Carnival Corporation & PLC: A Hospitality Business Toolkit

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THE HOSPITALITY BUSINESS TOOLKIT
CARNIVAL CORPORATION & PLC

Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
P1 INVESTIGATE THE PRINCIPLES OF MANAGING AND MONITORING FINANCIAL
PERFORMANCE.....................................................................................................................4
P2 APPLICATION OF DOUBLE ENTRY BOOKKEEPING SYSTEM OF DEBITS AND CREDIT TO
RECORD SALES AND PURCHASE TRANSACTIONS IN LEDGER................................................6
P3 COMPILING A TRAIL BALANCE FOR THE CARNIVAL CORPORATION AND PLC..................9
M1 ANALYSIS OF SALES AND PURCHASE TRANSACTIONS TO COMPILE A TRIAL BALANCE IN
A DOUBLE ENTRY SYSTEM..................................................................................................10
LO2......................................................................................................................................... 11
P4 DIFFERENT STAGES OF HR LIFE CYCLE AND THE IMPORTANCE IN RETAINING AND
DEVELOPING TALENT......................................................................................................... 11
P5 PERFORMANCE MANAGEMENT PLAN TO RESOLVE NEGATIVE BEHAVIOUR AND
OVERCOME ISSUES OF STAFF RETENTION..........................................................................14
M2 IMPORTANCE OF THE HR LIFE CYCLE IN RELATION TO STRATEGIC TALENT
MANAGEMENT AND OVERCOMING ISSUES OF STAFF RETENTION....................................16
LO3......................................................................................................................................... 18
P6 LEGISLATION THAT THE ORGANISATION HAS TO COMPLY AND ADHERE TO................18
P7 ILLUSTRATION OF HOW COMPANY, EMPLOYMENT AND CONTRACT LAW HAS A
POTENTIAL IMPACT UPON BUSINESS DECISION MAKING..................................................20
M3 POTENTIAL IMPLICATIONS OF REGULATIONS, LEGISLATIONS AND STANDARDS UPON
DECISION MAKING IN CARNIVAL CORPORATION & PLC.....................................................22
LO4......................................................................................................................................... 24
P8 HOW DIFFERENT FUNCTIONAL ROLES WITHIN THE HOSPITALITY SECTOR INTERRELATE
........................................................................................................................................... 24
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P9 DIFFERENT METHODS TO COMMUNICATE, COORDINATION AND MONITORING
APPLIED WITHIN A SPECIFIC DEPARTMENT OF THE ORGANISATION.................................26
M4 DIFFERENT METHODS TO COMMUNICATION, COORDINATION AND MONITORING
WITHIN A DEPARTMENT OF CARNIVAL CORPORATION & PLC CORPORATION..................28
CONCLUSION.......................................................................................................................... 29
REFERENCES........................................................................................................................... 30
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INTRODUCTION
This assignment is focused on the travel and tourism sector of Carnival Corporation and PLC,
which is British American Cruise Company that offers hotel style accommodation facility,
food facility, entertainment facility, bar facility and other travel and tourism experiences.
This company present itself the largest leisure travel company in the world. This assignment
includes financial aspects of the company, human resource function of the company that
explains the human resource cycle, UK’s laws and regulations of employment in this
industry, different legislations that the company needs to follow. How the different
functional departments of the company are interrelated and what are the methods to
communicate within these functions of department is to be determined in this assignment.
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LO1
P1 INVESTIGATE THE PRINCIPLES OF MANAGING AND MONITORING
FINANCIAL PERFORMANCE
Key performance indicators are the parameters that help to evaluate the financial
performance of the company. Financial performance of an organisation means the financial
health of the company which includes profitability, revenues and market value of the
company. Whether the company has the capabilities to achieve its objectives and the ability
to pay off the Company's long term and short term debts by using its assets or not. For the
calculation of financial performance of a company, there is a need to prepare the financial
statements of the company which includes a Balance Sheet, Trading and P&L account,
income statement, cash flow statements etc., through analysis on these statements the
financial performance of the company can be evaluated.
The key performance indicators for the restaurants and recommendations are-
1. Sales per labour hour- this is the main performance indicator for restaurants as they
are termed as the highest perishable resources for a restaurant, unlike food or
beverage they cannot be put to the sale for the next day, the restaurant's financial
performance is based on productivity of its staff. The higher sales per labour hour
the better the performance.
Sales per labour hour= Total Sales/ Hours worked
2. Revenue per available seat-it is calculated on the basis of time, this indicator depicts
the efficiency and effectiveness that is generated by each seat in the restaurant in
terms of revenue. The more RPAS the higher the efficiency.
RPAS= total revenue/ total seat hours.
Principles of monitoring and controlling financial performance
For measuring and monitoring the financial performance of the restaurants of Carnival
Corporation it has to follow the principles mentioned below-
4

