Premium Essay

Unit 2: Finance in the Hospitality Industry


Submitted By dheeraj286
Words 835
Pages 4
Get assignment help for this unit at

LO1 Understand sources of funding and income generation for business and services industries Funding: sources eg retained profits, loans, banks, investors, small business schemes, franchise, hire purchase, sponsorship, lease schemes, creditors, debt factoring Income generation: methods eg sales, commission, sub-letting, sponsorship, grants, tracking mechanisms

LO2 Understand business in terms of the elements of cost Elements of cost sales; materials; consumables; labour; overheads; capital; gross and net profits; discount costing Selling prices: product and service costing; formula to achieve a specific gross profit percentage; differential gross/net profit margins; marginal costing; effect of competition; freelance; commission; peak/off-peak trading Control of stock and cash: methods eg storage, purchasing, cash, security, reconciliation, stock-taking Taxation: income tax; Value Added Tax (VAT); corporation tax; schedules; rates; personal/capital allowances; post-tax profits, implications

LO3 Be able to evaluate business accounts Trial balance: source; structure eg summary of accounts from sales, purchase and nominal ledgers Final accounts: types eg sole trader, partnerships, limited company, trading account, profit and loss account, balance sheet, adjustments for depreciation, accruals, prepayments, bad debt provision; format eg vertical, double-entry, appropriation account; assets/liabilities eg capital, fixed, current, notes to accounts Profit and cash budgets: purpose; types eg profit, cash flow, operating, master; variance analysis to include sales (volume and average spend), cost variances (raw material, labour, overhead), profit variances (gross and net)

LO4 Be able to analyse business performance by the application of ratios

Similar Documents

Premium Essay

Unit 1: the Contemporary Hospitality Industry

...UNIT 1: THE CONTEMPORARY HOSPITALITY INDUSTRY Get assignment help for this unit at LO1 Understand the current structure of the hospitality industry Hospitality industry: hotels; restaurants; pubs, bars and nightclubs; contract food service providers; hospitality services; membership clubs and events; brands and businesses Scale and scope: size; types of ownership; turnover; percentage of Gross Domestic Product (GDP); purchasing power Diversity: products and services eg food, drink, accommodation, conference and banqueting, leisure facilities; levels of service; customer base Organisational structure: operational areas eg food preparation, food and beverage services, accommodation services, front of house services; functional eg human resources, finance, marketing, research and development, security, maintenance Hospitality-related organisations and professional bodies: as current at time of delivery, to include People 1st, British Hospitality Association, Institute of Hospitality, British Institute of Innkeepers, Springboard UK LO 2 Understand staffing in the hospitality industry Staff types: functional specialists; operational; craft; skilled/semi-skilled/unskilled; supervisory; management; apprentices; management trainees; full time/part-time; casual; agency; foreign workers; volunteers Hospitality industry: hotels; restaurants; pubs, bars and nightclubs; contract food service providers; hospitality services; membership clubs and events Structures:...

Words: 1081 - Pages: 5

Premium Essay

Finance in the Hospitality Industry

...Unit 2: Finance in the Hospitality Industry AB205H2 Mont Rose College TASK 1 ACT 1.1 Review sources of funding available to business and services industries AC 1.2 evaluates the contribution made by a range of methods of generating income within a given business and services operation. * A review of the sources of funding available to business and service industries (AC 1.1) * An evaluation of the contribution made by various methods of generating income for a large chain restaurant. (AC 1.2) You are in a small business as a sole trader. You wish to purchase some new machinery costing £50,000. Capital expenditure may be financed by a variety of external sources (as well as internal). Capital investment appraisal is an important decision-making function. The selection of a particular project and the most appropriate means of financial it is difficult decisions to make. As a senior manager you will receive some expert advice on what you can do. Ultimately, the final decision will be one for you * Review of the sources of funding available to business and service industries (1.1.) * Evaluation of the contribution made by various methods of generating income for a large chain of restaurants. (1.2) Unit 2: Finance in the Hospitality Industry AB205H2 Mont Rose College TASK 2 AC2.1 discuss elements of cost, gross profit percentage and selling prices for products and services AC2.2 evaluate methods of controlling stock and cash in a business and services environment...

