STRATEGIC MANAGEMENT CASE STUDY:

OKADA MANILA COMPANY

In Partial Fulfillment for the Subject

STRATEGIC MANAGEMENT

Submitted by:

Dalag, John Kyle C.

Gigantone, Gabriel M.

Magalong, Richelle Mae B.

Mirano, Grace Joe Ann M.

Olila, Honeylyn V.

Rodriguez, Jasmin Lou A.

Submitted to:

Teodora Besana

August 2023

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 TABLE OF CONTENTS

II. Table of Contents 2

III. EXECUTIVE SUMMARY 3

IV. BACKGROUND OF THE COMPANY 4

A. BACKGROUND
B. HISTORY & PARTNER COMPANY
C. MISSION, VISION, OBJECTIVES, GOALS, AND CORE PRINCIPLES 5
D. FACILITY OVERVIEW 6
E. ORGANIZATIONAL CHART 7
F. FINANCIAL STATEMENT 8

V. MISSION & VISION ANALYSIS 12

VI. EXTERNAL ANALYSIS 20

A. PESTLE 20
B. Porter’s Five Forces Analysis 33
C. Competitive Profile Matrix (CPM) and Analysis 35
D. External Factor Evaluation (EFE) Matrix and Analysis 38

VII. INTERNAL ANALYSIS 41

A. Management
B. Marketing 42
C. Finance/ Accounting 44
D. Operations and Human Resources 53
E. Research and Development 54
F. Management Information System 57
G. Internal Factor Evaluation (IFE) and Analysis 59

VIII. SWOT MATRIX AND ANALYSIS 65

IX. SPACE MATRIX AND ANALYSIS 76

Quantitative Strategic Planning Matrix 78

X. RECOMMENDED SPECIFIC STRATEGIES AND LONG-TERM OBJECTIVES

Strategic Objectives 82
Alternative Courses of Action (ACA) 83
XI. CONCLUSION 88
XI. PLAN OF ACTION 89
XII. REFERENCES 95

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II. EXECUTIVE SUMMARY

The travel and tourism sector in the Philippines expanded by 4.9% in 2017, spurred by the

government's aggressive strategy for infrastructure development and the country's growing international

appeal as a tourist destination (Euromonitor Worldwide, 2018). The country rose to meet growing hotel

occupancy rates for visitors, business travelers, foreign consultants, and overseas workers, strengthening

the enormous push and need for hotel accommodations (Salazar, 2013). A new venture of quality service

for hotels and providing entertainment from bars, restaurants, and shows, all located and all for the benefit

of its guests, has now been created and is now known as "Integrated resorts" thanks to product innovation

by hotels. At $2.4 billion, the Okada Manila project is one of the integrated resorts under construction. The

casino and resort are a famous landmark with the unequaled Dome nightclub and an upscale beach club in

Manila and throughout Asia. The property's dancing water display and light show are the most stunning

attractions; it is a bizarre entertainment that is even more incredible than Dubai's famous fountains.

Additionally, the establishment offers visitors the most significant and opulent gaming floors in the

Philippines. In addition to the thrills and excitement of gaming, guests may relax by shopping for the most

desired luxury and international brands on the shopping esplanade or repose in one of the casino and resort's

superbly crafted and spacious deluxe rooms, villas, or suites. The best casual and trademark eating

establishments in Manila offer a variety of delectable snacks and sumptuous gourmet spreads they can

enjoy. The casino and resort complex also builds a private dock for tourists to arrive in luxury onboard

yachts, with the scenic Manila Bay as its backdrop. They can land directly outside the building and benefit

from the superb amenities only a short distance away. The business provides useful features and amenities

that may compete with other Asian-integrated resorts. However, according to Gross Gaming Revenue

(2017), Okada Manila only holds 10% of the market because it is still under construction compared to the

other integrated resorts that are already in existence.

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IV. BACKGROUND OF THE STUDY

About Okada Manila

A luxurious gaming hotel in the Philippines. Guests can relish a getaway from the excitement and

thrills of gaming by relaxing in one of the integrated resort's well-designed possibilities of well-appointed

luxury rooms, villas, and suites. Indulgent in a world of flavors from Okada Manila’s various restaurants

offering different international cuisines.

History & Partner Company

In 2008, Tiger Resort Leisure and Entertainment was authorized to run an Entertainment City casino. The

casino complex formerly known as Manila Bay Resorts underwent a rebranding in June 2016 to become

Okada Manila.

The facility is intended to be used by Okada to compete with casinos in Macau and to position

Metro Manila as a regional and international destination. The casino's grand opening was initially scheduled

for November 2016, but it was subsequently postponed amid weather conditions that were worse than

anticipated. The casino complex was opened for a preview on December 21, 2016, and officially opened

for business as a casino on December 30, 2016.

On March 31, 2017, The Fountain opened its doors to invited visitors. The casino let the public

experience the attraction the next day. Kazuo Okada was removed as board chairman of Tiger Resort in

2017 after the Universal Entertainment Corporation its parent firm alleged, he has misappropriated funds.

Okada maintains that the increased community quarantine in Luzon adversely impacted the casino's

operations imposed because of the COVID-19 pandemic, with 1,000 of its 10,000 employees being let go

as a result of his assertion that he is the legitimate owner of Tiger Resort and the filing of legal complaints

against the board even though the casino was still open.

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 The increased community quarantine in Luzon brought about by the COVID-19 pandemic

significantly impacted the casino's operations, resulting in the termination of 1,000 of its 10,000 employees

by June 2020. The Philippines Supreme Court's status quo ante order was published on April 27, 2022. It

required the Tiger Resort to return to the situation that existed before Kazuo Okada was removed from its

board in 2017. On May 31, 2022, Okada's group took over Okada Manila's operations.

Mission

The mission of Okada Manila is to create a seamless integration of Japanese people’s respectful

demeanor, passion for creativity, and hunger for innovation and the Filipino’s hard work, hospitality, and

cheerful spirit, in terms of quality service. “And with these guiding principles and values, the resort expects

to bring people around the world together through fun and entertainment by providing unique experiences

that no one else deliver.”

Vision

Okada Manila will redefine the concept of Philippine entertainment and gaming, they envision it to become

the country’s iconic landmark for world-class entertainment and limitless fun that will delight and charm

visitors from within the Philippines and all over the world.

Goals

The company aims to give visitors a clean and secure experience by rendering heartfelt service. To build

Okada Manila as a premier travel destination, offering visitors from all over the world unique experiences.

Objectives

“Okada Manila aims to delight and excite our guests with memorable, fun, and entertaining gaming

experiences through Responsible Gaming. We are committed to the prevention of problem and underage

gambling in both our resort and Okada Online Casino.”

Core Principles

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“True Clean.” (3T) campaign

“True Safe.”

“True Heart.”

Facility Overview

Hotel 933 guest rooms

Casino 599 Table games & 4,263 Slot machines

*Current licensed capacity

Total of F&B Facilities Approx. 70 establishments (plan) and Shopping Area

Major Facilities “The Fountain” The world's largest multicolor dancing water fountain”

Cove Manila” Indoor Beach & Night Club

"The Retreat Spa" High-end Resort Spa

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Organizational Chart

▪ Board of Directors

▪ Executives

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Financial Statementent

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In 2021, OKADA MANILA reported depreciation and other fixed expenses as an extraordinary loss

due to the pandemic-induced closure. However, in 2022, their selling, general, and administrative

expenses increased for several reasons. First, only a small portion of fixed expenses was classified

as an extraordinary loss because the restrictions were relatively short. Second, there was a rise in

litigation and other expenses related to the illegal occupation by Mr. Kazuo Okada and his group,

which were included in the selling, general, and administrative expenses.

Consequently, their 2022 sales reached 140,998 million yen, marking a substantial 55.9% increase

from 2021. Additionally, the operating profit surged by 516.7% to 12,085 million yen. Non-operating

income also rises, primarily due to foreign exchange gains resulting from the yen's depreciation,

gains from the cancellation of rental contracts linked to lease contract changes, and gains from

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differences in lease assets and liabilities (gain on lease contract cancellation). Non-operating

expenses included losses from equity method entities and higher interest expenses on U.S. dollar-

denominated bonds due to the yen's decline against the dollar.

This resulted in an ordinary profit of 13,933 million yen, a significant improvement from the 2,508

million-yen loss in 2021. After accounting for gains and losses, including losses on non-current assets.

retirement and losses associated with the illegal occupation, along with the posting of deferred tax

assets, the net income attributable to owners of the parent stood at 11,506 million yen, a positive

turnover from the 19,052-million-yen net loss in 2021.

MISSION VISION ANALYSIS

Mission

The mission of Okada Manila is to create a seamless integration of Japanese people’s

respectful demeanor, passion for creativity, and hunger for innovation and the Filipino’s hard

work, hospitality, and cheerful spirit, in terms of quality service. “And with these guiding

principles and values, the resort expects to bring people around the world together through

fun and entertainment by providing unique experiences that no one else deliver”

Okada Manila mission is, about blending the values of culture with the warm

hospitality of the Filipino people to create a harmonious blend of traditions. The resort is

deeply committed to offering top notch service that reflects the nature of the Japanese and the

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dedicated cheerful spirit of Filipinos. Their focus, on quality products and services highlights

their dedication to providing experiences for guests. It seems that Okada Manila has a

perspective and aims to attract a diverse audience cone for entertainment experiences that

celebrate different cultures.

Component:

The mission of Okada Manila is to create a seamless integration of Japanese

people’s respectful demeanor, passion for creativity, and hunger for innovation and the

Filipino’s hard work, hospitality, and cheerful spirit, in terms of quality service. Okada

Manila aims to harmonize the respectful demeanor, creativity, and innovation drive of the

Japanese culture with the Filipino values of hard work, hospitality, and a cheerful spirit.

And with these guiding principles and values, the resort expects to bring people

around the world together through fun and entertainment by providing unique experiences

that no one else deliver.

The company anticipate fostering global unity through enjoyment and entertainment. The

resort is committed to delivering unparalleled experiences that set it apart from others, creating

a unique and memorable destination for people worldwide.

Evaluation:

Okada Manila's mission by articulating its commitment to seamlessly integrating

Japanese and Filipino values for quality service. It successfully highlights the resort's

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 dedication to harmonizing cultural traditions and delivering unique experiences, emphasizing

a global appeal.

YES/ NO
CRITERIA MISSION STATEMENT

Customers are closely related to Okada

1. Customers Yes Manila's mission as the resort is dedicated to

offering quality service.

Their mission as the resort's products and

services are essential in delivering the quality

2. Products/Services Yes
service and unique.

experiences

Okada Manila appears to be targeting a global

3. Markets Yes audience seeking unique and culturally

integrated entertainment experiences.

The mission statement doesn't explicitly

mention technology, it can certainly be related to

4. Technology Yes their mission as a means to enhance the

customer.

experience.

5. Concern for Survival,

Concern for Survival, Growth and Profitability is
Growth and No
not mentioned in their mission statement.

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 Profitability

The mission statement reflects the core values,

6. Philosophy Yes principles,and beliefs that guide the resort's

actions and objectives.

It is indirectly related to them mission.

7. Self-concept No
As they focus on quality service.

Concern for public image is related to the

mission of Okada Manila. Providing quality

service, promoting cultural integration, offering

8. Concern for Public
Yes unique experiences, and creating a sense of
Image
community through entertainment are all

aspects that can contribute to a positive

public image for Okada Manila.

It emphasizes the delivery of quality service.

9. Concern for
Yes Since employees play a crucial role in creating a
Employees
welcoming and inclusive atmosphere

Recommendation for Reconstructing needed.

Okada Manila's mission statement communicates its aim to become a business leader in its

industry, signifying that great customer service is vital for future success. The company intends to

increase client flow by revolutionizing the concept of Philippine entertainment and gaming. Alongside

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these goals, Okada Manila strives not only to accommodate local and international visitors but also

establish itself as an iconic landmark within the country.

VISION

Okada Manila will redefine the concept of Philippine entertainment and gaming. They

envision it to become the country’s iconic landmark for world-class entertainment and limitless fun

that will delight and charm visitors from within the Philippines and all over the world.

Okada Manila has set a vision to redefine Philippine entertainment and gaming, aspiring not

just for national prominence but international recognition as an iconic landmark offering unbounded

amusement. The resort aims to become the country's legendary destination that symbolizes premier

class in gaming and entertainment domain.

Component:

Okada Manila will redefine the concept of Philippine entertainment and gaming. Okada

Manila is set to transform the entertainment and gaming scene in the Philippines by offering a unique

and unbeatable experience. The resort endeavors to establish new benchmarks through creative

strategies and superior services, with an aim of reshaping norms within local Philippine

gaming/entertainment industries.

They envision it to become the country’s iconic landmark for world-class entertainment

and limitless fun that will delight and charm visitors from within the Philippines and all over the

world. The company aspires to be the foremost symbol of premier entertainment and limitless

enjoyment in the Philippines, aiming beyond being just a venue. The resort is committed to providing

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delightful experiences for visitors worldwide and seeks to cement its status as the prime destination

that offers unmatched fun and charm.

Evaluation:

The Vision of Okada Manila aspires to lead Asia's integrated resort and tourism industry, to

offer world class leisure and entertainment experiences. This vision is to meet their

commitment to delivering exceptional offerings well beyond the typical standards in the field

while prioritizing quality, innovation, and memorable guest experience.

Parameter Yes/No Statement

Does it clearly answer the Yes Okada Manila hopes to establish

question: What does want to itself as a cutting- edge and

become? legendary spot for top-notch

entertainment and gaming that

enchants and enchants tourists

globally.

Is it Inspirational Yes It is sets a high standard and

encourages individuals

associated with Okada Manila

to

strive for excellence and

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 to take pride in their roles

in achieving the vision of

becoming a global destination for

entertainment and

gaming.

Recommendation for Reconstructing needed.

Based on the findings, the vision of Okada Manila is highly motivational, pushing everyone

involved to pursue high standards. This creates a strong sense of pride and cultivates collective

dedication towards becoming an international hub for entertainment and gaming from within the

Is it concise enough and Yes Okada Manila is inspirational as it

inspirational? articulates ambitious goals and

aspirations. It conveys a clear

sense of purpose anda desire to

achieve excellence in the field of

entertainment

and gaming.

