Advanced Managerial Accounting: Brights Lodging & Travel Case Study

This case study delves into the issues faced by Brights Lodging and Travel (BLT), primarily focusing on financial performance and internal business processes. The analysis identifies concerns such as not consistently achieving top 20% profitability and guest satisfaction scores, failure to meet ...Read More

Running head: ADVANCED MANAGERIAL ACCOUNTING CASE
Advanced Managerial Accounting Case
Name of the Student
Name of the University
Author’s Note

1ADVANCED MANAGERIAL ACCOUNTING CASE
Table of Contents
Introduction..........................................................................................................................2
Issues....................................................................................................................................2
Analysis...............................................................................................................................3
Recommendation.................................................................................................................3
Conclusion...........................................................................................................................4
Bibliography........................................................................................................................5

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Introduction
The report is based on recognizing the various types of the issues in Brights Lodging and
Travel (BLT). The recommendations for the improvement process has been defined with the use
of Balanced scorecard. Which has considered customer, financial, process and organizational
capacity viewpoints.
Issues
The main issues are identified in terms of the financial perspectives and Internal Business
Issues:
 Financial Issues- BLT has not been able to maintain the position of being among the top
20 percent in term of the profitability and scores of the guests. In addition to this, in
several occasions the company is not able to achieve the proposed budget. Some of the
other concerning issues needs to be mentioned with owners unlevered returns on
investment are not always equal to or more than 15%.
 Internal Business Process Issues- The increasing median associate turnover rate is
discerned to be 88.3%. Therefore, BLT is on the verge of facing number of concerns
which mainly seen to be based on the depictions like constantly replacing the workers,
spending more time and energy towards training of the employees. In addition to this,
some of the other consideration included by the hospitality sector has been also seen to be
based on large number of the considerations which are focused towards the issues like
reduced satisfaction of the guest and mistakes made by the inexperienced associates.

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Analysis
The hotel properties are seen to be established with the new medium prices which is
depicted to be important for maintaining quality especially in the downtown areas. Therefore, the
newer properties are constructed on either vacant land or including the major renovations for the
existing buildings. The analysis of the main reason for placing the hotels in the downtown seedy
areas are primarily seen to be concerned with the large number of the factors which are
concerned with taking the advantage of the developing or upcoming locations in the US. This
will allow the hotels for taking advantage of the expected return of people to inner cities. The
properties are mainly considered as a bet on urban renewals and increasing the values of the
properties. Secondly, it is considered to be useful for the various type of the other factors which
are seen to be based on providing a convenient accommodation for the business travelers who
wish for more quality by paying less. However, BLT has monitored the performance of the
properties by ensuring the fulfillment of long-term objectives. The present portfolio of BLT
consists of 26 hotels with an annual sales of increase rate of 15%. In case the hotel does not meet
the financial targets, the committee of BLT will emphasize on increasing the RevPAR.
Recommendation
The recommendation with Balanced scorecard has been formalized as follows:
Corporate Objective Scope of improvement
Financial Perspective The financial indicators can be considerably improved with the focus on the
property-profit achievement relative to the budget. In addition to this, the
committee needs to also ensure that the company is able to meet the various
type of the financial objectives such as budget targets, demonstrating the use
of superior financial management system in the hotels. It needs to focus on
outperforming the competitors in terms of profitability and delivering high

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investment returns to the owners.
Customer’s Perspective The important areas of the improvement as per the customers’ perspective
needs to resolved with the various types of the factors such as customer
retention, acquisition of the new customers, segmentation of the market and
focusing on the customer profitability (Kang et al., 2015).
Internal Business Process The improvement pertaining to this factor should be focused with improving
the productivity rates, service errors, failure rate, maintenance of the physical
assets and bringing about more efficiency in terms of accounting and internal
control practices. BLT also needs to ensure that it takes minimum time
completing key process such as check in maintenance, serving and breakfast
seating (Bergeron, 2017).
Learning and growth The improvement needs to be made as per personal growth of the associates,
satisfaction level and retention. The possible measures pertaining to
improvement in the learning and growth further needs to be included by
providing cross training of the associates and line managers. The additional
measures are further inferred with community participation and knowledge
exhibited by the general managers (Cooper, Ezzamel and Qu, 2017).
Conclusion
The can be clearly seen that the main issues of financial perspectives can be improved
with meet the various type of the financial objectives such as budget targets. The internal
business process needs to be improved with improving the productivity rates.

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Bibliography
Akkermans, H.A. and Van Oorschot, K.E., 2018. Relevance assumed: a case study of balanced
scorecard development using system dynamics. In System Dynamics (pp. 107-132). Palgrave
Macmillan, London.
Bergeron, B.P., 2017. Performance management in healthcare: from key performance indicators
to balanced scorecard. Productivity Press.
Cooper, D.J., Ezzamel, M. and Qu, S.Q., 2017. Popularizing a management accounting idea: The
case of the balanced scorecard. Contemporary Accounting Research, 34(2), pp.991-1025.
Gibbons, R. and Kaplan, R.S., 2015. Formal Measures in Informal Management: Can a Balanced
Scorecard Change a Culture?. American Economic Review, 105(5), pp.447-51.
Kang, J.S., Chiang, C.F., Huangthanapan, K. and Downing, S., 2015. Corporate social
responsibility and sustainability balanced scorecard: The case study of family-owned
hotels. International Journal of Hospitality Management, 48, pp.124-134.
Keyes, J., 2016. Implementing the IT balanced scorecard: Aligning IT with corporate strategy.
Auerbach Publications.