Synopsis:

The case is about The Mayres Hotel, a three star hotel in Johor. Golden Management Sdn. Bhd., a Malaysian company formed in 2003, with a paid up capital of RM1.15 million acquired, the Mayres Hotel, a three star hotel in Kota Tinggi near Kota Tinggi, Johor, in the year 2007.

The case is about Kolej Teknologi Bistari (KTB) which is a Malaysian private college under the management of Pertubuhan Kebajikan Anak-anak Yatim Malaysia. The college was founded on the 4th of June 1998 with the current paid up capital of RM10 million. KTB is now located in Putera Jaya Pak Kancil, Bandar Permaisuri, Setiu, Terengganu. It is about 64 kilometers north of Kuala Terengganu, Terengganu and 103 kilometers south of Kota Bharu, Kelantan. Most of the academic programs are under franchise program with others Malaysian public universities such as Universiti Utara Malaysia, Universiti Kebangsaan Malaysia, Universiti Teknologi Malaysia, Universiti Teknologi MARA and Universiti Sains Malaysia.

Student yearly intake for the past three years was deceasing very fast and was below the minimum target of 1000 students per intake. This has reduces the yearly revenue of the college as much as 14.5% for the last three years. The main issue here is that the college has to figure out new marketing strategies to improve the student intakes above 1000 students and thus ensuring good revenue for future survival.

Tuan Haji Salleh the new chief executing officer has to analyze the current situations externally and internally and come up with concrete marketing strategies focusing on the issue relating to decreasing new student intake.

Since the hotel is newly acquired with a relatively low occupancy rate, the management wanted to explore strategies to further grow the hotel’s business moving forward into the new year of 2010. In the first month of operation after its acquisition in May 2007, it recorded only a monthly occupancy rate of 20%. Until December 2009. The average monthly occupancy rate was 29%.

The management set an ambitious target of attaining a minimum of average monthly occupancy rate of 50% for the year 2010. The main issue here is achieving and sustaining a minimum average monthly occupancy rate of 50% from the year 2010 to 2015. Mr. Fong the Hotel Resident Manager was requested to look into the problem of low occupancy rate, analyzed the factors that caused this problem and provided suggestions on how to improve the occupancy rate of the hotel and attain a minimum target of occupancy of 50% for the year 2010.