Does it give clear indication as No It does not provide a clear

towhen it can indication of when its vision can be

be attained? attained. It outlines ambitious goals

and aspirations for the future but

does not specify a timeline

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Philippines and all over the world. However, it does not provide a clear indication of when its

vision can be attained.

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III. External Analysis

PESTEL

The PESTEL analysis framework containing Political, Economic, Social,

Technological, Environmental, and Legal factors will be used to analyze the macro-

environmental factors that can impact the OKADA company in the hospitality and

entertainment industry, particularly gambling. In this case, PESTEL is conducted to

extract data and analysis for the Okada considering how each of the mentioned

variables can either present opportunities or pose threats:

Table .2 PESTEL

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P - Political:

Regulation & Licensing (Threat & Opportunities):

Obtaining a license for Okada Manila has been difficult, prompting questions about the hotel's

feasibility. The Manila casino took four years to complete, and several setbacks hampered this

timescale. The obstacles included legal problems and property ownership issues, all of which cast

doubt on the venture's authenticity. Furthermore, a government investigation was launched in response

to bribery claims from a disagreement between Okada and Wynn Resorts (Dela Peña, 2017). Okada

vehemently denied allegations of misconduct, claiming that Tiger Resort, his firm, received a

provisional license with terms comparable to those issued to other Entertainment City licensees.

However, in May 2015, the Philippine Amusement and Gaming Corporation (PAGCOR) took stern

action, forfeiting a P100 million assurance bond provided by Tiger Resort to guarantee the achievement

of project completion dates established for March 2015. PAGCOR also warned to suspend Tiger

Resort's gambling license, adding uncertainty and Threat to Okada Manila's operational prospects

(Dela Pena, 2017).

Okada Manila International Inc., a subsidiary of Universal Entertainment Corp, is reportedly

exploring joining the competitive New York casino business (Lim, 2023). This move is consistent with

the firm's more extensive development plans, which include a merger with a particular purpose

acquisition company (SPAC) in 2022 to become a NASDAQ-listed corporation (Young, 2023). Okada

Manila International Inc., which will soon be renamed UE Resorts International, Inc., has stated its

intention to participate in the New York State Gaming Commission's requests for information (RFI)

for the awarding of three prospective casino licenses (O'Boyle, 2021). Stringent government

regulations and licensing requirements can significantly threaten the Okada industry, leading to legal

challenges and operational limitations. Hence, it will also be an excellent strategic opportunity to take

risks. This collaboration poses key legal and licensing issues for Okada Manila as the business enters

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a new jurisdiction with dynamic casino growth ambitions. The nature of these licenses, whether for

slots-only properties or wholly new enterprises, brings both possibilities and challenges. Alternatively,

obtaining an appointment in New York might dramatically extend Okada Manila's portfolio and

income potential. Nevertheless, it also entails regulatory complexities and competition dynamics that

demand careful consideration and management.

Terrorism or Crime related and political disposition (Threat)

In 2018, President Rodrigo Duterte issued a stern warning to the police, cautioning them

against entering the Okada Manila casino in Parañaque City, Philippines. He even went as far as to

threaten the deployment of military personnel to patrol the premises, characterizing the establishment

as being "crawling with usurers, kidnappers." Duterte strongly disapproved of any police presence near

Okada Manila, emphasizing that he did not want a police car nearby. He believed that the only reason

for a police officer to be at the casino, if not on official security duty, would be to engage in criminal

activities. In response to these remarks, Okada Manila released a statement acknowledging the

President's concerns and pledging cooperation with the authorities to address the matter (Ranada,

2022).

This development poses a significant threat to Okada Manila's reputation and security.

President Duterte's public warnings about criminal activity within or around the casino could deter

potential visitors, especially high-rollers and tourists, and negatively impact the property's operations.

Additionally, the Threat of military patrols and law enforcement restrictions could disrupt the casino's

daily activities and affect its profitability. Consequently, Okada Manila may need to address these

security concerns and work closely with the government to provide its patrons and guests with a secure

and safe environment.

Tourism & Hospitality regulation (Opportunity):

The Okada industry can benefit from increased tourist demand for convenient transportation.

Okada Manila is keen to welcome travelers back with a distinct Filipino Japanese hospitality approach

while prioritizing safety. The resort's recognition for top-tier health and safety protocols, including

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prestigious certifications like Forbes Travel Guide's VERIFIED seal, signifies its reliability for

travelers seeking a secure and enjoyable experience. President and COO Byron Yip's optimism

regarding Okada Manila's role in revitalizing the travel and tourism sectors reinforces its potential to

positively impact the Philippines' tourism industry ("Okada Manila welcomes international travelers

as Philippines tourism reopens," 2022).

Okada Manila is well-prepared to cater to local and international travelers with its spacious

rooms, cutting-edge technology, extensive gaming options, and diverse entertainment offerings.

Moreover, its commitment to eco-friendly practices and partnerships with renowned brands further

enhance its appeal, positioning it as an asset for the industry's post-pandemic recovery. Hence, this

results in a favorable brand positioning as tourism and hospitality departments commend the practices

and competence of OKADA. The readiness to thrive in the post-pandemic tourism landscape by

prioritizing safety, luxury, and sustainability positioned the resort as an asset to the Philippines' tourism

sector, potentially attracting more tourists and contributing to the industry's recovery.

Local Policy (Threat/Opportunity):

Local policies on Paranque, where the Okada Manila is located, may affect its services and

feasibility, perhaps traffic congestion, road closure, and local implementation of waste management in

the area. At the same time, the local commission has been empowered, especially during the pandemic,

where regulation and restriction of travel bans and limitations of people interaction is a big challenge

for the establishment. Suppose Okada Manila did not comply with local regulations. This may ban

OKADA Manila due to safety concerns. Local policies can both present opportunities and threats

depending on their stance.

E - Economic:

Economic Growth (Opportunity):

During periods of economic growth, people often have more disposable income, which can

lead to an increased usage of Okada services for convenience. If the economy is rising, people can

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spend on different wants and needs, indicating that hotels like OKADA can provide access to not just

international but domestic leisure. Hence, if the circulation of money and the economy are growing,

the capability of people to spend is an opportunity for an OKADA, which means accommodations are

capable. The spending behavior of guests is high. The tourism and hospitality industry is vital to the

Philippine economy. According to Caynila et al. (2022), tourism and hospitality in the Philippines is

the largest employer in the country, employing around 5.7 million people, or 13.6% of overall

employment in the Philippines in 2019.

Exchange Rate (Opportunity/Threat):

A favorable exchange rate can attract international tourists who may rely on Okada services. If an

OKADA obtains a more significant amount of foreign exchange, it will benefit them as some may have an

increase in rate base from currency, but then if exchange rates are low, they will expect a lower income.

Inflation (Threat):

High inflation can increase operational costs, challenging competitive pricing for Okada services.

According to Philippine Statistics, the surge in food and non-alcoholic beverage inflation reached 7.4

percent, a significant increase from the 5.0 percent reported in September 2021. This instance poses

considerable challenges for Okada's operational costs. This rise can lead to increased expenses in sourcing

essential supplies, particularly food items such as corn, rice, flour, fish, fruits, and sugar, as these have

experienced inflationary pressures. Consequently, Okada Manila may need more money to provide culinary

offerings and maintain food-related amenities. fish, fruits, and sugar, as these have experienced inflationary

pressures. Consequently, Okada Manila may need more money to provide culinary offerings and maintain

food-related amenities.

Furthermore, the upward trend in non-food inflation, which soared to 6.4 percent from the 3.5

percent recorded in September 2021, presents an additional concern ("REPORT ON INFLATION" 2022).

The persistence of high inflation in categories like transport and electricity, gas, and other fuels can result

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in elevated utility costs for Okada Manila. These escalating operational expenses may necessitate strategic

adjustments and cost management measures to mitigate the impact on the resort's financial performance.

This inflationary environment underscores the importance of efficient cost management and strategic

procurement for Okada Manila as it navigates the challenges posed by rising prices in critical supplies and

utilities.

Taxation (Threat):

High taxation on fuel, vehicles, or ride-sharing services can significantly affect the cost

structure of the Okada. Hence, the Tax Laws of Gaming, commercial, and sin tax are considered

Threats related to gaming and commercial activities that can impact the profitability of Okada

operators if they are classified as such or subjected to additional taxes. This tax is higher than the

average tax. Okada's particular operation requires higher tax compliance due to its nature of business,

a commercial hotel-casino, and much more passive money involving excise tax sold in a hotel like

Okada, such as alcohol, cigarettes, and tobacco.

S - Social

Cultural diversity (Opportunity)

Okada services must align with local cultural norms and preferences. Understanding and

adapting to cultural factors can lead to opportunities while ignoring them can be a threat. Okada

Manila's commitment to treating its employees with the same care and respect as its best customers

exemplifies a forward-thinking approach to management. This strategy fosters a strong sense of

belonging and emotional connection among employees and contributes to the hotel's success in

providing world-class luxury experiences in Manila. Okada Manila has transformed its organizational

culture by implementing innovative communication platforms, emphasizing efficiency and cost-

effectiveness while maintaining deep bonds with guests and colleagues. The culture of Okada Manila

reflects a unique blend of monochromic and polychromic time management approaches, showcasing

the hotel's adaptability and commitment to customer service. Monochromic time management

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underscores the value of careful task planning and efficient resource utilization, ensuring that each

task is completed thoroughly. In contrast, the polychromic approach enables employees to excel in

multitasking, allowing them to exceed customer expectations.

The cultural bond between Filipinos and Japanese is a promising approach to time

management and service delivery, which positions Okada Manila to seize opportunities effectively.

The blend of meticulous planning and multitasking aligns with the hotel's goal of delivering

exceptional and unexpected customer experiences. The partnership between these two cultures

enhances Okada Manila's ability to excel in the hospitality and entertainment industry, making the

most out of its potential for success.

Demographics (Opportunity):

A growing urban population, particularly among younger generations, can create a larger market

for Okada services as they seek convenient transportation options. PLAY aims to develop into a

multipurpose platform that meets children's educational and recreational requirements from 1 to 16 years

old. It has eight (8) specially designed play zones or communities that provide children of all ages with

the excitement and enjoyment they seek. PLAY offers specialized learning programs created to meet

children's developmental requirements. It is run by professional expert coaches and licensed instructors

who have received training to give visitors the best degree of care and enjoyable learning.

Trends (Opportunity)

Staying attuned to social trends and consumer preferences can help Okada operators tailor their

services to meet evolving demands.

Philanthropic (Opportunity)

Engaging in philanthropic activities or community development can improve brand reputation and

foster goodwill in local communities.

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Social Corporate Responsibility (Opportunity)

Demonstrating social responsibility through safety initiatives and environmental sustainability can

enhance the image of Okada operators. The Philippine Business for Social Progress, or PBSP, and the

property recently launched their second joint program as an aspect of Okada Manila's long- term corporate

social responsibility (CSR) agenda. The alliance includes two programs concentrating on education and

the environment and working together to improve communities.

Okada Manila has started its educational endeavor with the PBSP after delivering over 600

seedlings to the neighborhood of the Marikina Watershed in October. They recently presented formal

presents of robust recycled armchairs and personal care items to the children of the Cavite elementary

schools Paranaque and Anabu. These programs seek to make learning enjoyable for kids and encourage

them to appreciate education more to pursue a better future.

Brand Reputation (Opportunity):

Building a positive brand reputation for safety, reliability, and convenience can increase customer

trust and loyalty. Okada Manila, Asia's largest integrated resort, has achieved the prestigious Forbes Travel

Guide five-star rating for the fourth year. The Forbes Travel Guide is a well-known source of information

on hospitality excellence, and its five-star rating is generally sought after as a symbol of distinction in the

industry.

The Okada Manila has a reputation for providing exceptional service that combines the most

significant aspects of Japanese and Filipino hospitality. The establishment epitomizes the forward-thinking

Japanese idea of "Omotenashi" — anticipating guests' present and future requirements — and "mokoro"

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hospitality, defined as sincerity and commitment. The Filipinos' commitment to hard labor, enthusiasm,

instinctive warmth, friendliness, and upbeat demeanor complements these.

T - Technology:

Trends and Advancements (Opportunity):

Embracing technological trends and advancements can enhance the efficiency and safety of

Okada services, making them more attractive to customers. To express their Accommodation, Games,

dining, and Leisure experiences swiftly and effortlessly via resort signage while supporting over 633

screens in their facilities. With 22Miles supplied the casino resort with a dynamic digital

transformation, offering more extensive administration, dissemination, and control of information,

navigation, and media. The Casino includes video walls, technological systems with different

connectors, interactive navigation, and a user-friendly interface enabling employees to produce,

amend, and remove information. The two primary considerations were guest engagement for visitors

and simplicity of use for the staff. The international variety of visitors to Okada keeps the resort's

aesthetic and technical development flexible and ever evolving.

The casino, which opened at the end of 2016, renovated the gaming floor using

TCSJOHNHUXLEY's newest Blaze LED Technology products. Blaze uses proprietary technologies

to provide unparalleled flexibility, reliability, and visual capabilities. It does this by using energy-

effective LED lights installed beneath the gaming table. The most recently upgraded Blaze Sicbo tables

have a countdown timer with numbers in big format to show when the betting time is about to expire.

This makes it possible for pit bosses and security personnel to keep an eye more easily on game

operations from a distance, coupled with enhanced visibility of winning portions.

In addition, to encourage game integrity, Automatic Dice Recognition (ADR) has been installed on

the Blaze Sicbo tables. The Blaze Sic Bo table's game surface will display the results of the ADR unit's

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processing of a dice picture from a camera within the cover. This increases the game's security features and

deters dealer/player collusion.

Cybersecurity (Threat):

As Okada services become more technology-dependent, such as relying more upon

technological trends, they may face cybersecurity threats that could compromise customer data and

operational safety. Cyberattacks have frequently proved quite damaging to Asia. The Philippines might

have lost US$3.5 billion because of cybercrime. In 2018, 1.5 million Sing Health outpatient clinic

patients had their personal information stolen, making it the most significant data breach in the city-

state's history. Inadequate casino cybersecurity can have a negative financial impact on the

establishment, seriously harm the brand, and even threaten the gaming license. It also puts the data of

the customers at risk. The stakes in the globally linked world of today could not be higher.

