Last updated: February 13, 2019
Topic: BusinessMarketing
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Coral Gardens is rated a 3-star hotel and is located 100 kilometers off from the hustling metropolis of Colombo, in a little town on the southern seashore of Sri Lanka eminently known to all as Hikkaduwa. The ownership of the hotel was altered in the 1990 ‘s when it was bought over by a taking Sri Lankan company by the name of John Keells Holdings PLC and to this twenty-four hours remains under their direction and ownership. When it was brought under the running of John Keells, the hotel was in demand of an inspection and repair as the many indispensable installations offered by the sea side resort were non up to the coveted criterions.

Before long it became identified as “ the weakest nexus ” in the concatenation of John Keells hotels owing to the ground that the quality of its merchandises and services were non on par with or of any equality to the other resorts that existed in the ownership of this taking public quoted organisation which has a history dating back to 1870. It was due to this ground that the board and direction of John Keells resoluted to sell the hotel to an interested party. Many possible investors came frontward but none were agreeable to buy the resort at the monetary value John Keells sought after. There after the organisation rethought their anterior declaration to sell and after measuring and analysing the chances of the touristry industry ( due to the stoping of the 30 twelvemonth long struggle in Sri Lanka ) decided against their old determination and in its topographic point, shifted their motivation to resuscitating the resort to be an first-class hereafter gross watercourse due to its exceeding location. There after, the organisation developed a strategic program in order to consistently get down their operations and direct the hotel to accomplish organisational aims. Coral Gardens, Hikkaduwa is at nowadays closed for renovation and it expected to reopen to the populace in October 2011.John Keells Holdings PLC developed a corporate degree scheme for the hotel Coral Gardens, Hikkaduwa in order to place the resort as one of the taking cordial reception companies in the state. The company will concentrate on revitalizing and at that place after beef uping the nucleus concern, rendering growing chances into other countries of the industry every bit good as offering an increased scope of quality installations and services, to construct for the hereafter and thrust farther growing and net incomes.

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The first stage of the corporate program of action involves a procedure of complete renovation and Restoration of the bing hotel belongings. The sea side hotel construction will be stripped down and its visual aspect will be drastically modified which would ensue in a dramatic transmutation of the hotel. It was decided that merely the superstructure of the hotel ( the really basic foundation ) , would stay.

Everything else including the other really basic elements of the hotel skeleton ( for the case the roofs ) would be teared down and reconstructed. In the old old ages, it was noted that none of the hotel suites encompassed of a balcony. This deemed a major issue to the clients and many criticized the deficiency of this indispensable installation mostly due to the ground that the 63 suites housed in the hotel were confronting the beautiful Indian Ocean.

As a consequence it was decided that a balcony will be constructed in all the suites of the hotel during the redevelopment process. The pools and the eating houses excessively will undergo full refurbished and the hotel will be given a opulently well-found coating. John Keells Holdings PLC invested a sum of 1.1 Billion Sri Lankan Rupees to fund the refurbishment procedure of Coral Gardens, Hikkaduwa with the motivation of conveying up the hotel to John Keells Holdings criterions and obtaining high returns on their investing.The following stage of the corporate attack would be the re-branding scheme.

John Keells Holdings PLC has already established two trade names in the cordial reception industry that have acquired trade name acknowledgment and are widely renowned in the market place. These trade names are known as ‘Chaaya Hotels and Resorts and ‘Cinnamon Hotels and Resorts ‘ . The trade name ‘Chaaya ‘ has besides established itself in the Maldives Islands where three hotels are runing therefore far. It was decided by the board and direction that Coral Gardens, Hikkaduwa would be rebranded under ‘Chaaya Hotels and Resorts ‘ but it is non yet decided what name the hotel would take. It is apparent that re-branding the hotel under the well celebrated trade name would without inquiry ; lend positively to the hereafter growing and gross of the hotel. In the future Coral Gardens, Hikkaduwa envisions being the taking cordial reception company on the southern seashore of Sri Lanka and has put in action the above mentioned schemes in order make their vision a world and accomplish corporate aims.

Current Business Level Strategies For Main Product/Service Areas

Before Coral Gardens, Hikkaduwa temporarily closed to the populace for renovation ; the chief merchandises that were offered by the hotel were the suites that provided clients with housing, the nuptials halls that accommodated both little and big ceremonials, the conference suites that hosted concern assemblages and in conclusion the hotel eating house. Not many concern schemes or programs were put into action in order to advance the hotel and magnify net incomes nevertheless the hotel advertised its presence in assorted tourer web sites.

Apart from this, the hotel suites were equipped with air conditioning, a mini saloon, tea/coffee devising installations, a telephone, a color telecasting and a wireless in a strategic effort to entice tourers to the hotel by supplying them with modern comfortss. The hotel eating house provided invitees with international culinary art every bit good as alien Sri Lankan dishes. In add-on to the eating house, the hotel offered invitees a poolside saloon which provided bites and alien drinks for the convenience of the visitants. Besides, the nuptials halls provided equal service to locals shacking in the country at a sensible monetary value. Due to the execution of this tactical class of action the hotel was able to host many maps during its operating stage. Furthermore, the hotel was equipped with a to the full serviceable herbal wellness attention Centre with a qualified doctor available to the invitees if of all time they required medical attending. The Ayurvedic Centre provided invitees with a scope of services designed to promote achings and strivings and augment the overall feel-good esthesis of the organic structure.

Furthermore, Herbal baths, aromatherapy, facial massages, organic structure massages and many other services which spanned the full Ayurvedic gamut were effectuated in this bantam hospice. The wellness attention Centre besides provided visitants with an accessible qualified doctor who was of all time ready to supply medical counsel to those who required his services. Since many foreign tourers take delectation in being pampered and mollycoddled, the massages that were offered by the wellness attention Centre were in demand. The cordial reception company provided invitees with loosen uping massages in a really calm and comforting Sri Lankan atmosphere in a strategic effort to entice in many new clients. Last, the resort presented ample conference suites for concern events which attracted corporate clients and created the ideal puting for many company assemblages to be hosted in the hotel.

The above mentioned schemes for the chief merchandise and service countries were put into action in order to pull visitants to the hotel, thereby mounting company gross which would in bend consequence in intensifying net incomes.

Main Resources and Capabilities Currently Available

The chief resource presently available to the hotel is the really stable fiscal militias of the John Keells Group which is in ownership of the hotel. The Group continues to enter uninterrupted growing in grosss from its concern activities therefore guaranting stableness and stability for its future projects. At present, the Group is the largest capitalized company in the Colombo stock exchange and its after-tax turnover is the highest amongst the listed companies in Sri Lanka.A elaborate analysis of the Groups limited cardinal informations is listed below.




SRI LANKAhypertext transfer protocol: //www.




Major Industry:

Diversifiedhypertext transfer protocol: //



Sub Industry:

General Diversifiedhypertext transfer protocol: //www.


2009 Gross saless ( Up to 31st March 2010 )



10,885hypertext transfer protocol: //www.



Sri Lanka Rupees

Market Cap:

118,939,008,000hypertext transfer protocol: //


Fiscal Yr Ends:


Shares Outstanding:

619,474,000hypertext transfer protocol: //



Share Type:


Closely Held Shares:

301,324,310Another cardinal resource presently available to the hotel is the exceeding secret plan of land which is positioned in an outstanding location. The vicinity of the resort is deemed extremely advantageous as Hikkaduwa is a really popular beach finish, mostly owing to the coral sanctuary which is found on the shoreline which encompasses of a big shallow organic structure of H2O which is encircled by a reef. This cherished reef is ornamented with beds and beds of multi coloured corals, which is place to a legion sum of vivacious fish. Besides, off the seashore there is a aggregation of tine islets bordered by striking coral formation. Several species of fish and big polo-neck are found at that place. In add-on to the breathtaking Marine sanctuary, the beautiful flaxen beaches and the shoal Waterss which surround the hotel provide the ideal environment for transporting out H2O athleticss activities.

This fantastic beach side belongings faces the glorious Coral reefs of Hikkaduwa with the best beach-front garden within a radius of 20 stat mis and is without uncertainty an extremely valuable resource presently available to the resort.In add-on to the above mentioned resources, another strong resource presently available to the hotel is the really active and gifted labour force. The John Keells squad of qualified applied scientists who are involved in the planning and implementing of the Coral Gardens renovation undertaking, consist of a set of extremely experient individuals who have even been involved in renovation and building undertakings overseas in the Maldives. These applied scientists possess the necessary cognition and add-on to that, they are equipped with first manus practical experience and their capablenesss are a immense advantage to the company. Furthermore, the staff employed in the John Keells cordial reception industry are late trained persons who are capable of supplying good service to invitees which in bend guarantee high cordial reception criterions. This excessively is a valuable capableness presently available to the company.

Main Strengths and Weaknesses of the Company Compared to Competitors

Coral Gardens, Hikkaduwa is heaven-sent plenty to hold an increased sum of factors working to its advantage.

First, it was made evident in the old paragraphs that the group in ownership of the cordial reception company is financially strong and stable. The financial stableness is the biggest strength of the company as it aids the renovation and development procedure without much trouble or pecuniary strain, which in bend consequences in the smooth execution of the process. Besides, due to the handiness of needed financess the building procedure may possibly be completed at a instead fast gait. Another factor working to the company ‘s advantage is the being of two well renowned trade names which are under their ownership. The trade names ‘Chaaya ‘ and ‘Cinnamon ‘ are popular, good distinguished trade names that are known for luxury and their high criterions. This excessively is a noteworthy strength of the company. John Keells Holdings PLC is good equipped with high-quality staff that are practiced and trained in their specific country of expertness.

When Coral Gardens, Hikkaduwa reopens to the populace in October 2011, the specially selected and manus picked employees presently runing in assorted other John Keells companies in the cordial reception industry, will be designated to the relevant places in the sea side resort in order to guarantee quality guest service. The being of a strong and gifted work force is doubtless a notable strength of the company when compared to rivals. Furthermore, the hotel belongings is bordered by the presence of a celebrated Marine sanctuary known as the Hikkaduwa Nation Park. Therefore it is made apparent that the vicinity of the hotel is undeniably one of its chief strengths which would pull visitants to the resort and escalate growing and net incomes.

A noteworthy failing of the resort is although the cordial reception industry has limitless fiscal potency, at the same clip it is wildly unpredictable. A sudden natural catastrophe or terrorist menace to the state would do an immediate diminution in gross. In the fortunes of Coral Gardens, Hikkaduwa, if an unexpected event were to take topographic point that would impede tourer reachings to the state, it would ensue in a black crisis as a big amount of money was invested with the purpose of high returns and if the expected income is non received it would do a harmful impact on the John Keells group as a whole. Another notable failing of the resort is the repute it has built in the yesteryear. In the old old ages, the hotel received much unfavorable judgment and negative feedback as the merchandises and services it offered were non up to the coveted criterion.

Guests complained of bedraggled, untidy suites and severely lit eating houses. Besides, many disapproved of the really old fans and switches installed in the hotel suites and described the resort as “ antediluvian ” and “ shabby ” . Hence the unenthusiastic evaluations and negative reappraisals the hotel received in the yesteryear is without inquiry a failing of the cordial reception company when compared to rivals.

External Analysis

Key Trends Likely to Affect the Company Within the Next Decade

A cardinal tendency apt to hold an consequence on the company within the following 10 old ages is the turning popularity of the Northern and Eastern states as tourer finishs due to the stoping of the 30 twelvemonth long struggle in Sri Lanka. These two countries have been identified with holding tremendous potency for rapid economic development and much attending has been focused in this respect. Many developments undertakings in the North and East are presently underway and the territories are projected to develop at a rapid gait. Due to this ground, the authorities and provincial organic structures encourage private investors to open up quality tourer resorts in these parts which would ensue in increased tourer reachings to the state which would in turn contribute vastly to economic development of the state. The beaches found along the Eastern seashore of Sri Lanka are quickly deriving popularity as international breaker finishs and turning hot spots for giant and dolphin observation. Due to this ground many private investors are quickly set uping quality resorts in these countries owing to the untapped potency and so advancement to sharply publicising their concern project. For illustration, the part of Kalpitiya ( situated 150 km North of the capital of Colombo ) is quickly deriving international popularity as one of the best topographic points in the universe to site the charming and greatest mammals of the ocean.

