Hospitality Business Toolkit Report: The Food and Fusion

This report provides a comprehensive analysis of a hospitality business toolkit, focusing on a case study of 'The Food and Fusion' restaurant. It begins by examining the principles of managing and monitoring financial performance, including the constitution of finance, expense management, and risk assessment. The report then delves into the application of the double-entry bookkeeping system and the analysis of sales and purchase transactions to compile a trial balance. Furthermore, it explores the different stages of the HR life cycle, emphasizing the importance of strategic talent management and performance management plans. The report also addresses the interrelation between various functions within the hospitality industry, methods of communication, coordination, and monitoring, and relevant legislation. Overall, the report offers valuable insights into the financial, HR, and operational aspects of running a successful hospitality business.

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Principles of managing and monitoring financial performance:..............................................1
2. Application of double entry book keeping system..................................................................3
3. Analysis of Sales and Purchase transactions to compile a Trial balance.................................4
1. Different stages of the HR life cycle........................................................................................6
2. Development of performance management plan.....................................................................8
TASK 3............................................................................................................................................9
1. Identification of specific legislations (Covered in PPT)..........................................................9
2.Way in which company, employment and contract law has potential impact on business
(Covered in PPT).........................................................................................................................9
TASK 4............................................................................................................................................9
1. Interrelation between different functions.................................................................................9
2. Methods of communication, ordination and monitoring applied within specific department
....................................................................................................................................................11
CONCLUSION: ............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality is defined as the connection among a guest and a host in order to provide
them best services so that guest feel satisfied. Large number of hotel are operating their services
in present time to host their visitors with goodwill including reception and entertainment to make
them satisfied and increase their market share (Bowie and et.al., 2016). A hospitality manager
show an essential function in perception the administrative tasks of a hotel, casino chain or
restaurant. In order to better understand about the hospitality sectors newly established restaurant
“The Food and Fusion” is selected.
In this report performance management plan, important legislations connection between
various roles and function within the hospitality industry and the HR strategy in order to manage
human resource life cycle are discussed below. Report also shows ways of communication,
monitoring and coordination among the assorted division of “The food and Fusion” and they
manner to control finance and record transaction in order to reduce cost is discussed.
TASK 1
1. Principles of managing and monitoring financial performance:
In present time, management use to conduct any kind of activities and function by
following the proper guidelines and principle in order to minimise the damage. Principle are
defined as the set of curial rules and regulations that help to improve the quality of work and
generate maximum result for company. Internal manager use to follow specific set of rules that
help them to manage their financial statement so that overall performance can be evaluated.
Financial performance is defined as the effectiveness and capabilities of an organisation in order
to execute any operation so that predefined goals are attained. Some of the basic principle that
are followed for monitoring the financial performance of “The Food and Fusion” are as
described below:
 Constitution of finance: In order to manage and structure of finance manager of
respective restaurants management use to implement different strategies that support
them to attain the constitution of finance. This is done in meaning full manner as proper
funding and finance have a direct impact on the overall performance. Thus in order to
control and manage financial performance there is a need for adaption of principle that is
related to constitution of finance.
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 Manage expenses and optimise cost: There is need to control unwanted or planned
expenses so that profitability for an organisation can be improved for a specific period.
Management also focus to optimise the cost by using the cost analysis techniques so that
exact reason can be determined for additional expenses or increased cost. Therefore
manager of The food and fusion are required to make effective budgets that will be
beneficial for them to control expenses in order to increase profit and survive and
maintain long term financial sustainability in competitive world (Bruce and Stephens
2017).
 Determine risky factors: In present time it is signifiant for manager of each
organisation, hotels or restaurant to determine the current or future reason for risk that
can hinder the performance. Management are responsible to do so because it can impact
the overall financial performance that could lead to reduction in global image and
decrease profit. As “The food and Fusion” is new developed restaurant, thus it is
necessary for the management to determine existing factor of risk and analyse the market
conditions in appropriate manner so that future risk factor also get determined. This will
be supportable for them to success and expand its business in different part of nation and
build strong customer base.
The above mention principles would be beneficial for new restaurant to manage and
control financial performance because it aid to grow and survive in competitive world.
A. During an accounting period incomes and expenditures of business organisation are as
follows:
Incomings Outgoings
Wages Lunch purchases
Gifts Household utility bills
Benefits Clothes
Allowances Weekly food shopping
Gifts
Drinks
B. Explanation of some specific terms:
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Cost: It is the total sum of money or amount which is paid by a business or a firm to
manufacture a product. Cost occurs in a manufacturing business starting from purchasing of raw
material to transferring into finished good. Though cost is considered as an expense in business
but this expense is very must to generate revenue. Thus manager of “The food and Fusion” use to
analyse the overall cost involved in business that help to control expenses and increase profit
(Chung and Chung, 2018).
Types of cost:
These are the major costs in respective restaurant that is related to various business
dealing which are discussed below:
 Variable cost: Mainly these kind of cost is the cost which changes as the volume of
production change. Variable cost doesn't remain fix. It is the nature of the variable cost.