Trends in PMS or POS Systems (Opportunity):

Integrating modern Point of Sale (POS) or Property Management System (PMS) technologies can

improve booking and payment processes, enhancing the customer experience.

When a front desk employee inputs the guest's name at check-in, the hotel reservation system

immediately shows the guest's visit history and special requests. This guarantees that guests feel at

ease and are likely to return.

Early on, Okada Manila understood that the only way to deliver such a superior guest

experience reliably is by using a data-driven strategy to manage its operations. This, however, was a

problem at first. Due to the vast number of patron touchpoints throughout its facilities, Okada Manila

requires an information technology backbone that allows the necessary data to be supplied to the

appropriate channel at the right time. Because of this, Okada Manila sought advice from and assistance

from Word Text Systems Inc (WSI), a NetApp partner, to build a quad-controller FAS8040HA to

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assure the high availability of its Class 2 and 3 business applications, such as respective file servers

and emails.

E - Environmental:

Natural Disasters (Threat):

Natural disasters can severely disrupt Okada operations, making contingency planning and disaster

management crucial.

Environmental Sustainability (Opportunity):

Promoting environmental sustainability by adopting electric or low-emission vehicles can align the

Okada industry with global ecological trends and attract environmentally conscious customers. Recently

Okada Manila has replaced its plastic toiletry packages with 99% recyclable versions by Roberto Cavalli

to inspire local and foreign visitors to adopt a more ecologically responsible travel lifestyle. These new

amenity packages will significantly minimize the plastic trash generated by the hotel's almost 1,000 rooms.

One million of these new amenity sets will be used in 2022 alone.

Season or Climate (Opportunity/Threat):

Seasonal fluctuations and extreme climates can impact the demand for Okada services. Adapting

to these variations can be both an opportunity and a challenge. Seasonal market as not

Waste Management (Opportunity):

Implementing effective waste management practices like recycling can contribute to a positive

public image and environmental sustainability.

As part of its extensive efforts to become a zero-waste firm, Okada Manila recently donated

over half a ton of discarded plastic to recycling facilities. At least 40 kilograms of PET bottles will be

delivered each month for recycling by Okada Manila. Along with reducing plastic trash, the

incorporated hotel will work to manage its food waste more sustainably so that it may be converted

30
into biofuel. Okada Manila employees will engage in a series of seminars and training concerning the

need to minimize plastic litter and conserve the environment to get waste-free accreditation.

L - Legal:

Employee's Compensation and Benefits (Opportunity/Threat):

Providing competitive compensation and benefits can attract and retain skilled drivers while failing

to do so can lead to high turnover and potential legal issues. The provision of competitive compensation

and benefits at Okada Manila represents an opportunity for the company. Offering attractive compensation

packages and valuable employee benefits can help Okada Manila attract and retain skilled employees,

which is essential for the company's success. Skilled and motivated employees are more likely to provide

high-quality services, contributing to a positive guest experience and overall operational excellence.

Conversely, the absence of inadequacy of competitive compensation and benefits could pose a threat to

Okada Manila. This may result in difficulties in retaining and attracting skilled drivers in the hospitality

industry. High turnover rates can compromise service continuity and increase recruiting and training

expenses. Moreover, failing to meet legal requirements or industry standards regarding compensation and

benefits may expose the company to potential legal issues and labor disputes, negatively impacting its

reputation and financial stability.

Gaming Law (Opportunity & Threat):

Okada services may face restrictive regulations and additional legal challenges if classified as a

gaming activity. The categorization of Okada services as gaming activities within the framework of

Philippine law presents a dual spectrum of opportunities and challenges for the gaming industry. It opens

doorsfor Okada Manila to legally venture into the Philippines' gaming sector, complying with established

regulations, and accessing a potentially lucrative market. This newfound regulatory clarity fosters

transparency and fairness among gaming operators, contributing to a level playing field. Moreover, it paves

31
the way for potential expansion, offering Okada Manila the prospect of growing its gaming operations and

bolstering both revenue and market presence.

However, this classification also ushers in a set of associated threats. Firstly, the heightened

regulatory oversight that accompanies the gaming activity classification could subject Okada Manila to

stringent compliance requirements, potentially resulting in increased operational costs and administrative

complexities. Secondly, any disputes or legal challenges pertaining to this classification may trigger

protracted legal battles, disrupting business operations and casting shadows on the company's reputation.

Thirdly, the competitive landscape of the Philippines' gaming industry is fierce, with existing operators

vying for market share. The threat lies in the intense competition, especially if regulatory changes affect

Okada Manila's ability to attract and retain customers. Lastly, the company faces a reputation risk, as legal

investigations and disputes concerning gaming activities can tarnish its image, deterring both customers

and investors.

Labor Law (Threat)

Complying with labor laws is essential to avoid legal issues, create a positive work environment,

and attract reliable staff. The incident involving Okada Manila's decision to lay off over 1,000 workers in

May 2020 due to severe losses amid the coronavirus pandemic has significant implications for labor law in

the Philippines. This decision reflects the company's challenging economic situation, leading to actions that

directly affect the livelihoods of its employees.

Regarding current labor law, Okada Manila's retrenchment program and workforce reduction raise

questions about compliance with labor regulations in the Philippines. Labor laws typically require

employers to follow specific procedures and criteria when implementing retrenchment or termination

programs. These procedures often involve notifying and consulting with affected employees and providing

appropriate compensation, including separation pay, per laborstandards. The incident is a potential threat to

Okada Manila in several ways. First, it may have legal consequences if the retrenchment process is not

carried out per labor laws, potentially resulting in legal disputes and liabilities. Second, the layoffs can

32
impact the company's reputation, especially in the context of its social responsibility initiatives, as it pledged

to support healthcare institutions amid the pandemic. Layoffs may be contradictory to these commitments.

The Okada industry is impacted by a variety of political, economic, social, technological,

environmental, and legal variables. These factors can present both opportunities and threats, and the

industry's success depends on how effectively it navigates and responds to these external influences.

Porter's Five Forces Analysis

Rivalry among Existing Competitors (High)

There are now just a handful of integrated gambling resorts in the Philippines, notably

Resorts World Manila, which opened in 2009, and Solaire Resort & Casino, which debuted in

2013. And City of Dreams Manila, which debuted in 2014. and most recently, the Okada Manila

began operations in 2017. These are a few of the most well-known resorts with integrated casinos

in the Philippines. There is severe competition among them because competitor-integrated gaming

resorts in the Philippines aggressively price their goods and services. They also compete with one

another for each other's clients, which might be expensive for all the industry's rivals. The sector

may grow more competitive due to the fierce competition among competitors, but it also affects

the profitability of existing gaming resorts.

Threat of New Entrants (Low)

Individuals must decide how they will compete with one another in the future in the

industry of integrated gaming resorts in the Philippines. The Threat of new competitors appears

modest because it is difficult to set up and construct a gaming resort. The building may require a

lot of time and money, and countless rules and requirements exist.

33
 Additionally, competing with established gambling resorts will be challenging for a new

entrant. However, it is unlikely that the Threat there will be many new competitors. Consider that

several companies decide to collaborate or form a joint venture to build a gambling resort similar

to the recently opened Okada Manila, which Japanese billionaire Kazuo owns In collaboration

with well-known businessman Tonyboy Cojuangco Jr., who previously held the dominant phone

company Philippine Long Distance Telephone Co. (PLDT), Okada. There will be a slew of new

competitors. Consumer Perception Issues Affecting New Entrants Many buyers and sellers believe

that gambling resorts compete for dominance or to be at the top of the market. To attain this, the

gaming resorts must efficiently show consumers how well they perform. Consumer perception is

a problem for new entrants since many customers and dealers think gambling resorts are vying for

market leadership. To accomplish that, gambling casinos must show their patrons how well they

operate.

Bargaining Powers of Suppliers (Low)

The pressure suppliers can put on firms by raising prices, deteriorating quality, or limiting the

availability of their products is referred to as supplier power. These elements all affect a buyer's

purchasing power. Suppliers can use this leverage to negotiate better terms from industry participants

by negotiating prices or lessening the quality of the goods and services purchased. A supply group is

powerful since there aren't many gambling resorts in the Philippines, meaning they dominate the

industry. It is only sometimes necessary to adapt or deal with. There are alternative goods and services

offered for sale in the market. Since the industry is not a significant consumer for the supplier group,

the product from the suppliers is a crucial component of the buyer's operations. Due to the industry

34
being dominated by a few gambling resorts, there are few substitutes, and suppliers' products are

differentiated, which limits their ability to negotiate.

Bargaining Powers of Buyers (Moderate)

This explicitly addresses the power of consumers to lower prices. It is influenced by the quantity and

value of a company's clients and how expensive it would be for a customer to migrate from one

business to another. Less of the client number holds more power, making it increasingly potent. A

substantial portion of the buyer's cost of purchases is represented by the goods and services it buys

from the sector.

The goods and services consumers purchase in this sector are uniform and homogeneous. It has high

switching. switchinThe level of power held by a client base increase as it decreases in size. The story of the

power a client base holds rises as it falls in size. g costs and low revenues. Due to the limited number of

integrated gaming resorts, purchasers have limited options when choosing where to offer their services,

which limits their ability to bargain,

Threat of substitutes (High)

The Solaire and Resorts World Manila are the two main alternatives to Okada. In Okada Manila,

there are many stand-ins. Hotels and gambling hotels are widely available. For the clients, switching

expenses are substantial. In addition to that, the alternative gaming hotels' quality is often good. In light of

these elements, substitutes pose a severe threat.

Competitive Profile Matrix (CPM)

The Competitive Profile Matrix (CPM) is a method for determining competitive profiles and analyzing a

company's strengths and weaknesses to those of its counterparts.

35
 Table 3. Competitive Profile Matrix

RESORT’S CITY OF

OKADA

WORD DREAMS

Critical Success

Weight Rating Score Rating Score Rating Score

Factor

Price Competitiveness 0.10 3 0.3 4 0.4 4 0.4

Customer Retention 0.10 4 0.4 2 0.2 2 0.2

Global Expansion 0.10 3 0.3 4 0.4 2 0.2

Customer Loyalty 0.15 4 0.6 3 0.3 2 0.3

Customer Service 0.20 4 0.8 4 0.8 4 0.8

Successful New

0.05 3 0.15 4 0.2 3 0.15

Introduction

Brand Reputation 0.10 4 0.4 3 0.3 4 0.4

Variety of Distribution 0.05 4 0.2 3 0.15 4 0.2

Range of Service

0.05 4 0.2 2 0.1 4 0.2

Offering

Successful Promotion 0.10 4 0.4 4 0.4 1 0.1

TOTAL 1.00 3.75 3.40 2.95

36
Rating of Values

4- Major Strength

3- Minor Strength

2- Minor Weakness

1- Major Weakness

Analysis and Interpretations

Based on the scores, Okada Manila has the highest overall performance, with a score

of 3.75, followed by City of Dreams Manila, with a score of 3.40, and Resorts World Manila,

with a score of 2.95. Okada Manila is in a slightly stronger competitive position. However, it

is essential to note that these scores are based on the weights assigned to each factor, and

different weights could lead to different conclusions. Okada Manila and COD Manila have

very similar data, but Okada Surpasses COD a little, meaning that Okada should continue to

bring unique services that make their guest loyal to them. They could get new offers such as

family-friendly activities or membership that could boost their ratings and incomes higher

than before, making their guest feel that Okada Manila can bring families together with such

great entertainment for Kids and Adults with young hearts. City of Dreams Manila is included

because the resort is renowned for its exciting choices for entertainment, especially Dream

Play, the first family entertainment center designed in the style of DreamWorks, making it

unique among the three competitors for its entertainment alone. Lastly, Resorts World Manila

should focus more on Customer Retention and Loyalty, which could make their guest loyal to

their business. They need to improve their online presence to attract more guests to try and

experience what Resorts World Manila can offer. Nevertheless, their goal is to attract retailers,

tourists, and entertainment goers. Resorts World Manila also draws high rollers and casual

gamblers.

37
External Factor Evaluation (EFE) Matrix

OKADA MANILA

Opportunity WEIGHT RATING SCORE

Tourism & Hospitality regulation 0.07 4 0.28

Economic Growth 0.05 3 0.15

Exchange Rate 0.03 4 0.12

Cultural diversity 0.04 4 0.16

Demographics 0.01 4 0.04

Trends 0.03 4 0.12

Philanthropic 0.02 3 0.06

Social Corporate Responsibility 0.04 4 0.16

Brand Reputation 0.06 4 0.24

Trends in PMS or POS Systems 0.02 2 0.04

Trends and Advancements 0.07 4 0.28

Environmental Sustainability 0.02 4 0.08

Waste Management 0.01 4 0.04

Employee's Compensation and Benefits 0.03 3 0.09

SubTotal 1.86

Threats

Regulation & Licensing 0.09 4 0.36

Terrorism or Crime related and political disposition 0.05 4 0.2

Local Policy 0.04 3 0.12

Inflation 0.05 4 0.2

Taxation (Sin Tax) 0.03 3 0.09

Cybersecurity 0.01 4 0.04

Natural Disasters 0.05 3 0.15

Season or Climate 0.01 2 0.02

38
Gaming Law 0.09 2 0.18

Labor Law 0.08 4 0.32

Subtotal 1.68

TOTAL 1 84 3.54

LEGEND:
4- Superior Response
3- Above Response
2- Average Response
1- Poor Response

ANALYSIS
The total weighted score for opportunities is 1.86, and for threats, it is 1.68. This suggests

that Okada Manila has slightly more favorable opportunities than threats. As per the result, the

trends and advancements got the highest weighted score in the opportunity with 0.28. that means

that Okada can follow the trends in terms of technologies that help the overall performance of the

establishments in delivering world-class services. On the other hand, the demographics, trends on

POS and PMS systems, and waste management got the lowest opportunity score with 0.04. This

indicates that Okada must improve and find a way to make these opportunities better for the benefit

of their reputation and establishment. In terms of threats, labor law got the highest weighted score

with 0.32. It clearly states that labor law is the greatest threat to Okada maybe because some hotels

encounter bad experiences in terms of labor law which is why Okada can be one of them too. It

just states that Okada must be alert and cautious in terms of their employees and labor-related jobs

to ensure that they will not experience any issues about it that can badly ruin their operations as

well as their reputation. On the other hand, season and climate got the lowest with 0.02 which

39
means that Okada can still have issues in season of climate so they must take an immediate

response or prepared actions to that in case something will happen in the future. With them being

prepared, they can further prevent the risk of damage immediately.

