STRATEGY MANAGEMENT REPORTBACHELOR IN DEGREE OF QUANTITY SURVEYING

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

Team Member:

Liew Yong Sheng -0315108

Lee Kim Thiam- 0310710

Wong Geng Sen- 0321690

Muhammad Hasif bin Alias-0316413

Tay Sy Min-0320813

Sim Ee Han- 03211288

Lecturer: Mr. Leong Boon Tik

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Topic Page

Part 1Pulau Lalang 1

Part 2Target Market 2

Part 3Product and Services 4

Part 4Competitive Strategy 8

Part 5Environmental Concerns 9

References 17

TABLE OF CONTENT

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Figure 1.1 and 1.2 Arrival on the Island and the shelter

Reference: Pangkor, Malaysia 2015 | Taylor's BQS | GoPro HERO 4 by Isaac Mun Chun

Pulau Lalang

On 6th November, we set foot on Pulau Lalang, one of the nine islands in Pulau Sembilan. The travel

include a thirty minute ferry ride from Lumut of Perak to JetiPangkor in Pulau Pangkor, then another

bus travel from the port to the Pasir Bogak, taking approximately twenty minutes. Finally, from the

sands of Pasir Bogak to the sands of Pulau Lalang, it took forty five minutes to reach by motorboats.

The

geography of Pulau Lalang comes in two islands. While there are small section of the area are

covered in sand, the other part of the area, in majority, are rocks and soils that make up its

mountainous façade. The island, aside from the beach, is surrounded with rocks, making the area

have greater currents in that area especially between the two islands. From the beach, the view of

the sea is spectacular, the change of color from a cyan to blue

creating beautiful scene.

While we did not found any village or anyone on the island,

we found shelters and toilets built on beach. There’s even a

Surau for the Muslim to pray as well as available sink to wash

their hand. Even though these facilities are readied, contrast

to our expectation, we do not find a lot of rubbish on the

beach. To us businessmen who intend to invest on the island,

this proves to us that the cleaning up session of the beach can

be easily manageable.

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Figure 1.2 Map of Pulau Lalang

Reference: http://www.quiver-perhentian.com/Image/sitemap3.jpg

The island, although deserted, was not undiscovered. On the

shelter, we found a sign noting that the island, along with the

other eight islands, are properties belonging to the

government of Perak.

Seeing how this island is full of opportunity for us to invest on to start a resort business, we intend

to analyse the condition of the industry and see how our designed resort plan will work on the

island.

Targeted market

After researching and comparing with other resorts, we have come to a conclusion that Le Luxe

resort would be a resort known to be luxurious and highly technological.

Table 2.1 Percentage Distribution of Households by Income Class in Malaysia from 1970 to 2014

The main target markets for Le Luxe are majorly people from middle-high income class and high

class income. In Malaysia, the middle-high class and high class income can be defined as civilian that

has an annual income of RM100, 000 and RM150, 000. As shown in the table above, we plan to

target people from the city as they have higher probability in affording the rooms.

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Figure 2.2 Mean Monthly Gross Household Income by Ethnic Group, Strata and State in Malaysia

from 1970 to 2014

Majority of the middle-high and high class people are located in Kuala Lumpur, Putrajaya and

Selangor. In 2014, statistic show the highest mean monthly household income was in Kuala Lumpur

and it was RM10,629, followed by Putrajaya RM10,401 and Selangor RM8,252 (The Star, 2015). We

also noticed that the majority of the high income states are more concentrated at the West coast of

Peninsular of Malaysia. We believe that understanding these facts would provide us a decrease in

the cost of advertising for we have planned to spend more effort in advertising in the West coast of

Peninsular of Malaysia than in the East coast, Sabah and Sarawak. Fortunately, seeing how

Malaysia’s incomes for citizen have grown over the years, we intend to focus our advertising further

towards the east coast, Sabah and Sarawak as well to broaden the target in the future. Once we

manage to do that, we will plan to expand our target internationally.