Changes in variable cost depends upon the changes in production. It is proportion to the
volume of goods and service. For examples Shipping cost , direct material cost etc.
 Fixed cost: Fixed-cost is the cost which does not change as the change in production. It
is totally opposite of the variable cost. In other words we can say that fixed cost is the
cost which does not effect with the change in production. Some example are lease on
property, insurance premium etc.
 Semi variable cost: These type of cost is also known by mixed cost. As are those costs
who have features of both fixed-cost and variable cost. Best example of semi variable
cost is an electricity bill of manufacturing firm because it involves both fixed amount and
number of kilowatt hours of electricity used during production.
Sales: It is refers to those activities which are related to transfer of goods and services
from one person to another person in return of money. In sales there are two parties buyer person
who receive the goods and services and seller person who transfer goods or services.For an
example- A person went in a stationary shop to buy book, then that person will pay money to get
book and will receive the book after paying.
Purchase: Purchase is the process of acquiring goods and services for a specific purpose
by paying some amount of money. In business terms , purchase means buying goods or services
to complete various production activities.
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2. Application of double entry book keeping system
Double entry book keeping system: Double entry book keeping system is a system in
which all the business transactions must be recorded into minimum two accounts. In double
entry book keeping system it is also required that amount entered as debit must be equal to
amount entered as credits. For example- If a company borrows 10000$ from a bank then
company's cash account will increase by $10000 as well as company's liability will also increase
by same amount. In this condition there will be two entries one is debit and another is credit
entry and amount will also same in both the entries.
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3. Analysis of Sales and Purchase transactions to compile a Trial balance
Sales: It is defined as the process of buying of goods by customer and selling of
commodity through seller. There are mainly two parties seller, buyer so it means both the parties
should agree to complete sales , there should not be any forcefully act. There should be mutual
understanding between both parties , there should not be any misunderstanding
Purchase: Purchase is the process of acquiring goods and services for a specific purpose
by paying some amount of money. In business terms, purchase means buying goods or services
to complete various production activities (Foster and Carver, 2018.).
4. Formulation of basic trial balance by applying balance off rule:
Balance off rule: This process is related to bringing of ledger balance forward into the
next year. This is done because in order to extract the actual balance to be posted into the trail
balance during an accounting year. Finance Manager of The Food and Fusion use to balance off
all leader account in the end of financial period that help to ascertain any misappropriation and
error in any of financial statements.
Trial Balance
Steps involved in drawing up trial balance:
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 Prepare a worksheet of three columns: It is the first step of preparing trail balance. In
these three columns, one for account titles and rest of two columns for debit and credit.
 Fill in the account titles and record their balance in appropriate debit or credit columns.
 Total the debit and credit columns: In this step there would be the total addition of both
the columns : debit and credit.
 Compare the column totals: It is the last step of the trial balance in this there would be
comparison of amounts of both columns (Ervin, 2016).
TASK 2
1. Different stages of the HR life cycle
Manager of “The Food and Fusion” have reviewed the different stages of HR cycle in
order to hire and place best candidates to their workplace.
Importance of HR Life cycle in relation to strategic talent management and overcoming
issues of staff rotation:
HR life cycle is very important for all human resources of an organization. It manages the
human resources in proper way. HR life cycle is the combination of five stages which are
following- recruitment, education, motivation, evaluation, celebration. Each of these stages has
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own importance that help “The Food and Fusion” to manager and run business in effective
manner. There are some points which describe the importance of human resource life cycle:
 Increase employee performance: Human resource cycle is important in increasing the
performance of the employees because human resource life cycle includes training of the
employees, which helps in the better performance of the employees. And increasing in
employee's performance effect the performance of organization in a positive way.
 Employees motivation to attain goals: Another importance of human resource is that
helpful for the employees that there complete focus is on to achieve the organization's
goals and objectives. It is advantageous for both employee and organisation. By this
individual goals of employees can also complete. For an example if an employee is
motivated to achieve the organisation's goals then that employee can be rewarded with
the good salary and incentives.
 Retain top talent: Human resource life cycle helps in maintaining and retaining the top
talent. Because human resource life cycle includes the proper evaluation of the
employees and this helps in managing right talent. And this is also helpful in assigning
right task according to there talent.
 Continuous coverage of critical roles: Human resource life cycle covers the
performance of those persons whose responsibilities are critical. This helps in better
evaluation of the employees, it compares the actual performance with the targeted
performance. Because of this critical task assigned people performs there role in a better
way. And they know about that they are under coverage of higher authority.
Recommendation: The above mention strategies help to improve the HR process that
help to manage and control workforce to achieve the targeted goals. Thus it is stated that
improving the performance of employees will be beneficial for “The Food and Fusion” as they
will handle customer in more appropriate manner (Kysilka and Csaba, 2013).
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2. Development of performance management plan
Short script on topic “An employee is not communicating well with customer”.
It is observed that with fluent and frequent communication help to proceed with plans in
so that overall goals can be attained. Manager of The Food and Fusion use to develop a
management performance plan that help them to measure and evaluate performance of
employees that also help them to control negative factors that can reduce their performance.
