Hospitality Business Toolkit Report for Rocco Forte Hotels Analysis

This report analyzes the operations of Rocco Forte Hotels, a UK-based hospitality company. It begins with an overview of financial performance principles, including financial positioning, statement preparation, expense management, and risk assessment. The report then details the double-entry bookkeeping system, providing examples of purchase, sales, and bank accounts. A trial balance is produced to summarize ledger accounts. The second task examines the HR life cycle, focusing on recruitment, education, and motivation to improve employee retention. It also includes developing a performance management plan. The final task identifies relevant legislation, including employment and contract law, and their potential impact on the business. The report provides a comprehensive overview of the financial, HR, and legal aspects critical to the success of a hospitality business.

HOSPITALITY
BUSINESS TOOL KIT
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
P1 The principles of managing and monitoring financial performance.................................3
P2 The double-entry bookkeeping system of debits and credit to record sales and purchases.
................................................................................................................................................5
P3. Produce a trial balance applying the use of the balance of rule to complete the ledger.. 7
TASK 2............................................................................................................................................9
P4 Different stages of the HR life cycle of hospitality job role and their importance in
retaining and developing talent..............................................................................................9
P5 Develop a performance management plan for a Carnival Cooperation Plc....................10
TASK 3:.........................................................................................................................................12
P6 Identify specific legislation that Carnival Cooperation Plc has to comply and adhere to12
P7 Examples related to how the company, employment, and contract law have a potential
impact on business................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Hospitality Industry is an amalgamation of the different professions incorporate industry
which assists in furnishing a large gamut of services to prospect consumers. The industry
operates with the motive of furnishing customers' satisfaction and building up their experience.
They operate to arrange a high class of services to its consumers along with a collaboration of
scheme, correlation, and analyses. The industry offers its diversified services in the fields of
food, lodging, tourism, traveling, events, etc. this comprises bars, restaurants, or hotels. This is
an entirely and purely service-based industry in the market (Ali and et. al., 2020). The present
report is based upon one hospitality industry based in the United Kingdom known by the name
"Rocco Forte Hotels". The company was established in the year 1996 having more than 14
branches across Europe, Sicily, Apulia, Saudi Arabia, China, etc. The report includes the
financial performances of the company, its analysis, and measurement. Various financial
accounts such as profit and loss accounts and the trial balance will be prepared in the assignment
based on Rocco Forte Hotels accounting data for a specific year. Further Human Resource Life
Cycle, plan for performance management, different laws, and regulations applied in the industry,
several rules about the type of industry, different communication techniques, etc. which are used
by the company to attain its set goals or objectives.
TASK
P1 The principles of managing and monitoring financial performance.
Principles of finance are considered as techniques and rules which are employed to
examine and translate firms' performance in accounting or financial terms. The principles
contribute directly to raising and improving the business performance of ABC. By the
preparation of certain financial reports company's goals and targets are efficiently achieved and
are set based on these performances (Cavallar, 2017). Principles which are considered for
maintenance of company's sound financial performance is under:
 Positioning of Finance: It is very much mandatory for the company Rocco Forte Hotels
to formulate superior plans for positioning of company's finances as this will straight
forward takes to the efficient functioning of operational tasks. Proper arrangement of
finances helps an organization to achieve its targets in the finest possible way which will
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also safeguard Rocco Forte Hotels from experiencing any contingency or uncertainty.
The company may position finances from various sources such as any financial
institutions or banks which will prove a best feasible manner. The reason behind this is
that such kind of institutions proves loans to corporates at a low rate of interest. Opting
for this method will result in a profitable decision for ABC.
 Making of Financial Statement: Most of analyzing a company's financial reports can be
done by the preparation of the Profit and Loss Account and Balance Sheet of the
organization (Davidova and Latruffe, 2020). Every company is mandatorily required to
prepare its financial statements as these statements tell about the performance of a firm in
terms of Gross Profit and Net Profit or Gross Loss and Net Loss during a year. Rocco
Forte Hotels Company has to prepare its financial statements in a sequential order to be
made by the department of accounts in the company. This will provide a fair position for
a company that will be considered for future decision-making.
