Hospitality Business Toolkit: Carnival Corporation Business Analysis

This report delves into the hospitality sector, focusing on the operational and strategic aspects of a hospitality business, using Carnival Corporation as a case study. The report begins with an analysis of financial performance principles, including cost management and risk identification, along with the application of double-entry bookkeeping to compile a trial balance. It then reviews the HR lifecycle stages within Carnival Corporation, emphasizing recruitment, education, motivation, and evaluation. The report also addresses legal compliance, specifically identifying relevant legislations and examining the impact of company, employment, and contract law. Furthermore, it explores the interrelation of different functions and roles within the hospitality sector and examines communication, coordination, and monitoring methods applied within specific departments. The report concludes by summarizing key findings and referencing relevant sources.

Hospitality Business Toolkit

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1. Principles of managing and monitoring financial performance:........................................................3
P2. Application of double entry book keeping system of debits and credits and Analysis of sales and
purchase transactions to compile trial balance:........................................................................................5
P3. Formulation of basic trial balance by applying balance off rule:.......................................................8
TASK 2..........................................................................................................................................................9
P4 Reviewing the different stages of the HR life cycle applied to Carnival Corporation........................9
P5 Performance management plan.........................................................................................................11
TASK 3........................................................................................................................................................12
P6. Identification of specific legislations that Royale has to comply and adhere to:.............................12
P7. The way in which company, employment and contract law has potential impact on business:.......12
TASK 4........................................................................................................................................................13
P8. Interrelation between different functions and roles within hospitality sector:..................................13
P9. Different methods of communication, ordination and monitoring applied within specific department
of the organisation:................................................................................................................................16
CONCLUSION.............................................................................................................................................17
REFERENCES..............................................................................................................................................18

INTRODUCTION
Hospitality sector is one of the fastest growing sector across the world. It consists of several
activities such as accommodation, food and beverage, travel and tourism etc. which are provided
by them to their customers. In addition, Hospitality sector mainly related with those activities or
functions whose main motive is to gain large profitability or provide aid to government so as to
building economic development of nation. Chosen organization for this assignment is Carnival
Corporation and PLC which is a British American cruise operator. Company offers a wide range
of products and services like food and beverages, travel and tourism, accommodation to its
customers. Present report will discuss about the rational and principle of revenue management
along with different phases of HR life cycle. In addition, performance management plan along
with legislations and contract laws will also covered under this report. At the last, several roles
and their interrelation with hospitality sector along numerous methods of communication will
also covered in this report.
TASK 1
P1. Principles of managing and monitoring financial performance:
Principle can be defined as the set of guidelines which are formulated for conducting
activities or improving the productivity or efficiencies of organisation. In addition, financial
performance are defined as the financial capabilities of organisation which are necessary for
completing any task or activities so that goals or objectives can be achieved in easy manner.
Some of the main principle of managing and monitoring of financial performance at Carnival
Corporation is as follows:
Composition of finance: It is very crucial for Carnival to structure their financial sources
because proper structure of finance leads the organisation towards good financial performance.
Excessive investments on debts can reduce financial performance of organisation so that it
should be managed and monitored properly and in it composition of finance performs its duties
as principle (Chang, 2014).
 Manage expenditure and optimise costs: Financial performance is mainly related with
profitability or productivity of organisation and it is very essential for the organisation to
achieving sustainable position in market manage expenditure or optimize various costs

through budget or cost analysis. So, management of Carnival should minimize their cost
so that they can get sustainability in market.
Identification of risky factors: For achieving growth and success in a short time period, it is
very essential for management of Carnival to identify existing risky factors that can influence
their current performance or sustainability. Through identifying risk occurring factors and
resolving them accordingly Carnival corporation will surely achieve growth and success in
market (Chung, 2018).
From the above discussed principles it is very essential for Carnival Corporation to
adhere these principles properly so that growth and success would be achieved in easy manner.
A. During an accounting period incomes and expenditures of Carnival Corporation are as
follows:
Incomings Outgoings
Benefits Drinks
Allowances Lunch purchases
Wages Household utility bills
Gifts Weekly food shopping
Clothes
Gifts
B. Explanation of some specific terms:
Types of cost: For carrying out several activities or functions numerous costs or
expenditures are incurred within the workplace that is essential for operating business functions
and activities in effective manner. These costs assist the organisation in enhancing their
productivity and brand image in marketplace. Some major costs which are occurred in Carnival
Corporation on regular basis are given as follows:

 Variable cost - Variable cost can be defined as those expenses which is flexible in nature
and can change at any time. These costs may be increase or decrease and is depended on
level of output. It includes wages or salary, sales commission, supplier cost etc.
 Fixed cost: This kind of cost consists of those expenditures which remain fixed with
number of customers or services offered by Carnival like accommodation, administration
cost etc.
 Semi variable cost: These are the one which remains fixed at a fix period of time but
after crossing the time it becomes variable.
Sales: It can be defined as the total amount of income is earned by an organization in a preset
time-frame. In Carnival, they generate income through serving customers or providing them
accommodation services (Cohen, 2017).
Purchase: It includes the process of paying amount by an organisation for buying any
commodity so as to operating its daily functions. In Carnival, money spent on purchasing various
items like food and beverage items, tables, essential things for arranging accommodation
facilities etc.
P2. Application of double entry book keeping system of debits and credits and Analysis of
sales and purchase transactions to compile trial balance:
Double entry book keeping system- According to accounting standards, It is very essential for
each organisation to record the transaction in two way so that balance of available cash can be
identified in easy manner. Each organisation like Carnival Corporation should adopts double
entry system so as to recording transactions and gaining better identifications of reserve balance.
Trial balance on the basis of double entry system is given as below:
Particulars Debit Credit
Cash in hand (Negative Figure) 10700
Petty cash expenses 750

Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
Purchase return 200
Discount received 2300
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
Total 37502 37502

Analysis of Sales and Purchase transactions to compile a Trial balance suing Double entry
system:
Sales: It refers to cash and credit amount of figures which are related with sold items or
service provided. In Carnival, sales consists of incomes like wages or other monetary profits
which are earned by whole organisation (DeLacy, 2014).
Purchase: It refers to cash or credit figures which are purchased by an association so as
to operating its daily activities. In Carnival, purchase includes clothes, sanitation products, lunch
purchases etc. Below mentioned is the trial balance which is based on above double entry
bookkeeping system:
Particulars Debit Credit Transaction amount
Wages 16500 16500
Gifts 23000 23000
Benefits 24000 24000
Allowances 19200 19200
Weekly food shopping 25200 25200
Clothes 16820 16820
Gifts 14100 14100
Household utility bills 3900 3900
Drinks 9980 9980
Lunch purchases 12700 12700
Total 82700 82700 165400

P3. Formulation of basic trial balance by applying balance off rule:
Balance off rule: It can be reoffered as a process in which remaining balance of ledgers
are brought forward to next statements of new financial years so that trial balance can be formed
in a proper manner. In Carnival, all ledger accounts should be maintained properly so that any
misappropriation can’t be faced in formulation of financial statement Cros (McKercher, 2014).
Trial Balance
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020

Vehicles 2020
Total 52420 52420
As per the above mentioned trial balance, it is clearly identified that all ledge accounts
are correctly recorded because balance are properly recorded and tailed in trial balance properly.
In addition, all income and expenses account are clearly classified as per the accounting
principle.
Steps involved in drawing up trial balance:
After formulating journal and ledgers, trial balance is formulated by business
organizations. Main motive behind formulation of trial balance is to identifying errors like
arithmetical or other errors like excessive charges on accounts etc. There are some steps which
should be followed by Carnival Corporation so as to preparing trial balance. They are given as
below:
1. It has been recommended to the financial managers of Carnival to formulate account
which includes three columns like account particular, debit and third one is credit balance
of each accounts.
2. Fill all name of account properly so that any misbalance wouldn’t be faced in future.
Then calculate sum of debit and credit columns and if any mistake is occurred in sum then
evaluate the reason (Ervin, 2016).
TASK 2
P4 Reviewing the different stages of the HR life cycle applied to Carnival Corporation
HR cycle with strategic talent management is very important in the organisation so as to
managing workforce in appropriate manner. It guides the managers of organisation to retain
talented employees within the workplace so that expertness can be maintained at workplace
which leads the firm towards growth and success. In HR cycle, talent management plays very
important role because it helps the managers to manage its key employees so that any conflict
can’t be occurred at workplace. Therefore, It is very important for management of Carnival