Preparation of Trial Balance- Trial balance is the statement of debit and credit ledger
accounts that helps in analysing the financial performance by the end of the year, to trial
balance is the core step to prepare financial statements of the company. Trial balance gives
the company the summary of cash accounts bank account balance, creditors, debtors and
other accounts on the end of the financial year (Weygandt, et al., 2015).
Preparation of financial statements- Financial statements are prepared after the trial
balance and these include income statement of Trading and Profit and loss account, balance
sheet, cash flow statements. The financial statement determines the net profit of the
company, the total current assets, current liabilities, long term assets and liabilities of the
company. These things help in identifying the financial health of the company if the
company is earning profit it is performing well and if not than the financial health of the
company is not good.
Calculating financial ratios and working capital statements- financial ratios are calculated
after calculating the financial statements and these financial ratios are the performance
indicators of the company and are calculated on the basis of financial statements, these
ratios include profitability ratio the higher the profitability ratio the better is the
performance, current ratios that depicts the capability of company to pay off its current
liabilities and debt ratios these ratios depict the company's ability to pay off its long term
debts and their interests.
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P2 APPLICATION OF DOUBLE ENTRY BOOKKEEPING SYSTEM OF DEBITS
AND CREDIT TO RECORD SALES AND PURCHASE TRANSACTIONS IN LEDGER
JOURNAL ENTRIES
DATE PARTICULARS L/F DEBIT
AMOUNT £
CREDIT
AMOUNT £
2017
1 FEB Purchase a/c Dr.
To Kate’s kitchen a/c
50001
5001
1 FEB Purchase a/c Dr.
To Harry
29552
29552
3FEB Cash a/c Dr.
To sales
13207
13207
6 FEB Kate’s’ kitchen a/c Dr.
To bank a/c
5001
5001
10 FEB Cash a/c Dr.
To sales a/c
10653
10653
14 FEB Bank a/c Dr.
To sales
2008
2008
17 Feb Cash a/c Dr.
To sales
13221
13221
17 FEB Harry a/c Dr.
To cash a/c
29552
29552
24 FEB Cash a/c Dr.
To sales
12329
12329
Ledgers
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Purchase A/c
Date Particulars Amount £ Date Particulars Amount £
1 FEB
1 FEB
To Kate’s kitchen
To Harry
5001
29552
To balance c/d 34553
34553 34553
Sales a/c
Date Particulars Amount £ Date Particulars Amount £
To balance c/d 51338 3 FEB
10 FEB
14 FEB
17 FEB
24 FEB
By cash a/c
By cash a/c
By bank a/c
By cash a/c
By cash a/c
13027
10653
2008
13321
12329
51338 51338
Kate’s A/c
Date Particulars Amount £ Date Particulars Amount £
1 FEB To Bank 5001 1 FEB By purchases 5001
5001 5001
Harry A/c
Date Particulars Amount £ Date Particulars Amount £
1 FEB To cash 29552 1 FEB To cash 29552
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29552 29552
Cash a/c
Date Particulars Amount £ Date Particulars Amount £
3 FEB
10 FEB
17 FEB
24 FEB
To sales a/c
To sales a/c
To sales a/c
To sales a/c
13027
10653
13321
12329
17 FEB By Harry
By balance c/d
29552
19778
49330 49330
Bank a/c
Date Particulars Amount £ Date Particulars Amount £
14 FEB To sales A/c 2008 6 FEB By Kate’s kitchen 5001
5001 5001
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P3 COMPILING A TRAIL BALANCE FOR THE CARNIVAL CORPORATION AND
PLC
Trial Balance – A trial balance is a tool of financial performance that depicts all the account
balances at the end of the year. This provides a summary of the balances of creditors,
debtors, expenses and sales or revenue (Weygandt, et al., 2015).
Particulars Amount
(Debit) £
Amount
(Credit) £
Purchase a/c 34553
Sales ac/c 51338
Bank a/c 2993
Cash a/c 19778
TOTAL 54331 54331
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M1 ANALYSIS OF SALES AND PURCHASE TRANSACTIONS TO COMPILE A
TRIAL BALANCE IN A DOUBLE ENTRY SYSTEM
Sales and purchase transactions include the exchange of goods or products from suppliers
and buyers. Sales can be done in three ways through giving credit, selling products on cash
or some people pay advance for our company’s sale. Those who take goods on credit from
the company their account is maintained in the books and until the payment is done the
account is maintained.
Likewise, the purchase of raw material can be done in three ways i.e. cash, advance and
through buying goods on credit. The goods are bought to use them for further production
and then sell them to the customers or retailers. The suppliers from which the company
purchases on credit are called creditors and the company maintains their accounts in ledger
till the whole payment is not made.
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LO2
P4 DIFFERENT STAGES OF HR LIFE CYCLE AND THE IMPORTANCE IN RETAINING AND
DEVELOPING TALENT
HR LIFE CYCLE
The HR life cycle is a method that will help in the working of the HR department and define
the life of an employee in the organisation. The HR life cycle includes four stages and the
Manager of the Carnival Corporation & plc needs to implement the life cycle for the success
of the business (Cascio, 2015).
Figure 1: HR Life Cycle (EA, 2019)
Recruiting
Recruitment stage is responsible for the hiring of the candidate for the organisation. The HR
department of the Carnival Corporation & plc needs to follow the stage for the hiring of a
well skilled and experienced candidate for the manager post that will help in the
development of the business. The department can hire the candidate internally or externally
that depends on the requirement of the company (Bailey et al., 2018).
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