Team Lemon presents:

2023 STUDENT CASE

COMPETITION:
KUNAPIPI GARDENS
Q1 & Q2
TEAM MEMBERS

01 02 03
Quách Trọng Đức Hoàng Thị Lệ Hà Trung Hiếu

04 05
Trịnh Hải Ly Hà Phương Ngân
 Q1
The strategic position of Kunapipi Gardens
PESTEL 5 FORCE VALUE CHAIN SWOT
PESTEL MODEL
Political
- Many discussions remain
about the impact of resorts on
the environment.
- The USA travel ban was
lifted on Oct. 27, 2020. June
12th, 2022, the United States
lifted the mandatory COVID-
19 testing for travelers from
abroad.
- No social groups and
protests aim at the resort
industry in 2022.
=> Business can easily be
done without much
interference from outsiders
while profit is getting higher
after the ban is lifted.
Legal
- The business will require a
business license.
- Permission requires from
the state such as
permission from the Nevada
Division of Environmental
Protection.
=> Normal regulations and
not too many rules that
affect the whole industry
Economy
- USA disposable personal
income record in October
2022 increased to 18818.46
USD Billion in October from
18771.60 USD Billion in
September of 2022.
- Tourism contribution to
USA’s GDP was still below
before Covid but is having a
rising trend.
=> Price sensitivity is lower
and can benefit from the
travel trend rises.
PESTEL MODEL
Environmental
- The climate type of
Nevada state is semi-arid.
- Travelers are focused on
engaging in positive
practices which include
protecting the environment.
- Tahoe lake environment
has many different types of
species and large pine
forests.
=> Environment advantage
such as scenery, species, or
specific activities related to
season can be used.
Social
- The USA population
increased by 0.21% while
the city population density
increased by 0.38%.
- Despite the inflation rate,
many American still want to
travel with 72% of
Americans Prefer Hotels
and Resorts to Vacation
Rentals.
=> More customers with
increasing demand for
family trips, and seasonal
activities experiment.
Technological
- Nowadays people do
reservations mostly through
the Internet and websites.
- The use of mobile is still
increasing with 85% of adult
American owning a
smartphone.
- More hotels and resorts are
applying technological support
to provide their customer with
a better experience.
=> Industry opens to
technology and scenery can
be used as an advantage.
5 FORCE MODEL
1.The threat of new businesses
Barriers to entry: KG is known as a 4-season resort in the RT area.
+ Meanwhile, RT develops into a big city with many high-class resorts, golf courses, spas → an
extremely developed business center.
+ Metro Reno Park area vs population 50k people, peak day is 300k people.
+ Large international airport, motels focusing on developing golf tournaments, KD meetups and
events

