Highland Tours Ltd: Integrating Business Operations for Growth

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THE HOSPITALITY BUSINESS TOOLKIT
HIGHLAND TOURS

Table of Contents
INTRODUCTION........................................................................................................................1
TASK 1...................................................................................................................................... 2
P1 THE PRINCIPLES OF MANAGING AND MONITORING FINANCIAL PERFORMANCE...........2
P2 DOUBLE-ENTRY BOOK-KEEPING SYSTEM OF DEBITS AND CREDITS TO RECORD SALES
AND PURCHASE TRANSACTIONS..........................................................................................4
P3 A BASIC TRIAL BALANCE..................................................................................................7
M1 ANALYSIS OF SALES AND PURCHASE TRANSACTIONS....................................................8
TASK 2...................................................................................................................................... 9
P4 HR LIFE CYCLE OF BUSINESS DEVELOPMENT MANAGER AND THE IMPORTANCE FOR
RETAINING AND DEVELOPING TALENT.................................................................................9
P5 PERFORMANCE MANAGEMENT PLAN FOR A BUSINESS DEVELOPMENT MANAGER....11
M2 IMPORTANCE OF THE HR LIFE CYCLE IN RELATION TO STRATEGIC TALENT
MANAGEMENT...................................................................................................................12
TASK 3.................................................................................................................................... 13
P6 SPECIFIC LEGISLATION IN A HOSPITALITY ORGANISATION............................................13
P7 EMPLOYMENT AND CONTRACT LAW HAS A POTENTIAL IMPACT UPON BUSINESS
DECISION MAKING IN THE HOSPITALITY INDUSTRY...........................................................15
M3 POTENTIAL IMPLICATIONS OF REGULATIONS, LEGISLATION AND STANDARDS UPON
DECISION-MAKING............................................................................................................. 16
P8 INTERRELATIONSHIP BETWEEN DIFFERENT FUNCTIONAL ROLES WITHIN THE
HOSPITALITY SECTOR......................................................................................................... 17
P9 DIFFERENT METHODS OF COMMUNICATION, COORDINATION, AND MONITORING
APPLIED WITHIN THE SPECIFIC DEPARTMENT OF HIGHLAND TOURS TO STRENGTHEN
VALUE CHAIN......................................................................................................................19
M4 HOW DIFFERENT METHODS OF COMMUNICATION, COORDINATION, AND
MONITORING ACHIEVE ORGANISATIONAL OBJECTIVES AND STRENGTHEN THE VALUE
2

