Blackfield Hawaii Corporation (Hawaii) boasts of its experienced staff in various investment activities. The team is led by a dedicated management that has experience in developing commercial and residential property. The management developed strategies that ensured it invested in unique hotels and resorts.
The decentralised system of management adopted by this company ensured that senior employees like Bob Cooper (Vice-President for Corporate Development) were allowed to express their opinions regarding the hotel project. In addition, this company is managed by dynamic leaders who can manage sudden challenges without difficulties. It does not fear to invest in profitable business activities even if they are not within its field of specialisation.
This strength enabled this company to diversify its investment activities and spread risks. Moreover, the staff appears to have the relevant knowledge about what is appropriate for the company. The employees of this company had keen eyes and ears and that is why their suggestions about the planned resort show the needs of the local market.
The greatest weakness of this company and its planned investment is that it lacks professional expertise in the hotel industry. The managers assume that their skills in the construction industry will help them to navigate through the challenges of the hospitality sector. There are other hotel and resort investments in that region that have experience and established brand names that reduce their marketing burdens.
Therefore, they are better placed to outdo this company in offering hotel services. In addition, the company did not conduct a feasibility study to identify the appropriateness of investing in the hotel industry. Therefore, it has inadequate knowledge about this industry and this may affect its performance.
Lastly, it has started investing in the hotel industry by establishing different units at the same time. This may be a major weakness in its operations because this company may not manage its investments properly. There was the need to invest in one unit and evaluating its performance before exploring other attractive opportunities.
This business has managed to turn constraints into opportunities. For instance, it has identified that there are gaps in the hotel industry since the existing investors have not explored the option of establishing restaurants that offer moderate prices for family meals, fast foods, steak and chops and specialty foods. The demand for these products and services will make the planned investment viable because there will be reduced competition.
The brand name of this company is a strong selling point for its products and services. It has an established clientele base that will offer quick market for its new products and services.
This company can use the hotel and resort as meeting points for clients seeking to know more about its commercial and residential properties. These two businesses will support each other and this will ensure that they improve the income and profits generated by this company.
The hotel industry is unpredictable and this investment may turn out to be a big mistake for this company. In addition, there seems to be stiff competition from other established hotels that are strategically located like the Coco Palms that was built on a historic site (where the ancient Kauai kings held their court sessions).
In addition, the decors of other hotels and resorts have Polynesian themes and the use of this strategy will not help this company to build its brand name. Lastly, the purchasing habits of condominium users will limit the sales of this company and hinder it from generating reasonable profits because these occupants spend very little in restaurants. Therefore, this targeted population may not offer the expected market for the services of this company.