The resort guest room is divided into two classes which are normal and luxury; the normal class will

be on the surface above seawater which costs around RM800 per night; on the other hand, the

luxury class will be undersea which costs around RM6000 per night. Le Luxe resort is the first

undersea resort in Malaysia. It is using the latest technology for all construction to provide highest

satisfaction and safety for guests that stays in Le Luxe resort. We also provide service to other

companies who intend to make up meeting in our resort. Our resorts have ballroom and boardroom

which provide a comfortable environment for businessmen to meet up with their guests, formal

business meeting, or company annual dinner, etc.

Besides that, Le Luxe Resort are also targeting on those who love nature including marine nature.

The normal class guest room is located at the surface of the seawater to allow guests to live on the

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surface of seawater, enjoy the sea view and sea breeze. Whereas luxurious guest room, where it is

located in the sea, provides a brand new experience for guests who enjoy the spectacular view of

the marine ecosystem. Our resort offers pristine, white-sand beaches caressed by crystal-clear seas.

Beside Le Luxe resort also has another untouched Tropicana forest where guests are surrounded by

nature and able to experience the beauty of it.

Le Luxe Resort is unique from other resorts in which we are environment friendly. Our building had

undergone the assessment of the Green Building Index (GBI) of Malaysia. We have successfully

convinced through our design and planning of the area that we are not only energy efficiency but

also provides great indoor environment quality. We were awarded with 68 points and a Silver GBI

Rating. Our resort did not construct any building on the landed place or ground floor to protect the

environment and allow guesses to experience the true nature. Furthermore, we are generating our

own power to supply the resort, where the power sources are from solar and water. Our resort is

using reusable power resources which will reduce the production of any pollution to the island and

environment from minimum to none.

Product and Service

Figure 3.1 and 3.2 Undersea Bedroom and Restaurant. Reference:

http://www.lifestyleasia.com/all/en/travel/photo-story/water-world-5-cool-underwater-hotels/#1

The service that we will be investing in will be an island resort. This island will be designed to

function as Asia’s first ever partial underwater terrain resort that runs on green energy. The resort

will be shaped like a semi-rim with rooms both on top of and underwater. The resort will have the

main dock extending out from the lobby for tourists or guests to arrive and board. There will be

chalets surrounding the rim of the resort and at the bottom of each chalet will be an underwater

room. The glass used for the underwater rooms or the Aqua Luxes will be one-way glass and thick

enough to sustain underwater pressure as well as to provide the privacy needed for our guests. The

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island will only allow a capacity of two hundred guests at a time to ensure that the resort does not

temporarily overpopulate. The leisure area within the premises of Le Luxe will consist of a few

boardrooms for private meetings as well as a ballroom which can host celebrations such as wedding

dinners or annual dinners

Figure 3.3 and 3.4 Board room and Corridor.

On to external activities, there will be a huge area of water for guests to have their water activities

within the semi-rim of the resort. The water activities include mainly swimming, scuba diving or

kayaking. Other extreme water activities like parasailing, jet skiing or speed boating will only be

allowed to run outside the semi-rim of the resort to ensure the safety of the other guests within the

semi rims. On both within and outside the semi-rim platform, Le Luxe will carry out a special

program called the CRP as the acronym for Coral Rescue Program. Guests are allowed to purchase a

small cutting of coral species of their choice, not for their keeping, but for the corals’ replantation or

preservation. Basically, guests who purchase a cutting of coral species to be replanted will be given a

lease of contribution for protecting and preserving the environment by replanting a coral of his

choice. The guests will then be given a step by step procedure into planting a coral of their own by

themselves. This program will be associated with the Reef Ball association. The Reef Ball association

is affiliated with the preservation of coral species by replanting them. What better way to go green,

when guests or tourists can be involved in it by doing it themselves?

