

The competitive analysis of Sofitel Philippine Plaza and its direct competitors in

the area, specifically Shangri-La Hotel and Resorts, Solaire Resort and Casino and

Dreamplay City of Dreams, is shown in the table above. In conclusion, Shangri-La Hotel

and Resorts got the highest score than Sofitel, with a total score of 3.78. Followed by

Sofitel Philippine Plaza, with a total score of 3.25 and Solaire Resort and Casino with

2.63 and the lowest among all the competitor is Dreamplay City of Dreams with a total

score of 2.38.

IV. ASSUMPTIONS

 Due to the excessive exposure of Sofitel’s case with Impact Hub Manila regarding

the presidential debate venue, company recognition will gradually improve.

 One of the reasons of the improvement is that the customers will know the trusted

management of the hotel since their service has provided impact to the

government in terms of venues and accommodation.

 The involvement of which issue will dominantly affect the hotel in a good way.

V. ALTERNATIVE COURSE OF ACTION

Statement of Alternative Course of Action Person In Timeline

Objectives Charge
Measure significant • Establish a harmonize Board of May 2022–

ways of Sofitel to relationship towards other Directors and June 2022

handle the partners and plans including Administrativ

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misunderstanding with other agreements with the partner e Section of

Impact Hub Manila – This is in order for the partners to the company

build neutral agreement and avoid

inevitable misunderstandings
Analyze the • Create effective strategy that Managers May 2022–
June 2022
company’s strategy to would supply the inefficacies of and

get the attention of the the problem – This will help the Accountants

public brought by the company to create company’s

conventional issue goodwill.

connected to politics.
Assess the corporate • Comprehend the situation and Managers May 2022–
June 2022
technique of Sofitel to assess the corporate technique of and

manage their relation the company – This is relevant in Accountants

with their clients and order for the company to be able to

partners. sustain the company’s reputation.

VI. ANALYSIS

Due to the increasing competition of business-related industries, the companies itself

have encountered inevitable circumstances in their business. Therefore, they must examine and

identify the threats in their external environment in order to come up with the strategy of both

exploiting opportunities and avoiding threats which would help them gain competitive advantage

among other business competitors.

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 PESTLE

POLITICAL ECONOMIC SOCIAL

 Government  Seasonal issues  Lifestyle trends
Stabilization  Rate of inflation  Administrative
 Tax policies  Changes in marketing and
 Current state and interest rate strategy
federal legislation  Domestic and  Consumer views
 International International  Ethical Issues
pressure and economies  Global trade
advocate groups  Specific industry influences
 Regulatory bodies factors
and process

TECHNOLOGICAL LEGISLATIVE ENVIRONMENTAL

 Global and  Suggested Retail  Restrictions due
domestic price to Covid-19
communications  Minimum wage pandemic
 Information and
 Train Law  Pollution control
communication
 Emerging  Employment laws  Environmental
technologies  Trade industry policies
 Manual customer  Domination of
dissemination protection laws reusable products
 Internet
connectivity
 Mobile orders and
payments
PORTER’S 5 FORCES

National industries have been determined to make a commitment premised on its

considerations so they can manage more in sustaining and developing their business

operations. As stated, one of our business’ opportunities is trend, where it enables them to

get a significant amount of profit in this company endeavor by fulfilling the expectations

of consumers and matching their customized requirements. Their focal point will be

taking use of possibilities where we’d perceive more knowledge of customer demand for

suites related accommodations and services, so as greater managerial capability. Hence,

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 this will contribute a company to attain critical success factor. Moreover, national

industries have to consider and apply the five forces model in order for a company to

walk on in the path through its success.

Competitive Rivalry – In order for a certain industry to achieved competitive advantage

among other rivals, it has to build strong quality differences among others. This would

result to customer loyalty of their business.

Threat of new entry – The Company should adhere to focus on redesigning their

products and tend to invest more in Research and Development because people will

perceive to acquire more in the new entrants

Supplier Power – In order for the company to be cost and expenses wise, they should

not depend on a single supplier, it should acquire more supplier to manage the cost of

their acquired products

Buyer Power – Primary lever to this is the price sensitivity and product differentiation,

the company should value the perception and demand of their buyers.

