Hospitality Business Toolkit Report: The Rosewood London Analysis

This report provides a comprehensive analysis of The Rosewood London's business operations, examining various aspects of its hospitality business. The report begins with an introduction to financial transactions, detailing source documents, recording processes, and principles of financial management. It includes a double-entry bookkeeping system, trial balance, and an analysis of costs, profit margins, and the importance of accurate transaction recording. The report then delves into the HR life cycle, covering talent acquisition, retention, performance management, and recommendations for improvement. Furthermore, it explores relevant legislation, including environmental, food safety, and consumer protection laws, along with their impact on business decision-making and ethical considerations. The analysis extends to functional roles, communication methods, and strategies for enhancing business performance. The report concludes with recommendations for improvement and a focus on communication and integration within the organization. The report provides insights into the hotel's financial performance, HR strategies, legal compliance, and operational efficiency.

The Hospitality
Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1.....................................................................................................................................1
Introduction of financial transactions...........................................................................1
Types of source documents and the recording processes.............................................1
Principles of managing and monitoring financial performance....................................2
Double entry bookkeeping system of the Hotel............................................................2
Produce a basic Trial balance of the Hotel...................................................................2
Purpose of the Trial Balance.........................................................................................3
Types of cost.................................................................................................................3
How cost can be managed to influence the financial performance...............................4
How profit margins can be calculated by showing the process....................................4
Importance of accurate recording of transactions in line..............................................4
Role of financial management and recommendations..................................................5
Task 2.....................................................................................................................................5
Stages of the HR life cycle in talent acquisition and retention.....................................5
Importance of HR plays in a specific job role..............................................................5
Developing performance management plan for a specific job role..............................6
Recommendations to improve the each stage of HR life cycle....................................6
Task 3.....................................................................................................................................6
Legislation that hospitality organisations has to comply..............................................6
Impact of employment and contract law on business decision-making........................7
Implications of Two of the regulations.........................................................................7
Identify two ethical issues and it's impact on business.................................................7
Recommendations on improvement of employment contract......................................7
Task 4.....................................................................................................................................8

Functional roles within the hospitality sector...............................................................8
Interrelation of roles......................................................................................................8
Communication methods and levels used in an organisation.......................................9
Reviewing coordination and Integration within a business..........................................9
Effectiveness of communication methods on integration of functions.........................9
Recommendations in enhancement of business performance.......................................9
CONCLUSION..............................................................................................................................10
References:.....................................................................................................................................11

INTRODUCTION
Hospitality business is referred to the business which mainly deals with the hotels and
restaurants. It consist several types of departments which are required to be managed such as
finance, human resource, marketing, production, research and development, information
technology and many more in order to function smoothly in a market (Konovalova, Yudina,
Ukhina and Zvyagintseva, 2018). Organization chosen here is the The Rosewood, London, it is
one of the top five star hotel based in London, UK. It mainly provides services like dining,
accommodation, free Wi-Fi, restaurant, bar, room service, free breakfast, spa, fitness centre,
children friendly, business centres, hairdressers, pets allowed, air conditioning and many more.
The following discussions made on the financial transactions, double entry book keeping, trial
balance, cost, profits, human resource life cycle, performance management, laws, regulations,
legislations, ethics, functions and communication methods with proper findings, judgements,
recommendations and conclusion in context of The Rosewood, London Hotel.
MAIN BODY
Task 1
Introduction of financial transactions
Financial transaction is defined as the monetary or money transactions in a business to
conduct the purchase and selling activities in an organization. It's management depends on the
size of the company which means that if the company is big with large turnovers the they will
need high sense of financial management resources and vice versa (Li and Singal, 2019). In
context of The Rosewood, London, they manage their financial transactions on a large scale by
using human as well as technical resources in order to estimate and interpret the finances in an
organization.