Words: 1551 - Pages: 7

Premium Essay

Unit 12: Hospitality Operations Management

...UNIT 12: HOSPITALITY OPERATIONS MANAGEMENT Get assignment help for this unit at LO1 Understand the operational and economic characteristics of hospitality operations Nature of hospitality products and services: product and service areas eg food and beverages, rooms division, conference and banqueting; tangible and intangible elements; perishability; marketing and sales; plant; equipment; supplies and commodities Patterns of demand: patterns eg opening hours, seasonality, time of day/week, sociological influences, healthy eating and drinking patterns, food and fashion trends, accommodation trends, cultural, regional and ethnic influences, pricing and economic factors, elasticity of demand Customer profile: characteristics eg spending power, types of hospitality business, menu/accommodation range, pricing considerations, expectations and requirements, the meal experience Management issues: issues eg integrated planning and resourcing, business and operational plans, staffing, finance, decision-making (gathering information and data, analysing and evaluating data, reaching decisions, forecasting), operating procedures and systems, control systems, technical and procedural standards, service standards, quality systems, team working and team leading, scheduling, training LO2 Understand product development within hospitality environments Stages in product development: stages to include market research, market segmentation, idea evaluation, concept development...

Words: 1150 - Pages: 5

Premium Essay

Mba Questions

...Written Exam: 70 Internal Assessment: 30 Time: 3 Hours Project Economics and Management Paper Code: 3.1 Unit-1 Concepts of projects; project identification; formulation, analysis, risk, planning, design, report and appraisal; location of an enterprise; factory design and layout. Unit-II Understanding financial analysis; ratio analysis; fund flow analysis; breakeven analysis; social cost-benefit analysis; budgeting and planning process. Unit-III Sources of development finance; institutional finance to entrepreneurs; working capital management; incentives and subsidies; policies governing entrepreneurship; role of a consultancy organization. Unit-IV A review of project performance; post evaluation approach; community participation in projects; SWOT analysis; managing risk and exposure. Suggested Readings: 1. 2. 3. 4. Note: 1. 2. Four case studies will be discussed in a paper by the concerned teacher in the class. Instructions for External Examiner: The question paper will have two sections. Section ‘A’ shall comprise eight questions (two questions from each unit). The candidates will be required to attempt four questions (selecting one question from each unit). Section ‘B’ will contain one CASE STUDY which will be compulsory. All five questions will carry equal marks. Chandra, P., Project Planning Analysis, Selection, Implementation and Review, Tata McGraw Hill, New Delhi. Hedemey, J.W., Control and Management of Capital Projects, John Wiley, New York. Wysocki, R.K., R. Bick...

Words: 6873 - Pages: 28

Premium Essay

Finance in the Hospitality Industry

...Finance in the Hospitality Industry TASK 1: Sources of Finance and costs Sources of funds are very important to decide management decisions as well as long term strategies of any organisation. As per the Sharan (2005, pp. 210-218) following funding methods should be noted. Retain Profits. Increasing the revenue and reducing the cost this can be increased in a systematic manner. Bank Loans. It is advisable to go for a loan under lower interest rate. Because if the loan interest rate is higher than the company's return on investment, then it will cause liquidity problems in the future. Bank Overdraft facility This is subject to higher interest rate and recommended only for a limited time period. Issuing share to the public Ordinary shares less cost to the organisation but more power has been given to them. But preference share has less controls over the company but subject to a higher cost to the organisation since they have to pay pre-determined dividends on time. Franchise option. This is recommended to expand the business chain with an association with medium scale merchants to promote company's products and goodwill. Hire purchase schemes This also important to manage the cash flow situations of the organisation without investing higher capital for equipment’s & plants. Lease Schemes This also important if the company have not greater funds to invest for their assets. But this is subject to higher interest cost. Credit purchases This is important...

Words: 2183 - Pages: 9

Premium Essay

Unit 8: Marketing in Hospitality

...UNIT 8: MARKETING IN HOSPITALITY Get assignment help for this unit at LO1 Understand the concepts of marketing in a services industry context Core concepts: definition of marketing, customer needs, wants and demands, product and services markets, value, customer satisfaction/retention, quality, cost/benefits, efficiency/effectiveness, profitability, the growth of consumerism, strategic/tactical marketing, reasons for growth, marketing as a business philosophy, relationship marketing, changing emphasis of marketing Marketing environment: micro environment of the company; stakeholders eg suppliers, intermediaries, owners, financiers, customers, competitors, local residents, pressure groups; macro environment demographics eg economy, society, ecology, technology, politics, legal, culture; strengths, weaknesses, opportunities and threats (SWOT) analysis; political, economic, social, technical (PEST) analysis; Porter’s competitive forces Consumer markets: central role of the customer, customer culture, models and types of behaviour, consumer orientation (internal and external), competitor orientation, decision process, value chain, value and satisfaction, long-term relationships Market segmentation: principles of segmentation, targeting and positioning, segmentation bases eg geographic, demographic, behavioural, lifecycle stage, income, gender Ethics and social responsibility: sustainability, social audit, public relations, legal and regulatory considerations...

Words: 1047 - Pages: 5

Premium Essay

Costing Techniques Discussion

...TAFAWA BALEWA UNIVERSITY BAUCHI, SCHOOL OF MANAGEMENT TECHNOLOGY DEPARTMENT OF ACCOUNTING AND FINANCE. COURSE TITTLE: COST ACCOUNTING (BAT 212) ASSIGNMENT QUESTION:- WITH A CASE STUDY, DISCUSS THE IMPORTANCE AND APPLICATION OF COSTING TECHNIQUES IN HOSPITALITY INDUSTRY IN NIGERIA? (CASE STUDY OF YANKARI MASS TRANSIT CORPORATION) By Nwankwo Stephen c. TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 Background of the assignment 1.2 Purpose/objectives of the assignment 1.3 Definition of the term 1.4 Historical background of the case study ABSTRACT The aim of the assignment is to find out the importance of using costing techniques such as operating costing, standard costing, direct costing, absorption costing etc. in one of the sub-sector of Nigerian economy(hospitality). And also to identify the techniques adopted by the hospitality industry and it’s important to the organization. INTRODUCTION 1.1 BACKGROUND OF THE ASSIGNMENT The hospitality industry is a broad category of fields within the service industry that include lodging, transportation, and additional fields within the tourism industry. Since the introduction of money, people have been concerned with cost. They think of how to manage money. Costing system was first recognized in manufacturing industries with the aim of finding the cost of production or cost of a product, presently, the system is...

Words: 1888 - Pages: 8

Premium Essay

Hnd Student of Hospitality and Tourism Management

...Chapter 1 1.0. Available Sources of Funding to Hospitality Industries Introduction: Hospitality industry in UK has got problems from securing funds through banks which is supposed to be reliable source of business funding. This fact has made it necessary to look beyond banks to assists with the growth of the business. HOSPACE 2013. Ben McClure, 2015 says “it is necessary that hospitality industry considers only financial funding that will not lead the business into future problems”. As if the industry does not utilize the money it borrows judiciously, it might affect its growth prospects. The actual funding sources for UK hospitality industries are hereby critically looked into; with pros and cons of the sources. 1.1 Sources of Funding available to Hospitality Industries: There are two main sources of funding which are generally available to hospitality industries especially chains of restaurants and hotels. These are the internal and external sources. The internal sources are those that can be sources through the business owner, borrowing from relatives and the retained earnings. Before embark in a business, there could be a saving by the owner to start and run the business with little or no risk. There is tendency to borrow fund from family and friends under mutual understanding whose repayment may not attract interests and with low risks. However, in case the business fails, it may tarnish the cordial relationship. It can as well leads to unnecessary interference...

Words: 4830 - Pages: 20

Premium Essay

Mba Syllabus

...Management Economics for Managers Managerial Statistics Managerial Skills (Practical) Semester-II Financial Management Management Information System Marketing Human Resource Management Production And Operation Management Legal Aspects of Business Semester- III Summer Internship (8 weeks)(Practical) Entrepreneurship Strategic Management Business Analytics (Practical) Elective-1 Elective-2 Elective-3 Elective-4 Semester- IV Elective-5 Elective-6 Industrial Elective (Practical) Total Credit L 0 2 3 2 2 0 T 0 4 0 2 4 0 P 4 0 0 0 0 6 C 2 4 3 3 4 3 19 4 3 4 2 4 3 20 2 3 3 2 3 3 3 3 22 3 3 5 11 72 MB 13207 MB 13208 MB 13209 MB 13210 MB 13211 MB 13212 MB 13313 MB 13314 MB 13315 MB 13316 2 2 3 2 3 2 0 2 2 0 2 2 2 2 2 2 0 4 2 2 0 2 2 0 2 2 0 2 2 2 2 2 2 0 0 0 0 0 0 0 4 0 0 4 0 0 0 0 0 0 10 MB 13417 Functional Electives Marketing Finance Systems Human Resource Operations Vertical Electives Pharma Hospitality Enterprise Resource Planning Agriculture Hospital and Health Care Retailing Auto Industry Project Management Media and Communication Banking Financial Service Insurance   2 MB 13FM01 MB 13FM02 MB 13FM03 MB 13FM04 MB 13FM05 MB 13FM06 MB 13FM07 MB 13FM08 MB 13FM09 MB 13FM10 MB 13FM11 MB 13FM12 MB 13FM13 MB 13HR01 MB 13HR02 MB 13HR03 MB 13HR04 MB 13HR05 MB 13HR06 MB 13HR07 MB 13HR08 MB 13HR09 MB 13HR10 MB 13MM01 MB 13MM02 MB 13MM03 MB 13MM04 MB 13MM05 MB 13MM06 MB 13MM07 MB 13MM08 MB 13MM09 MB 13MM10 MB 13MM11 MB 13MM12 MB 13MM13   MBA- FUNCTIONAL...

Words: 53231 - Pages: 213

Free Essay


...South African hospitality outlook: 2013-2017 (featuring analysis of Nigeria and Mauritius) 3rd annual edition June 2013 Destination Africa The information contained in this publication is provided for general information purposes only, and does not constitute the provision of legal or professional advice in any way. Before making any decision or taking any action, a professional adviser should be consulted. No responsibility for loss to any person acting or refraining from action as a result of any material in this publication can be accepted by the author, copyright owner or publisher. Destination Africa South African hospitality outlook: 2013-2017 PwC Third South African edition PwC’s team of hospitality specialists provide an unbiased overview of how the hospitality industry in South Africa is expected to develop over the coming years. The publication focuses on the following major industry segments: hotels, guest houses and farms, caravan/ camping sites, bush lodges and other accommodation. It details the key trends observed and challenges facing these sectors as well as considering their future prospects. South African hospitality outlook: 20132017 demonstrates deep knowledge of the local hospitality market and is a powerful tool for understanding critical business issues. To learn more about the challenges and opportunities that lie ahead for the hospitality industry in South Africa, please visit

Words: 19158 - Pages: 77

Premium Essay

Dlf Strategic Analysis

...STRATEGIC ANALYSIS OF DLF DLF INDIA PRIVATE LIMITED DLF INDIA PRIVATE LIMITED INTRODUCTION: DLF Limited (Delhi Land & Finance) is the largest commercial real estate developer in India. It was founded by Raghuvendra Singh in 1946 and is based in New Delhi, India. The company operates through three reportable segments, namely, residential, commercial, and retail. It is associated with the development of residential, commercial and retail properties. The company caters to three segments of the residential market - Super Luxury, Luxury and Mid-Income. The Annuity business of the company comprises mainly of rental businesses of offices and retail. The company is headed by Indian billionaire Kushal Pal Singh. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, was the 98th richest man in the world and the world's richest property developer. The company's US$ 2 billion IPO in July, 2007 was India's biggest IPO in history. In its first quarter results for the period ending 30 June 2007, the company reported a turnover of Rs. 3,120.98 Crore and profits after taxes of Rs. 1,515.48 Crore. VISION MISSION AND VALUES DLF Vision To contribute significantly to building the new India and become the world’s most valuable real estate company. DLF Mission To build world-class real-estate concepts across six business lines with the highest standards of professionalism, ethics, quality and customer service. DLF Values    Sustained efforts to...

Words: 2244 - Pages: 9

Free Essay

Tae Kag Nawong

...Smaller Famillies Having a smaller family is a springboard for giving future generations the chance of greater prosperity. A small family gets the advantages of a quieter home, cleaner home and possibly more money to spend on holidays. It's also not a struggle to bring your family of one or 0two children to the shops or a restaurant or even holidays. However a small family gets the disadvantage of a lonely child. Big families are more fun and usually a bit more daring and adventurous. Children from small families are often more spoilt than children from a bigger family, especially if you have one child. They might find it harder to make friends, share and socialize. A bigger family gets the advantage of children that are never lonely and have had to share and make friends easily. Big families often have more fun and an excuse to get out more. Children from a big family appreciate their siblings when they are older more then they would when they are younger. However a big family gets the disadvantage of less attention. This might make them frustrated or upset. Siblings don't always get along as well, It can be a pain trying to bring your family down to the shop, cinema and especially a fancy restaurant. There are some very clear benefits to having a small family; * Each child receives more parental attention and educational advantages, which generally raise her self-esteem. * Children in small families, especially first and only children, tend to have higher school and personal...

Words: 1008 - Pages: 5

Premium Essay

Introduction to Organisational Behaviour

...Table of Contents Number | Title | Page | 1 | Introduction | 2 | 2 | Case Study | 4 | 3 | Recommendations | 7 | 4 | Conclusion | 9 | 5 | References | 10 | Introduction The relationship and collaborations between a business, and also identifying how the chain of command runs through the different stages are defined by the organization structure. An organization normally will set up their company’s structure based on their own organizational function. Function and structure influence each other, even though the company does not apply it in their organization. That is why most of the companies are known as adopt functional structure in their organization. Specific functions are performed for this kind of groups of individuals in a structure. The function of a department will be different; this is because the employee will be separated based on their specialization. So that, each department managers are responsible to report their department’s performance to someone in higher position than them. There are common departments such as accounting, marketing, human resources and purchasing which are organized separately and this may the managers to manage their department independently. Character The characteristics of the functional structure known as deeper development of employees’ skills. The changes based on the surroundings or technology wise is known as slow. The level of the innovation is low and there is a limited view of organizational goals. Other than that...

Words: 2451 - Pages: 10

Premium Essay

Marriott Strateg Management

...profitable, honorable and first choice hospitality service providers in the world Mission and Vision Marriott’s mission and vision endeavor to offer the highest quality and service standard in the hospitality industry with magnificent lodging facilities, leading technology, sophisticate management and enthusiastic servicing team to achieve complete customer satisfaction. Our hospitality management service strive to sustain ongoing business growth and financial strengths in order to maximize every stakeholder’s interests and provide endless contribution back to the community, through service diversification and enduring global expansion. Executive Summary This report analyzes the current strategies of Marriott International and based on the given and researched information to develop a number of recommended future strategies in order to sustain the growth of the corporation. I believe that Marriott has a good chance for success even through the market is highly competitive. Marriott can successful by developing market to Asia Pacific and using the two recommendations that have been discussed, whilst being backed up throughout with the core competency of marketing. I believe that the multi-brand and product advantage can be achieved despite other hotel corporation to penetrate any market for a period of time. As the leading hospitality corporation develop over 13 multi-brand products in serving various customer needs that no other hospitality group has. However, this advantage...

Words: 3135 - Pages: 13

Premium Essay

Mcs in Hospitality Industry

...Management Control Systems in the Hospitality Industry Supervisor: Per-Magnus Andersson Authors: Richard G. Sicari Fredrik J. Söderlund i Abstract Title: Seminar Date: Course: Authors: Advisor: Key Words: The Use of Management Control Systems in the Hospitality Industry 2011-06-01 BUSP02: Master Thesis in Accounting and Management Control Richard G. Sicari and Fredrik J. Söderlund Per-Magnus Andersson Hospitality Industry, Management Control Systems, Performance Measurement, Contingency Approach, Multiple Case Study The purpose of the thesis is to describe and analyze the use of management control systems in the hospitality industry. Purpose: Methodology: The study is mainly a descriptive, multiple case study based on deductive reasoning. However, explanatory elements occur. The nature of the study is to a large extent qualitative and is primarily based on interviews and analysis of current management control tools. The analytical strategy includes pattern matching, explanation building and cross-case synthesis. Theoretical Perspectives: The main text editions included are Anthony and Govindarajan (2003 & 2007), Lindvall (2001), Merchant and Van der Stede (2007) and Samuelsson (2004). Furthermore, the use of management control systems in the hospitality industry is examined using literature such as Harris (1995), as well as other articles. Empirical Foundation: There are four units of analysis included in this study: (1) BrewPub København; (2) Färs & Frosta Sparbank Arena;...

Words: 36462 - Pages: 146