40
EFE Matrix
Opportunity Threats

Category

Tourism & Hospitality regulation Regulation & Licensing

Economic Growth
Political Terrorism or Crime related and political disposition

Local Policy

Economic Growth Inflation

Economic

Exchange Rate Taxation (Sin Tax)

Cultural diversity

Demographics

Trends

Philanthropic

Social Corporate Responsibility

Brand Reputation
Social

Trends in PMS or POS Systems Cybersecurity

Trends and Advancements

Technology

Environmental Sustainability Natural Disasters

Waste Management Season or Climate

Legal Environmental

Employee's Compensation and Benefits

41
 Gaming Law

Labor Law

VII. INTERNAL ANALYSIS/AUDIT

a. Management

Evaluate Okada Manila's management, encompassing their skills, capabilities, and talent

management strategies, to determine if the organization possesses sufficient resources in quantity

and quality. Assess the effectiveness of training, development programs, performance

management systems, and employee retention initiatives. Additionally, evaluate the management

team's proficiency and experience, including executive leadership and department heads, in

executing the organization's strategic vision. Identify any potential gaps in leadership and decision-

making. Analyze Okada Manila's current culture, considering its values, norms, and beliefs, and

ensure alignment with the organization's objectives. Examine factors such as employee

engagement, teamwork, and commitment to customer satisfaction. Identify areas where the culture

can be reinforced to support the organization's success.

Furthermore, identify Okada Manila's key strengths and competitive advantages, including its

premium facilities, distinctive entertainment offerings, outstanding customer support, and

enduring connections with partners and stakeholders. Assess how these core competencies

contribute to Okada Manila's market positioning and ability to attract and retain guests. Through

these evaluations, Okada Manila can gain insights into its strengths, weaknesses, and areas for

improvement, providing a solid foundation for enhancing its management practices and achieving

its goal of becoming a world-class destination.

42
 b. Marketing

In October 2021, reports emerged indicating that Universal Entertainment, the resort's parent

company, had plans to introduce Okada Manila Resort and Casino to the U.S. market through a

$2.5 billion SPAC deal, signaling the resort's intent to expand its presence and attract further

investment. Furthermore, a 2018 TripAdvisor review lauded the resort for a "remarkable marketing

campaign," though current information regarding the resort's marketing status and 41 initiatives

remains undisclosed. Nevertheless, the resort has demonstrated favorable performance under the

management of the group led by Japanese tycoon Kazuo Okada. During the fourth quarter of 2022,

the resort posted gross gaming revenues of Php10.5 billion (equivalent to US$193 million),

marking a 23.1% increase in gaming machine revenue, which reached Php3.78 billion (US$66

million). This positive trend in financial figures also translated to a significant boost in

profitability, with Adjusted Segment EBITDA surging by 96.3% year-on-year and by 16.0%

sequentially, reaching Php2.83 billion (US$52 million). The resort's full-year gross gaming

revenue for 2022 amounted to US$657 million. Considering this data, Okada Manila can evaluate

and enhance its marketing strategies to maintain its standing as a premier luxury destination.

Regarding the marketing mix elements:

- Product: Okada Manila offers an extensive array of products and services, including opulent

accommodations, a diverse selection of dining options, a casino, live entertainment, spa and wellness

facilities, retail establishments, and versatile event spaces. The primary focus centers on delivering its

patrons a high-end, immersive, and captivating entertainment experience.

- Price: Okada Manila employs a varied pricing strategy, adjusting rates according to specific products

or services. It offers pricing tiers tailored to accommodations, dining options, and entertainment shows,

43
catering to diverse customer segments. The pricing is consistently positioned at a premium level,

aligning with the resort's luxury and top-tier quality commitment.

- Place: Okada Manila enjoys a strategic location in Entertainment City, Manila, Philippines, ensuring

convenient accessibility for local and international visitors. The resort's extensive grounds, featuring

lush gardens, multiple edifices, and panoramic vistas of Manila Bay, contribute to an ambiance of

opulence and grandeur. 42

- Promotion: Okada Manila leverages various promotional strategies to attract customers, including

multi-channel advertising campaigns, engagement on social media platforms, partnerships with

influencers, and collaborations with local and international brands. The resort also orchestrates events

and showcases world-class entertainment to generate excitement and entice visitors.

- People: Okada Manila strongly emphasizes delivering exceptional customer service by ensuring its

staff members are well-trained and proficient in delivering personalized and unforgettable experiences.

Friendly and knowledgeable staff members are found across various departments, encompassing guest

services, hospitality, entertainment, and culinary, all dedicated to meeting guests' needs.

- Process: Okada Manila prioritizes providing a streamlined and efficient customer experience. This

includes efficient check-in and check-out procedures, attentive service, well-organized event

management, and streamlined processes for dining, gaming, and other activities. The aim is to ensure

guests enjoy a hassle-free and enjoyable stay.

44
- Physical Evidence: Okada Manila boasts a visually captivating and impressive physical environment

characterized by luxurious and contemporary architectural designs, elegant interiors, and meticulously

maintained facilities. The resort's commitment to grandeur and attention to detail contribute to a

visually appealing and memorable experience for its guests.

c. Finance/Accounting

Universal Entertainment Corp, the Okada Manila operator, reported a substantial increase in the

casino's gross gaming income during the fourth quarter of 2022. This income surged by 49.6 percent

to PHP10.49 billion (equivalent to $192.68 million).

The release of third-quarter results was delayed due to the financial impact assessment of the three

months during which Kazuo Okada's representatives occupied the property. This led to a 10% increase,

quarter over quarter, from the PHP9.51 billion ($170.78 million) recorded in the third quarter. Notably,

table game income witnessed an annual increase of 132 percent and a quarterly increase of 25 percent,

reaching PHP3.11 billion ($57.17 million), primarily driven by mass-market play. Gaming machine

revenue also experienced a significant boost, reaching PHP3.78 billion ($69.37 million), with a yearly

increase of 98 percent and a quarterly increase of 23 percent. However, VIP play, managed by

Universal subsidiary Tiger Resort, Leisure and Entertainment Inc (TRLEI), decreased annually and

quarterly to PHP3.6 billion ($66.1 million). This data revealed a 4 percent annual decline and a 9

percent quarterly decline despite a 3.66 percent annual increase in VIP rolling chips. In the fourth

quarter, the group welcomed 1.48 million guests, marking a 95.3 percent annual increase, with a hotel

occupancy rate of 84.2 percent, down 1.7 percentage points annually. For the entire fiscal year, the

group's gross gaming income was PHP34.34 billion ($630.21 million), reflecting an 81.5 percent

annual increase, with most of the revenue stemming from VIP play, amounting to PHP13.34 billion

45
($244.96 million) and an annual increase of 39.66%. However, this figure remained 32.8 percent lower

than 2019.

The second-largest contributor throughout the year was gaming machine revenue, which reached

PHP11.65 billion ($213.93 million), marking a substantial annual gain of 112.5 percent and surpassing

even the PHP10.29 billion ($188.93 million) achieved in 2018. Mass market table games also

displayed a robust annual recovery in 2019, with PHP9.33 billion, a 144.7 percent annual increase,

and only a slight 3.2 percent decline from pre-COVID levels. The total number 44 of visitors for the

year was 4.35 million, reflecting a 135 percent annual increase but still 28% lower than 2019. The

annual average hotel occupancy rate was 82.1 percent, a significant improvement over the 75.4 percent

seen in 2021 but lower than the 98.1 percent recorded in 2019. Total annual income reached PHP37.19

billion ($682.68 million), reflecting an annual increase but a 12% decrease from 2019. However,

adjusted segment EBITDA performed exceptionally well in 2022, reaching PHP8.61 billion ($158.03

million), marking a 263 percent annual increase and a 25% rise compared to 2019.

The property's non-gaming amenities, such as its Retail Boulevard, upscale spa, dining options,

and the Cove Manila beach club, experienced a notable resurgence in demand, with non-gaming

income increasing by more than 30% between 2020 and 2021. Over the same period, the resort's

overall income grew by 74%, from $85 million in Q3 to $148 million in Q4, driven by a substantial

increase in guest numbers in Q4 compared to Q3.

Expert analysis has indicated that Okada Manila concluded the fourth quarter as the dominant

market leader, with a share of 36.5% in December in Entertainment City. Liquidity Ratio- Liquidity

refers to how quickly an asset or security has the potential to be converted into cash without causing

any significant impact on its market value.

46
 Debts to assets = total debt P 94,449,018,600 = 0.41 2022
total assets P 228,156,937,900

Debts to assets = total debt P 89,345,524,700 = 0.41 2021

Analysis and Interpretation:

Regarding the Company's long-term financial health or solvency, a debt ratio below

one is considered favorable, indicating better performance. Therefore, with a debt-to-

assets ratio of 0.41 in 2021 and 2022, Okada Manila can meet its long-term liabilities.

This signifies that the Company is well-equipped to fulfill its long-term debts and

financial obligations without difficulty. However, it is crucial for the Company to

continuously monitor and manage its debt payments to mitigate potential risks and

maintain a favorable financial position. Profitability, on the other hand, assesses a

company's earnings concerning its expenditures. More efficient businesses tend to

generate higher profits relative to their costs, whereas less efficient ones. One may have

to spend more money to attain the same level of earnings.

Formula: Gross Profit/Net Sales

2021 2022
Gross profit
P 17,809,327,200
margin= x 100 =0.5144 P 29,988,522,000 x 100 =55.56
P 34,618,518,000 P 53,974,034,400

Analysis and Interpretations:

47
 The gross profit margin has increased year-over-year, from 51.44% in 2021 to

55.56% in 2022. This indicates that Okada Manila's sales have grown by 4.12%

during the year.

Return on Assets: To assess a company's ability to generate profit from its financial

resources or assets, the "Return on Assets Ratio" is employed.

Formula: Net Income/Total Assets* 100

Formula: Net Income/Total Assets* 100

ROA: 4,403,346,200 / 228,156,937,900

2022
1.93%

ROA: 7,293,105,600 / 218,992,970,600

2021
3.33%

Analysis and Interpretation:

With a ROA of (3.33%), the organization displayed greater efficiency in generating profit from its

assets in 2021. Conversely, 2021 was unprofitable as the ROA decreased from (3.33%) to (1.93%) in 2022.

This indicates a decline in Okada Manila's profitability between 2021 and 2022.

RETURN ON EQUITY
Formula: Net Income/ Ave. Stockholder's Equity
ROE: 4,403,346,200/134,187,477,600
= 3.28%
Analysis and Interpretation:
ROE: 7,293,105,600/ 129,749,077,200
= 5.62%

48
 In 2022, for each P1.00 of invested capital by the owners used to generate revenue, it resulted in

P0.328 in profit, whereas in 2021, this figure was P0.562. The decrease in ROE from 2021 to 2022 signifies

a reduction in Okada Manila's efficiency in utilizing its equity to generate profits, with a ROA:

4,403,346,200 / 228,156,937,900 2022 1.93% ROA: 7,293,105,600 / 218,992,970,600 2021 3.33% 47

higher ROE typically indicating more efficient use of equity for profit generation. An ROE below 10% is

generally considered very low.

Profit Margin

Net Profit Margin (Net Income Margin):

The profit margin is a financial metric that quantifies a company's profit as a percentage of its revenue.

The net income margin, a widely employed financial ratio, is a significant indicator of a company's

performance. This critical measure enables investors, shareholders, and the Company to evaluate its

profitability by revealing the profit obtained from its revenue.

Net Income (Formula): Net Income / Net Sales *100

Net Income Margin NIM= 4,403,346,200/53,988, 134,200 (2022) = 8.17%

NIM= 7,293, 105,600/34,627,561,500 (2021) = 21.06%

Analysis and Interpretation:

The Net Profit Margin (NPM) has declined, decreasing from 21.06% in 2021 to 8.17% in 2022. This shift

in NPM is unfavorable. While it still indicates that the Company is profitable, a genuinely successful

company consistently strives to augment its revenues and profits with each accounting period.

49
 DAVID’S FUNCTIONAL AUDIT

Management

1. Does the firm use strategic-management concepts? YES

2. Are company objectives and goals measurable and well communicated? YES

3. Do managers at all hierarchical levels plan effectively? YES

4. Do managers delegate authority well? YES

5. Is the organization's structure appropriate? YES

6. Are job descriptions and job specifications clear? YES

7. Is employee morale high? YES

8. Are employee turnover and absenteeism low? NO

9. Are organizational reward and control mechanisms effective? YES

Marketing

1. Are markets segmented effectively? YES

2. Is the organization positioned well among competitors? YES

3. Has the firm's market share been increasing? YES

4. Are present channels of distribution reliable and cost-effective? YES

5. Does the firm have an effective sales organization? YES

6. Does the firm conduct market research? YES

7. Are product quality and customer service good? YES

8. Are the firm's products and services priced appropriately? NO

9. Does the firm have an effective promotion, advertising, and publicity strategy? YES

10. Are marketing, planning, and budgeting effective? YES

50
11. Do the firm's marketing managers have adequate experience and training? YES

12. Is the firm's Internet presence excellent as compared to rivals? YES

Finance and Accounting

1. Is the firm financially strong or financially weak? NO

2. Can the firm raise needed long-term capital through debt and/or equity? YES

51
3. Does the firm have sufficient working capital? YES

4. Are capital budgeting procedures effective? YES

5. Are dividend payout policies reasonable? YES

6. Does the firm have good relations with its investors and stockholders? YES

7. Are the firm's financial managers experienced and well-trained? YES

8. Is the firm's debt situation excellent? YES

Production and Operations

1. Are supplies of raw materials, parts, and subassemblies reliable and reasonable? NO

2. Are facilities, equipment, machinery, and offices in good condition? YES

3. Are inventory-control policies and procedures effective? YES

4. Are quality-control policies and procedures effective? YES

5. Are facilities, resources, and markets strategically located? YES

6. Does the firm have technological competencies? YES

Research and Development

1. Does the firm have R&D facilities? Are they adequate? YES

2. If outside R&D firms are used, are they cost-effective? YES

3. Are the organization's R&D personnel well qualified? YES

4. Are R&D resources allocated effectively? YES

5. Are management information and computer systems adequate? YES

6. Are present products technologically competitive? NO

Management Information System

1. Do all managers in the firm use the information system to make decisions? NO

52
2. Is there a chief information officer or director of information systems position in the YES

firm?