 Expense Management: Managing a company's expense is the biggest and most tedious
task for every business. It includes capital expenditure as well as day-to-day expenditure
of the firm which are incurred during the course of business. Proper and efficient
management of the company's expenses helps the firm to make better decisions and
control the wastage of funds. This supports the organization to raise its potential for
further investments. Rocco Forte Hotels Company has the option to appoint a
professional team who can manage or prepare an effective budget and can control
unnecessary expenses.
 Risk Presence: Every business into existence is always backed by some risks or
uncertainties. Rocco Forte Hotels Company must be familiar with certain risks which can
hinder the company's performance. When companies are aware of the risks involved in it,
then they can make plans and decisions by taking those risks into mind. Firms can do this
by measuring their past and present situations, data, and positions along with current
market analysis. Rocco Forte Hotels by the knowledge level of risk presence can make
plans to lower down the effects of those risks on business performance. Through this
companies can prepare a realistic structure of the organization's working and ways for
efficiently managing its funds. Rocco Forte Hotels can do him either by managing the
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costs involved in buying raw materials or food items or by measuring productivity per
unit of sale made by it.
P2 The double-entry bookkeeping system of debits and credit to record sales and purchases.
The double-entry bookkeeping system refers to the recording of a company's financial
transaction in two effects. These two effects are named Debit and Credit (Gursoy, 2018). Debit
includes all those entries which are expensive or losses to the firm whereas Credit involves items
that give profit or are income to the firm. Rocco Forte Hotels Company adopts this system of
bookkeeping to maintain their financial records and to have the proper and fair presentation of
the company's performance.
The accounts of Rocco Forte Hotels Company are as under:
Purchase A/C
Date Particular Amount Date Particular Amount
01st Feb To Kate's Kitchen 10000 28th Feb By balance c/d 40000
01st Feb To Harry 30000
Total 40000 Total 40000
Kate's Kitchen A/C
Date Particular Amount Date Particular Amount
6th Feb To Bank 10000 01st Feb By purchase 10000
Total 10000 Total 10000
Harry's A/C
Date Particular Amount Date Particular Amount
14th Feb To Meganne 5000 01st Feb By purchase 30000
17th Feb To Bank 30000 28th Feb By balance c/d 5000
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Total 35000 Total 35000
Bank A/C
Date Particular Amount Date Particular Amount
6th Feb By Kate's Kitchen 10000
28th Feb To balance b/d 40000 17th Feb By Harry 30000
Total 40000 Total 40000
Beverage A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 11500 28th Feb By balance c/d 43500
10th Feb To sale 9000
22nd Feb To sale 10500
17th Feb To sale 12500
Total 43500 Total 43500
Sales A/C
Date Particular Amount Date Particular Amount
3rd Feb By Beverage 11500
3rd Feb By Food 1800
10th Feb By Beverage 9000
10th Feb By Food 1650
17th Feb By Food 1711
17th Feb By Beverage 12500
28th Feb To balance b/d 50376 22nd Feb By Beverage 10500
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22nd Feb By Food 1715
Total 50376 Total 50376
Food A/C
Date Particular Amount Date Particular Amount
3rd Feb To sale 1800
10th Feb To sale 1650 28th Feb By balance c/d 6876
22nd Feb To sale 1715
17th Feb To sale 1711
Total 6876 Total 6876
Meganne A/C
Date Particular Amount Date Particular Amount
14th Feb By Bank 5000
28th Feb To balance b/d 5000
Total 5000 Total 5000
P3. Produce a trial balance applying the use of the balance of rule to complete the ledger.
Trial Balance refers to a summary of the Company's Ledger Accounts which shows all
the balancing figures of all accounts either in debit or in the credit column prepared at the end of
the year. In accounts, it sometimes happens with the firm that few of the accounts are settled in
the same year while the rest are not balanced and are carried forward for the next accounting
year. The balances of those accounts which are to be carried forward next year are treated as the
Balance Off rule. This rule aims to evaluate and analyse journal and ledger entry account
information (Kandampully, Zhang, and Jaakkola, 2018). It is very difficult for every company to
close all its accounts every year and to measure the aggregate performance for a relevant year.
