Mr. College: Food and Beverage Operations Management Report Analysis

This report delves into the core principles of food and beverage operations management within the hospitality sector, using a case study of a summer fair at Valentine Park. It examines the critical role of financial statements in planning successful events, detailing the application of cash flow, balance sheets, income statements, and cost statements. The analysis extends to the purchasing process, outlining key steps like need recognition, information search, evaluation of alternatives, purchase decisions, and post-purchase evaluations. Furthermore, the report identifies factors for evaluating success and areas for improvement, emphasizing communication, feedback mechanisms, and cost management. The report recommends strategies for enhancing customer satisfaction, increasing profitability, and ensuring the long-term sustainability of food and beverage operations, making it a comprehensive guide for managing and optimizing event-based food services.

Food Beverage Operations
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
PART A...........................................................................................................................................1
Covered in power point...............................................................................................................1
PART B............................................................................................................................................1
2.1 Use of financial statement in food and beverages in planned event.....................................1
2.3 Analysis of purchasing process.............................................................................................2
4.3 Factors for evaluating success and areas for improvements.................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
In a hospitality industry, food and beverages which are provided by them to their users is
an essential concept. This is termed as only thing through which a service sector company can
generate more and more profit for their long run. This assignment is based on summer fair at
valentine park (Davis and et. al., 2013). Organisers have to include all of their customer needs
and demand into their menu so that they can provide them satisfying products. Focus of this
assignment is on characteristics of food production and food and beverages food system. Also
factor which affect recipes and menu are elaborated. Moreover usage of financial statement is
also described in this report as per with terminology of cost. Along with these proper
recommendations are also evaluated through which services get improved.
PART A
Covered in power point
PART B
2.1 Use of financial statement in food and beverages in planned event
Financial statement always help in frame a proper plan activity for each and every
project. It leads to support an organisation in make event successful (Mahalik and Nambiar,
2010). Hence Valentine park is going to organise Summer Fair and for that it is necessary for
them to have adequate amount of fund. With proper utilisation of this concept effective decision
can be taken out. Several number of points in this context are as follow:
1. By analysing financial statement company formulate their long term goals. Hence, if
amusement park have appropriate fund then it become easy for them in this event.
2. With the help of these records, it become easy to planned any successful event under
which customer satisfaction become possible.
3. It also help in setting such cost which is appropriate for each group of person.
Various concepts of financial statement which an organisation have to use while
formulating a plan for them through which appropriate decisions can be taken out. In this
context, proper settlement for cost of each product get plan as well as all expenses which lead to
expand on products also get identify. Planning is a concept which aid in maximise the number of
chances of a successful project. It also support an organisation to formulate their long term goals

and aims which are beneficial just for the purpose of sustainability. Various number of accounts
which are prepared by Valentine Park management are as follow which are recognised as a
operating statement of a company. Such statements include balance sheet, cash flow and income
statement.
1. Cash flow: Monthly based reports which signifies about the cash inflow and outflow. If
firm cash outflow is more as compared to inflow then they have to use effective steps for
that through which they can manage their working. In this context, entity have to identify
that which concept is providing them more and more benefit. If they identify this factor
then it become easy for them to adopt such process for gaining long term efficiency.
2. Balance sheet: It helps in identify the net assets and net liabilities of a firm which is a
very essential concept. Assets is a property which is own by an organisation where as
liabilities are all debts which a company have to pay in their short term of long term.
3. Income statement: This is a report in which company's financial performance for an
accounting period is mention. In this revenue and expenses have separate column, for
which all the profit and gains are come under revenue column where as all expenses and
losses will treated as expenses of a company. These all are measure after calculating the
operating and non operating profit and loss of a company.
4. Cost statement: This report is generally prepared for measure all the cost which is directly
related to cost of a project. For event at Valentine park, management have to calculate
such expenses which are related to event in which labour cost etc. have to get calculated.
Before taking any necessary action, company have to measure all their statement through which
an important decision can be carried out. This element is compulsory for them because if
business organisation neglect this thing in their execution then they have to bear heavy loss.
Valentine park have to taken their financial statement in their account before planning
such type of event over there. It is a duty of management to know their positive and negative
factor which is very compulsory for them. Cited organisation have to taken into account this
concept in their project planning. If valentine park found positive response from their financial
accounts then become able to move to this concept in near future.

2.3 Analysis of purchasing process
There are certain major steps which involved at the time of analysing purchasing process.
These steps set a framework under which an organisation can fix value of products according to
customer and their purchasing behaviour which are as follow:
1. Need recognition: Organisation have to find out the needs of an individual and take
appropriate steps according to that (Massoud and et. al., 2010). Valentine park initially
haven to identify all factors which are according to their users who suppose to be a part
of summer fair.
2. Information search: After identify all needs and problems, next step is to conduct a
survey which is on their customer. According to this, management have to take opinion
of their users that what sort of products they really like.
3. Evaluation of alternatives: Consumer find out number of alternatives on which
appropriate decisions can be taken out. Like if valentine park do not provide proper
services then there are several other amusements park which are consider as alternatives.
4. Purchase decision: Penultimate stage is when actual purchase took place. At this stage
actual purchasing of product took place (Slack, Chambers and Johnston, 2010). Hence,
valentine park have to provide quality services from which large number of person get
satisfied through that.
5. Post purchase decision: After purchasing a particular product, consumer judge them
according to satisfaction level. If valentine park will not lead to provide quality service at
the time of summer fair then it might affect in getting negative feedbacks.
All these factors have to be taken into account by valentine park and make their users
more and more satisfied. This help them in increasing their sales as well as attracting more and
more customers. Moreover, Valentine park can include several more things while they are
dealing with purchasing decision for their customers. In this context, purchase specification is
consider as a document in which all the necessary things completely describe the essential
requirement of goods and services which are going to be purchase. Purchase specification
includes the size, weight, quality, performance parameter, safety requirement etc. All these
things are included in purchase specification of a product. Some other things which used to
consider by Valentine park is as follow:

 Requisition of suppliers and equipment: Firstly management have to find out the things
which is required by them and then place a order against that. Requisition of suppliers
and equipment is placing an order by an organisation for such material which is required
for manufacturing a product or good. Purchase specification:Purchase specification is a list of document in which all the
necessary details about product are included. This list is prepared by management so that
they can purchase only such amount of goods which really required by them. Receipt:It is a proof or evidence which is getting by an organisation from their suppliers
as a proof of purchasing material. This is consider as a bill or anything which is used as a
proof at the time of purchasing product or material. Invoicing: It is same as like receipt but there are still some differentiation took place in
which invoice includes list of all materials which is purchase by a person.
 Storage of equipments and suppliers:It is a process which is recognised as the process of
buffering and holding of goods from a period of time.
All these things have to used by Valentine park in which they first have to identify the
number of people who used to come there and purchase material according to that. But all such
material have to be good in quality which ensures the safety of all persons who used to attend
event. If any sort of deviation find out management have to take appropriate proof from their
vendors so in case of inconvenience authority can show that as a proof.
4.3 Factors for evaluating success and areas for improvements
Success can only be achieve after analysing all important facts which are related to
business context. Survival is must for each and every business entity in making and generating
more and more profit. Hence for making and increasing the chances of success customer
communication and work on negative feedback is must and for this there are several number of
areas which are important and really need recommendation to get improved which are as follow:
1. Proper communication: It is an essential duty of Valentine park management to make a
health communication process with their customers. With this concept they can gather all
irrelevant information in minimum time period (Taj and Morosan, 2011)).
2. Feedback: By gathering feedback from users it leads to create a platform where services
get improved. This factor is helpful in making a proper improvement at park.

3. Identification of cost: If management found that cost which is incur on items are high
then they have to use such steps through which they get controlled. This is another area
of improvement for Valentine park management.
Organisation success is concerned with number of customers. If the users for a particular
products are high then it signifies that product or services provider can sustain in market for long
term. As per evaluating success criteria it become easy for an organisation to perform task in an
effective manner with more and more motivation. As per given context, which is based on
valentine park summer fair, they can identify success of their events by its promotion and
number of users who lead to attend that. Hence, their programme lead to get succeed by
following these number of terms.
1. If they fulfil the demand of their customers. This factor get done by identifying their
needs and demands. As per they have to prepare their menu card according to various
number of customers.
2. Profit which is generate by event get higher than investment then it is also consider as
one of an evidence of successful programme. More and more profit earning capacity lead
to attract large number of service users from all over world.
3. Another major term for evaluating success of an event is feedback by attenders. This
factor help in measure all positive and negative aspects of such fest. In case management
found more and more deviations for such event then this signifies that project is not so
much successful where as if feedbacks are in positive form them this create a opportunity
to generate more revenue each year.
4. Number of customers always plays an important role in evaluating success criteria for a
certain project. Any event have a capacity to attract more and more customer if its
execution is in proper form. Also, its conducting power made a vast influence on each
and every user. Organisation can evaluate this thing by measure this thing in comparison
with competitors. At summer fair if number of spectators are high as compared to others
then it also signifies that such project is successful in its area of execution.
Moreover apart from success there are few more areas which really need to get improved
on priority basis. Hence, this thing only get done by taking feedbacks from customers or
analysing financial statement of last few years. Management have to take some serious steps on

these aspects which provide a platform for long term sustainability of such projects. Key areas
for improvement on the basis of customer are:
1. Standard and quality: Authority have to take appropriate decision on their quality of
products by taking feedback from customer. With this factor, it become easy for them in
setting a standard for delivering products.
2. Cost: Another major aspect is cost. If organisation spent more money then they lead to fix
high rates. Hence, decision makers have to take adequate steps through which they can
minimise their cost.
CONCLUSION
As per the report is get identified that for any hospitality industry the major thing through
which they generate profit is operations in which they serve food and beverages to their users. A
satisfied user always enable in achieve all targets which set by higher authority. Hence, for any
planned event, management have to consult their financial statement which aid them in taking
any helpful decision. Once the event get done, authority and an organisation have to take proper
feedback from their client. This factor support them in improving quality of their products by
taking proper feedbacks. Hence, behind any successful event there is always a satisfied user.

REFERENCES
Books and Journals
Davis, B., and et. al., 2013. Food and beverage management. Routledge.
Mahalik, N. P. and Nambiar, A. N., 2010. Trends in food packaging and manufacturing systems
and technology. Trends in food science & technology. 21(3). pp.117-128.
Massoud, M. A., and et. al., 2010. Drivers, barriers and incentives to implementing
environmental management systems in the food industry: A case of Lebanon. Journal of
Cleaner Production. 18(3). pp.200-209.
Slack, N., Chambers, S. and Johnston, R., 2010. Operations management. Pearson education.
Taj, S. and Morosan, C., 2011. The impact of lean operations on the Chinese manufacturing
performance. Journal of manufacturing technology management. 22(2). pp.223-240.
Online
Food and beverage operations : Production and service. 2017. [Online]. Available through:
<https://etravelweek.com/imported/food-and-beverage-operations-production-and-
service>. [Accessed on 27th June 2017].

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