3. Are data in the information system updated regularly? NO

4. Do managers from all functional areas of the firm contribute input to the information NO

system?

5. Are there effective passwords for entry into the firm's information system? NO

6. Are strategists of the firm familiar with the information systems of rival firms? NO

7. Is the information system user-friendly? YES

8. Do all users of the information system understand the competitive advantages that NO

information can provide firms?

9. Are computer training workshops provided for users of the information system? YES

10. Is the firm's information system continually being improved in content- and user- YES

friendliness?

53
 d. Operations and Human Resources

Regarding Operations, the focus lies on evaluating the efficiency and effectiveness

of Okada Manila's operational procedures across various departments, including front

office, housekeeping, food and beverage, and facilities management. Okada Manila must

pinpoint areas where procedures can be made more efficient, reduce bottlenecks, and

increase productivity. The presence of quality control measures ensures that services and

products consistently meet or surpass customer expectations. An assessment should

encompass monitoring mechanisms, feedback loops, and implementing corrective

actions to uphold high-quality standards consistently. Additionally, the evaluation delves

into the effectiveness of Okada Manila's operations management processes, which

encompasses vendor selection, procurement, inventory management, and logistics.

Furthermore, it is crucial to assess how technology is integrated into Okada Manila's

operations and scrutinize the use of property management systems, customer

relationship management tools, data analytics, and other technologies to enhance

efficiency, decision-making, and the overall guest experience. A comprehensive

examination of the protocols and measures in place to ensure guests' and employees'

health and safety is also necessary. This includes assessing compliance with local

regulations, emergency response plans, ongoing training programs, and

54
 On the other hand, an evaluation is required concerning Human Resources for

Okada Manila's recruitment and talent acquisition processes. This encompasses

assessing the effectiveness of sourcing strategies, selection criteria, and onboarding

programs, analyzing the turnover rate, and identifying strategies to attract and retain top

talent in a highly competitive industry. Human Resources also needs to gauge employee

engagement within Okada Manila, analyzing factors such as communication channels,

employee feedback mechanisms, and professional growth and advancement

opportunities. The goal is identifying strategies to enhance employee satisfaction,

motivation, and loyalty.

Hence, the assessments of Okada Manila's operations and human resources aim to

identify both areas of strength and opportunities for improvement. These findings will

be the foundation for developing strategies and initiatives that optimize operations,

enhance guest experiences, and foster a high-performing workforce.

Incident

Okada Manila, a prominent integrated resort and casino in the Philippines, is confronting

significant financial challenges attributed to the prolonged closure during the COVID-19

lockdown. The company, along with other casinos in the country, has been shut down since mid-

March as a preventive measure to curb the spread of the virus. This extended closure has resulted

in a complete cessation of revenue for Okada Manila, leading to severe financial losses. The

company's President, Takashi Oya, conveyed the critical situation in a letter to staff, emphasizing

the financial strain caused by the absence of revenue during the lockdown. Oya highlighted the

urgency of addressing these losses to prevent them from accumulating further. As the Philippines

contemplates easing the lockdown and reopening the economy in June, Okada Manila anticipates

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operating under a "new normal" that necessitates a smaller workforce in the casino business. This

adjustment reflects the challenges posed by the ongoing pandemic and its impact on the operational

dynamics of the integrated resort. Okada Manila, managed by Tiger Resort, Leisure and

Entertainment, a unit of Japanese billionaire Kazuo Okada's Universal Entertainment, currently

employs over 10,000 staff, according to its corporate office. The decision to retrench more than

1,000 employees is a strategic move to align with the anticipated operational changes in the post-

lockdown scenario. Affected employees will be notified of the layoffs by June 15 and will be

entitled to receive severance pay in compliance with legal regulations. This move signals the

company's attempt to navigate the economic uncertainties and challenges posed by the extended

closure. The integrated resort competes with other major players in the Philippine casino industry,

including Solaire resort and casino, City of Dreams Manila, and Resorts World Manila. The

broader context of economic pressures and uncertainties in the Philippines' casino sector

underscores the difficult decisions faced by businesses in adapting to the evolving circumstances.

Casino employees, aware of the challenges ahead, have already seen some relief through advanced

payouts of 13th-month pay and other monetary benefits to cope with the financial strains brought

about by the lockdown. As operations resume, there is a looming concern among employees about

potential reductions in work shifts and pay, reflecting the broader economic impact on the industry

and its workforce.

e. Research and Development

(1) Amusement Equipment Business:

In this division, Universal Entertainment is concentrating on introducing new 6.5

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 standard titles and smart Pachi slot machines that have gained popularity among

users. These innovations are anticipated to capture a larger share of the Pachi slot

market in Japan. Furthermore, developing smart versions in the Pachinko sector is

ongoing, enhancing the prospects for both the Pachi slot and Pachinko machine

markets. Universal Entertainment's objective is to invigorate these markets. In

2023, the Company plans to increase the production of "OKIDOKI! GOLD," a Pachislot title

highly regarded by pachinko hall operators. Additionally, the introduction of "Shin Basilisk: The

Kouga Ninja Scrolls Goukai W 319ver" is scheduled, along with the launch of a new Pachinko

title, "P BABEL 5000," and a new standard 6.5 title, "ANOTHER GOD HADES

TOKIHANATARESHI SOUGEKI ver." This encompasses popular titles from the GOD series

in the amusement machine industry

Universal Entertainment is committed to developing unique and appealing titles,

aiming to contribute to the vibrancy of the entire amusement machine industry while

increasing its market share. In the Amusement Equipment Business, the Company strives

to offer machines with attractive capabilities as to the joy of games and payout

performance that will be accepted in the market within the scope of current laws,

regulations, and standards. The research-and-development expenses for the Amusement

Equipment Business amounted to 4,396 million yen.

(2) Integrated Resort Business:

The Integrated Resort Business pertains to OKADA MANILA, an integrated resort

facility that caters to customers' desires from the Philippines and beyond. This

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 opulent resort features a luxurious hotel, diverse international cuisine, high-end

shopping, The Fountain (the world's largest multicolored Fountain), and Cove

Manila, an all-weather dome hosting Southeast Asia's largest beach club.

The entire team at OKADA MANILA is dedicated to delivering exceptional hospitality

and top- quality experiences. OKADA MANILA intends to expand the gaming area and

open more stores and restaurants catering to various customer segments to attract a more

significant number of casino and hotel guests.

Universal Entertainment intends to secure a dominant market position in the Amusement

Equipment Business by providing Pachi slot and Pachinko machines that align with

evolving market needs. Concurrently, the group seeks to enhance operational efficiency

and nurture a stable and profitable corporate culture.

At OKADA MANILA, the resort has navigated the Philippine Government's regulations

and COVID- 19 mitigation measures. Despite challenges in early 2022, the resort

regained operational stability in the second quarter, returning to a pre-pandemic level.

Furthermore, OKADA MANILA commenced offering online gaming to registered

patrons in the Philippines, restarting the iconic Fountain, attracting popular restaurants

and retail stores, and hosting large-scale events using the Crystal Corridor. These efforts

boosted visitor numbers and financial performance. The Integrated Resort Business

attained record-high adjusted segment EBITDA in December 2022, surpassing pre-

pandemic levels. Workforce reductions during the pandemic, cost-cutting measures, and

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a mass-market solid contributed to business performance.

(3) Others:

Under Other Businesses, net sales for the year amounted to 785 million yen,

representing an 8.0% year-on-year decrease. Operating profit for 2022 reached 30

million yen, a positive shift from the 153-million-yen operating loss in 2021.

The Media Content Business successfully distributed simulator apps like

"VERSUS REXSE," "THUNDER V REBOLT," "OKIDOKI! DUO," and others to

the App Store and Google Play. These apps achieved top rankings in the game and

casino category. The "Universal Kingdom" membership website expanded its titles,

and the "Slots Street" social casino game enhanced its offerings, including video

slot games based on Pachislot machines. Furthermore, DMM GAMES initiated

distributing "Slots Street" games in PC versions.

"Universal Kingdom" and "Slots Street" aim to continually expand their titles to

attract new users and enhance overall user satisfaction. Music distribution also

extended to multiple platforms, providing users access to 12 titles on various

platforms, including Apple Music, Spotify, and YouTube Music.

f. Management Information System

Okada Manila, a Philippine casino resort, has recently transformed digitally,

leveraging various technologies to improve customer service. Notable examples of

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these technology implementations include:

1. Revenue Management Software: Okada Manila has adopted revenue

management software solutions, such as Rainmaker's Guestrev, to optimize guest

bookings, surpass competitors, and boost profitability.

2. Car Park Management System: The resort has integrated a car park management

system and a parking guidance system, streamlining the directing of guests to

appropriate parking areas.

3. Digital Signage and Wayfinding Software: Okada Manila has employed digital

signage and wayfinding software from 22 Miles to efficiently manage, control, and

disseminate information, navigation instructions, and other relevant content.

4. IT Program Management: Under the leadership of Lindsey Lescano, the Director

of IT Program Management, Information Systems & Technology, Okada Manila

manages software development and other IT-related functions.

Hence, Okada Manila's strategic incorporation of technology underscores its

commitment to enhancing the quality of service provided to its valued customers.

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 g. Internal Factor Evaluation (IFE) and Analysis

IFE MATRIX
OKADA MANILA

STRENGTHS WEIGHT RATING SCORE

1 Strong Brand Recognition 0.08 4 0.32

2 Service Excellence 0.07 3 0.21
3 Community Partners 0.04 4 0.16
4 Diverse Entertainment Option 0.03 4 0.12
5 Competitive Advantage 0.09 4 0.36
6 Technological Advancement 0.06 3 0.18
7 Rising Asian Gaming Market 0.04 4 0.16
8 Modern Facilities 0.06 4 0.24
9 Good Outsourcing Partners 0.07 4 0.28
10 Advertisement 0.05 4 0.20

WEAKNESS WEIGHT RATING SCORE

1 Inconsistency of Staff 0.03 1 0.03

2 Costly setup and maintenance for the casino 0.03 2 0.06
3 High Room\Amenities Rates 0.09 1 0.09
4 Seasonal demand vulnerability 0.03 2 0.06
5 Risk of reputational harm 0.03 1 0.03
6 Limited Hotel Options 0.03 2 0.06
7 Hard to reach location through commute 0.08 1 0.08
8 Company Corruption 0.03 2 0.06
9 Lack of Security 0.03 2 0.06
10 High Cost for Expansion 0.03 2 0.06
TOTAL 1 2.82

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 4- Major Strength

3- Minor Strength

2- Minor Weakness

1- Major Weakness

Okada Manila Resort and Casino's total weighted score is 2.82, indicating a robust internal position.

Strengths:

1. Competitive Edge: Okada Manila stands out due to its large size and top-notch amenities, making

it one of the Philippines' biggest integrated resorts and casinos. It offers a vast gaming space with a wide

range of table games and slot machines, resulting in a highly competitive advantage (Score: 4).

2. Service Excellence: Okada Manila is committed to delivering exceptional customer service. Well-

trained staff members cater to visitors' needs, ensuring a personalized experience that boosts satisfaction

and encourages repeat visits and referrals. This is considered a minor strength (Score: 3).

3. Modern Facilities: The resort boasts state-of-the-art infrastructure and amenities, providing a

modern gaming environment with cutting-edge technology and equipment. This is a major strength (Score:

4).

4. Diverse Entertainment Options: In addition to its casino offerings, Okada Manila provides a wide

array of entertainment activities, including live performances, concerts, theatrical plays, and nightlife

experiences. This diverse range of options caters to various interests, making it a major strength (Score: 4).

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5. Strong Brand Recognition: Benefiting from the renowned Okada brand and its developer, Universal

Entertainment Corporation, Okada Manila is associated with luxury, excellence, and outstanding service in

the Asian gaming sector. This has led to a devoted client base, marking it as a major strength (Score: 4).

6. Rising Asian Gaming Market: The rapidly expanding Asian gaming sector presents Okada Manila

with a valuable opportunity to meet the growing demand for high-quality gaming experiences, making it a

major strength (Score: 4).

7. Good outsourcing partners: because Okada focuses on making their hotel and guest experience

better by collaborating such La Bottega and Roberto Cavalli to continue their partnerships and create eco-

friendly Both and body amenities. They also replaced their bathroom amenities with 99% recyclable. The

outsourcing partners also helped create an eco-friendlier space for everyone.

Aside from that the $30m fountain which is a dancing fountain aims to become Manila's icon by WET

which created the famous water features of Las Vegas and Dubai. This means that Okada prioritizes their

guest experience and creates an amazing service for them making it a major strength. (Score: 4).

8. Advertisement: Okada Manila receives a Major Strength. because their Marketing and

Communications won 2 inaugural awards at the 18th IABC Philippine Quill proof that Okada Manila has

an amazing team managing their advertisements. (Score: 4)

9. Technological Advancement: Okada Manila Receives a Minor Strength since they deployed a robot

for disinfecting the hotel equipped with electrostatic sprayers and ultraviolet spotlights which is for the

protection and safety of the guest against the disease. This is a commendable thing to Okada and the hope

for a more innovative and more modern in terms of technology for Okada Manila should be always kept in

mind in terms of competitors. (Score: 3)

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10. Community Partners: Okada partners with PBSP and Moto lite to support public and elementary to

a project called "adopt-a-school" by giving school supplies and allowance for teachers for online classes.