The main aim behind the preparation of Trial Balance is to know whether the figures are correct
or not.
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The Trial Balance of Rocco Forte Hotels Company is analysed through a tabular
presentation. After all the entries of both the sides related to the trial balance got matched and if
not then, opened a new account named suspense account which balances with the difference
amount. Managers can have a true and fair analysis from trial balance amounts. The steps to be
considered while preparing an account are mentioned under:
 Cash and Bank column passbook closing balances will be needed once when the ledgers
are closed.
 The format of trial balance will include three columns which are named Particulars, Debit
Balance, and Credit Balance.
 Balances of respective accounts will be mentioned according to their account name.
 The amount or balances of both debit and credit will be calculated and should match each
other respectively. After mentioning all the accounts the total balances of the debit and credit column should
tally and if not then the suspense account needs to be opened.
Trial Balance of Rocco Forte Hotels Company
S. NO Particular Dr. Cr.
1 Purchase A/c 40000
2 Sales A/c 50376
3 Kate's Kitchen
4 Harry 5000
5 Beverage 43500
6 Food 6876
7 Bank 40000
8 Meganne 5000
Total 95376 95376
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TASK 2
P4 Different stages of the HR life cycle of hospitality job role and their importance in retaining
and developing talent.
Human Resource Life Cycle refers to a process of combining various HR practices. This
includes both that is Human Resource scheme creation and implementation along with workforce
life cycle (Konovalova and et. al., 2018). The cycle majorly comprises of five different stages
which each person in the firm faces through.
 Recruitment: The first stage in the cycle is Recruitment. In this category company
employees competent candidates for deserving positions. The right person is placed in the
right position. The Human Resource manager of Rocco Forte Hotels can recognize the
requirements and needs of employees in the company. Based on the requirements profile
of candidates are scrutinize and finalized for further process. Suitable candidates are
chosen by the manager of the company. Before finalizing candidate manager can take
certain tests and interviews and analyse his or her potential for the job. Efficient and
skilful candidates will help the company in the retention of employees for a long period.
There are various job interview methods which a company can apply in its organisation
while taking interview of applied candidates. These are structured interview, un-
structured interview; open ended and close ended interview, case or behavioural based
interviews, face-to-face and telephonic interview, situational based interview and many
others.
 Education: This comes second in the cycle. At this stage employees of the organization
are familiarised with their job role and responsibilities. The Human Resource manager of
Rocco Forte Hotels Company can provide enough training to new joiners to introduce
them to the organization's culture and roles in the hotel (Kotler and et. Al, 2017).
Appropriate information regarding the concerned department should be provided to new
candidates who can bring clarity in minds of employees about their roles and
responsibilities. This introduction will make employees feel belonging and will not leave
any corner about leaving job frequently.
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 Motivation: After the position of education next comes is motivation. New joiners of
Rocco Forte Hotels Company should be adequately motivated by an organization. This
motivation will enhance employees' confidence and potential which will further help the
company in achieving its objectives in time. The manager of Human Resource can praise
or appreciate a person who had done a job tremendously and contributed his best to the
organization which will encourage more to work with the best of his potential and
efficiency in work.
 Evaluation: This is the fourth stage in the HR life cycle. Here actions or
accomplishments of each employee are measured and analysed by the top-level
management or leaders of an organization. When the evaluation is done the areas of
improvement are found and possible solutions and suggestions are provided to the
concerned employee. If the Human Resource manager of Rocco Forte Hotels Company is
comfortable in appropriately evaluating actions then there is a chance of maintaining
healthy and fruitful relation between leader and employee. This healthy relation will
contribute to the company's success.
 Celebration: In the HR life cycle this is the last stage where employees of the
organization are praised and appreciated for the job and hard work done by them for the
company (Martín-Rios and Ciobanu, 2019). Celebration is done in a way by providing
some rewards, gifts, praises, incentives, etc. to the deserving candidate. This celebration
allows employees a feeling of satisfaction, belongingness for the company and concerned
department. This supports the company in managing adequate talent within the
organization.