Types of source documents and the recording processes
There are various types of source documents used by The Rosewood, London in order to
make financial transaction more convenient and valuable such as checks, invoices, receipts,
credit memos, employee time cards, deposit slips and purchase orders. They mainly contains the
date of the transactions, total amount of the transactions, description of the transactions, one or
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more authorizing signatures and many more as per needs and requirements of the hotel.
Recoding process used by the hotel is they enter three lines in which two are for the transactions
and one is for the description of the same.
Principles of managing and monitoring financial performance
The Rosewood, London uses five major principles of managing and monitoring it's
financial performance such as consistency which states that transactions must be managed in a
routine or regular manner in a good consistency. Timeliness states that the transactions must be
managed for a particular time period for specific group of transactions for efficiency.
Justification states that the reason must be appropriate for entering the transaction.
Documentation states that there must be enough documents to prove the transactions
occurrences. Certification states that the transactions must be approved which mainly carries the
authprise signatures of the hotel top management (Temelkov, 2019).
Double entry bookkeeping system of the Hotel
Profit and loss statement of The Rosewood hotel for March 2020
Particulars Amount Particulars
To Opening Inventory 17000 By Sales 145000
To Purchase 63000 Less : Return Inward -3200
Less : Return Outward -1800 61200 By Closing Inventory
To Gross Profit 84600
Total 162800 Total
To Administration Cost 33000 By Gross Profit
TO Distribution Cost 30500
To Depreciation 9000
To Finance Cost 1600
To Tax 2100
To Net Profit 8400
Total 84600 Total
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Produce a basic Trial balance of the Hotel
Trial Balance for The Rosewood hotel
Particulars Debit Credit
Storage Cost 500
Purchase 10500
Sales 14600
Moter
Expenses 530
Cash at Bank 54000
Cash in Hand 18700
Payables 29100
Premises 250000
Van 52250
Fixtures 8350
Inventory 23200
Receivables 15420
Sales Return 900
Purchase
Return 70
Salaries 5000
Business Rates 1480
Capital 397060
Total 440830 440830
Purpose of the Trial Balance
The Rosewood, London uses trial balance for many purposes in operations of their hotel
management such as they use it to create comfort in posting easy or complicated adjustments, it
helps in auditing of the transactions so that inspection could be done in a more convenient
manner, it also facilitates the credibility for the hotel because if any loan or borrowings are taken
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or given by the hotel then it can easily show on records and moreover, it contains arithmetical
accuracy, bird's eye view and provides assistance in preparing financial statements (Ashraf,
2018).
Types of cost
The Rosewood, London operates using various cost which helps them to measure the
expenses and investment done on the hotel such as fixed cost which does not variate on a
frequent basis like rent, insurance and legal bills. Variable cost which variates frequently like
cost of raw materials, operating expenses and many more. Explicit cost which can be seen in the
accounting records like fixed or variable cost. Implicit cost which cannot be recorded in
accounting sheets like charity. Sunk cost which cannot be recovered and are recorded as the bad
debts in accounting sheets (Abdulaali, Alnoor and Eneizan, 2019).
How cost can be managed to influence the financial performance
The Rosewood, London manage it's cost to influence it's financial performance by firstly
estimating the cost, secondly by budgeting the cost and thirdly by controlling the cost. There are
mainly three factors that affects the cost management such as growing information technology,
global competition and growing service and manufacturing sectors. Therefore, there are various
techniques adopted by the hotel to manage it's cost such as capitalization on technology,
management of time, management of inventory, outsourcing, market sense must be updated and
headcount should be controlled.
How profit margins can be calculated by showing the process
The Rosewood, London calculates it's profit margin in mainly three different ways in
order to get surety and accuracy for the same such as firstly by net profit margin which is
calculated as net income divided by revenue multiplied by 100 where net income is calculated as
revenue minus COGS minus operating expenses minus other expenses minus interest minus
taxes. Secondly, gross profit margin which is calculated as total revenue minus cost of goods
sold divided by total revenue multiplied by 100. Thirdly, operating profit margin which is
calculated as operating income divided by revenue multiplied by 100 (Al-Wattar, Almagtome
and AL-Shafeay, 2019).