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Figure 3.5 Above Sea Resort. Reference:

http://www.lifestyleasia.com/all/en/travel/photo-story/water-world-5-cool-underwater-hotels/#1

The platform that will form the entire semi rim platform will be thick wooden planks as concrete

pilings will harm the corals underwater, defying the purpose of having an environmentally friendly

resort. On the beach, guests can enjoy the soft white sand while the most adventurous guests can go

jungle trekking in the jungle beyond the beach. A steel fencing will be used to separate off the forest

from the beach as the forest is inhabited by wild monkeys, poisonous insects, and snakes as well as

boars that may bring unexpected casualties. Nylon ropes and glow in the dark flags will be placed

within the jungles to set as trail boundaries and markings to ensure that guests do not get lost if in

any case they venture till night time. To control or treat any cases of casualties, the resort's main

office will have a clinic and an emergency room that are licensed to treat any casualties like snake

bites or other problems as the nearest hospital is approximately two hours away. The beach will be

cleaned every two days to keep the beach clean. To improve the efficiency of environmental

friendliness, at every access point to the beach, there will be a security check to make sure the

guests do not bring in any plastic materials or materials that may harm the environment. Plastic will

be replaced with paper bags and belongings that guests may feel insecure of carrying around can be

placed in electronic lockers provided at each security checkpoint.

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Figure 3.6 Above Sea view

The drainage or wastage system will be directed to a small island existing right next to Pulau Lalang

to ensure that guests do not get driven off by the waste reservoir’s stench. These wastes will flow

through a series of stainless steel pipes installed next to submarine power cables on the seabed. The

use of stainless steel pipes is for its anti-corrosive properties, especially underwater. Submarine

power cables will be applied to the system to provide power to the resort, where the power cables

will be laid on the seabed to ensure the resort remains aesthetically assured. Before adopting the

submarine power cables as our main power transporter, we will invest in the tests needed to be

carried out to ensure that the types of material and designs of the submarine power cables are

suitable to the resort. The tests will be run by the IEEE or the Institute of Electrical and Electronics

Engineers. They are one of the largest professional associations that specialize in ensuring the

appropriate usage of submarine power cables. Mechanical tests will be completed to test the

submarine power cables to demonstrate their ability to withstand any kinds of stresses and

incidents.

The power source will be supplied by components that act as one of the resort’s main differentiation

factors from other resorts. Differentiation is an important key aspect in any business as this

separates a business from the others in terms of market segmentation. This factor itself can put a

company in a skyrocketing level of competitive advantage with ease. According to our research, Asia

has very few underwater resorts but none run on green energy. That is how we are able to

differentiate entirely from other resorts. The resort will run on both hydro energy and solar energy

as both of these come in abundance, especially in Malaysia. The hydropower generators will be

isolated in a reasonably small station with a short distance from the island on the sides to prevent

any possible casualties to the guests. Hydro turbines are applied mainly because of the huge fact

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that the island is surrounded by an unbounded limit of water. This side of the island also has much

reliable water current to ensure that the water turbines are able to receive the necessary water flow

for much better efficiency. About four hydro turbines will be used to generate power for the resort.

The main reason for the use of four hydro turbines is to ensure that if one of the turbines

malfunction, the other three will still be there to provide energy for the resort to run until

maintenance or repairs for the damaged one is completed. The station will allow the water to flow

back out into the sea as so to not ensure the cycle of water instead of the consumption of it. A

secondary and more passive source of power will be the use of solar panels. The solar panels will be

used as shading on the platforms for the guests to take shelter from the extensive heat from the sun.

Both solar panels and hydro turbines will definitely be expensive at initial cost, but of course,

alongside with the assurance of long-term quality and cost saving as well as their provision of

environmental friendliness.

Strategies of Le Luxe in Gaining Competitive Advantage

There are a lot of resorts in Malaysia and in this section of the report, we will discuss about the

strategy to gain the advantage and ultimately dominate market share as well as increasing

stakeholder value.

The first strategy in the discussion would be the strategy of differentiation. For it is the main strategy

we have invested on to gain competitive advantage in the industry. As mentioned before, we are

proud to be the first in Malaysia to use green energy to sustain a resort that is not only on sea but

also under the sea. Not only does the use of green energy is a brilliant and innovative idea to

architects in Malaysia but also the all over the world. The idea itself attracts a number of customers

from both Malaysia and other countries who find interest in the innovative idea of having a resort

above and under the sea that is powered by green reusable energy. In other words, this innovative

strategy inspires not only customers but also professionals related to green building such as students

and professors to visit and study the implementation of the idea.