Relevance of Human Resource Life Cycle in overcoming issues of staff retention:
The relevance of the Human Resource Life Cycle in sorting issues of growth in employee
retention has an efficient use which helps in building employees performance and enthusiasm
along with their morale and achievement of personal goals (Melissen and Sauer, 2018). This
relevance generates the feeling of belongingness in employees for the organization. This will
further help the company in solving issues regarding staff retention in the business firm.
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P5 Develop a performance management plan for a Carnival Cooperation Plc.
Performance management plan comprises of a tool which is used for enhancing
company's employee’s performances. The plan is also referred to as the Performance action plan.
The plan can be utilized with powerful performers to analyse some innovative ways for those
employees who are not working up to the mark (Okanazu, 2018). In Rocco Forte Hotel Company
there is a presence of this important issue regarding waitress and waiters who are not seeing
satisfied from their working environment and does not wish to coordinate and cooperate with
their senior authorities.
The performance management plan for Rocco Forte Hotel Company is under:
 Plan: It refers to a combination of various rules and regulations which allows a company
to achieve business objectives efficiently. Concerning Rocco Forte Hotel Company, the
firm needs to formulate some rules and regulations or standards to offer the best quality
of its products and services to its customers. Through proper planning employees get
crystal clear about their task and allow them to attain predefined objectives.
 Implement: The application of a plan decided by an organization in an actual sense
refers to implementation. In respect of Rocco Forte Hotel Company, the firm should pay
attention to apply them in each field of function and allow them to each person
respectively. This supports the company's employees to work with full potential for
activities allotted to them.
 Evaluate: This is the next stage after implementation. This concerns the evaluation of
employees' performance which helps in accurate decision making. In respect of ABC, the
company should measure accurately employees work and tries to enhance their ability to
have a competitive advantage over rival firms. It allows the company's personal to
analyze their respective competency level and can suggest some remedial actions to
enhance the weaknesses.
 Feedback: This stage arises after the evaluation of performances. This happens in
companies where customers are imparted with an option of giving feedback about the
performance of the company of which they are using product or service (Qiu and et.al.,
2020). In the case of Rocco Forte Hotel Company, the receptionist takes feedback from
their consumers at the time of leaving the hotel. Based on such feedback company takes
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up some decisions either for improvement or for any kind of modification in its
operations and offerings. This feedback helps the company to have a positive attitude and
increase the firm's brand name and have a reduction in workforce turnover.
TASK 3:
P6 Identify specific legislation that Carnival Cooperation Plc has to comply and adhere to
The legislation indicates the preparation & enactment of laws or regulations by a
legislative body through its law-making process. The related process includes evaluation, the
amendment as well as voting on proposed laws and it is also concerned with words that are used
in the bill to serve the purpose to communicate values and judgments (Smit and Melissen, 2018).
Judgment plays a crucial role in business because it forces a company to provide quality service
and also tends to gain competitive advantage efficiently and effectively. Few examples of
legislation that Rocco – fort hotel imply these are explained as follows:-
 Food Safety Act, 1990: The main responsibility with regards to Rocco fort hotel is to
ensure that better quality food and services be served by keeping in mind the factor
hygiene and tends to increase profitability & productivity of Rocco fort hotel while
making decisions. The brand prefers to follow the act because it supports offering
qualitative items as well as services in an affordable to accomplish pre-determined
objectives effectively.
 Employment Act: It covers laws related to paternity, pays, leaves, compensation,
maternity, etc during the decision making process. This act tends to ensure Rocco Forte
hotel to treat their workforce truly or fairly. It also helps the hotel to maintain a good
working environment and maintain healthy relations with interns to gain high
productivity.
 Minimum wage act: As it provides social security to employees. It is necessary for the
company which covers under this act to provide their workers minimum wages. Rocco
Forte Hotel in its decisions tends to provide fair wages and rewards to the workforce as it
leads to improve employee’s standard and also provide encouragement to people through
increment in salaries and wages.
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