Mandarin Oriental Hotel: Accounting System and Decision Making

This dissertation examines the favorable and unfavorable impacts of accounting systems on the decision-making process within the Mandarin Oriental Hotel. It explores the meaning and purpose of accounting, its requirements in decision-making, and the barriers encountered in strategic planning. The study investigates the advantages and disadvantages of management accounting in the hospitality industry, aiming to identify effective methods for financial disclosures. The research includes a literature review, detailed research methodology, data analysis, and conclusions, offering insights into how accounting systems influence operational efficiency, financial performance, and strategic planning within the hospitality sector. The dissertation's structure encompasses an introduction, literature review, research methodology, data analysis, and recommendations, providing a comprehensive analysis of the subject.

DISSERTATION

Table of Contents
INTRODUCTION...........................................................................................................................1
Research Aim.........................................................................................................................2
Research Objective.................................................................................................................2
Research Questions................................................................................................................2
Rationale of the study.............................................................................................................2
Significance of the study........................................................................................................3
Research Structure..................................................................................................................3
LITERATURE REVIEW................................................................................................................4
Introduction............................................................................................................................4
Meaning and concept of accounting.......................................................................................4
Purpose of accounting within organisation............................................................................5
Requirement of accountancy in the decision making process................................................6
Barriers and factors which influence the decision making process and strategic planning. . .7
Advantages and disadvantages of management accounting in the hospitality industry.........8
Research Methodology..................................................................................................................10
Data Analysis and interpretation....................................................................................................15
Introduction..........................................................................................................................15
CONCLUSION AND RECOMMENDATION.............................................................................25
REFERENCES..............................................................................................................................28

INTRODUCTION
Management accounting is extremely basic piece of the business association through
which different choice identified with business check take like allotment of back and finances,
day by day activities and so forth. Significantly it used to break down business budgetary data
and to get ready for future necessity and target of element. In a basic word one might say that
management accounting is a procedure of dissecting, deciphering and analysing the bookkeeping
data assemble with help of money related bookkeeping. Management accounting aid outline a
methodical arranging of the business capacities and exercises. Management accounting and it is
very required for organization with a specific end goal to meet goal (Giri and Sharma, 2014). By
considering arranging, coordinating, inspiring, breaking down and revealing Management
accounting can take the significant choice of business. With help of this framework, speciality
unit can ready to set up the cost report and monetary articulation which helps in deal with the
money related record and investigate the budgetary execution of the association it is a procedure
of examination, elucidation, examination of bookkeeping data which can estimated by planning
of money related bookkeeping, report and explanations. Management accounting is an orderly
procedure of getting ready administration reports, accounts, monetary explanations which helps
with dissecting, deciphering and analysing of money related data of the association. With help of
these report and articulations of record, organization can undoubtedly take the applicable choice
about the portion of store, dealing with the hazard, day by day activity related choice and so on.
management accounting is a calling that includes banding together in administration basic
leadership, contriving arranging and execution administration framework, and giving mastery in
monetary detailing and control to help administration in the plan and usage of the business
methodology.
In the hospitality sector, there is a huge role of management accounting and its several
systems in the decision making process within the Hospitality sector. Accounting system helps to
business entity in managing the income and outcome. The profitability and loss of the business
can easily measure with help of accounting systems. The current dissertation have main aim is to
identify the favourable and unfavourable impact of accounting system in the decision making
process of Mandarin oriented hotel. Mandarin Oriental Hotel was built up in the 1876 at
Bangkok by the two America residents, for example, Captain Atkins Dyer and William West.
From that point, the business has one of a kind development which speaks to that they have
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turned into the most mainstream lodging network on the planet and have different branches in
America, Asia and Europe. At present the firm is having in excess of 80 million USD income
consistently with the most productive workforces.
With help of current research study researcher can gain the detail knowledge and
understanding about accounting techniques and systems and its significance within the
hospitality sector. In addition to this, various benefits and advantages of the accounting system
within the hospitality sector.
Research Aim
To analyse the favourable and unfavourable impacts of accounting system in decision
making process of Mandarin Oriental Hotel.
Research Objective
1. To identify the main purpose of accounting in hospitality sector.
2. To analyse the requirement of accounting in decision making process.
3. To determine the loopholes and barriers incurred while strategic planning.
4. To suggest the most effective method of disclosures of financial accounts.
Research Questions
The questions which will be helpful in carrying an effective research are as follows:
1. What will be effective purpose of accountancy in hospitality sector?
2. What are the essential requirements of accounting techniques in hospitality firms?
3. What are the main barriers and factors which influence the decision making process and
strategic planning?
4. How recommendations will have effects over having the adequate disclosure of financial
data set of a firm?
