Pearson BTEC Hospitality Business and Process Review Assignment

This assignment is a comprehensive review of hospitality business operations, encompassing financial performance analysis, human resources life cycle stages, and performance management strategies. The report delves into key performance indicators (KPIs) like Return on Investment (ROI) to assess financial health, illustrating the application of double-entry bookkeeping to record sales and purchases, and preparing a trial balance. It also examines the HR life cycle, specifically for a front desk manager role, emphasizing talent retention and development. Furthermore, the assignment explores legislation compliance, its impact on business decision-making, and the interrelation of different functional roles within the hospitality sector, along with effective communication and coordination methods to strengthen the value chain. The report provides practical examples and detailed analysis to provide a complete overview of hospitality business management.

HOSPITALITY BUSINESS AND PROCESS REVIEW

Table of contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
Investigating the principles of monitoring and managing financial performance (P1)...............3
Application of double entry bookkeeping system of debits and credits to record sales and
purchases (P2)..............................................................................................................................4
Preparing trial balance applying the use of the balance off rule to complete the ledger (P3). . .13
LO2................................................................................................................................................15
Reviewing different stages of HR life cycle which is applied to a specific hospitality job role
their importance for retaining and developing talent (P4).........................................................15
Developing a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behaviour and overcome issues of staff retention (P5).....18
LO 3...............................................................................................................................................19
Identification of specific legislation that a hospitality organisation has to comply and adhere
(P6).............................................................................................................................................19
Illustrating how company, employment and contract law has a potential impact upon business
decision making in the hospitality industry by using examples (P7).........................................21
LO4................................................................................................................................................23
Exploring how different functional roles within the hospitality sector interrelate (P8)............23
Explanation of different methods of communication, coordination and monitoring applied
within a specific department of a hospitality organization to strengthen the value chain (P9). 25
Conclusion.....................................................................................................................................26
References......................................................................................................................................28
Page 2 of 24

Introduction
In any industry or business operations there are various process which interrelate to each other
and have an importance to the company's overall operation. It is important to understand all of
those individual services and activities, that help an organization to effectively operate as an unit.
Hospitality industry relies majorly on different individual and departmental activities for the
purpose of conducting their operations in a successful manner. Under the hospitality industry
there are various types of business operation which are conducted such as lodging operations,
food and beverage services, event planning, theme parks, transportations, cruise lining, travelling
and other assistance. All of these stated activities within the hospitality sector require high
amount of individual expertise which combine and form an operational unit for the firm's
operational activities. Through the use of effective combination or coordination of each process a
company can deliver quality product and service to the customer within this industry. Hence in
this assessment, there will be discussion over such aspects which will include financial, human
resources and operational procedures within a successful business of a Hospitality firm.
LO1
Investigating the principles of monitoring and managing financial performance (P1)
Use of financial indicators such as Key Performance Indicators is very important in order to
monitor financial performance of the company. Return On investment is one of the effective
financial indicators which shows the profitability of operational activities, which has been
conducted within the organization. In the current expansionary process of the hotel the return on
investment will be measured by using the revenue which will be and is incurred by the company
in annual basis. The Current KPI which has been set for the ROI for the investment of 500000 is
9 to 10% of the investment, which will mean revenue of 45000 to 50000 is projected. Meeting to
this criteria, it will mean that the company has met the financial requirement if expansion
process.
Page 3 of 24

Application of double entry bookkeeping system of debits and credits to record sales and
purchases (P2)
Journal Entries
Date Particulars Debit Credit
01-02-
2018
Purchases A/c ...Dr £
34,553.00
To new food supplier £
5,001.00
To long-running drinks supplier £
29,552.00
(Being food and drink purchased from food and drink
supplier on credit)
03-02-
2018
Cash A/c....Dr £
13,027.00
To sales of beverages £
11,203.00
To sales of Food £
1,824.00
(Being food and drink sold at end of week one)
10-02- Cash A/c....Dr £
Page 4 of 24

2018 10,653.00
To sales of beverages £
8,966.00
To sales of Food £
1,687.00
(Being food and drink sold at end of week two)
14-02-
2018
Bank A/c....Dr £
2,008.00
To private room hire and catering service £
2,008.00
(Being private room hire and catering service paid in full
by debit card)
17-02-
2018
Cash A/c....Dr £
13,321.00
To sales of beverages £
11,710.00
To sales of Food £
1,611.00
(Being food and drink sold at end of week three)
24-02-
2019
Cash A/c....Dr £
12,329.00
Page 5 of 24

To sales of beverages £
10,614.00
To sales of Food £
1,715.00
(Being food and drink sold at end of week four)
Dr Cash A/c Cr
Date Particulars Amou
nt
Date Particular Amou
nt
03-
02-
2018
Sales In week one £
13,02
7.00
28-02-
2018
Balance C/d £
49,33
0.00
10-
02-
2018
Sales in week two £
10,65
3.00
17-
20-
2018
Sales in week three £
13,32
1.00
24-
02-
Sales in week four £
12,32
Page 6 of 24

2018 9.00
Total £
49,33
0.00
Total £
49,33
0.00
Dr Sales A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
28-
02-
2018
Balance Cd £
49,33
0.00
03-02-
2018
Cash A/c £
13,02
7.00
10-02-
2018
Cash A/c £
10,65
3.00
17-20-
2018
Cash A/c £
13,32
1.00
Page 7 of 24

24-02-
2018
Cash A/c £
12,32
9.00
Total £
49,33
0.00
Total £
49,33
0.00
Dr Purchase A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
01-
02-
2018
New food supplier £
5,001.
00
28-02-
2018
Balance C/d £
34,55
3.00
01-
02-
2018
Long-running drinks supplier £
29,55
2.00
Page 8 of 24

Total £
34,55
3.00
Total £
34,55
3.00
Dr New food supplier A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
28-
02-
2018
Balance C/d £
5,001.
00
01-02-
2018
Purchase A/c £
5,001.
00
Total £
5,001.
00
Total £
5,001.
00
Dr Long-running drinks supplier A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
Page 9 of 24

28-
02-
2018
Balance C/d £
29,55
2.00
01-02-
2018
Purchase A/c £
29,55
2.00
Total £
29,55
2.00
Total £
29,55
2.00
Dr Bank A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
14-
02-
2018
To private room hire and catering
service
£
2,008.
00
28-02-
2019
Balance C/d £
2,008.
00
Dr private room hire and catering service A/c Cr
Date Particulars Amou
nt
Date Particular
Amou
nt
Page 10 of 24

14-
02-
2018
To balance c/d £
2,008.
00
28-02-
2019
Bank A/c £
2,008.
00
Preparing trial balance applying the use of the balance off rule to complete the ledger (P3)
Trial Balance
Particular Debit Credit
Cash A/C £
49,330.00
Bank A/c £
2,008.00
Sales A/c £
49,330.00
Purchases A/c £
Page 11 of 24

34,553.00
New food supplier A/c £
5,001.00
Long-running drinks supplier A/c £
29,552.00
Private room hire and catering service
A/c
£
2,008.00
Grand Total £
85,891.00
£
85,891.00
The trial balance above shows the sale or revenue of the company which amounts to 49330, lies
between the required ROI percentages. Adhering to the values, we can say the financial plan for
expansion is viable.
Page 12 of 24