...Project Management Question I: (Discussion and Review Questions No.6) What is a work breakdown structure, and how is it useful for project planning? Work breakdown structure (WBS) – a hierarchical listing of what must be done during a project. It is useful due to the fact that large projects usually involve a very large number of activities, planners need some way to determine exactly what will need to be done so that they can realistically estimate how long it will take to complete the various elements of the project and how much it will cost. Question II: What kind of projects need project management? What are the five phases of project management? To your understanding, what is the key reason why many projects fail? Anything with a goal and/or expected outcome, regardless if it has a budget or not, can benefit from using project management principles. The five phases of project management: 1. Scoping the project 2. Developing the plan 3. Launching the plan 4. Monitoring & controlling 5. Closing out the project Poor requirements analysis causes many of these failures, meaning projects are doomed right from the start. Question III: Chris received new word processing software for her birthday. She also received a check, with which she intends to purchase a new computer. Chris’s college instructor assigned a paper due next week. Chris decided that she will prepare the paper on the new computer. She made a list of the activities she will need...
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...Revenue Cycle Management There are many moving parts required to keep any type of healthcare facility running smoothly. Of these, the revenue management process is one of the most important. This is the patient to cash flow within the facility. The process begins when a patient schedules an appointment and ends when all outstanding payments have been collected. While it may seem simple, there is a lot that goes into the process as a whole, and it is a critical aspect of a facility being successful. Let’s start at the beginning and go through the process step-by-step. • Step 1 – Scheduling an appointment: When a patient schedules an appointment, this begins the revenue cycle management process. • Step 2 – Insurance certification: It’s...
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...Fairfield… * Extended Stay: Residence Inn, Marriott Executive Apartments… * Destination Entertainment: Gaylord Hotels… Marriott International operates and franchised hotels and licenses vacation ownership resorts, its culture embraces excellence and communication and technological innovations. In the late 1980s, after the successful implementation of Revenue Management in Airlines, Marriott has led the hotel industry in the practice of Revenue Management. It became an early pioneer of Revenue Management in hospitality. They developed a system named One Yield, which focused on improving hotel profits by timing price increases and promotions as well as using inventory controls. In addition, Marriott has also developed the Demand Forecasting System (DFS). It helps hotels to optimize the profits and revenue by figuring out the best pricing strategies and sales procedures. This system became a powerful tool for Marriott properties. Today, the system enables to provide recommendations to Revenue Managers about what room rates to offer at any given property on any given day. The development of Revenue Management has increased...
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...Department of Managerial Economics and Decision Sciences HOMEWORK: REVENUE MANAGEMENT BY A RENTAL CAR COMPANY:1 You are a consultant hired by a major national rental car company that is seeking to improve its pricing strategy. In particular, it is considering adopting a strategy of customized pricing tailored to the underlying micro-markets that it might face. In the rental car business (as in the hotel and resort business), price customization is known as revenue management. As a test case, your client is considering a pricing experiment at Lambert Airport in St. Louis, Missouri, a location at which your client has dominant market share and thus can safely ignore possible reactions of competitors. Careful market research has revealed that the St. Louis market is composed of two micromarkets. The first comprises business travelers; the second comprises vacation travelers. The demand curves for these two micro-markets are given below: Micro-market Business travelers Vacation travelers Demand curve equation Q1= 3,600 – 20P Q2= 3,000 – 30P In the table above, P is the daily rental rate, while Q1 and Q2 are the numbers of vehicles rented per day by business travelers and vacation travelers, respectively. Like airlines, the rental car business is one in which the marginal cost of serving an extra customer is nearly zero. For this reason, throughout this exercise, we will assume that your client’s MC = 0. (Of course, your client has fixed costs, but as an astute practitioner...