Rationale of the study
In the current research study, researcher have main aim is to analyse the favourable and
unfavourable impacts of accounting system in decision making process of Mandarin Oriental
Hotel. At the time of selecting research topic, there are several factors that have affected the
choice and perception of researcher. It is broke down that Mandarin Oriental Hotel has poor
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operational execution, bring down deals and income age every year. Consequently, it will be
required that there is need better operational execution which will e accommodating as far as
upgrading the execution of association However, such issues emerge due to unseemly
ramifications of bookkeeping methods for choosing the development and operational expenses.
In such manner one might say that there is need ramifications of bookkeeping instruments and
systems which will decide the income and costs and in addition costs acquired in every bit of
work.
In order to improve the performance of business and operation within the Mandarin
Oriental Hotel, researcher have selected accounting system and its impact on business decision
making. Another major reason for selecting this research topic is that scholar wanted to discover
the detail knowledge and understanding about the advantages and disadvantages of accounting
system and techniques in the hospitality firm.
Significance of the study
The present research study provides the detail knowledge and understanding about the
purpose of accountancy system and application that can useful within the hospitality sector. With
assistance of this study, any company within the hospitality sector can gain identify requirements
of accounting techniques in hospitality firms and major factors and barriers that can influence the
decision making process and strategic planning.
Research Structure
There are several chapters in the research study that assists to researcher in divide whole
investigation into the several parts. Following are systematic structure of chapters-
Chapter 1 Introduction- In this chapter, researcher discussed the aim and objective of research.
In this present study, researcher have discussed the background of the study regarding the subject
of accounting system and its impact in business decision making.
Chapter 2 Literature review-This is very crucial chapter in the dissertation that provides the
detail knowledge and understanding about the subject. Various authors perceptions and views
regarding the subject have discussed in this chapter.
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Chapter 3 Research Methodology- This is also very crucial chapter which included several
techniques of research methodology. With help of these techniques, scholar can address the
solution of research problem.
Chapter 4 Data analysis- This chapter assists to researcher in analysing and assessing
information which have collected in the data collection part. With help of this chapter, scholar
can analyse the information and find out the solution of research issue.
Chapter 5 Recommendation- In this chapter overall summary and conclusion has been included
regarding investigation. Researcher have discussed about the outcome of subject.
LITERATURE REVIEW
Introduction
Once the introduction section accomplish by researcher then the next chapter is literature
review. This chapter is very significant within the entire research study by which scholar can get
idea and understanding about the subject and break down entire part in different themes. In each
themes, authors views and perception includes which provide deep knowledge about subject. In
the present research study, researcher have main aim is to analyse the favourable and
unfavourable impacts of accounting system in decision making process of Mandarin Oriental
Hotel Thus for address this objective, scholar have developed several themes which are discus
below-
Meaning and concept of accounting
In the perspective of Daskalakis, Devanur and Weinberg, (2015) management accounting
is an electronic application which gathers the information from more extensive arrangement of
activities like deals, cost of material, work, stock and different process to detail the report of
business. With help of this management accounting framework, organization can ready to
investigate its money related condition and conjecture the future income. With help of this
perspective, organization can create yearly report for every single money related action.
Moreover, it gives a definite and disaggregated data about items, singular exercises, division
plants, tasks and task. The significant target of using assortment of administrations is to destroy
its current costs and cost which thus of decline the general benefit in the business endeavor. With
regards to management accounting, factual systems are additionally utilized by firm to anticipate
its current benefit and misfortune from assortment of assets.
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In an organisation, with help of several methods and techniques of management
accounting, company can easily analyse the condition of revenue and loss within business. The
major purpose of management accounting is that corporation manager can take effective business
decision and develop future planning and forecast the future results.
Purpose of accounting within organisation
According to the view of Brown and et.al., (2016) management accounting is vital angle
for each business association through which it can keep up back and taking important choice
about the business exercises and capacity. Management accounting is an orderly procedure of
getting ready administration reports, accounts, monetary articulations which helps with
dissecting, translating and inspecting of money related data of the association. With help of these
report and articulations of record, organization can without much of a stretch take the significant
choice about the portion of store, dealing with the hazard, day by day task related choice and so
forth. Parity scorecard is a successful approach under which there is administration frameworks
vital arranging that are major utilized by the legislature, non-benefit association, industry and
business. This approach of management accounting help with upgrading the outside and inside
correspondence. In the opinion of Beatty and Liao, (2014) the major objective and purpose of
management accounting is to presentation of information and data. The content of profit and loss
account and balance sheet are modified and rearranged in such a manner that aid the
management for taking decision through various techniques. In the management accounting,
there are various techniques and methods such as profit and loss account, balance sheet etc
through which manager of account and finance department can represent information on the
tables of profit and loss account and balance sheet in order to take the decision of business. In the
opinion of Epstein and Lee, 2007) the financial accounting information is modified according to
the management expectations. With help of management accounting, manager of finance and
account can manage and modified data. In the contradicting view Harris and West,(1997) stated
that forecasting is another objective and purpose of accounting within the organisation through
which manager can forecast the future requirement of business. The management can forecast
the achievement of objectives for short term and long term. The accountant provides necessary
information and data for forecasting. On the basis of collected information regarding the
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accounts and finance, manager of finance can easily forecast the future requirement of the
business.