Due to this ground, the authorities of Sri Lanka has initiated a undertaking titled the ‘Kalpitiya Integrated Tourism Development Project ‘ in an effort to develop the part by allowing estates of island belongings to the highest foreign bidders. It is noted that all resorts erected as portion of the development undertaking will hold to be commendable of a 5 star evaluation or above. The completion of this undertaking and other similar energetic tourer hot spots in the state will no uncertainty present a cardinal menace apt to impact the company within the following 10 old ages.Additionally, another menace probably to impact the cordial reception company within the following decennary is the deficiency of infinite for the enlargement of the building. If the tourer roar takes topographic point as projected, it will ensue in an increasing demand for resorts to suit the visitants.

When the hotel Coral Gardens is faced with actively booming concern on a accustomed footing, the board and direction will visualize further spread outing their merchandises and services in order to ease more guest reachings and increase company turnover. When the company reaches this state of affairs, they will be faced with a quandary as the needed terrain considered necessary for the enlargement procedure is unachievable as the company ‘s evidences are bordered by the ocean on one side, the chief route ( the Galle Road ) on other and the presence of assorted hostel on the remnant sides. Therefore, the deficiency of infinite for the enlargement of the resort could present a likely issue and menace to the company within the following decennary.

Another important menace likely to impact the company within the following decennary is the turning competition within the industry. When rivals set up similar ventures and offer the same merchandises and services at similar or more enhanced monetary values, it would indefinitely hold a negative impact on Coral Gardens, Hikkaduwa and would ensue in a package of strain and force per unit area on the company ‘s fundss. Besides, with an economic roar projected to take topographic point in the state within the following few old ages, there is a strong likeliness for an internationally recognized, good established cordial reception company to put in puting up a venture in the country of Hikkaduwa with the exclusive purpose of obtaining high net income returns. If a state of affairs such as this takes topographic point, it would beyond doubt ensue in lower invitee reachings to the hotel with the terminal consequence of reduced gross potency. Therefore it is apparent that an emerging extremely competitory market could potentially be one of the cardinal tendencies apt to impact the cordial reception company within the following decennary.

Menaces Emerging From the Environment

The Hotel and cordial reception industries are amongst the biggest and fastest turning industries in being today due to the unparallel growing chances and limitless concern potency and it is owed to this footing that a big figure of financess are invested into acquiring the venture up and running. However, even though assets and resources are put into the project with the aim of obtaining high returns, there are assorted factors which impede the endeavor and cut down the likeliness of accomplishing coveted consequences.

For illustration in the fortunes of Coral Gardens, Hikkaduwa there are natural menaces emerging from the environment which are apt to queer and interrupt the smooth operation of the venture and do a figure of unnecessary issues. For case, the remotion of coral from the sea consequences in grim coastal eroding which in bend poses a danger to human colonies. The jeopardies include amendss to the life and the belongings which occupy the coastal parts. In add-on to this, the conventional excavation of ancient fossilised coral reefs and the more current and destructive activity of mining both unrecorded and dead coral polyps from the sea, would hold a negative impact on the reefs and bust up the natural beauty of the reef ecosystem. Besides, increased H2O temperatures ( due to planetary heating ) consequence in the bleaching of coral reefs which in bend leads to the lightening of the corals. The effects of this consequence turn out to be huge as it sometimes leads to the loss of about 90 % of coral screen. Since the reef sanctuary is a cardinal tourer attractive force, the annihilation of the corals is undeniably a noteworthy menace to the resort and presently emerging issue originating from the environment.Another considerable menace likely to emerge from the environment is the panic of a natural catastrophe.

Sri Lanka being an island is prone to natural catastrophes akin to the tsunami which stuck the island in the twelvemonth 2004. This resulted in extended loss of belongings and lives and tattered and ruined many resorts situated along the seashore. Owing to this, tourer reachings to the state came to an immediate deadlock which in bend caused a negative impact on the touristry industry of the state.

