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Finance in the Hospitality Industry Assignment

   

Added on  2021-02-19

14 Pages2945 Words34 Views
FINANCE IN THEHOSPITALITY INDUSTRY

INTRODUCTIONFinance in hospitality industry termed out as significant hospitality industry that givesdetails of financial performance and stability. Thus, finance department business functionsincludes mainly planning, organizing, auditing, accounting and controlling the overall firm'sfinance (Clarke, Pockney and Gani, 2019). Thus, financial department within hospitality industryproduces the financial statements of the firm. In this assignment it is described about Holiday Inn, it is hospitality chain that providehospitality services and this is set up at global level. Therefore, purpose of report is to discussvaried source of funding to obtain capital by companies.Furthermore, assignment lay emphasises on activities as sources of funding avail to neworganisation, undertaking evaluation about range of techniques use to generate income withbusiness service and operation. Moreover, study will undertake elements of cost and method ofcontrolling stock in hospitality industry. Lastly, calculation has been undertaken to computeinput per product.1.1 The enterprise mainly needs capital findings that aids to expand business into newmarkets to undertake invest in R&D for undertaking effective functioning within enterprise.Thus, source of funding for hospitality industry defined as- Retained earning- It is an enterprise that makes revenue by selling commodity or service(Ferrer, 2018). Therefore, this is one of the most basic source of funds. This can bedistributed in as dividend to shareholders.Debt capital- It is a type of bank loans and publicly with use of Debt issue. Corporatebond termed out as debt issue. This allows many investors to become payables to firm(Singh and Misra, 2019). Therefore, the interest amount paid on debt is deducted fromtax. Equity capital- An enterprise can raise capital with help of selling part of share toinvestor and it can be called out as equity funding. Therefore, equity shareholder haveright to vote that means the entity can dilutes its ownership control and sell shares.

1.2 The different methods are described below:- Sales promotion- This is defined as pull marketing technique. It is process that termed outas carry likely customer to buy the commodity. It helps in generating profit from sales forshort term. This is defined as method that builds loyalty of customer for long time(Calcagno and Hefner, 2018 ).Sponsorship- This is also vital technique. In this, sponsors are corporate entities thatprovide support within financial service industry. Henceforth, the support can includeproviding underwriting for stock, exchange traded fund offering and mutual fund. Tracking mechanisms- It is defined as tracking system that mainly used to observe personand objects to move and supply about the timely order sequence of location data. Thisdefines the locations and direction of the target on near. LO 2 2.1 The cost of the product and services are broken down into the three main categories aslabour, materials and expenses etc. Thus, this defined as- Elements Explanation using example Material It is defined as cost of materials that used tomanufacture product and service. Henceforth,electricity, fuel and other cost of material areneeded for production (Walker, and Snider,2018). It makes the significant share of totalcost that closely linked with the firm products. Labour This plays an active and direct part in theproduction of particular commodity. It isinclusive of wages, salaries, commission andbonus etc. On the other hand, indirect labourdefined as cost in which things covered assalaries of staff, directors fees etc. Expenses This is classified into categories as direct and

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