Script one:
Manager should not adopt this method of communication:
Manager: “You don't know how to communicate with other and customer”
Employees: Sir due to workload and customer argument some time I losses my temper.
Manager: “ I will fired you in case if customer are not satisfied with your services”
Employee: Sorry sir,
Second Script:
This is the manner manger should take to their employee.
Manager: Kindly work on your communication skills as I found that you are not comfortable
while taking to customer”
Employee: Sir because of more workload and sales increment some time my way of
communication is different.
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Manager: Please figure out the problems of customer and try to solve them as they are precious
to us.
Employee: Sure sir I will defiantly look into this matter and tries to build effective
communication with customer.
TASK 3
1. Identification of specific legislations (Covered in PPT)
2.Way in which company, employment and contract law has potential impact on business
(Covered in PPT)
TASK 4
1. Interrelation between different functions.
Organisational Structure of “The Food and Fusion ”
Organisational Structure of Hospital:
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Organisational Structure of Theme Park:
Organisational Structure of Hotel:
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All the above mention organisation structures display the functioning of business in
hospitality industry. Different structure are designed with different stages according to the work
requirement and job role allotted to employees and manager. It is observed that functional role
are managed with the help of effective management plan so that organisation can achieved their
predefined goals (Moeti, 2016). All function in a business are interlinked to each another as top
level guide the employees to work in a signifiant manner and attained the future goals. Due to
this connection of each stages companies are able to run business in effective manner and handle
difficult situation within “The Food and Fusion”.
2. Methods of communication, ordination and monitoring applied within specific department
There are different method to communicate, coordinate, monitor other employees within
an organisation. Some of these are discussed below:
Conference/ meeting: This method is basically used by upper level manger in order to
conduct a meeting to inform other functional manager of company. HOD and Director use to
discuss different topics and take effective decision in order to improve the profitability of
company.
Seminars: This method is mainly adopted by manager in order to give important
message of HOD to large number of employees. Manager use to motivate and increase
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performance of worker and makes them understand about the new polices and strategies of
company.
Emails: It is also one of the effective method of communication as upper level
management use to deliver important email message to wide number customer. Employees also
use to send email in order to communicate with upper management.
Importance of Method to attain goals:
Form the above mention method of communication it has been analysed that goals can
only be achieved in case if manager are able to deliver crucial message of Upper level
management to employees working on different project. Manager also guide and motivate
worker by continuously coordinating and encouraging them to success the plans by following
appropriate strategies (Schwager, Decker and Kaltenegger, 2016).
Recommendation: The above mention method help manager to manage and guide
workforce in order to achieve the overall objective in effective manner. As employees are well
known to the plans of management then they put their all effort to achieve them in any manner.
CONCLUSION:
In conclusion, it has been discussed that in hospitality industry there are different forces
that have direct and negative impact on business operation thus they are needed to be reduced.
Stable Financial performance of company help to take useful step in order to increase more profit
in future and build good global image. With the support of performance management plan
manager are able to develop valuable strategies that support to increase performance of
employees and increase productivity.
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REFERENCES
Books and Journals
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Routledge.
Bruce, J. and Stephens, C. A., 2017. Bridging secondary and postsecondary leadership
experiences: A toolkit for leadership learning facilitators. New directions for student
leadership. 2017(155). pp.95-106.
Chung, G. and Chung, D., 2018. WOW the hospitality customers: Transforming innovation into
performance through design thinking and human performance technology. Performance
Improvement. 57(2). pp. 14-25.
Ervin, S. A., 2016. Social Business Plan and Publishing Proposal for Global Toolkit.
Foster, M. and Carver, M., 2018. Explicit and implicit internationalisation: Exploring
perspectives on internationalisation in a business school with a revised
internationalisation of the curriculum toolkit. The International Journal of Management
Education. 16(2). pp.143-153.
Higgins-Desbiolles, F., Moskwa, E. and Wijesinghe, G., 2017. How sustainable is sustainable
hospitality research? A review of sustainable restaurant literature from 1991 to 2015.
Current Issues in Tourism. pp. 1-30.
Kysilka, D. and Csaba, N., 2013. Employee turnover in the hospitality industry. Anale. Seria
Stiinte Economice. Timisoara. 19. p.377.
Legrand, W., Chen, J. S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Lub, X. D., Rijnders, R., Caceres, L. N. and Bosman, J., 2016. The future of hotels: The
Lifestyle Hub. A design-thinking approach for developing future hospitality concepts.
Journal of Vacation Marketing. 22(3). pp. 249-264.
Moeti, M. E., 2016. The development of a business social responsibility (BSR) model to promote
the long-term sustainability of hospitality SMMEs in the Free State region(Doctoral
dissertation, Bloemfontein: Central University of Technology, Free State).
Schwager, P., Decker, N. and Kaltenegger, I., 2016. Exploring green chemistry, sustainable
chemistry and innovative business models such as chemical leasing in the context of
international policy discussions. Current Opinion in Green and Sustainable Chemistry.
1. pp. 18-21.
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