Therefore it is apparent that a sudden natural catastrophe or even a possibility of a black calamity would potentially be a cardinal menace likely to impact the company.

Changes That Should Be Made to the Corporate Level Strategy of the Company

The current corporate degree scheme of the company is all right and really suited and relevant to the industry. The strategic program of action applied by the resort is suiting in increasing the end product of the hotel and accomplishing corporate aims. No facets of it ought to be changed nevertheless losing constituents could be added in order to increase the impact and the effectivity of the concern scheme. For illustration the company should include it in their corporate program to concentrate a great trade of attending on sharply marketing the resort both locally and internationally in order to quickly derive exposure. Like the Great Barrier Reef of Australia, the company should project a strapping positive image of the part of Hikkaduwa and stress the wonders of the diverse marine life that is found in copiousness in its locality.

By pulling much attending to the Marine sanctuary, the Hikkaduwa reef will get down to develop into a popular tourer finish for the Ocean adventurers and Scuba frogmans. While marketing the admirations of the Hikkaduwa reef, the company should at the same time market the resort, touting its splendid quality installations and services and promoting tourers to use the hotel during their stay in the beautiful island of Sri Lanka. By shiping on this class of action the cordial reception resort will non merely convey international celebrity and acknowledgment to the Hikkaduwa reef but besides to their trade name which would in bend have a positive impact on the other resorts runing under the trade name name.Another losing constituent that could be implemented is titling the hotel to reflect a specific subject. Since the resort is situated along the seashore in close propinquity to an alien reef sanctuary, an ocean subject could be arranged and put into topographic point in order to pull invitees by offering something new. Interestingly, the populace is easy amused and even something every bit small as a fragment of ocean themed redecoration could ensue in the hotel holding an border over rivals simply due to its singularity.

The resort should concentrate on the demands and involvements of kids and redecorate the pools and eating houses ( to a certain extent ) with this purpose in head. If the company is able to pull a loyal fan nine of kids it is worthy of pulling their parents.Besides, the cordial reception company should include it in their corporate scheme to be flexible and adapt and develop new schemes to retain market presence in the changing industry.

Since the cordial reception industry in unpredictable and invariably germinating, the company should deploy a full clip squad to watchfully analyze and analyse the market. The panel should be responsible for placing chances for betterment and growing every bit good as conveying in new thoughts in order to increase the criterions and lift above rivals and emerge the taking cordial reception company in the part.

Opportunities That Should be Pursued With the New Strategy

At present there are many chances available to the company. The touristry industry envisions a really optimistic mentality due to the station war scenario and rather a few enterprises have been taken in this respect in order to tackle the tremendous potency the state possesses in order to entice tourers to the island. The president of Sri Lanka has set up an ambitious mark to pull 2.5 million tourers by 2015. As a consequence, the touristry sector has formed many advanced selling schemes which are in the procedure of being implemented in order to pull in and pull many tourers to the state.

Global travel analysts predict the planetary touristry industry will return back to its pre-crisis degrees during the class of the twelvemonth 2010 which acts as an extra chance for the growing chances of the state ‘s touristry industry.The statistical analysis of the tourer reachings to Sri Lanka ( 2009-2010 ) is constructed below.

Tourist Arrivals 2009-2010

By detecting the statistics, we notice how the improved state of affairs in the state has increased tourer reachings and we come to recognize how touristry would otherwise be unable to din if the state still existed in a province of convulsion. Furthermore, Sri Lanka was late granted the figure one topographic point in the New York times ’31 topographic points to travel in 2010 ‘ . This is without inquiry a immense chance for the touristry industry and all those connected to it as the state will derive enormous exposure around the universe as an result of it.

