Abdul Rahman, Nora Azureen and Nordin, Norhafiza (2017) Mesra Hotel: The challenges in making a dream into a reality. In: 2nd International Case Study Conference (ICSC 2017), 30th-31st October 2017, Adya Hotel, Langkawi Island, Kedah, Malaysia.

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Abstract

On March 14, 2016, Salina Johan, the owner, cum the general manager of Mesra Hotel, looked out of her office window in disbelief as the rain continued to pour.Thunder and lightning did not seem to bother her.It was already 7 pm and her mind continued to wander.She was thinking about her delayed hotel project. The contractor just called to inform that the project could not be continued unless she paid the progressive payment before the end of the month.Everything seemed perfect before this.Good economic conditions and terrific businesses made her confident that the hotel construction would be completed as planned.Unfortunately, now her life turned upside down.The hotel project had been beyond schedule.The contractor in charge kept asking for more money."I only have two weeks to prepare the money" sighed Salina Johan. The initial cost of building the hotel was RM950,000.Payments were made based on the progress of the work done.Until now, she had paid more than 60 percent of the costs involved. She was very confident that the project would run smoothly.In addition to the amount allocated for the building, she had also put aside RM50,000 for contingency expenses.Additionally, another RM500,000 for the hotel room furniture, lighting and other hotel necessaries.She had invested all her savings to the project.In fact, she had also used cash from her other businesses, a grocery store and a 15-room motel, for the project."Why things do not happen as what I've planned?" sighed Salina Johan in frustration. Everything had become expensive.The supplier charged her higher price for grocery products and hotel's necessaries; using the implementation of goods and services tax (GST), inflation and depreciation of Ringgit Malaysia as excuses; while the motel guests had decreased for about 40 percent.“What should I do? The income from the grocery store and motel has decreased, the price of products has increased and now I am running out of cash to pay the contractor for the hotel project" she said, feeling depressed as the rain was.

Item Type:	Conference or Workshop Item (Paper)
Additional Information:	eISBN: 978-967-11030-6-7 Organized by: Institute for Management and Business Research (IMBRe) Universiti Utara Malaysia
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	15 Feb 2018 01:42
Last Modified:	15 Feb 2018 01:42
URI:	https://repo.uum.edu.my/id/eprint/23435

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