=> KG is located in the economic center area with great advantages in terms of the number of
customers and high demand for shopping and using services. However, the biggest advantage is
also the disadvantage of KG's diversified development of departments. Because, inherently a
bustling business center has many business competitors that have gone ahead and have a certain
name, dominating their market. From here, leading to joining more golf courses and spas with
many difficulties, development and survival is not feasible.
5 FORCE MODEL
1.The threat of new businesses
Economic scale
- With a medium-sized scale in TG with 180
rooms used for 40 years → Small scale,
outdated, less attractive to new customers
- Add 2 new buildings + 1 event center in 20
years → The scale has grown but not much, at
the same time, if there is no innovation in 20
years → it cannot attract new visitors and also
difficult to retain the number of customers
who have used the service.
- Recently, KG added 1 golf course + spa →
Expanded with a variety of industries → still
quite new and facing many difficulties ahead.
Brand loyalty
The number of loyal customers of KG is mainly in
the 4-season resort segment
However, with the history of the hotel business +
the event center also pulls a number of loyal
guests for KG as evidenced by: “The events
serving the event market (company meeting,
sales meeting, etc.) weddings, professional
conferences, etc.) has transformed the
company's customer base. Many new Kunapipi
customers expect better facilities with
accompanying services.” .
=> To retain loyal customers requires the
leadership to have innovative policies and to be
grateful and attract customers.
5 FORCE MODEL
2. Buyer's bargaining power
Customers number
KG Company is located in a large city with a population of more than 260k people with many high-end resorts,
golf courses, spas, an extremely developed business center, and an area with many high-end retail stores. →
Large number of customers, increased demand for hotel services
Differences between competitors
- Competition between competitors operating in the same industry, in the same market area of KG
- Many high-end resorts, golf courses, spas, an extremely developed business center, and an area with lots of
high-end retail stores.
→ Competitors are of equal size and competitive strength.
- With major international airports, the lodges host golf tournaments, business meetings and corporate events
in addition to the usual business travel.
- A large group with thousands of room nights will be informed that morning and afternoon breaks will be
provided free of charge if attendees book a number of rooms. certain number of rooms.
- Meeting space will be provided free of charge if higher booking is achieved and similarly with audio/visual
equipment rental.
→ Competitors have many unique marketing strategies to attract and entice customers.
5 FORCE MODEL
3. Risk of substitute products
Number of substitutes available
Substitute competitors operating in another
industry but with services that bring the same
values, benefits, and uses can replace KG's
services.
+ There are many hotels, resorts, ... with
modern and advanced styles, catching up with
customers' trends
+ Competitors have many long-term marketing
strategies, attracting new customers and
retaining old ones.
Buyers' changing trends
Customers tend to choose services that
maximize the needs of the company's services.
4. Competition of existing competitors
Number of competitors
KG is known as a 4-season resort in the RT area.
Meanwhile, RT develops into a big city with many high-
class resorts, golf courses, spas
→ extremely developed business center, many
competitors in the industry
Diversity of industry-focused competitors
KG aims at a company with a variety of departments:
hotels, event centers, golf courses, spas → Competitors
are also more diverse than ever.
Industry growth
Catering to the event market (corporate meetings, sales
meetings, weddings, professional conferences, etc.) has
transformed the company's customer base.
→ A new incentive compensation plan, along with a
new reporting format, may be needed to achieve the
performance that management is looking for is likely.
VALUE CHAIN - Basic operation
Incoming logistics: unclear in the
situation without mentioning the
input of KG company
Operations: A 4 seasons resort
operates like a company with many
departments. Added 2 new buildings,
1 event center and recently added a
golf course and spa.
Service activities: full service of
providing food and drinks for guests
and event spaces events for corporate
meetings, the event venue receives
little attention, the limited view of the
management of KG can easily be seen.
Marketing activities: has not
launched any form of
marketing yet
Hotel operations: operates
without an effective strategy, the
hotel was just accommodation for
guests. Event management and
operations receive little attention
The hotel sales department
usually handles both rooms and
events
VALUE CHAIN - Complementary
activities
Technology development
For KG, the revenue
calculation method is based
on the number of available
rooms and recognizes the
impact of price and capacity.
The second is that KG does
not mention improving
technology
Human Resource Management
Improper allocation of human
resources such as: Event
organization responsibility is
often assigned to F&B manager,
Hotel sales department often
handles both rooms and events
Organizational infrastructure
There are 738 hotel rooms,
there are many senior
managers, the company
expands its business lines
 S
- Favorable business
location
W
- Limited vision
not keeping up with
O
- Can be easily operates
with out much
T
- Barriers to entry,
new business
- Easy to grow trends interfered from the formation as well as
government and laws the scale to develop
- Easy to expand - Technology has not this type of business
- Tahoe lakes has a
- Sustainable development developed - Facing the difference
S beautiful environment
- Safe strategy for - Placing too much and ecological system of competitors in the
business development responsibility on which can be used as an market
- Simple company employees advantage. - The threat of
structure - Inefficient resource - The climate provides alternative missions is
- Easy to control allocation four seasons which the always direct and
innovative to keep up
- Business strategy has resort can use to create
with the times
not been clearly different activities.
- Competitive events
mention - Can be upgraded with
of industry
technology.
competitors
- The travel rate is
increasing after Covid.
 Q2
The Pros and Cons of The Income Statement
Uniform System of Accounts for the Lodging Industry (USALI)
THE CURRENT INCOME
STATEMENT
Current system The Detail of Income Statement
Used more than 40 years ago PANEL A :REVENUES
- Businesses are applying new activities such as golf spa - Businesses have a comparison between 3
event room years
- View as a hotel with many small departments
- The new CEO wants to organize business according to
- Revenue is divided by each activity for each
Multiple Department he wants golf spa event room as a department
private branch.
- Our income statement treats the organization as a hotel PANEL B : EXPENSES
with multiple departments, but I think of us as a - Divided by each part will have its own
multidivisional company expense
-> The accounting department has followed the - Expenses is divided into Direct Cost and
industry practice of preparing income statements in
accordance with the Uniform System of Accounts for
Indirect Cost in each part
the Lodging Industry (USALI) - The lower part is called Indirect Cost
(expenses for each room
WHAT IS THE UNIFORM SYSTEM OF ACCOUNTS FOR THE
LODGING INDUSTRY? (WHY DOES IT MATTER?)