Corporation to provide specific training to their employees on regular basis so that their
efficiencies would be maintained. Some of the stages of HR life cycle are given as below:
Recruitment: It is a formal process in which eligible candidates are hired by the
organizations. This part plays very important part because all over growth and success of firms
are depended on efforts of employees. In Carnival Corporation, management wants to recruit
skilled and knowledgeable food and beverage manager who have excellent skills of
communication and can manage all responsibilities within a small period of time.
Education: This is the second step of HR life cycle in which appropriate education is
provided to employees after recruitment so that they can understand their duties in easy manner.
In Carnival, they should provide effective training to their newly recruited food and beverage
managers so that cruise culture can be understand by them in easy manner and they performs
their duties in well manner. This step is important because without training newly recruited
employees can’t perform duties in full efficiencies.
Motivation: This step plays very important role in growth and success of firm because
with the help of it, managers of Carnival Corporation not only increase the efficiencies of their
employees but also they can earn high profitability from this. Management of Carnival
corpoaration plc should provide opportunities to their newly recruited employees so that they
performs well and provide better contributions for achievement of goals.
Evaluation: This is the last step in it management have to evaluate performance of their existing
workforce so that decisions can be taken by them for retaining or terminating their employees. In
Carnival Corporation, as they have recruited new food and beverage managers then they should
evaluate their performance in effective manner so as to identifying whether it performs duties in
well manner or not (Higgins, 2017).
All these steps are essential for the Carnival Corporation because it not only increases
motivation level of employees but also provide benefits to firm in order to retain their employees
for a long period of time. Importance of this life cycle is given as below:
Assists in Increase of employee performance: Using of talent management and HR life
cycle is very much effective because it helps in identifying the lower or best performer of firm

and they can take better decisions for improving effeciencies of firm. It also provide guidance to
the manager that how to retain eligible workers at workers.
Employee motivation to attain goals: Through using strategic management plan,
Management of Carnival corporation can motivate their employees so as to retaining them within
the organization for a longer period of time.
P5 Performance management plan
For adhere all responsibilities in well manner it is very essential for an entity to formulate a
well structured performance management plan so that challenges of future can be overcome and
prosperity can be gained in future. In Carnival, staff members of food and beverage department
are facing various kind of difficulties like salary issues, working hours and refusing to take
additional task because of which conflicts are arising at workplace. In order to overcoming such
negative conflicts, management of Carnival Corporation have framed performance management
plan which is described as below:
Assess current performance management process:
In it, management of Carnival Corporation have to determine actual strength of organizational
structure like man, material or resources so that future arrangements or mission of organisaiton
should be framed in well manner.
Set objectives and Goals:
After framing mission, it is very important for managers of Carnival Corporation to
formulate team and goals so that better outcomes would be received in future. Through making
effective teams at workplace chances of conflicts would be reduced which will assist in
removing negative working behavior from the organisaiton.
Keep track of progress: After forming effective teams at workplace, it is very important for
managers of Carnival Corporation to monitor performance level of their cruise employees.
Through which they will be able in finding gap and filling them accordingly (Singh, 2015).
All these activities are effectively assist the management of Carnival Corporation in
resolving problems. Which will leads the firm towards higher productivity and enhanced

performance of their workers. In addition, when management provide actual recognition on their
performance and provide them training and rewards on a specific interval period it will increase
their loyalty towards organisation which will be beneficial for firm in achievement of goals.
TASK 3
P6. Identification of specific legislations that Royale has to comply and adhere to:
There is some major legislation which is formulated by UK government in order to
removing unethical practices from the workplace and it is responsibility of Carnival to follow
these rules properly. These legislations are given as follows:
 Employment Act 2002: This act provides rights and authorities to employees along with
responsibilities to owner of firm to not to posse any kind of pressure on employees or
provide healthy working environment at workplace.
 Food Safety Act 1990: According to this act, food which is offered by organisation
should be prepare in well manner and should have hygiene quality in it. Therefore,
management of Carnival Corporation has duty to serve or sale food items at standard
quality so that brand image can be maintained at marketplace.
 The Tourism Act 2011: This act was formulated for managing, developing or regulating
tourism related activities. This law is important to be followed by Carnival Corporation
so as to managing activities of travel and tourism in most appropriate manner (Moeti,
2016).
P7. The way in which company, employment and contract law has potential impact on
business:
Various changes are made by government in legislations at a specific interval of time but
these changes posses some adverse impact on hospitality industry. Therefore organizations of
hospitality sector like Carnival Corporation should have duty to consider these changes carefully
and make modifications in policies accordingly so that any difficulty wouldn’t be faced in near
future. There are some examples of firms who have not followed these acts carefully and pay
penalties , are given as below: