Finance in Hospitality Industry: Assignment

Finance in Hospitality Industry
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Contents
Task 1...............................................................................................................................................3
Review the sources of funding available for business industries & evaluate the contribution of
various methods in generating income. [P1.1], [P1.2], [M1]..........................................................3
D1. Drawn a suggestion or conclusion about best option of funding resources:............................5
Task 2:.............................................................................................................................................6
Discuss the elements of cost and profit and the role of setting selling prices in the service
business environment using your chosen organization as an example. [P2.1]................................6
[M2, D2] Role of setting selling prices in the service business environment:................................7
B. Evaluate the methods of controlling stock and cash and discuss the cost and benefit of at least
two methods used in your chosen organization. [P2.2]...................................................................8
References:......................................................................................................................................9
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Balaclava Hotel is an international lodging company which operated its business in three phases
related to lodging, restaurants and contract servicing. The hotel management needs to focus on
their investment strategy and available sources of funding to raise its shareholder's values and
profitability. The major aim of preparing this report is to make discussion regarding various
sources of funding for services industries. This report will discuss cost-benefit analysis and
relevant techniques to define the role of setting prices (Harris, 2013).
Task 1
Review the sources of funding available for business industries & evaluate the contribution
of various methods in generating income. [P1.1], [P1.2], [M1]
Availability of sources is needed in business and services industry to generate more income.
Balaclava Hotel needs to focus on increment in funding resources to increase their shareholder
values. Finance is the blood of any hospitality businesses; industry needs money to develop their
business activities such as purchasing capital tools, equipment, lands, and to maintain their costs
on a short and long-term basis.
To generate Funds Company needs to find various options such as internal or external funding
sources:
1. Internal sources:
These are those sources from which company can retain funds from internal management:
Retained earnings: these options are very good for Balaclava Hotel due to this company is
focusing on increasing their values of shares. Retrained earning is the valuable option to
generate funds within the organization. It is the method of collecting finance but not distribute
it among members as part of a dividend.
Raise working capital: these kinds of funds are used to maintain their regular expenses
within the management.
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