Requirement of accountancy in the decision making process
As per the perspective of Ax and Greve, (2016) With help of management accounting,
director of the c association can break down and translate the past execution keeping in mind the
end goal to create successful arranging that is fetched cutting, estimating choice and other
pertinent choices of the business. Data which are served by the management accounting data
framework helps in performing pertinent cost investigation. With help of management
accounting, organization can ready to take the choice identified with the particular sort of item
and administrations generation and assembling exercises. It helps with taking the choice
identified with promoting endeavors and plan. Management accounting data renders an efficient
investigation of information by utilization of different apparatuses, for example, planning, money
related explanation projection and adjust scorecards. With help if this management accounting
framework organization can take the choice identified with business exercises and capacity in the
current as we;ll as future business. Management accounting framework additionally aids
anticipate income and the effect of income on the business. It helps with distinguishing that from
where will its income originate from and will the income increment and lessening later on. In the
organization chief can distinguish the future required assets and extent of venture with help of
management accounting framework. They can figure the future income and take the choice
identified with future venture, portion of reserve inside business exercises by help of existing
bookkeeping information. With help of this management accounting framework, organization
can ready to break down its budgetary condition and estimate the future income. It helps in
character the different data about the benefit and loss of business and as per management
accounting data organization can be to take the choice identified with business exercises and
capacity. In the opinion of Brewer, (2013) management accounting assists to the manager within
the company in order to take business decision in effective and efficient manner. Management
accounting involves the planning, controlling and handling operational activities and functions
that assists in develop and take effective decision of the business. In this aspect includes financial
and non financial information that assists to manager within the company for take effective and
appropriate decision of business.
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According to the view of Dung, (2016) Basic leadership is one of the basic piece of
business, if organization can settle on cool headed choices then it can help in enhancing its
execution. For taking inward and additionally outside sort of the business choices there are
administration and budgetary bookkeeping both are truly outstanding and profoundly
accommodating for association. To take choices there are present and future informations are
important to distinguish and figure out which are finished by utilizing key part of management
accounting like as spending plan. Based on spending chiefs of association survey money related
data for future and subsequent to considering this information it takes choices that what
procedures ought to follow in the forthcoming bookkeeping time frames. What's more, to make
choices that whether some sort of crude materials and items needs to purchase from different
organizations and providers or create inside element management accounting is the useful
perspective for partnership. For using all the accessible crude materials and in addition assets in
the exceedingly ideal path for creating the income there the directors of organization utilize
separate bookkeeping framework inside substance. As to this, to contrast business execution and
present and past or genuine and expected the management accounting having the pivotal place
and based on responsible variables of emerging deviation are to be resolved appropriately. At the
point when the administration decide the foundations for diminishing execution and benefit then
remedial activities and techniques are settled on and after that further choices are effectively
ready to taken by organization. Henceforth, it can be plainly said that to take various types of
business choices in the organization management accounting is one of the exceptionally
important idea. Management accounting helps speciality unit in gather the data from the money
related bookkeeping and based on these informations, manager can take impressive decision
regarding the future activities of business.
Barriers and factors which influence the decision making process and strategic planning
According to the view of Casini, Marone and Scozzafava, (2014) while corporation
conducts the management accounting activities then there are several factors and barriers that
can affect the outcome and functions of the business. Due to these factor's performance and
outcome can affect within the business enterprise. Accounting being a systematic procedure of
recording the financial transactions of a company and involves the methods of summarizing,
assessing and reporting the data and disseminate it to the associated stakeholders of the
enterprise. It is in accordance to the statement there exists 3 vital factors that largely affects the
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decision making procedures and assists in strategic planning of work. It together impacts on the
quality of the arranged set of data with a foremost factor namely the commitment of the top
management. It is along with the other 2 factors called the adopted nature of accounting
information systems with a special consideration of their suitability and the input controls.
According to the view of Iphone, (2015) governmental policies and regulation is one of the
major factor that can affect the decision making process and strategic planning within the
business enterprise. Corporation have to follow the regulation, norms, policies and practices that
is developed and imposed by government related to business. Each functions and activities of
business can influence by governmental policies and practices so it is very important for
management to consider various regulation, policies and practices that imposed by government.