CHAIN................................................................................................................................. 21
CONCLUSION.......................................................................................................................... 23
REFERENCES........................................................................................................................... 24
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INTRODUCTION
The continuous changes and transformations within the hospitality sector are creating the
need for effective management and collaboration among the different functional units of
the business (Burgess, 2013). Therefore, this report will emphasise on integrating the
business operations of Highland Tours Ltd. with the local Pubs and Restaurants. Highland
tours provide its services to the people of Scottish highlands. The report will cover the
financial, legal, human resource management, functions and operational area of the
business. The method of managing finance and recording transactions for minimising the
cost within the company will be investigated. The human resource lifecycle will be
discussed. Moreover, the potential impact of the legal and ethical considerations on the
business of the hotel will be analysed along. At last, various functions and operations within
the hospitality department and the importance of their coordination and integration will be
analysed to support effective business management and growth of the organisation.
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TASK 1
P1 THE PRINCIPLES OF MANAGING AND MONITORING FINANCIAL PERFORMANCE
In Highland Tours, Financial performance of a business refers to the extent to which the
financial transactions are managed and analysed within an organisation to meet with its
financial objectives. In order to manage the financial performance efficiently, a company
needs to prepare financial accounts and statements as it facilitates to record and track
inflow and outflow of funds within the company (Gitman, et al., 2015). Proper management
and monitoring of financial performance enable a company to reduce the cost of
unnecessary expenses and efficient revenue management.
DIFFERENT TYPES OF BUSINESS TRANSACTIONS
A business transaction refers to an event that is measurable in terms of money and
recorded in the accounting system of an organisation. A business transaction can affect the
financial position of a company and has an effect on the different accounting elements like
capital, liabilities, assets, income, and expenses. The most common types of business
transactions are;
 Retail to customers: it involves sales of products to the customers. the retail sale
tour tickets is a business transaction for Highland tours (Burgess, 2010).
 Purchase of goods: it involves the purchases of goods from the suppliers for selling it
to the customer.
 Purchase of assets: in order to carry the business operations the company needs to
purchase certain assets. For highland tours, the assets may be a minibus, computer
system, etc.
 Capital Investment: in order to establish and expand the capital is required. The
capital may be arranged through personal investment or loan.
 Transactions with the bank: it involves the flow of money between bank and
company for different business activities (Burgess, 2010).
PRINCIPLES OF MEASURING FINANCIAL PERFORMANCE THROUGH KPI’S
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For managing the financial performance of highland tours, the company needs to follow the
following principles;
Preparation of key financial statements: the key financial statements such as balance sheet
and profit and loss accounts is very important to identify, measure and manage the financial
performance of the company. preparation of financial statements is statutory for every
business (Kumaran, 2015).
Preparation of trial balance: trial balance facilitates in measuring the regular flow of funds
within the company, as it is prepared every month. It supports tracking the creditors and
debtors of the company.
Preparation of working capital statements and financial ratios: the analysis of the financial
ratio involves computing of common ratios of the different balance sheet and income
statement. The preparation of financial ratios like liquidity ratio, quick ratio, and current
ratio provides an overview of the financial capabilities of a company (Kumaran, 2015).
Preparation of fund and cash flow statements: these statements provide the application
and sources of finances within the business operations. It reveals information about the
liquidity position of the company.
REVENUE MANAGEMENT AND ITS IMPORTANCE IN INCREASING REVENUE
In the hospitality industry, revenue management supports in anticipating the demand and
optimising availability and pricing of the products to achieve the best possible financial
results for the company. Revenue management is the application of disciplined analytics
that facilitates in predicting consumer behaviour to maximize revenue growth for the
company. Revenue management is an important concept as it facilitates in determining the
best price for the product in accordance with the seasonality, customer demand and
organisational capacity (Hayes and Miller, 2011). It benefits in increasing the company's
profit by creating value for money for the customers.
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P2 DOUBLE-ENTRY BOOK-KEEPING SYSTEM OF DEBITS AND CREDITS TO RECORD SALES
AND PURCHASE TRANSACTIONS
In double entry bookkeeping system, every accounting entry is made with corresponding
and opposite entry to a different account in debit and credit sides (Horngren, et al., 2013).
The General Journal and ledger (T accounts) represents a formal ledger that provides a
complete record of the flow of funds within a company.
Table 1: General Journal
Highland Tours
DATE PARTICULARS L/f. Debit (£) Credit (£)
2017
1st March Cash A/c Dr.
To capital a/c
10,000
10,000
3rd March Minibus a/c dr.
To Bank A/c
3,000
3,000
8th March Purchases a/c Dr.
To Mr. Hunter’s a/c
200
200
12th March Mr. Hunter’s a/c Dr.
To bank a/c
500
500
13th March Cash a/c Dr.
To Sales a/c
400
400
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LEDGER POSTING
Cash Account
Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
1/3 To capital a/c 10,000 31/3 By Balance c/d 10,400
13/3 To Sales a/c 400
Total 10,400 Total 10,400
1/4 to Balance b/b 10,400
Capital Account
Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
31/3 To Bal c/d 10,000 1/3 By Cash a/c 10,000
Total 10,000 Total 10,000
1/4 By bal b/d 10,000
Purchases Account
Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
8/3 To Mr. Hunter’s
a/c
200 31/3 By Balance c/d 200
Total 200 Total 200
8

1/4 to Balance b/d 200 200
9

Sales Account
Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
31/3 To Bal c/d 400 13/3 By cash a/c 400
Total 400 Total 400
1/4 By bal b/d 400
Minibus Account
Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
3/3 To Bank A/c 3,000 31/3 By Balance c/d 3,000
Total 3,000 Total 3,000
1/4 to Balance b/d 3,000
Bank Account
Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
31/3 To Bal c/d 3,500 3/3 By Minibus a/c 3,000
12/3 Mr. Hunter’s a/c 500
Total 3,500 Total 3,500
1/4 By bal b/d 3,500
Mr. Hunter’s Account
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Dr. Cr.
Date Particulars J/
F
Amount
(£)
Date Particulars J/
F
Amount
(£)
12/3 To bank a/c 500 8/3 By purchases a/c 200
31/3 By balance c/d 300
Total 500 Total 500
1/4 to Balance b/d 300
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P3 A BASIC TRIAL BALANCE
A Trial balance can be referred to as a record of all the ledger balances. A balanced trial
balance is where the total debit side is equal to the credit side and differences in a trial
balance represent mistakes in the entry of transactions (Weygandt, et al., 2015). In Highland
tours, the trial balance is prepared every month to balance-off accounts to identify and
analyse financial operations every year.
Particulars F. no. Debit (£m) Credit (£m)
Cash 10,400
Capital 10,000
Bank 3,500
Sales 400
Purchases 200
Minibus 3,000
Mr. Hunter's a/c 300
Total 13,900 13,900
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