Also, surgical face masks to the educators to protect them from the global crisis. (Score: 4)

Weaknesses

1. High Room/Amenities Rates: Okada's accommodations and facilities come at a premium cost compared

to competitors, limiting its appeal to the upper-class demographic. This is a major weakness (Score: 2).

2. Inconsistency of the Staff: Variability in the capacity and expertise of staff members and service

providers may affect the overall service quality. Adequate training and guidance can address this issue, but

it remains a weakness (Score: 2).

3. Inconvenient Location for Commute: Okada's location is challenging to access via public

transportation, with limited shuttle services. Accessibility is a Major weakness (Score: 1).

4. Costly Setup and Maintenance for the Casino: Maintaining a high-end resort and casino necessitates

substantial investments in infrastructure, upkeep, and skilled personnel. This is considered a minor

weakness (Score: 2).

5. Seasonal Demand Vulnerability: Okada Manila may experience lower occupancy rates during off-

peak seasons, leading to revenue loss. This is a minor weakness (Score: 2).

6. Reputation Risks: Scandals, scams, or legal issues within the casino industry can severely damage

the resort's reputation and erode customer trust. This is a major weakness (Score: 2).

7. Unfavorable Tax Rate: Due to sin tax and nature of business due to the nature of business. Okada

Manila have a different tax rate than other hotel service and amenities this is why they receive a Major

Weakness (Score: 1)

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8. Company Corruption: Okada Manila has also been accused of company corruption. In 2018, the

Philippine government filed criminal charges against a number of Okada Manila executives, including the

company's former CEO Kazuo Okada. The charges included embezzlement, money laundering, and

corporate raiding. The Philippine government alleges that Kazuo Okada and his

9. Company Corruption: Okada Manila has also been accused of company corruption. In 2018, the

Philippine government filed criminal charges against a number of Okada Manila executives, including the

company's former CEO Kazuo Okada. The charges included embezzlement, money laundering, and

corporate raiding. The Philippine government alleges that Kazuo Okada and his associates conspired to

steal millions of dollars from the company. But ever since Tiger Resort Leisure and Entertainment, Inc took

over removing the corrupted people. (Score: 2)

10. Lack of Security: Okada Manila has also been criticized for its lack of security. In 2017, a group of

armed men stormed the casino and took over the casino floor for several hours. The men were eventually

subdued by police, but the incident raised concerns about the casino's security procedures. incidents have

led to concerns about the safety of casino patrons and employees. (Score: 2)

11. High Cost for Expansion: High upfront investment: Okada Manila is one of the most expensive

integrated resorts in the world, with a total cost of over $2.4 billion yen. This high upfront investment has

contributed to the company's high fixed costs. (Score: 2)

IFE Analysis
The Internal Factor Evaluation (IFE) is a strategic tool for assessing a company's
internal strengths and weaknesses, encompassing aspects of performance, capabilities,
structure, and culture. This analysis will highlight the highest and lowest-scored factors
in each category. Out of Okada Manila's ten strengths, 'Competitive Advantage' stands
out with the highest total score of 0.36. Okada Manila consistently ranks among the top-
performing tourism and hospitality establishments, not only in the Philippines but also
in the entire Asia-Pacific region.

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 Their exceptional service, grand facilities, top-tier dining options, and commitment to customer
satisfaction set a standard that is hard for competitors to match. Their excellence in service and safety
standards keeps existing competitors at bay and makes it a challenge for newcomers to reach Okada
Manila's level instantly. Conversely, 'Diverse Entertainment Options' received the lowest score among
the strengths of Okada Manila, with only 0.12. While diversifying entertainment services and facilities
can be an advantage in catering to a variety of interests, it also comes with disadvantages, such as
maintaining a consistent experience, managing .complexity, and facing competition. As a result, it
received the lowest score among the ten strengths of the hotel.

Regarding weaknesses, we have identified ten different factors, with 'Inconsistency of Staff' being
the most prominent, scoring 0.3. Although Okada Manila is renowned for its exceptional performance,
it is not without imperfections. While some staff members provide outstanding service, others may be
impolite, unresponsive, and inconsistent in their interactions with guests. This inconsistency can be
attributed to various factors, including inadequate training and motivation. This inconsistency is on par
with the 'Risk of Reputational Harm,' as negative feedback and unresolved complaints can tarnish Okada
Manila's reputation.

Finally, 'High Room Amenities' and 'Inconvenient Location for Commute' are among the lowest-
scoring factors for Okada Manila. While it is understandable that Okada Manila's primary target is
individuals, groups, or companies seeking an upscale gaming experience, accommodation, and services,
they should also consider accessibility for the general public. To achieve service excellence for all
guests, whether local or international, Okada Manila should provide facilities and services that are
accessible to a broader audience.

After calculating the Internal Factor Evaluation (IFE), Okada Manila received a total score of 2.82.
Considering the weighted importance of the factors, the current strategies and system of the hotel-casino are
deemed effective. In conclusion, Okada Manila possesses a strong internal position that can further enhance its
performance in the market.

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 VIII. SWOT Matrix and Analysis

Strengths

1. Strong Brand Recognition: Okada Manila benefits from the strong brand recognition associated with the Okada
name and its developer, Universal Entertainment Corporation. The Okada brand is synonymous with luxury,
quality, and exceptional service in the Asian gaming industry, attracting a loyal customer base.

2. Service Excellence: Okada Manila places a strong emphasis on providing excellent customer
service. The resort's well-trained staff members are attentive to guests' needs,
creating personalized and high-quality experiences. Exceptional service can lead to increased customer satisfaction,
repeat visits, and positive word-of-mouth referrals.

3. Modern Facilities: Okada Manila boasts modern infrastructure and amenities, ensuring a seamless and
sophisticated gaming experience. Advanced gaming technology and equipment create a contemporary gaming
environment for patrons.

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4. Diverse Entertainment Options: In addition to its gaming offerings, Okada Manila provides a wide range of
entertainment options, including live performances, concerts, theatrical shows, and nightlife experiences. This
diverse array of entertainment caters to various interests and preferences, enhancing the resort's appeal.

6. Rising Asian Gaming Market: The Asian gaming market is experiencing rapid growth, with an increasing
number of individuals participating in casino gaming and entertainment. Okada Manila can capitalize on this trend
by meeting the region's demand for high-quality gaming experiences.

7. Good Outsourcing Partners: Okada Manila is committed to providing a superior hotel and guest experience.
To achieve this, they have partnered with La Bottega and Roberto Cavalli to create eco-friendly bath and body
amenities. They have also replaced their bathroom amenities with 99% recyclable materials. In addition, Okada
Manila has invested in a $30 million dancing fountain designed by WET, the company that created the famous water
features of Las Vegas and Dubai. This investment demonstrates Okada Manila's commitment to providing its guests
with an unforgettable experience.

8. Advertisement: Okada Manila has an active advertisement team that promotes events and what’s new to the
company making sure potential guests know what to expect when staying at the hotel with amazing new things
happening.

9. Technological Advancement: Okada Manila has deployed a robot to disinfect the hotel using electrostatic
sprayers and ultraviolet spotlights to protect guests from diseases. This is proof that Okada Manila wants to maintain
its competitive edge by trying out new innovative ways to improve the hotel experience of both guests and
employees.
10: Community Partners: they help to promote the resort to the local community and build relationships with residents.
This can lead to increased tourism and business for Okada Manila, as well as support from the community for the resort's
initiatives. community partners can help Okada Manila to fulfill its corporate social responsibility (CSR) commitments.
Okada Manila is committed to giving back to the local community, and its community partners play a vital role in
helping it to achieve this goal.

Weaknesses
1. High Room/Amenities Rates: Okada Manila's room and amenities rates are significantly higher than those of
competitors, primarily catering to an upper-class clientele.

2. Inconsistency of the Staff: The level of ability and expertise among staff members or service providers may
vary, which can be mitigated through proper training and guidance.

3. Hard-to-Reach Location Through Commute: Okada Manila's location is not commuter-friendly, with limited
public transportation options and inconsistent shuttle services.

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4. Costly Setup and Maintenance for the Casino: A high-end resort and casino setup requires a substantial
investment in infrastructure, maintenance, and skilled manpower.

5. Seasonal Demand Vulnerability: Okada Manila may face challenges with low occupancy rates during the off-
season, resulting in lost revenue.

6. Risk of Reputational Harm: The casino industry is susceptible to scandals, fraud, and legal actions, which can
significantly damage a brand's reputation and erode consumer trust.

7. Unfavorable Tax Rate: Okada Manila has an unfavorable tax rate compared to other casino jurisdictions. It is
subject to high tax rates on gaming revenue, additional taxes and fees, and a lack of tax breaks. Its ownership structure
as a Japanese company may also make its tax rate unfavorable.
8. Company Corruption: Okada Manila, a major casino resort in the Philippines, has been accused of company
corruption, including bribery, fraud, and money laundering. These allegations have raised serious concerns about the
company's business practices and its ability to operate ethically.

9. Technological Advancement: Okada Manila has deployed a robot to disinfect the hotel using

electrostatic sprayers and ultraviolet spotlights to protect guests from diseases. This is proof that Okada Manila

wants to maintain its competitive edge by trying out new innovative ways to

improve the hotel experience of both guests and employees.

10: Community Partners: they help to promote the resort to the local community and build

relationships with residents. This can lead to increased tourism and business for Okada Manila,

as well as support from the community for the resort's initiatives. community partners can help.

O kada Manila to fulfill its corporate social responsibility (CSR) commitments. Okada Manila is

committed to giving back to the local community, and its community partners play a vital role in

helping it to achieve this goal.

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Opportunities
1. Tourism & Hospitality Regulation: Due to the COVID 19 Pandemic that arised before,
Okada Manila improved its regulation in keeping the customers safe and protected while
enjoying their stay in the facilities. With these kinds of regulations, it became an
opportunity for them to be chosen by most visitors as their hotel. Their 3T approach: True
Clean. True Safe. True Heart.” allows them to provide safe, clean, and secure services that
the guest deserves.

2. Economic Growth: The economy of the Philippines is expanding steadily. This indicates
that demand for tourism and hospitality services is increasing. By growing its business and
drawing in new clients, Okada Manila may profit from this recent development.

3. Exchange Rate: The Philippine peso is not very strong compared to other currencies. This
lowers the cost of visiting the Philippines for foreign visitors. Through more international
tourism, Okada Manila will profit from this.

4. Cultural Diversity: The Philippines is a culturally diverse state. This is a benefit for Okada
Manila since it can accommodate a diverse group of tourists.

5. Demographics: The population of the Philippines is increasing and youthful. This indicates
that there is a sizable demand for travel and hospitality services. By creating goods and
services that appeal to young consumers, Okada Manila can take advantage of this market.

6. Trends: The tourist sector is a dynamic one. There are always new trends developing. By
following the most recent trends and modifying its goods and services appropriately, Okada
Manila must stay ahead of the curve.

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7. Philanthropic: Okada Manila has the opportunity to enhance its brand image and foster
goodwill within the local community by participating in charitable activities. Supporting
regional nonprofits and charities may fall under this category.

8. Social Corporate Responsibility: By implementing sustainable methods and embracing

ethical business practices, Okada Manila can show that it is an environmentally conscious
business. It may do this by reducing its impact on the environment, encouraging diversity
within its workforce, and assisting communities in need.

9. Brand Reputation: Strong brand recognition exists for Okada Manila. Notable features
include luxury lodging, an elite gaming facility, and an extensive selection of entertainment
options. Okada Manila enjoys a competitive advantage in the hospitality and tourism
industry because of its reputation.

10. Trends in PMS and POS Systems: Point-of-sale (POS) and property management system
(PMS) technologies are developing at an accelerating rate. Okada Manila can increase
productivity and profitability by investing in the newest POS and PMS technologies.

11. Trends and Advancements: Okada Manila has been given the support they need by UEC, a
gaming technology company that provides some core gaming component to improve and
keep up with the continuous spread of technologies and trends. These new technologies
allow them to give excellent services that can be their edge against their competitors. Also,
they adopted the user interface tablet in every room that is produced by Paragon Digital
Lifestyle. These tablets allow the customers to control the different features in the room
such as TV, internet, and even the curtains.

12. Environmental Sustainability: Okada Manila can use this as an opportunity to improve their
facilities to be more environmentally friendly. With these techniques, it can be their

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 edge against other hotels and casino because in today's generation, environmentally
friendlily option is most of the people's choices.

13. Waste Management: Improving Okada's policy about waste management allow them to
slowly adopt to a more environmentally friendly facility that can be their edge against
competitors. Waste management improvements can also be a great motivator for them to
be one of the best hotels and casino in the world.

14. Employee’s Compensation and Benefits: Offering attractive benefits and salary packages
would help Okada Manila attract and maintain skilled employees. Offering competitive
salary, incentives, and health insurance benefits might be one way to achieve this.

Threats

1. Regulation & Licensing: The Philippine Amusement and Gaming Corporation has granted
Okada Manila a license to operate. The government of the Philippines owns and controls
PAGCOR, a company that oversees and controls the gambling sector. Okada Manila must
abide by all of the strict regulations and licensing criteria set out by PAGCOR in order to
keep its license.

2. Terrorism or Crime-related political disposition: Okada Manila is located in the

Philippines, a country that has dealt with crime and terrorism. The political environment in
the Philippines is very complicated. These elements might endanger Okada Manila by
causing operations to be interrupted or by encouraging attacks on its consumers or
employees.
3. Local Policy: The Philippine government is free to modify its policy at any time, and
Okada Manila may suffer as a result. For instance, the government might impose
additional gaming prohibitions or raise taxes on casinos.