Coral Gardens, Hikkaduwa should utilize the priceless rubric awarded to the state by the globally good attributed ‘New York Times ‘ who placed Sri Lanka foremost in their list and utilize it as an chance by including in their scheme to market their hotel internationally.Another chance that should be pursued is the being of 3 ancient ship wrecks around the locality of the Hikkaduwa reef. The ship wrecks provide an first-class diving location. The company should popularise this outstanding characteristic and the populace should be made cognizant of the being of these ship wrecks. Coral Gardens should utilize it as an chance presented by the external environment and work at enticing in dive partisans from around the universe to see the clear, temperate Waterss of Sri Lanka. Additionally, in a few old ages from now as the economic system bit by bit picks up, there will be a batch of new roads and main roads being built. At present many undertakings have been planned and executed and there are many more to be constructed in the hereafter.

Due to this ground, going to countries such as Hikkaduwa will be effortless and many will take to get away to paradise retreats such as Hikkaduwa during their long vacations etc. Besides, in the past many tourers refrained from going of all time so frequently due to the bad conditions of the roads as it was an uncomfortable and very clip devouring journey.

Identifying New Business Opportunities

Before Coral Gardens, Hikkaduwa closed to the populace for renovation, the resort offered many merchandises and installations to its invitees. The resort was equipped with a to the full functional Ayurvedic Centre every bit good as a keepsake and gift store, hair chest of drawers, java store, gym, squash tribunal, installations to play table tennis, darts and tennis tribunal. It is most likely that the installations such as the tennis tribunal and squash tribunal were non often used by invitees as the cardinal attractive force available to the resort was the glorious beach. Alternatively of supplying invitees with installations to prosecute in indoor games, the resort should concentrate more on supplying H2O based activities that will intermix in more with the ambiance of the hotel. For illustration, the resort should put up installations for aqualung diving jaunts where they will supply frogmans with equipment, a boat drive to the dive site every bit good as a qualified dive teacher.

This will entice in frogmans from many parts of the universe. Besides, for the less adventuresome, glass bottomed boat jaunts should be made readily available for invitees. In add-on to the above proposed thoughts, the resort should put up a surfboarding school where they would lease breaker boards and instruct draw a bead oning surfboarders how to sit moving ridges. This excessively would allow them extra gross as many are interested in taking to the athletics but there are presently non many installations available in the state. If the teacher proves to be adept in developing people into gripping the athletics, many will follow suit and subscribe up for lessons. That manner when the surfboarding season begins in Hikkaduwa, the resort will be able to do extra gross through these agencies. In add-on to surfboarding, because is Hikkaduwa is a beautiful beach with shallow Waterss, many other H2O athleticss could be arranged.

For illustration, kite surfboarding, jet skiing, kayaking are all really popular H2O athleticss that are in high demand but no resorts in the country are presently supplying their invitees with these installations.Another country the company should look into is the constitution of a high quality sea nutrient eating house. Even though there are locales to indulge in sea nutrient in Hikkaduwa, there does n’t be one of exceeding quality to provide to international criterions. The resort should either conveying down talented reliable Sea nutrient fixing specializers and put up their ain venture of spouse up with the internationally celebrated sea nutrient eating house situated in Colombo known as ‘Beach Wadiya ‘ . ‘Beach Wadiya ‘ is known for its reliable sea nutrient and was even listed in the Forbes magazine as one of the best sea nutrient eating houses in the universe.

. This eating house should be available non merely for the in house invitees, but besides for theodolite travellers doing their manner from assorted other finishs. If the resort establishes a similar venture or agrees to spouse up with the eating house, it will decidedly turn out to be a monolithic success and convey in extra gross to the company


I would wish to reason this study on the strategic analysis of Coral Gardens, Hikkaduwa by saying that the company has tremendous potency to emerge the taking resort placed along the Southern seashore of Sri Lanka and if the resources are utilised as it should be and the strategic programs executed successfully it should hold no trouble in going one of the most moneymaking companies belonging to the John Keells Group. There are nevertheless, many possible obstructions and menaces apt to emerge from the external environment, which is beyond the control of the company, however if the company diligently observes the external environment and anticipates the issues likely to emerge, they will be able to come up with action programs in order to diminish the harm or consequence every bit much as possible. As in any industry, there are menaces and chances apt to emerge ( from the external environment ) that could hold a positive or negative impact on the company, nevertheless when the said state of affairss arise, it is really of import that the company is flexible and acts rapidly to set in topographic point the necessary alterations to persistently hold an border over rivals.