Activity like coral replanting is extraordinary to most Malaysian. While it is not exactly new since it is

already implemented in other resort companies such as Langkawi and Sabah. It still differentiate

from a number of other resorts because the number of resorts that performs such activity are too

few.

While it is not exactly a strategy, we do intend to implement operational effectiveness in our list of

strategies. Michael Porter defined operational effectiveness as;

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“…means performing similar activities better than rivals perform them. Operational Effectiveness

includes but is not limited to efficiency. It refers to any number of practices that allow a company to

utilize its inputs by, for example, reducing defects in products or developing better product faster.”

“Strategy in Business” by Porter.M

We are aware that we are not the only resort that does coral replanting, on sea resort, and so on

that exists around Malaysia. However, we intend to increase our input to these activities to further

expand the value of these services to its highest value. This would involve the use of latest

technology, human resource management and facility management. While the cost may be high but

we believe that providing our customer the best value of what we do will glorify the reputation of Le

Luxe Resort and ultimately provide an informal advertising through chit-chat.

Despite the fact that we could easily manage the use of latest technology through the use of money,

we find the true challenge would be creating value through our worker’s performance. Due to this,

we intend to study the operation effectiveness done in Japan. In Michael Porter found out that

Japan, in the late 1970s, do not use any form of strategy. Instead, majority of Japan’s company focus

on the use of operation performance to outperform their rivals. Japan has been well-known to be a

country that focuses on providing the best service to customer because of their culture of showing

respect to their customers. While this strategy is not truly significant, we believe that having our

employees to simply act differently in a respectful and welcoming way would be a good strategy

itself. As mentioned by Michael Porter,

“Competitive Strategy is about being different. It means deliberately choosing a different set of

activities to deliver a unique mix of value”

“Strategy in Business” by Porter.M

With this reason alone, we believe that it is reasonable to train and develop our employees in Japan

because they are more experienced in the art of operation effectiveness.

Environmental Concerns

Construction work often disturbs the natural balance existed within an ecosystem and its resources.

Such damage is common and unavoidable during development of land including Pulau Lalang itself.

As a responsible developer and investor, we need to control and reduce the damages that could

inflict on the island during construction to none through proper planning.

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First and foremost, here are some suggestions on how to minimize the impact done to the natural

environment before we truly develop Pulau Lalang. Most of the soil compaction are caused by

construction equipment exempli gratia, heavy tractor or truck. Compaction can also be caused by

stockpiled building materials and excessive foot traffic. Hence, by controlling the equipment traffic

pattern, soil compaction can be prevented. Project managers should reroute traffic away from trees,

put up fences and signs and mulch the equipment routes with several inches of wood chips and

locate materials storage areas away from drip line of the forest.

Trees in Pulau Lalang should be fertilized and watered before construction begins to aid them in

resisting stress. Hence, site manager should construct a simple barrier, such as wooden barrier,

plastic barrier or chain link fencing, that would be suitable for each tree or grouping them together

to keep the trunks and root system away from danger. The barrier will be installed 2 feet away from

the trunk for every inch diameter of that tree’s diameter breast height. The barrier protects a

portion of the tree’s root zone. In addition, project manager should mark the construction zone

boundaries by obtaining a complete set of site development plans, including the proposed location

of the building and utility lines. The site manager or workers should mark the areas where heavy

equipment will be used, where soil will be permanently added or removed as well as the

specification of the depth, location of filling and building materials that will be temporarily stockpiled

by using measuring tapes, stakes and string to temporarily mark the boundaries of construction

activities on site which help to restrict the access of workers or equipment that may cause

unnecessary damages. A survey or investigation should be performed if some protected wildlife

species such as sea turtle are present, NPWS (National Parks and Wildlife Service) staff must be

informed and advice should be taken on the best time of the year for the work to be done.