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 4. Inflation: The income and earnings of Okada Manila may be diminished by
inflation. Inflation may also result in increased expenses for the casino,
including increased salaries and the cost of products and services.
5. Taxation: Casinos are subject to a sin tax imposed by the Philippine
government. This tax is intended to raise money for the government and
discourage gambling. The profitability of Okada Manila may be affected by
the sin tax.
6. Cybersecurity: Cyberattacks might happen at Okada Manila. Attacks like
this might stop the casino from operating, steal client information, or harm
the casino's image.
7. Natural Disasters: Natural disasters like typhoons and earthquakes are
common in the area where the Philippines is situated. These catastrophes
might harm Okada Manila's property and interfere with business operations.
It could also destroy the establishments.
8. Season or Climate: The tropical temperature of the Philippines might be
difficult for travelers during specific periods of the year. This could cause
fewer people to travel to Okada Manila.
9. Gaming Law: Laws pertaining to gambling may be altered at any
moment by the Philippine government. By lowering the number of
games, the casino may offer or increasing the legal gambling age, these
changes may negatively affect Okada Manila.
10. Labor Law: The labor laws of the Philippines must be followed by Okada
Manila. These laws are subject to frequent changes and can be rather
complicated. There may be fines, penalties, or even the casino closing for
breaking labor rules.

Analysis
Okada Manila Resort and Casino possesses numerous strengths, including its
luxurious facilities, emphasis on service excellence, modern infrastructure, diverse
entertainment offerings, strong brand recognition, and the opportunity to capitalize

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on the growing Asian gaming market. These strengths contribute to its prestigious
position in the Philippines and the broader Asian gaming and hospitality industry.
However, the resort is not without its weaknesses, including high pricing, staff
inconsistency.

Space Matrix and Analysis

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Based on the positioning of Okada Manila on the X and Y Axes, it is evident that the organization is well-

suited for an Aggressive Position Strategy. This strategic position falls between financial stability and

industry strength, signifying that Okada Manila is a capable entity that actively competes with its industry

counterparts. Moreover, the assessment aligns with the aggressive category. As a recommendation, we

propose that the business explores strategies such as product development, market expansion, increasing

market share, and various horizontal, backward, or vertical strategies. Additionally, other strategic

approaches may also be considered.

Internal Strategic Position External Strategic Position

A Competitive Advantage (CA) Industry Strength (IS)
X Market Share -1 Growth Potential 6

I Product Quality -2 Profit Potential 5

S Brand and Image -2 Financial Stability 4

X Complexity of
Customer Loyalty -4 entering the 2
business

Average: -1.75 Average: 4.25

Financial Stability (FS) Environmental Stability (ES)
A
Cash Flow 3
X Inflation -4
I Return on
3
S Investment Technology -1

Inventory Turnover 4 Taxation -2

Y Debt Level 4 Demand Elasticity -4
Average: 4 Average: -2.75
Total Y Axis Score/Value: 1.25

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The data presented in the table indicates that Okada Manila's Internal Strategic Position has an average

score of 4 for Financial Stability and -1.75 for Competitive Advantage. Additionally, the External Strategic

Position has an average score of 4.25 for Industry Strength and -2.75 for Environmental Stability. These

averages allow us to calculate the total scores for the X and Y axes. The X-Axis, which is the average of

Competitive Advantage and Industry Strength, has a total value of 2.5. The Y-Axis, which is the average of

Financial Stability and Environmental Stability, has a total value of 1.25. Collectively, these values position

the strategy in the Aggressive Position quadrant, indicating that Okada Manila is a robust and competitive

company with a valuable competitive advantage that should be pursued and maintained. Nevertheless, there

is a potential 71 threat from new entrants, which can be managed by focusing on expanding the company's

market share in the Hotel, Resort, and Casino Industry.

Competitive Advantage: Okada Manila enjoys a strong market position. The resort
underwent a significant transformation in the Pachi slot and Pachinko market by
introducing innovative systems, upgrading content and software, and harnessing
advanced technologies. These efforts led to an increase in the Group's market share.
According to analysts' research, Okada Manila ended the fourth quarter with a market
share of 36.5% in Entertainment City, solidifying its position as a major player in the
Hotel, Resort, and Casino industry. However, the pandemic has led to a decline in the
use of Pachi slot and Pachinko machines, while online leisure activities have seen
increased participation.

Industry Strength: Okada Manila's recent performance indicates growth potential, as

people show a strong desire to engage in leisure activities after the pandemic. The fourth-
quarter performance demonstrated Okada Manila's ability to maximize productivity
across various offerings in gaming, hospitality, retail, and entertainment. However, the
emergence of new entrants such as online casinos and other diverse leisure activities
poses a significant threat. The Pachi slot and Pachinko industry is also facing challenges
due to the pandemic and the diversification of available leisure activities, leading to a
decline in machine usage.

76
Financial Stability: A decline in profitability or external factors such as the pandemic
can lead to a deterioration in future cash flows, potentially resulting in the recognition
of impairment losses on non-current assets. If the global impact of the COVID-19
pandemic intensifies, or if another significant pandemic arises, corporate operations may
be temporarily halted, disrupting various commercial activities. Cash and cash
equivalents increased by 5,246 million yen by the end of 2022, primarily due to various
factors such as foreign exchange gains, decreases in short-term borrowings, and
repayment of long-term borrowings. Okada Manila's fundamental capital policy aims to
utilize capital more efficiently while maintaining financial stability to enhance the
company's value and provide a strong foundation for long-term growth.

Environmental Stability: Okada Manila is susceptible to inflation, as increased prices

lead to higher expenses for raw materials, production, and overhead. Passing all expenses
to consumers may preserve profitability to some extent, but businesses often absorb a
portion of the additional costs to retain clients. Additionally, as inflation erodes
customers' buying power, sales decrease, affecting total revenue. The pandemic has led
to a threat of new entrants and a decline in demand elasticity, as diverse leisure activities
have gained popularity. Nevertheless, Okada Manila's adaptation to technological
modernization in the entertainment industry, particularly in casinos, has allowed them to
replace non-compliant Pachislot and Pachinko machines and introduce new models
based on the 6.5 standard. This shift offers new sales opportunities and positions Okada
Manila to leverage its competitive advantages while revitalizing the Pachislot and
Pachinko market.

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VII. QSPM

Alternative 1- Alternative 2-
Acquire Competitor Expand Internally
Total Total
Key Internal Rating Rating
Weight Weighted Weight Weighted
Factors Scores Scores
Scores Scores

Strengths

Strong Brand
0.08 4 0.32 0.05 4 0.2
Recognition
Service
0.07 3 0.21 0.1 3 0.3
Excellence
Community
0.04 4 0.16 0.03 3 0.09
Partners
Diverse
Entertainment 0.03 4 0.12 0.06 3 0.18
Option
Competitive
0.09 4 0.36 0.1 4 0.4
Advantage
Technological
0.06 3 0.18 0.07 3 0.21
Advancement
Rising Asian
0.04 4 0.16 0.03 3 0.09
Gaming Market
Modern
0.06 4 0.24 0.07 4 0.28
Facilities
Good
Outsourcing 0.07 4 0.28 0.05 3 0.15
Partners
Advertisement 0.05 4 0.2 0.04 3 0.12
Weaknesses
Inconsistency of
0.03 1 0.03 0.03 1 0.03
Staff
Costly setup and
maintenance for 0.03 2 0.06 0.03 2 0.06
the casino
High
Room\Amenities 0.09 1 0.09 0.04 2 0.08
Rates

78
Seasonal
demand 0.03 2 0.06 0.04 2 0.08
vulnerability
Risk of
reputational 0.03 1 0.03 0.04 2 0.08
harm
Limited Hotel
0.03 2 0.06 0.05 2 0.1
Options
Hard to reach
location through 0.08 1 0.08 0.05 2 0.1
commute
Company
0.03 2 0.06 0.07 1 0.07
Corruption
Lack of Security 0.03 2 0.06 0.03 1 0.03
High Cost for
0.03 2 0.06 0.02 2 0.04
Expansion
Sum Weight 100% 2.82 100% 2.69
Opportunities
Tourism &
Hospitality 0.07 4 0.28 0.08 3 0.24
regulation
Economic
0.05 3 0.15 0.04 3 0.12
Growth
Exchange Rate 0.03 4 0.12 0.01 3 0.03
Cultural
0.04 4 0.16 0.05 4 0.2
diversity
Demographics 0.01 4 0.04 0.03 3 0.09
Trends 0.03 4 0.12 0.05 4 0.2
Philanthropic 0.02 3 0.06 0.01 3 0.03
Social Corporate
0.04 4 0.16 0.02 3 0.06
Responsibility
Brand
0.06 4 0.24 0.07 4 0.28
Reputation
Trends in PMS
0.02 2 0.04 0.08 1 0.08
or POS Systems
Trends and
0.07 4 0.28 0.04 4 0.16
Advancements
Environmental
0.02 4 0.08 0.01 4 0.04
Sustainability

79
 Waste
0.01 4 0.04 0.02 3 0.06
Management
Employee's
Compensation 0.03 3 0.09 0.04 3 0.12
and Benefits
Threats
Regulation &
0.09 4 0.36 0.08 4 0.32
Licensing
Terrorism or
Crime related
0.05 4 0.2 0.05 3 0.15
and political
disposition
Local Policy 0.04 3 0.12 0.02 2 0.04
Inflation 0.05 4 0.2 0.04 3 0.12
Taxation (Sin
0.03 3 0.09 0.03 2 0.06
Tax)
Cybersecurity 0.01 4 0.04 0.04 1 0.04
Natural
0.05 3 0.15 0.02 2 0.04
Disasters
Season or
0.01 2 0.02 0.04 3 0.12
Climate
Gaming Law 0.09 2 0.18 0.06 1 0.06
Labor Law 0.08 4 0.32 0.07 4 0.28

Sum Weight 100% 6.36 100% > 5.63

Attractiveness Score:

1= Not Acceptable

2= Possibly Acceptable

3= Probably Acceptable

4= Most Acceptable

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Interpretation and Analysis

Acquire Competitor (Total Score: 6.36): This strategy appears more attractive based on the
QSPM analysis. It leverages strengths, addresses weaknesses, and capitalizes on opportunities
while mitigating threats.

Expand Internally (Total Score: 5.63): This strategy is less attractive according to the QSPM. It
doesn't capitalize on strengths as effectively and may not address weaknesses and external factors
as well as acquiring a competitor. An important note is that the higher the total weighted score, the
more attractive and feasible the strategic alternative is.

Both Strengths and Weaknesses have different total weighted scores for both alternatives, with a
total score for Alternative 1 (Acquire Competitor) of 2.82 and 2.69 for Alternative 2 (Expand
Internally) suggesting that internal factors do significantly differentiate the two with Alternative 2
(Expand Internally) being higher. However, when considering Opportunities and Threats,
Alternative 1 (Acquire Competitor) has a higher total weighted score (6.36) compared to
Alternative 2 (Expand Internally) with a total weighted score of 5.63

Capitalizing on Strengths and Opportunities: Acquiring a competitor allows Okada Manila to

leverage its existing strengths and capitalize on external opportunities. This can lead to faster
growth and increased market share.

Addressing Weaknesses and Mitigating Threats: The acquisition can help address existing
weaknesses by acquiring the competitor's resources and capabilities. Additionally, it can mitigate
potential threats by eliminating a competitor.

Based on the QSPM analysis, it is recommended for Okada Manila to pursue Alternative 1 -
Acquire Competitor. This alternative aligns better with the identified opportunities and helps
mitigate the threats more effectively compared to Alternative 2.

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 IX. Recommended Specific Strategies and Long-Term Objectives
Following a comprehensive assessment of Okada Manila, we have established the
following strategic objectives and recommended courses of action:

Strategic Objectives:

1. Modernize and Enhance Management System: Implement advanced hospitality

technology to optimize customer service and data collection, ensuring that Okada
Manila stays current with technological developments.

2. Consistent Quality Service: Standardize processes and implement targeted

marketing campaigns to maintain consistent service quality across various
locations and staff members.

3. Cost Optimization: Continuously monitor and analyze operating expenses

to identify opportunities for cost reduction, including exploring alternative
suppliers for goods and services.

4. Increase Off-Peak Occupancy: Offer enticing discounts, packages, and

exclusive off-peak experiences to boost occupancy rates during low-demand
seasons.

5. Developing and Enhancing Security Systems: Okada Manila can generate singular,
chronological reports populated from multiple systems, enabling their security division
to combine data from their back of the house applications, guest lodging, electronic key
management system, lifts on the property, and custom HR interface to produce a holistic
account of activities within the resort.

6. Okada Manila can strengthen its future by prioritizing employee upskilling. Through
targeted training programs, the company can enhance individual versatility and
adaptability, aligning the workforce with emerging operational needs. This proactive

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 approach mitigates potential layoffs due to restructuring and fosters a skilled, dynamic
workforce. Simultaneously, open communication and collaboration with stakeholders
are crucial. By engaging unions and staff representatives in a transparent dialogue,
Okada can negotiate temporary measures that minimize disruption and build trust for a
supportive environment. This combination of internal development and external
engagement lays the foundation for long-term recovery and sustainable growth, ensuring
Okada's future success.

7. Prioritize transparency and communication: Openly addressing the allegations and

actively cooperating with authorities can help mitigate reputational damage and build
trust. Through Strengthen internal controls and compliance such implementing robust
anti-corruption measures can prevent future wrongdoing and demonstrate a commitment
to good governance. Okada should focus on sustainable growth by prioritizing ethical
practices and responsible expansion can attract investors and rebuild market confidence
in the long term.

Alternative Courses of Action (ACA):

ACA No. 1: Achieving an Updated and Efficient Management System in Okada Manila Resort
and Casino
• Implement Digital Transformation: Embark on a comprehensive digital transformation
strategy that is meticulously aligned with the overarching business goals, aimed at
enhancing customer experiences, strengthening online presence, and seamlessly
implementing contactless operations. Prioritize data analytics and cybersecurity while
providing robust staff training and unwavering leadership commitment.

• Digital Adaptation for Employees: Provide comprehensive and ongoing training on

digital tools, fostering a culture of continuous learning and adaptation among employees.
Encourage the active utilization of internal communication and collaboration platforms,
ensuring that digital tools are fully embraced to drive data-informed decision-making.

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 • Embrace New Technology Strategies: Stay vigilantly informed about emerging
technological trends, actively collaborate with esteemed technology partners, and
strategically implement those technologies that demonstrate exceptional scalability,
flexibility, and data-driven capabilities.

