Hospitality Business Toolkit Report: Healthy Fluids Business Analysis

This report analyzes the financial and human resource management of a hospitality business, using the hypothetical company "Healthy Fluids" as a case study. It investigates financial performance, including competitive analysis, dashboard creation, and cash flow statements. The report also applies the double-entry bookkeeping system, analyzes sales and purchase transactions, and compiles trial balances. Furthermore, it examines the HR life cycle, performance management, and legal compliance within the hospitality sector, including employment and contract law. The report covers diverse functional roles, communication methods, and monitoring techniques within a hospitality setting. The report provides detailed examples, calculations, and recommendations to improve business operations and employee management, making it a comprehensive guide for understanding the key aspects of the hospitality industry.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Investigation of the principles of managing and monitoring financial performance............1
P2. Application of double entry book keeping system of debits and credits and Analysis of
sales and purchase transactions to compile trial balance.............................................................3
P3 Trial balance based on Balance-off rule.................................................................................4
TASK 2............................................................................................................................................6
P4 Analysis of different stages of the HR life cycle applied to a specific hospitality job role....6
P5 Construct a performance plan for a specific hospitality job role and applied techniques to
resolve both..................................................................................................................................7
TASK 3............................................................................................................................................7
P6 Evaluate the legislation that a hospitality organisation has to comply and adhere (Covered
in PPT).........................................................................................................................................7
P7 Specific examples to illustrate how organisation comply employment and contract law
(Covered in PPT).........................................................................................................................8
TASK 4............................................................................................................................................8
P8 Diverse type of functional roles within the hospitality sector................................................8
P9 Different methods of communication and monitoring applied with in a specific department
of hospitality sector....................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is mainly defined as service providing sector that includes variety of
services such as theme park, travel and tourism, restaurants, event planning etc. from the past
decades it has been seen that there is a continuously growth in this sector and it is contributing
more towards growth of the country (Branagan, 2017). Operating business in this industry and
satisfying consumers to great extend requires each organisation to understand various other
factors of business environment. This will help in providing quality services to consumers as all
the departments involved in business operations will be managed well. To understand
importance and functions of various aspects of business a organisation named as “Healthy
Fluids” is considered. This is situated at Bishops Gate, London. In this report a detailed analysis
is done on financial aspects of hospitality and human resource in an business organisation.
Legislations that business needs to follow while managing operations and importance of
communication to work efficiently in the organisation.
TASK 1
P1. Investigation of the principles of managing and monitoring financial performance
Business organisation like Healthy Fluids is going to operate in the highly competitive
market. This organisation is serving to its consumers healthy and tasty juices, salads and
smoothies. Availability of funds in the business is just like blood in a human body that is
required to perform various other functions. It is highly recommended to manage and monitor
financial performance of the business in following manner-
Competitive Analysis: Financial indicators of Healthy Fluids needs to be compared with
its competitors. This will provided wide scope to operate its finances by adopting some cost
effective techniques that are used by competitive businesses to earn more. This will help
business to catch various strategy used in the industry to be competitive and survive in long run
(Cooper, 2012).
Creation of Dashboard: A dashboard will be prepared for finance team on daily,
monthly and yearly basis. This will help management and shareholders in the business to know
about financial condition of the Healthy Fluids. Continuous monitoring on financial position
helps to manage it more profitably and reduces chances of bed decisions.
1

Preparation of Cash flow statements: This is vital report for a business that provides
information regarding inflows and outflows of cash into the business. There are many
receivables that shows as an asset and closer examination of which says that they are not more an
asset for Healthy Fluids.
A. Income and Expenditure of Business over one calender year
Incomings Outgoings
Wages Weekly food shopping
Gifts Clothes
Benefits Gifts
Allowances Household utility bills
drinks
Lunch purchases
B. Explanation of terms pertained in Hospitality industry
Sales: When goods and services are delivered by business organisations for
considerations to consumers then it is termed as sales. All the activities that is performed by
business organisations with an objectives to make sales and earn revenue. Sales of juices and
salads by Healthy Fluids will bring revenue in the organisation and helps in managing financial
condition of the business.
Purchase: When Goods and services that fulfils the needs of a business or consumers are
taken for some consideration then it is termed as purchases. Inputs that are required to provide
healthy food to large number of consumers will be purchased by Healthy Fluids from market.
Purchases are formed part of the cost incurred to provide foods and will be made cost effective to
reduce cost of production in the organisation.
Types of cost: It is the total of amount invested in producing and providing any goods
and service to the ultimate consumer. There are various cost that is incurred while establishing a
business and in the process of continuously operating that business. Cost that is incurred by
Healthy Fluids are fixed cost, variable cost, direct cost and indirect cost. These costs are
described as follows-
2

 Fixed cost: Expense in business organisation that do not changes with level of production
of goods and services. Amount of cost is fixed in a particular time period such as rent,
insurance, salary to fixed employee.
 Variable cost: Amount of cost that changes with the level of production is termed as
variable cost. This includes material, labour etc.
 Direct Cost: This amount of expense is directly linked with the production which means
that amount that is specifically charged to production of goods and services. Such as
commissions, piece rate wages.
 Indirect cost: Amount of expenses that can not be directly attributed to some specific
production process for manufacturing of goods and services. Example- depreciation and
administration expenses.
P2. Application of double entry book keeping system of debits and credits and Analysis of sales
and purchase transactions to compile trial balance
In the double entry book keeping system, at least two accounting entries are required to
record each financial transaction. Recording of a debit amount to one or more accounts and an
equal credit amount will be recorded to record full effect of the transaction. This system of
accounting is a fundamental concept to record various business transactions that specifies that
equal and opposite effect of the financial transaction will be recorded in the financial statements.
Healthy Fluids follow this method of recording financial transaction and prepares trial balance to
reflect true and fair condition of the business.
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
3

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
Note: Trial balance is prepared on the assumption that cash in hand is an overdraft from
bank and Functions and events are revenue generating activity.
A trial balance of Healthy Fluids will be prepared by taking some imaginary figures and
differentiating transactions on the basis of their nature. This trial balance is as follows-
Particulars Debit Credit Transaction
amount
Weekly food shopping 25000 25000
Clothes 5000 5000
Gifts 4200 4200
Household utility bills 5800 5800
Drinks 27000 27000
Lunch purchases 73000 73000
Wages 72500 72500
4

Gifts 27500 27500
Benefits 18300 18300
Allowances 11700 11700
Total 140000 140000 280000
P3 Trial balance based on Balance-off rule
At the end of the accounting period it is necessary to close ledger accounts and balance
them. This can be done by recording an opposite balance in the ledger book (Glauner, 2016).
This rule helps to close various accounts and helps to bring a true and fair accounting details on
basis of which trial balance of Healthy Fluids organisation will be prepared. When total of debit
matches with credit then accounts are verifies that information recorded are true.
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
Preparation of trial balance involves following easy stapes:
5

While preparing trial balance of Healthy Fluids organisation it will be seen by the
finance department of the organisation that all the information recorded is true and fair. A trial
balance will be prepared just after all the ledger accounts in the books are closed.
 First all the ledger accounts are closed by debiting and crediting the balance amount.
 A three column worksheet will be prepared to record name of the account and their debit
and credit balances.
 Closing balance of each account will be mentioned.
 At last total of debit will matched with total of credit.
TASK 2
P4 Analysis of different stages of the HR life cycle applied to a specific hospitality job role
Importance of HR life cycle
The employee life cycle is a concept in human resources management that describes the
stages of an employee's time with particular company and the role human resource department
plays in Healthy Fluids organisation. This cycle is important to generate skilled and talented
6

employees and to retain them for long run. While moving this whole life cycle development of
various strengths takes place in employees working in the organisation.
Recommendation: Healthy Fluids is a new business organisation that is facing a good
response and wants to sustain in long run. These documents are as daily performance sheet that
notifies daily objects and their achievement records. Monthly and yearly records of employee’s
performance is recorded with their skills and weaknesses to manage them efficiently.
Ability procurement: It is an all-encompassing, continuous procedure that includes three
stages which are enlist, select and On-board. The objective of the vital ability securing is past
getting gifted representatives in the association as it additionally centres on holding these skilled
workers in the association and making them resource for Healthy fluids association. Through
ability obtaining a gifted and qualified specialist is pulled in towards association for making an
application to pick up a situation in the organization and work their proficiently. Healthy fluids
business element is confronting different issues identified with ability securing some of them are
as per the following-
A long plan for the day: Recruiters of the association for occupation profile based on
candidate following framework the board, work posting updates and mounting weight from
procuring administrators and officials. These exercises take time from significant commitment
that could be occurring with dynamic and potential competitors.
Overlooking the independent hopeful: In the present business situation spotters in the
association support competitors that have social butterfly conduct. As outgoing applicants pulls
in substantial number of individuals towards them and get inclination over contemplative person
competitors. This frustrates association by losing a chance of selecting to contract a hopeful who
is exceptionally gifted however self-observer.
P5 Construct a performance plan for a specific hospitality job role and applied techniques to
resolve both
A performance management plan that is introduced in the business keeps focus on performance
of each individual and makes each individual to utilise their skills in best productive manner to
earn more profits (Hanson and Rohlin, 2018). A script is designed that shows conversation
between an employee and employer regarding rude behaviour of employee with colleague.
The process which should be undertaken:
Manager called the employee in the office and said.
7

Manager: Mr. Romi, Tell me what had happened outside.
Employee: Sir, I was just not in a state of mind to take ant jocks and shouted.
Manager: Do you think it was a professional behaviour?
Employee: No sir, I am sorry for what has happened.
Manager: This will not be tolerated again, I hope you will not repeat it.
Employee: I am sorry sir I won't repeat it again.
Manager: Ok, you may leave now.
The process which should not be undertaken:
Manager come to the desk of employees and ask them:
Manager: What happen, you were friends then how can you fight?
Employee 1: It is not my fault as it was a normal jock that I have creaked.
Employee 2: But he has to know my mood and should stop acting silly.
Manager: Calm down both of you as this is not the way two friends behave. Lets hug
each other and behave properly.
Employees (Both): No we do not want to talk with each other.
Manager: Ok, fine whatever you think right do that.
TASK 3
P6 Evaluate the legislation that a hospitality organisation has to comply and adhere (Covered in
PPT)
P7 Specific examples to illustrate how organisation comply employment and contract law
(Covered in PPT)
TASK 4
P8 Diverse type of functional roles within the hospitality sector
Organisational structure of “Healthy Fluids”
8

Hierarchy of “Hotel industry”
Structure of “Hospital”
9

Organisational structure of “Theme park”
The hospitality industry consist different kinds of business such as hotels, theme parks,
restaurants and tourism agencies (Maritz, 2013). However, these different business has their own
organisational structure which can be considered as interrelated with other. Moreover, the
interlinked structure include that general managers are responsible for making decisions in
hostels & theme parks, top level management take desired decisions in restaurants and owners
10

make decision in tourism agencies. In addition to this, the respective individuals plays a an
important role to provide correct direction for staff members top facilitate work in appropriate
directions.
P9 Different methods of communication and monitoring applied with in a specific department of
hospitality sector
 E-MAIL- E-mail is the best way of communication. E- mail 's full form is electronic
mail. It was founded by Ray Tamil son. E- mail is method of transferring message from
one person to another person through electronic devices with the help of internet
(Monitor Financial Performance. 2018).
Features of e-mail:
Quick- It is best feature of email is that it transfer messages quickly in less time. It saves
time of both message receiver and message sender.
Time saving- E mail is time saving method of communication. One email can send to
multi-pal contacts in one time.
Secure- Another important feature of email is that it is secure way of communication.
Privacy of both sender and receiver remain safe.
 TEXT MESSAGE- Text message is transfer of short message between two or more
person with the help of mobile devices. Except mobile devices text message can be send
with the use of pagers and personal digital assistance.
 GROUP MEETING- Group meeting is way of communication among a group of 10-15
people. In this ideas and opinions of different group members exchange with each other.
Purpose of group meeting is to get ideas and opinions of all group members to get
solution on a particular problem. Generally these group meetings take palace in
businesses or large organizations.
11

Evaluation of different methods of communication and the monitoring within specific
department of organisation
In an organisation there are several methods of communication that has been adopted by
an respective organisation in order to accomplish task and activities effectively (Newsome and
Moore, 2015). Herein, the mangers are adopting email, text message and group meetings so that
they can eliminate any kind of barriers that are effective problems in communicate and
coordinate among employees. Thus, by adopting such communication methods an organisation
are able to create an insight for making effective decision which is beneficial for an organisation
to attain its goals and objectives.
Recommendation
From the above discussion it has been concluded that in an organisation communication,
coordination and monitoring for enhancement are have their own importance within an
organisation. For such instance an organisation need to maintain efficiency as well as adopt new
methods of communication that are help for them to carry out their task and activities in an
attractive manner (Sheth, Sinha and Shah, 2016). Thus, an organisation need to encourage
managerial personnels to formulate effective methods and policies to avoid certain difficulties
related with this methods of communication and coordination.
12

CONCLUSION
From the above report, it has been summarised that new venture consist several aspects
which are required to be operated for running business in appropriate manner. Meanwhile, it
involve HR, finance, legislations and communication which should be focussed to conduct
respective tasks properly. Moreover, every business concerns is required to follow overall
desired laws and acts while carrying out operational or administrative activities in order to gain
growth as well as success.
13