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Importance of accurate recording of transactions in line
The Rosewood, London has gained many advantages by accurate recording of
transactions such as the management can keep track of all the financial activities happening in an
organization and can judge the positive and negative impact on the revenues and sort them out
accordingly. Hotel has met the legal obligations by following up the accurate recording of
transactions. Moreover, income sources are being identified by the hotel due to accuracy. It
helped them to improve and grow business potentially and utilization of time more effectively.
Role of financial management and recommendations
It is recommended that it is important for The Rosewood, London to manage it's financial
resources because it get benefited in many ways due to the advantageous roles of financial
management such as financial decisions and control, financial planning, capital management,
allocation and utilization of financial resources, cash flow management, disposal of surplus,
financial reporting and risk management (Safaeva, Alieva, Abdukhalilova and Konovalova,
2020).
Task 2
Stages of the HR life cycle in talent acquisition and retention
The Rosewood, London has followed the six major steps in the life cycle of human
resource and employee management such as first is attraction of various candidates towards it's
hotel in order to gain skilled people to work in the hotel, second is recruitment which involves
contacting the candidates for interviews and selecting them for the hotel for specific roles, third
is on-boarding of candidates which means completing all the joining and documentation
processes, fourth is training and development of employees, fifth is retention of the employees to
minimise the employee turnovers and sixth is separation process if employee wants to ends the
job in the hotel (Boella and Goss-Turner, 2019).
Importance of HR plays in a specific job role
The Rosewood, London has human resource department which plays a major role in
maintaining the decorum in the hotel in it's operations such as by recruiting right candidates for
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the right job at the right time, they handles the whole process of payroll of the employees, they
are responsible to conduct the disciplinary actions, they update policies, maintain records of the
employees, conduct benefit analysis and training and development to employees by giving them
the personal as well as professional career growth which ultimately benefits the hotel as well.
Developing performance management plan for a specific job role
The Rosewood, London has developed the performance management plan to measure the
performances of each and every employee so that it can be identified that whom to give training
and whom to promote according to their performances. Their plan includes the structure such as
they have created the performance based objectives and goals which involves expectations
margins so as to define the scale of measurement, then they have defined the professional
development plans for the employees in order to give them the way or path to move on and
finally they communicate with employee on a daily basis to know the progress and difficulties
arising in accomplishing the same (Nieves and Quintana, 2018).
Recommendations to improve the each stage of HR life cycle
It is recommended that the hotel must improve the stages of human resource life cycle so
that enhancement could take place in an organization in a more better form such as
communication between employees and employers, among employees and among employers
must be improved to avoid misunderstandings between them. There must be the well defined
rules so that every employee can follow that to maintain discipline in the hotel while working.
Moreover, reduction of stress measures must be introduced so that hotel faces less employee
turnover as possible by taking such measures to implement and execute the same.
Task 3
Legislation that hospitality organisations has to comply
There are various legislations acts which are associated with The Rosewood, London
such as Environmental Legislation act, 1974 which states that there must be the minimum
wastage of food and other materials so that environment can suffer least harm as possible. Food
Safety Legislation act, 1990 which states that the food which is being provided to the customers
must be hygienic and safe that must not contain any food poisoning. Consumer Legislation act,
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2019 which states that the hotel must ensure that any act by them could not harm any emotions
or anything of the customers otherwise they can file a case against the hotel (Okumus, Altinay,
Chathoth and Koseoglu, 2019).
Impact of employment and contract law on business decision-making
There is a great impact of the employment and contract laws on The Rosewood's, London
decision making because employment laws affects the relationships between the employers and
the employees in terms of salary, behaviour, work condition, working hours and many more
things. Contract laws affects the rules and regulations in an organization to maintain the
legalities of the hotel. Therefore, collectively it affects the decision making process because
following up all such laws and legislations can influence the making up of the policies and
procedures accordingly.