During construction, preservation and protection of natural environment will be carried out. The

siltation would cause damage to aquatic life and ultimately affecting terrain wildlife as well due to

the increase in water turbidity and loss of amenity. Due to this reason, it is important for the site

manager to ensure that the silt is not directly released into watercourses and keep all the activities

away from river and stream banks. The impact of root severing of plants can be minimised by

avoiding construction during hot and dry weather while keeping trees well watered before and after

digging and covering exposed roots with soil or mulch as soon as possible. Furthermore, we will not

allow equipment, vehicles, or materials to be stored on the boulevard to avoid damage to soil.

Hence the site manager should establish a separate staging and parking area on a paved area away

from the tree lawn. If this is not possible, cushion the boulevard with at least six inches of wood

chips applied as mulch. Any foreign materials are not allowed to be buried or deposited into the

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boulevard soil. Debris such as concrete or wash out equipment or tools will not be allowed to be

buried in the boulevard soil area too.

Site manager has to ensure that the adequate percolation area is specified or install some treatment

system if necessary in order to prevent sewage pollution. The use of constructed wetland or reed

bed treatment system could also be considered which also provides a new wildlife habitat. After all

the construction works are finished, the nature environment should also be preserved and protected

to minimise the damage on it. For example, the site manager should make a final inspection of the

site. After construction has been completed, site manager and the workers should evaluate the

condition of the remaining trees and look for indications of damage or stress. Although it may take

several years for severe problems to appear, the manager has to carry out some careful monitoring

and preventive treatment such as watering which may help to minimize the damages.

Should there be any damage occurred due to the construction, workers have to repair it as soon as

possible by informing the manager immediately to avoid any violations in the landscape protection

contract and picture of the damage shall be taken. We would also insist that the protective fences

remain in place until all construction workers left the site. Lastly, when natural vegetation and

topsoil are removed during construction, the land becomes vulnerable as the enriched organic layer

of the soil is missing which caused the habitat of wildlife to disappear. Thus the topsoil should be

restored to prevent erosion and improve the habitat of wildlife. Seeding is often the most

economical method of replantation. Preservation of the natural environment is essential for

maintaining community sustainability. Our natural resources exist in a delicate balance and are

vulnerable to environmental changes. Hence, it is important that we all should do our part to

conserve, preserve, and care for the nature resources and protect the environment.

Green with Sewage Treatment Plant (STP)

Figure 5.1 Sewage treatment plant

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A plant that convert wastewater, which is water no longer needed or suitable for its most recent

use, into an effluent that can be either returned to the water cycle with minimal environmental

issues or reused. This is important because we need to avoid any loss of resources and polluting the

island environment due to the waste products from the resort. Since the project is emphasizing

green building concept, we would suggest for the the STP to follow the same concept, naming it as

Green STP.

There are two type of STP, centralized and decentralized. The factor of design consideration are

Embodied Energy, the energy consumed by all of the processes associated with the

building.

Embodied Carbon, refers to carbon dioxide emitted during construction and by

activities.

Cost, construction cost per connection.

Based on the three factor which focused on getting the less out of the system, the best type

would be decentralized. Why should we choose decentralized system as our Green STP?

Decentralized system:-

Increased water quality and availability,

Used energy and land wisely,

Responded to growth while preserving green space,

Used the natural treatment properties of the soil.

Decentralized systems can be designed to meet specific treatment goals, to handle unusual site

conditions, and to address local environmental protection requirements. They tends to have small,

minimally intrusive environmental footprints and often have the benefit of creating green spaces in

communities. Also, they provide good opportunities to use the natural environment as they can help

reduce the level of difficulty and cost to treat pollutants.

As conclusion, installing this type of Green STP have the capacity to maintain our resort and allow

us to control many kind of variables especially stench and visibility while reducing the amount of

pollutants and space used.

Green with Turbines & Panel

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The location of the island floating on the Malacca Strait and being quite far away from the mainland,

allowed the island to experienced lots of natural phenomenons that created energy such as wind

and waves. Devices are then created to catch these energy and convert them to electrical energy.

The placement of the machinery room for the generators would be inside the resort avoiding using

island space itself.