In the decision making procedure of business and strategic planning procedure, manager should
focus on each regulation and policies like taxation, employment law, customer right etc so as it
can conduct activities in secure and safe manner. In the contradicting view stated that inadequate
funding is another major factors that can affect strategic planning and decision making procedure
within organisation. In order to achieve determined objective and carried out functions of
business in effective manner, organisation required to sufficient finance. Due to lack of funds, it
is quite difficult for organisation to develop strategic plan. A lack of resources and fund can
influence marketing, talent acquisition, distribution activities within business unit.
Advantages and disadvantages of management accounting in the hospitality industry
As per the view of Brigham and Houston (2004) management accounting is a systematic
procedure through which manager of business entity can estimate and forecast the requirement of
business in the future. The major advantage of management accounting is planning and
controlling. With help of accounting, manager can prepare the plan and execute the same for
effective operation of business. There are various functional budgets that prepared and
accounting information are rearranged in department wise, product wise, section wise. In the
contradicting view Cafferky and Wentworth, (2010) stated that maximisation of profitability of
business is another one of significant benefit of management accounting. By using several
statements, techniques, measure and tools of management accounting, organisation can easily
manage its financial and accounting transaction in effective manner. In this aspect it becomes
easy to measure the performance, profitability and loss of business. Thus, it can be said that
standards are fixed and measure the actual performance to find the deviations. If the causes for
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deviations are reasonable and controllable, then it is easy for manager to take proper action
regarding business activities and functions. In the opinion of Costantini, (2006) stated that
management accounting aids in target fixing, decision making, price fixing, selection of product
mix and so on. In an organisation by use of several statements and techniques of management
accounting, manager can effectively develop a systematic budget and forecast financial activities
and requirement within business enterprise. Management accounting is a flexible in nature and it
can be prepared anytime and they are not required to be made yearly. It can prepare monthly and
weekly basis. In the opinion of Arrowood, (2006) within the hospitality industry, organisations
uses some software and applications of the management accounting through which they can
perform all financial activities and function in effective and efficient manner. Within the
hospitality organisation, management can forecast several activities and take the decision for
future requirement. With help of management accounting, organisation in hospitality sector can
compare profit to previous periods and forecasts. Manager in the hotel can estimate that how
much profitability earn by organisation in monthly as well as year basis.
In the contradicting view of Adongo, Stork, and Hasheela (2005) stated that management
accounting have disadvantage is related to cost accounting and financial account. It is dependent
on cost accounting and financial accounts. As both financial and cost accounting information are
used in the system of management accounting. The accuracy and validity of the management
accounting is based on the financial and cost records. The installation of management accounting
system brings some changes in the corporation set up and accounting practices.
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Research Methodology
In the dissertation, while literature review effectively accomplish then in the next chapter
starts with research methodology under which scholar focuses on the several techniques and
methods such as research approach, research design, research philosophies, data collection, data
analysis etc. With help of all these methods and techniques, researcher can find out effective
solution of research problem in the study. In a simple word it can be said that research
methodology is a systematic procedure of information collection, data analysis, interpreting
information so as effective solution of the problem can easily obtain. In the study, with help of
research methodology, scholar can easily take effective decision of research problem so as
effective solution can easily obtain (Gordon, 2014). Research methodology is the systematic,
theoretical analysis of the methods applied to a field of study. It is a process used to collect
information and data for the purpose of making business decision. With help of several
techniques and methods of the research methodology, scholar can easily find out solution of
research problem. In the present study, the major objective of researcher is to analyse the
favourable and unfavourable impacts of accounting system in decision making process of
Mandarin Oriental Hotel. For achieve this objective, scholar have applied several methods of
research methodology which are discussed below-
 Research Philosophy- In the research methodology research philosophy is one of the
most significant method by which scholar can assess and analyse the information for find
out effective solution of research problem. This aspect of research methodology allows to
scholar in addressing the appropriate solution of research problem. There are major two
kinds of research philosophy that is positivism and interpritivism. In the interpretivism
reason, the specialist has utilized unmistakable theories and exposures with a specific
genuine target to test the subjective musings (Beneke and et. al., 2013). On the other
positivism get some information about reasoning can get a handle on while scientist has
arranged to consider over the basic focal point of the examination. For the present
examination, the scientist will consider on the positivism explore speculation in light of
the way that to address the examination point, some target will be made. By and large,
interpretivism logic mirrors that a solitary truth is trailed by various actualities. Then
again, positivism rationality depends upon specific statistical data points with respect to
specific perspective. In the exploration ponder, determination of reasoning is exceedingly
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