Threat of substitution – this will be solely dependent to the contingencies of price

change, where the risk of sales distribution will be affected

VII. CONCLUSION

The management of Sofitel courageously demanded Impact Hub Manila on public

regarding the unpaid payment of the venue and accommodation and thus threatens the said

debate organizer to discontinue the service of Sofitel for the venue and accommodation of the
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presidential and vice-presidential debates. Provided the given statement, Comelec have been

investigating on the further case of the issue and the susceptible criminal liability of Impact Hub

Manila.

This case study determines if the said issue has brought negative or positive impact to

Sofitel’s company recognition. Moreover, this case study measures how the company is able to

handle the said contingencies in their business operations. This is because this issue might have

concluded tremendous impact in the company’s recognition of Sofitel. Furthermore, the case

study will contribute idea on Sofitel regarding how they should manage the inevitable

circumstance to their company’s recognition.

VIII. PLAN OF ACTION

Statement of Plan of Action Person In Timeline Budget

Objectives Charge
Measure significant • The management Board of May Manpower

ways of Sofitel to should able to list all Directors and 2022– cost –

handle the the ways to handle Administrative June 2022 PHP115,000

misunderstanding the situation Section of the per month

with Impact Hub company

Manila
Analyze the • Examine the Managers
and May Manpower
2022–
company’s strategy complex strategy of Accountants June 2022 cost –

to get the attention of the company so that PHP85,000

per month
the public brought by it can analyze the

the conventional situation

issue connected to
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politics.
Assess the corporate • Acquire more Managersand May Manpower
2022–
technique of Sofitel helpful employees to Accountants June 2022 cost –

to manage their assess the PHP85,000

per month
relation with their effectiveness of

clients and partners. establishing

corporate technique

References:

Mendoza, D. (2021). People’s movements and the 2022 presidential election. Retrieved

from: https://www.bworldonline.com/opinion/2021/11/08/409054/peop les-movements-and-

the-2022-presidential-election/

Noriega, R. (2022). Comelec debate contractor: Misunderstandings with Sofitel led to

debates postponement. Retrieved from:

https://www.gmanetwork.com/news/topstories/nation/829472/co melec-debate-

contractor-misunderstandings-with-sofitel-led- to-debates postponement/story/?

fbclid=IwAR0gXUS1dchprjuqiXCC15FigyGxVd 0ErbL2ugxAinCELdY69aIfEGXEbQs
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CNN Philippines (2022). Sofitel threatens to stop use of debate venue over Comelec

sponsor's ₱14M debt. Retrieved from:

https://www.cnnphilippines.com/news/2022/4/21/Sofitel- Comelec-Impact-Hub-

Manila- debates.html?fbclid=IwAR38uCYT3Ov3ZZwpk85ge6C2V2xzdH0iwIbRcaj-loI6-

ZvbVcyo-4r3q2M

Villa, K. (2022). Prexy, VP debates reset due to unpaid bill for hotel venue. Retrieved from:

https://newsinfo.inquirer.net/1586728/prexy-vp-debates- reset-due-to-unpaid-bill-for-

hotel-venue

Pazzibugan, D. (2022). ‘Criminal’ to pay P15 million to debate organizer. Retrieved from:

https://newsinfo.inquirer.net/1587397/criminal-to-pay-p15- million-to-debate-organizer

Tucci, L. (2021). Strategic Management concepts. Retrieved from:

https://www.techtarget.com/searchcio/definition/strategic- management#:~:text=Five

%20stages%20of%20strategic%20managem ent%20process&text=identifying%20and

%20analyzing%20internal %20and,results%20are%20not%20being%20produced.

Mailchimp (2021). Competitor Analysis: What It Is and How to Conduct One. Marketing

Library. Retrieved from: https://mailchimp.com/resources/what-is-competitor-

analysis/#:~:text=A%20competitor%20analysis%2C%20also%20ref

erred,weaknesses%20relative%20to%20each%20competitor

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