Figure 5.2 Turbines and Panels

I) Turbines

There are many type of turbines, and we are going to avoid using steam turbine as it produces

emission due to burning of fossil fuels. The design, energy and cost varies and highly depended on

the strength and availability of the fluid. However, we don’t want to install a wind turbine as it can

only be used in limited areas and in certain periods only (e.g., early and late in the year) and cost

about $40k to 80k for a 10kWatt wind turbine.

With the availability of waves, we are going to suggest the use of wave energy device. To be

specific, the ideal device like Carnegie’s CETO. Their wave energy device advantage are :-

No Visual Impact – fully submerged.

Flexible – operates in variety of water depths.

Storm Survivability – fully submerged & energy dampening system

Security – provide water security to countries & islands.

Scalable – modular array design.

Eco-Friendly – co-exists with marine life.

Being able to produce an energy up to 240kwh, the device can use the energy to desalinate the

seawater to obtain freshwater. The initial cost is quite high (expected to be a five figure sum) but can

be expected to be paid off in 5 years. Furthermore, the least installation of one generator will

provide more vast and availability of space in our resort while maintaining its efficiency.

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Figure 5.3 Solar Panels

II) Solar Panels

Solar panel is method used nowadays for developer to emphasize their concept of green building

by obtaining clean energy using the sunlight. Plus, The sun has been around for billions of years and

is likely to burn on for billions more to come. Advantage besides that :-

Save Electricity Bills - draw in time of needs, able to generate more power for years to come.

Upfront Incentive - government tax credits, be eligible for incentives through your utility

company.

Reduce Emissions - reduce resort’s greenhouse gas emissions

Self-Reliance Energy - reduce electricity need from utility supplier according to energy

harnessed.

Furthermore, Malaysia is one of the country that get at least 6 hours of sunshine per day, the use of

solar panel is a must. The initial cost is a 5 digit figure and the revenue per year is about 20% of the

cost. However, the aesthetic aspect of solar panels installed in our resort can attract client and

provide sufficient energy for our resort to be self-dependent. Also, by using Mitsubishi’s solar panel

products, our resort can shades our guest from the sunlight while capturing solar energy.

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Green Education

Figure 5.4 and 5.5 Forest and Wildlife Interaction

Along with the idea of jungle treks on the island, we would suggest on creating a preservation area. With experts and locals approval, reallocation can be done to place floras and faunas in area such that it is easy to reach and visitable from the jungle trekking tracks. This way, we can start a green education program or activity, where we can educate the guest of the importance of the natural habitat.

For floras, facilities such as a Greenhouse, garden and farm can be constructed in the appropriate area without enforcing any logging activities for space. While for faunas, a simple wildlife rehabilitation centre is sufficient as we do not intend to start a caged zoo, instead making it an open zoo. Marking and identifying the flora and fauna of the island can be done by the locals. It is vital for the plan shall be carried out without disturbing the ecosystem.

In term of targeted group of people, it would be student who wanted to do research and studies. Not to forget the young children, they can enjoy themselves running around the garden and nurturing young animals on the island. Furthermore, by recognizing the available species exist on the island, any casualties that happened to the ecosystem can easily be taken measured of.

Coral reefs and Sea Creature

Figure 5.6 Coral Reef Replantation

In general, we will try to limit and control the activity such as BBQ and party on the resort and island. The usage of plastic will be monitored and controlled by proving temporary cloth bag as replacement. The aim will be ensuring any kind of litter does not end up either floating on the sea or resting on the sea bed.

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Activities such as Coral Rescue Program (CRP) will be conduct as a method of eduction and awareness for the guest. It also served as an interactive and memorable experienced for them. Corals will be nurtured in a protected area and any corals that stand too close to any construction site or our resort shall be replanted elsewhere.

Cooperating with the Reef Ball association, placement of the coral reefs can be controlled and positioned strategically. This allows our resort to monitor the coral reefs progress while increasing value towards our resort. The corals will then house much different kind of sea creatures allowing the ecosystem to be fixed and gets better due to the changes happened from the construction of our resort.

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