1926 1961 2014

USALI was first published The American Hotel & The latest edition is the 11
the Edition published. As in
by a committee of the Lodging Association
the past, it is consistent
Hotel Association of New (AH&LA) published a with US GAAP. Future
York City (HANYC). The separate edition for editions are expected to
committee was chaired by small hotels. become consistent with the
E. M. Statler the founder International Financial
of Statler Hotels. Reporting Standards (IFRS).
INTRODUCTION AND PROPOSE OF USALI

INTRODUCTIO PROPOSE
N
- a) Provide an accounting model that can be adapted
To set up basics and developed system of
easily by any hotel regardless of size or category,
accounts
- and at the same time is useful for all kinds of users,
To define the registers and other databases
- both internal and external.
To delineate the costs of fixed and variable
component
- b) Being a uniform and standardized, enabling
To define the system of internal reporting
comparisons between hotels and hotel chains, even
when they are operating with different operating
=> USALI is widely accepted in the world and
system or are located in different countries.
leads to numerous advantages to hotels that use
it. Only 69% of respondents were not familiar
c) The Uniform System for Accounts in the Lodging
with this system, even with half of them there is a
Industry - USALI is set up whit aim to provide
drawback in terms of acceptance.
accounting information for internal results of the
hotels, is based on a single system of
identification,recording, classifying, organizing and
publishing on the value expresses in a way that
externally and can be compared
ADVANTAGES OF USALI
- Provides detailed information allows identify management responsibilities, organizational structure,
improve the overall profitability of the hotel.
- The system it is independent with respect to the system of operation be it in property, duty- contract or
lease or management.
- Getting information in a format generally accepted for the hotel business;
- Forming reports that are understandable to owners and investors, including foreign ones;
- Forming reports, whose indicators can be compared with those of competitors in different regions;
- Attracting financing, including bank loans and foreign investments;
- Planning and evaluating the performance of each service unit, department, and comparing indicators with
similar ones in the industry.
- A high degree of flexibility and ease of use.
- Makes performance comparability much easier, whether it is with the broader industry or, for chain hotel
organisations, comparing and contrasting results for each property.
- Provides can facilitate efficient subsequent business decisions that can drive optimised success.
- Will enable the classification, organization and presentation of financial information in a uniform and
consistent manner, thus improving user comprehensibility.
- Provide the tools to record, analyze and benchmark accounting & finance data in detail providing the
knowledge needed to manage the organization’s overall financial picture.
DISADVANTAGES OF USALI
- The difficulty of income segregation between commercial packages as business conferences
are held imputing its share to rooms to food and beverage, room rental, coffee break, among
others.
- Not clearly assignable to the same costs are included in the results of some departments,
such as maintenance and energy costs.
- The model lead to those responsible for the departments act in their own benefit (improving
the performance of “his” department) without worrying about the results of the hotel.
- The lack of USALI methodology developed and implemented taking into account domestic
features;
- Difficulties in ensuring timely collection and proper quality of source data;
- Insufficient automation of information processing and accounting processes;
- Insufficient integration of the applied information systems;
- Insufficient qualification of system users.
 THE REASON WHY USA USES USALI
In the United States, most of the economic sectors have
plans of sectorial accounts, called Uniform
Systems. seeks to establish an internal process of
determining results formalized in a general income
statement and a series of complementary analytical
documents that calculate results for each of the centers
operational activities, ie income- generating develop.
THANKS FOR WATCHING