ACA No. 2: Sustaining Consistent Standards Across Multiple Locations and Personnel
• Extensive Employee Training: Offer comprehensive and meticulously designed training
programs that consistently enhance employee skills, knowledge, and job performance,
ultimately cultivating a more productive, engaged, and highly satisfied workforce this is to
ensure the employees are performing with the highest standard.

• Regulate and Standardize Service Delivery: Implement a rigorous process for

meticulously measuring and continuously improving service quality, ensuring that it
consistently meets or exceeds customer expectations and that Okada Manila maintains its
unwavering commitment to excellence across all locations.

ACA No. 3: Proper Allocation of Budget for Operational and Maintenance Costs at Okada Manila
Resort and Casino
• Enhance Employee Onboarding: Improve the onboarding process significantly by
incorporating comprehensive pre-boarding paperwork, a welcoming and informative
package, robust training, engaging team-building activities, and unwavering support,
fostering a positive and seamless experience that sets the foundation for success.

• Find Cheaper Materials with Excellent Quality: Conduct thorough market research,
engage in strategic negotiations with suppliers, actively participate in trade shows, and
meticulously optimize material usage to maintain exceptional quality while simultaneously

84
 reducing costs that can help the hotel save more money.

• Lower Operating Costs While Maintaining Service Quality: Implement energy-

efficient measures, streamline processes to eliminate redundancies, and optimize
technology and supply chain management to effectively lower expenses while
simultaneously enhancing guest satisfaction.

ACA No. 4: Increasing Marketing Strategies to Combat Seasonal Demand

• Offer Consistent Promo Packages: Clearly define target markets, create attractive and
irresistible packages with consistent pricing, and develop a strategically planned
promotional calendar. Prioritize effective communication, cultivate customer loyalty, and
foster a culture of continuous innovation.

• Adapt to Technological Advancements: Invest in a secure and technologically advanced

online casino platform, providing a diverse range of engaging online casino games to
significantly enhance the user experience and cater to evolving preferences.

• Collaboration with Other Industries: Seek out strategic collaborations with the fashion,
design, and music industries to host captivating events that attract new audiences, expand
brand reach, and provide mutually beneficial opportunities for cross-promotion.

ACA No. 5:
• Increase safety and security standards: To achieve that high level of supervision and
monitoring, Okada Manila requires a security partner capable of simplifying the site’s
complex management while offering controls capable of matching the resort’s elite
standards.

ACA No. 6: Operation and Human Resource:

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 • Training and Upskilling Programs: Investing in training and upskilling programs for

employees can enhance their versatility and make them suitable for different roles within

the organization. This proactive approach could align the workforce with emerging needs,

ensuring operational efficiency.

• Negotiation with Stakeholders: Engaging in open communication with employees and

stakeholders to discuss alternatives and garner support for temporary measures. This could

involve negotiating with unions and staff representatives to find mutually acceptable

solutions.

ACA 7.: Enhance Transparency and Open Communication, Strengthen Internal Controls and
Compliance, and Prioritize Sustainable Growth through Ethical Practices.
• Publicly acknowledge the corruption allegations: Okada Manila should issue a
transparent statement acknowledging the ongoing legal proceedings and investigations.

• Proactively communicate updates: Regularly inform stakeholders, including the

public, media, and regulators, about developments in the case and actions taken to address
the issues.

• Establish a dedicated communication channel: Set up a hotline or website for employees

and the public to report concerns about potential corruption anonymously.

• Engage with stakeholders: Hold open forums and discussions with

employees, investors, and community members to address concerns and rebuild trust.

• Conduct a comprehensive internal audit: Identify any existing vulnerabilities or

loopholes in internal controls that may have enabled past corruption. Implement robust
anti-corruption policies and procedures. Establish clear guidelines for ethical
conduct, conflict of interest management, and whistleblower protection.

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• Enhance due diligence processes: Strengthen background checks and oversight of third-
party vendors and partners to prevent future involvement in corrupt activities. Invest in
anti-corruption training: Educate employees at all levels about the nature of corruption, its
consequences, and their role in upholding ethical practices.

• Focus on long-term value creation: Shift the company's focus from short-term gains to
sustainable growth by prioritizing responsible investments, environmental
considerations, and social impact.

• Embrace corporate social responsibility: Actively engage in community development

initiatives and demonstrate a commitment to ethical business practices. Promote a culture
of integrity: Foster a work environment where ethical conduct is encouraged and
rewarded, and wrongdoing is promptly addressed.

• Collaborate with anti-corruption agencies: Partner with relevant government agencies

and NGOs to implement anti-corruption initiatives and share best practices.

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XI. Conclusion

In conclusion, Okada Manila, a luxurious integrated resort, and casino located in

Paranaque, Philippines, commenced its development in 2008 and has been a favored
destination for both local and international tourists since its inauguration in 2016. With
an impressive array of offerings, including a grand casino, opulent hotel
accommodations, fine dining establishments, recreational amenities, and captivating
entertainment, the resort aims to redefine the landscape of Philippine entertainment and
gaming. Its overarching vision is to establish itself as a premier global destination,
drawing guests from all corners of the world.

Nonetheless, despite its current robust standing in the local and international markets,
Okada Manila confronts certain weaknesses and potential threats that could challenge
its long-term sustainability. These issues encompass an outdated management system,
disparities in service quality among different locations and staff members, elevated
operational expenses, and susceptibility to fluctuations in seasonal demand. These
concerns have been instrumental in shaping the strategic recommendations outlined in
the preceding sections.

To preserve its preeminent market position, Okada Manila must chart a strategic course
of action. This strategic management analysis has concentrated on identifying both the
internal and external attributes of the organization. This ranges from existing structures,
and operational challenges, to the proposed strategies, concepts, and courses of action
aimed at ensuring the consistent delivery of exceptional service to its patrons.

The pivotal aspects considered in devising these strategies encompass the resort's
geographical location, which is pivotal in attracting visitors, the diversity of its facilities
and amenities, the pivotal role of gaming and entertainment in enhancing the visitor
experience, adherence to regulatory compliance, the quality of customer service, robust
marketing and promotional efforts, stringent safety and security measures, financial
considerations including budgeting, an analysis of competition in the prevailing market,

88
and the imperative of environmental.

Plan of Action

Strategic
Action Plan Lead Person Timeline Budget
Objectives
Achieving updated Implement Digital Chief Technology Annually 3% of the
and efficient Transformation Officer total yearly
management system revenue
in Okada Manila Digital Adaptation for
Resort Employees
and Casino Embrace new Technology
technology strategies Department P 2.8B

To sustain consistent HR Director And Annually Total yearly

Market Research to
standards throughout Department salary (per
provide excellent service
multiple locations employee) X 1-
to staff
and personnel in 3%=
terms of cultural Regulate and training
norms, customer standardize the budget
preferences, and process of providing
organizational excellent quality
definitions service
P60 M
Extensive Employee
Training

Proper allocation of Find cheaper materials Operations Monthly P 100M

budget for with excellent quality Department
operational and for design and
maintenance costs amenities Administration
at Okada (Universal)
Manila
Resort and Casino Enhance the Entertainment
onboarding process Corporation
for employees
Lower operating costs
while maintaining
high delivery of
services

89
Training and Investing in training HR Director Annually P 45,000,000
Upskilling and upskilling
Programs programs for
employees can
enhance their
versatility and make
them suitable for
different roles within
the organization. This
proactive approach
could align the
workforce with
emerging needs,
ensuring operational
efficiency.
Negotiation Engaging in open Management Monthly P250,000
with communication with
Stakeholder employees and
s stakeholders to discuss
alternatives and garner
support for temporary
measures. This could
involve negotiating with
unions and staff
representatives to find
mutually acceptable
solutions.

Increase To achieve that high level Management Monthly

Safety and of supervision and
Security monitoring, Okada Manila
Standards requires a security partner
capable of simplifying the
site’s complex
management while
offering controls capable
of matching the resort’s
elite standards.
Increasing Offer consistent Marketing Monthly 2% of total
marketing Promo Packages Department yearly revenue
strategies to Adapt to technological
combat the advancements by Technological
susceptibilit creating diverse leisure Department
y of such as online casino.
seasonal
demand
Collaborating with P 16M
other lines of
industries to cater
events such as fashion
and design, music,
etc.

90
 The implementation of these proposed courses of action offers Okada Manila the opportunity to
maintain a competitive advantage within the market. Through diversification of its offerings,
augmentation of wellness facilities, and the establishment of strategic partnerships, the resort can
distinguish itself from competitors, drawing a more diverse array of guests. This diversification of
revenue streams, arising from various sources such as partnerships, niche market targeting, and
the broadening of services, is poised to bolster Okada Manila's financial performance. By catering
to distinct customer segments and expanding its service portfolio, Okada Manila can generate
supplementary revenue beyond its core gaming operations.

Reinforcing its brand reputation and enhancing brand awareness stands as a crucial aspect of
Okada Manila's strategy. Investment in digital presence, sustainable practices, and innovative
guest experiences serves to fortify the resort's brand reputation and visibility. In turn, this elevated
brand recognition is anticipated to attract both local and international guests seeking unique and
sustainable travel experiences. Strategic partnerships with renowned brands, artists, chefs, and
performers further enhance Okada Manila's standing. Such partnerships offer exclusive access to
high-quality services and unique experiences, resonating with discerning guests in pursuit of
exceptional luxury experiences.

Sustained dedication to improvement and innovation empowers Okada Manila to refine its
operational processes, enhance efficiency, and curtail expenses. This not only optimizes resource
management but also streamlines operations, ultimately resulting in improved profitability.
Emphasis on sustainability practices and the cultivation of customer loyalty programs
significantly elevates the overall guest experience. These actions contribute to a more
comprehensive and memorable guest stay, fostering heightened satisfaction, repeat visits, and
positive word-of-mouth endorsements. Consequently, these advantages bolster Okada Manila's
ability to cement itself as a premier luxury destination, augment revenue streams, foster brand
loyalty, and carve out a distinctive niche within the fiercely competitive hospitality and
entertainment industry.

However, in the pursuit of these courses of action, Okada Manila must remain vigilant to potential
disadvantages and challenges. A rigorous financial feasibility assessment is imperative to ascertain
the associated risks and returns linked to each course of action, ensuring a prudent investment

91
strategy. Okada Manila must possess the requisite capabilities and infrastructure to efficiently
manage and execute these proposed initiatives. The introduction of new offerings and the targeting
of niche markets may entail uncertainties concerning market receptivity, thus necessitating
thorough market research and feasibility studies to gauge demand and potential risks. Market
acceptance and demand may exhibit variability, and there exists a risk that the initiatives may not
resonate as expected with the intended target audience.

Given the highly competitive landscape of the hospitality and entertainment industry, both locally
and globally, Okada Manila must rigorously scrutinize its competitive positioning. It is vital that
the chosen initiatives proffer a unique value proposition, setting the resort apart from competitors.
Detailed financial analysis and a comprehensive evaluation of potential risks and rewards are
indispensable for making well-informed decisions.

In sum, it is paramount for Okada Manila to conscientiously assess these potential disadvantages
and challenges, undertake feasibility studies, and formulate effective mitigation strategies. These
measures are instrumental in enabling the resort to solidify its standing as a premier luxury
destination, boost revenue streams, cultivate brand loyalty, and establish a distinctive identity in the
fiercely competitive sphere of hospitality and entertainment.

92
sustainability in the form of eco-friendly practices. Together, these elements contribute to Okada
Manila's overall reputation and appeal.

The Competitive Profile Matrix (CPM) analysis has unveiled that, in comparison to competitors
like City of Dreams Manila and Solaire, Okada Manila Resort and Casino emerges as the dominant
player in the industry. Importantly, each of these establishments has their respective areas of
vulnerability and opportunities for enhancement, shaping the overall strategic landscape.

With the growing threats and opportunities that may arise in the operation of Okada Manila, they
must always be prepared to act when it comes to these matters. Even though Okada Manila has
greater opportunity options, they must still make it a habit to ensure that they can still make a better
opportunity for their employees and the company itself. This can help them to give better services
to their customers and clients who truly believe and trust them. In terms of threats, Okada Manila
must ensure that it will always be low and monitored to ensure the safety of its guests and to also
make sure that no harm can affect its world-class services and operations.

Having identified Okada Manila's strengths, weaknesses, opportunities, and threats, alongside the
significant factors in the PESTLE Analysis and Porter's Five, several specific strategies and
courses of action are recommended. These include research and development, human resource
strategy, differentiation strategy, and market penetration strategy. Furthermore, a set of actions is
proposed, encompassing the implementation of digital transformation, digital adaptation for
employees, in-depth market research, process standardization, extensive employee training,
sourcing sustainable materials, enhancing employee onboarding, reducing operating costs,
offering promotional packages, and collaborating with other industries. These recommendations
address the issues identified in prior analyses. In essence, Okada Manila must thoroughly evaluate
these challenges, conduct feasibility studies, and formulate mitigation strategies to position itself
as a top-tier luxury destination, increase revenue streams, foster brand loyalty, and differentiate
itself within the competitive hospitality and entertainment industry.

93
The researchers have highlighted that Okada Manila's strategic management should
center on three primary areas: development, sustainability, and service consistency. In a
dynamic market, Okada Manila can not only endure but also flourish, especially in the
post-pandemic era. The resort must continually adapt and enhance its strategies to
maintain its competitive advantage. To maintain a competitive edge, Okada Manila can
diversify its offerings, enhance its wellness and facilities, and form partnerships that set
it apart from its competitors and attract a wide range of guests. While implementing
these actions can offer various benefits, careful.

Considering potential drawbacks and challenges, including financial investment,

operational complexity, market acceptance, competition, and implementation hurdles, is
imperative.
In summary, Okada Manila, as a luxury integrated resort and casino, possesses a robust
foundation. By capitalizing on its strengths, embracing innovation, and effectively
navigating challenges, Okada Manila can continue to thrive in the industry and deliver
exceptional guest experiences. Through strategic planning, continuous improvement,
and an unwavering commitment to excellence, Okada Manila can solidify its position as
a premier destination for luxury, entertainment, and hospitality.

94
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