Implications of Two of the regulations
There are various regulations acts which facilitates and provides implications to The
Rosewood, London such as Employment Relation Act which gives advantages to the employees,
employers and the hotel itself. Because it assist in maintain the relationships among them so that
working could be done in a very effective and efficient manner due to the relationship
management operations in an organization. Equality and Diversity Act states that there must be
an equal treatment between each and every employee in the hotel by avoiding their caste, colour,
religion, gender and many more discrimination forms (Nikolskaya, Uspenskaya, Lysoivanenko
and Kramarova, 2019).
Identify two ethical issues and it's impact on business
The Rosewood, London faces various ethical issues and two of them are decreasing the
quality of food in order to increase the profit margins which is a misconduct by the hotel because
they are avoiding the health terms of the customers, this has impacted the hotel in decreasing of
the customer loyalty. Secondly, hotel is lacking in giving respect to their staff members and
appreciation which they deserve for working hard, this has impacted the hotel in more employee
turnover (Safaeva, Ishankhodjaeva, Juraeva and Matyunina, 2019).
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Recommendations on improvement of employment contract
It is recommended that The Rosewood, London must take measures to improve the
operations management such as by adopting the techniques like total quality management,
inventory management, just in time management, capacity management and many more methods
so that they could decrease the quality of food and even they can increase the profit margins by
following such techniques of operations management. Moreover, they must provide a proper
training and development sessions to their employees so that they can able to manage themselves
with other employees in giving and taking respect from each other so that employee turnover can
be minimised. Therefore, they must strictly follow the legislations and acts like employee
relation act and food safety legislation act.
Task 4
Functional roles within the hospitality sector
There are various functional roles that are related or comes under The Rosewood, London
such as house keeping and front office which states that the employees which are working in
such type of a function has roles and responsibility such as they are required to take of the
customers by giving them best servicing and experience so that they visit again, it also consist
the receptionist roles which have the direct contact with the customers by entertaining them at
the time of entry. Food and beverages services and food production department states that the
employees which are working in these functions has roles such as they are responsible for the
restaurant services and ensuring the quality while managing the production in the hotel (Lei, Ye,
Wang and Law, 2020).
Interrelation of roles
Different functional roles in The Rosewood, London are interdependent on each other to
make them better function in an organization such as human resource, finance, marketing,
production, information technology, front desk, customer servicing and many more are
interrelated with each other in order to pay their part efficiently and effectively. The reason
behind such relationship is that it is important to work collectively so that HR can hire, financiers
can set budgets, sales people can market their hotel, production people can manage the quality,
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IT people can install advanced technology, front desk people can greet customers in an very
potential manner by working integrally towards each other.
Communication methods and levels used in an organisation
The Rosewood, London uses both types of communication methods such as verbal and
non verbal communication. Verbal communication is done either in a conference room by
conducting a meeting with each and every employee or seminars done by the top management in
order to give some sort of information. Non verbal communication is done through mails,
circulars, notices or many more methods. Moreover, there are other levels of communication as
well which are used by the organization such as physical communication, auditory, emotional
and energetic (Law, Leung and Chan, 2019).
Reviewing coordination and Integration within a business
The Rosewood, London has applied the function of coordination and integration on
employees which states that each and every employee in an organization must be trained in such
a way that they must adopt this function of coordination and integration. Reason behind
following such function is that it ensures that how much the collectively they are working with
with each other without any disputes or conflicts against each other. This supports the hotel in
mainlining the cooperation among employees towards each other, social relationship and
professional relationships as well. Through this they can help and assist each other which
ultimately it benefits the organization in it's operations and management.
Effectiveness of communication methods on integration of functions
The Rosewood, London has achieved various benefits by adopting the different
communication methods such as collectively accomplishing the organizational goals and
objectives, it sets the base for any action in the hotel, it facilitates the planning process, it
provides coordination among people, it helps in decision making, it provides effectiveness in
leadership and moreover it assist in boost morale, motivation among staff members of the hotel,
it provides clarity, adequacy and consistency, networking, feedback and integration (Andersson,
2019).
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