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...Revenue Management Introduction: The location of our hotel is in the heart of Springfield, Ma off exit 7 next to the Basketball Hall of Fame. At the Springfield Marriott there are 262 rooms with 9 floors and it is a full-service hotel. The property from the outside does not look very impressive, but once you get the grand tour you could say you just might change your mind. Bill Hess, the General Manager gave us a tour of the hotel after his interview, it was a spectacular experience.. Inside of the hotel, adjacent to the garden area there are several banquet halls named after local areas such as “Berkshire”. The full-service aspect is provided by the Champions Sports Bar, Currents Restaurant, and Currents Bar. These food establishments bring in large amounts of revenue and help serve guests the options of breakfast, lunch, and dinner as well as some entertainment. The Marriott has a wide selection of target guests for these dining establishments, including groups outside of travelers. The Champions Sports Bar helps the hotel pick up revenue from locations such as the Basketball Hall of Fame. The major hotel market segments primarily include transient travelers and group guests. Of the transient guests, the hotel’s specific target is a ‘business’ transient guest, many of which have open contracts with the hotel. One of the companies who provide frequent business travelers to the hotel includes Smith and Wesson Gun Company located in Springfield, MA. Usually happens with these...
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...Prof: Name: Date: April 2016 Assign: Revenue cycle management The articles were about how health care industry using information technology (IT) has affected the hospital and the health care system in general. Healthcare Executives Develop Revenue cycle management (RCM) to effectively control health care system financials. The first article was on intermountain integrates revenue cycle management. Intermountain will be integrating cycle revenue for a large health system. The article explains how difficult it uses to be to administer the cost of health. Todd Craighead intermountain vice president of revenue cycle organization was asked to develop a more effective approach to consolidate the costs. Tom has stated many challenges that providers have accounted before integrating cycle management system. One of the issues were decentralization, each individual hospital had a director. Second was the denial rate was high. The next big challenge was price transparency and patient engagement. After implementing the cycle management there is a more centralized appeals team that has successfully kept denial rates low. Second All Executives report directly through one cycle management. Other directors focus on pre-registration and scheduling. Even there biggest challenge price transparency and patient engagement were consolidated using cycle management. The other article emphasizes the reasons cycle management was implementing and the benefits of the system in health care...
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...in the case. What additional information should Doug Santoni collect to decide on a response to Eastern's pricing initiative? In response to Eastern’s pricing initiative, Doug Santoni should collect several bits of information before deciding on an appropriate rejoinder. First, he should know the volume of the passengers that travel along this route, for both American Airlines, and it’s main competitors, Eastern and TWA. This will allow him to make the correct downstream calculations such as changes in revenue, profits/losses, and capacity along the New York-San Juan route. A breakdown of the busiest times/routes (for all airlines, but especially American) would be useful to determine which flights need to be targeted, if any, with a response. Most of the other information Doug should collect relates to the makeup of the passenger types. How many passengers are traveling for business versus pleasure? Knowing this could again help predict capacity and revenue changes. While the makeup is divided fairly evenly into three categories (business, leisure, and locals), what is their specific makeup during the peak and slow seasons? The latter is when Eastern has tended to target with low one-way fares in the past, and it would be good to know who purchases those tickets at the time. If the low point is coming from a slow in leisure and/or local passengers, a price drop may be needed to increase passenger volume; however there might not be much opportunity to attract...
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...in the case. What additional information should Doug Santoni collect to decide on a response to Eastern's pricing initiative? In response to Eastern’s pricing initiative, Doug Santoni should collect several bits of information before deciding on an appropriate rejoinder. First, he should know the volume of the passengers that travel along this route, for both American Airlines, and it’s main competitors, Eastern and TWA. This will allow him to make the correct downstream calculations such as changes in revenue, profits/losses, and capacity along the New York-San Juan route. A breakdown of the busiest times/routes (for all airlines, but especially American) would be useful to determine which flights need to be targeted, if any, with a response. Most of the other information Doug should collect relates to the makeup of the passenger types. How many passengers are traveling for business versus pleasure? Knowing this could again help predict capacity and revenue changes. While the makeup is divided fairly evenly into three categories (business, leisure, and locals), what is their specific makeup during the peak and slow seasons? The latter is when Eastern has tended to target with low one-way fares in the past, and it would be good to know who purchases those tickets at the time. If the low point is coming from a slow in leisure and/or local passengers, a price drop may be needed to increase passenger volume; however there might not be much opportunity to attract extra...
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...Term paper in Service Management Revenue Management: does it work for event providers? Contents 1 Introduction 1 2 Theory 1 2.1 Definition 1 2.1.1 Literature Review 2 2.1.2 Working Definition of Revenue Management 3 2.2 Criteria for Applications 3 2.3 Implementation of Revenue Management 5 2.3.1 Objectives for Establishing Prices 5 2.3.2 Pricing Strategy 5 2.4 Methods of Revenue Management 6 2.4.1 Price Discrimination 6 2.4.2 Capacity Control 8 2.4.3 Overbooking 9 2.4.4 Dynamic Pricing 9 3 Case „Theater Hagen“ 10 3.1 Review of the criteria for application 10 3.2 Description of used methods 11 4 Conclusion 13 5 Reference 14 List of figures 1.1 Interdependence between criteria....................................................................4 1.2 Criteria for market segmentation.....................................................................7 1.3 Theatre hall plan...............................................................................................11 1.4 Pricing table......................................................................................................12 Introduction Revenue Management is pioneered by American airlines and is in practice since the “Airline-Deregulation-Act” from 1978. Since this act the airlines are free to set their prices the way they want to. Most of the airlines used this new opportunity to take advantage of their customer’s different levels of price...
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...DISCRETIONARY ACCRUAL Earning manipulation has been an important issue to economists, investors, regulators, and publics because they usually use financial statement to measure company’s performance. There are two possibilities that could be done with revenues. First, increasing the revenues by recording the revenue earlier so it could increase. Second, decreasing the revenues by recording the revenue later so the numbers in financial report could decrease. Costs and expenses could be increased and decreased by relying on discretionary costs (Roychowdury, 2006). In order to make financial report, accrual accounting has been chosen because it is more rational and fair by stating the performance in reality. Financial statement users fascinated in how discretionary accrual should be understood, like how the numbers enhance or lessen the informative of reported earnings. Corporate financial reports use accrual accounting rather than cash accounting because accrual recording costs and benefits incorporate with economic transaction and it uses net income as primary periodic performance. Cash accounting does not record the full transaction of the full economic because it records the production costs, but not the potential cash received. It involves recording transactions when it enters or leaves. The advantages using cash accounting is because the transactions recorded are highly reliable because it has been completed and the amounts are specific. But, the earning measurement...
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...wide-variety of challenges which needs to be addressed with an immediate effect so that there would not be any major impact on the future growth prospects of the organization. Some of the major issues that New York Times facing are plummeting revenues, inability to sustain with business transformation and poor operating cash flow. The major reasons for these challenges are increasing operational costs, reduced print subscriptions, reducing advertising revenue, rapidly changing technologies, changing consumer behaviours, lack of revenue from digital platforms, and poor online financial strategy etc. In order to address these challenges, it is recommended for the organization to follow two business strategies. They are Business Process Reengineering Strategy and Monetizing Digital Platforms. By implementing these strategies, New York Times can see improvement in speed of service provision, operational cost, quality of service and productivity. The paper also suggested a couple of change management models that help New York Times to successfully manage the change. These strategies include Lewin’s 3- Stage Model and Kotler’s 8-Stage Model. Finally, the paper analysed the financial data and concluded that New York Times is performing very poor in terms of revenue generation, cost of sales, return on investment capital etc. when compared to the industry giants such as Gannett Co Inc. Problems Faced by New York Times Plummeting...
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...located? A debit balance of $203,105 million in the consolidated balance sheets reprents the total value of assets with the company. • Discuss Note 1 (accounting policies). What is the company’s revenue recognition principle? The Note 1 (accounting polices) states how the various assets and liabilities of the firm are recognized in the financial statements. Also how company recognizes taxes, costs, payments from suppliers, and the revenue recognizing policies. The Revenue Recognition policy is as follows- o Sales The company recognizes sales revenue, net of sales taxes and estimated sales return at the time it sells merchandize to the customer. o Membership fees The company recognizes the membership fee revenue over the term of the membership, which is typically 12 months. This revenue is recorded under Membership and Other Incomes in the Statement of Incomes. The deferred membership fee is included in accrued liabilities in the Balance Sheet. o Shopping Cards Customer purchased shopping cards is not recognized as revenues until the customer for the purchase of merchandize redeems the card. The management recognizes the amount in the unredeemed shopping cards over shopping card historical usage periods based on historical redemption rates. Management periodically...
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...Marriott family owns about 30% of Marriott International. The top two competitors are Starwood Hotels & Resorts Worldwide, Inc. and Hyatt Hotels Corporation. Starwood Hotels & Resorts Worldwide, Inc. is in the luxury and upscale categories, where the prices are high and the services extensive. They appeal to the most fashionable clientele because the company cultivates celebrities and holds events to attract them. By revenue, Starwood is in the middle, and has the lowest ratio which generates 1/3 of sales from food and beverages. Additionally, the return on equity and return on assets is in the bottom half of the competitor; leaving Marriott to produce 50% more revenue than Starwood. Hyatt Hotels Corporation is a top operator of luxury hotels and resorts that managed, franchised, and owned properties in 45 countries. Its brand offers hospitality services targeted primarily to business travelers and upscale vacationers. The company generates only 33% of the revenues in comparison to Marriott International, Inc. In addition, 60% of the revenues are from hotel operations or leased properties. Benchmark Company Marriott International, INC Founded by J. Willard Marriott and now led by Arne Sorenson, Chief Executive Officer. Marriott is an American hospitality company that manages and franchises lodging operations around the world. As of the year 2012 Marriott International has more than 3,800 properties in over 75 countries and continues to grow....
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...directly linked to an identifiable function. Revenues should be distinguished between program revenues and general revenues. Program revenues are reported in the program or functions section of the statement. General revenues are not directly linked to any program orbfunction and reported in the bottom section of the statement. Program revenues are reported in the charges for services, operating grants and contributions and capital grants and contributions. Extraordinary items, special items, and transfers are reported separately on the government-wide statement of activities. Extraordinary items are both unusual in nature and infrequent in occurrence which is usually beyond the control of management. Special items are either unusual or infrequent and must be within the control of management. Used to account for the general administration and most traditional services of government. The General Fund is used to record the budgetary inflows and outflows estimated or authorized in the annual budget. In the Operating Statement Accounts the Revenues and Other Financing Sources increase fund balance when closed and are recognized on the Modified AccrualExpensive. Expenditures and Other Financing Uses decrease fund balance when closed and are recognized on the Modified Accrual basis. Periodically compare actual revenues to estimated revenues. Use a common classification scheme for revenues and estimated revenues. Estimated Revenues and Revenues are used to control similarly named columns...
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...September 9, 2013 Accounting is the information system which records, summarizes, and reports the underlying economic conditions of an entity. Financial accounting is used to report this information to external parties [managerial accounting is to use this information internally]. Financial statements are management’s report to owners. 3 profit-seeking entities: Sole proprietorship simple to establish, owner controlled Unlimited liability (no legal separation). All profits and losses belong to owner, report income on tax returns. Business ends if owner dies, can sell it. Easy and inexpensive to operate. No reporting requirements. Partnership simple to establish, shared control, broader skills and resources Two or more owner-managers. Want a formal agreement covering $ contributions, workload, withdrawals, decision-making. Each partner’s net income reported on his or her personal tax form. No tax advantage. General Partners: have unlimited liability (person A and B legally connected). Limited Partners: limited involvement, limited liability (LLP at the end of the name). Ends if the partners die or dissolve it, can try to sell your portion. Corporation Easier to transfer ownership, easier to attract investors, no personal liability, tax advantages possible. Separate legal entity from owners. Owners called shareholders. Limited liability. Can only lose investment, not personal assets. Taxed separately from owners:...
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