Unit 4: Hospitality Business Toolkit Report - Financial Analysis

This report provides an analysis of the hospitality business, focusing on Merlin Entertainment Ltd. It begins by examining the principles of managing and monitoring financial performance, including sales, purchases, and receipts, and the use of key performance indicators. The report then applies the double-entry bookkeeping system to record sales and purchases, producing a trial balance to complete the ledger. The second part of the report reviews the different stages of the HR lifecycle, including recruitment, selection, onboarding, and exit strategies, and develops a performance management plan to address staff retention. Finally, the report identifies specific legislation that the company must comply with, illustrating the impact of employment and contract law on business decision-making. The report covers various aspects of the hospitality business, from financial management to human resources and legal compliance, providing a comprehensive overview of the key operational areas within the industry.

Unit- 4
The Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1) Analyse the principles of managing and monitoring financial performance........................1
P2) Apply double entry book-keeping system to record sale and purchase in ledger................2
P3) Produce trial balance to complete the ledger........................................................................4
LO 2.................................................................................................................................................5
P4) Review the different stages of HR life cycle........................................................................5
P5) Develop a performance management plan..........................................................................7
LO 3.................................................................................................................................................8
P6) Identify specific legislation that has to comply and adhere by the company......................8
P7) Illustrate, how company employment and contract law has potential impact upon business
decision-making..........................................................................................................................8
LO 4.................................................................................................................................................9
Covered in ppt.............................................................................................................................9
CONCLUSION ..............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality business is the broad aggregation of different services as like lodging,
travelling, tourism, transportation, cruise line, theme parks, event planning, restaurants and many
more fields as well. It is all about the receiving the guest in an effective manner through which
they felt so overwhelming (Belarmino, 2020). It is an art to entertain other and fulfils the
satisfaction and demand of the customers by providing different services. This report is based on
the hospitality services of Merlin Entertainment Ltd it is the British entertainment company
founded in December 1998 and headquartered in Poole, Dorset, England, UK. This reports
consist of different principles of managing and monitoring of financial performance by applying
double book-keeping and ledger. In addition to that, includes different stages of HR life cycle,
development of management plan to over from the situation of staff retentions and different
legislations that is followed by the company.
LO 1
P1) Analyse the principles of managing and monitoring financial performance.
Financial performance measures how well the company uses there resources and
enhances the assets with minimum liabilities. Managing and monitoring is the process through
which company observe each and every activity to find the rate of progress of company towards
the achievement of targets or goals (Benson, 2020). Merlin Entertainment Ltd manage and
monitors the financial performance to creates more confidence, certainty to accomplish the
objectives and to build the long and short term decisions for the welfare of the company. There
are different kind of transactions that has been performed in the business that are as defined
below as:
Sales: It is the revenue that is earned by the company by selling their product and
services to the customers. It is the transactions in which money will be exchanged on behalf of
goods and services that is offered by the company.
Purchases: It defines the exchange of cash in terms of goods, whereas, Merlin
Entertainment Ltd uses credit sales for to purchase the raw materials and other stuff and return
that amount after the specific period of time.
Receipts: It is the slip that is provided by the owner on behalf of confirmation that goods
will be received by the purchaser.
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Payments: Merlin Entertainment Ltd did that on behalf of the payment that has been
given to their worker in terms of salaries and wages (Bradshaw, 2019).
Financial performance is a subjective measure that measures the financial health of the
company for a certain period of time. There are some different factors that has been used by the
company to measure its financial performance that is as explained below as:
Key performance indicators: It reflects the performance of Merlin Entertainment Ltd
by the completion of each and every activity.
Cost-to-profit ratios: It is the ratio that reflects the profit that is gained by the company
on behalf of investments.
Return on investments: It reflects the amount of profit that is gained by the company in
return of their investments.
P2) Apply double entry book-keeping system to record sale and purchase in ledger.
Double entry book-keeping system reflects the credit and debit of sales of Merlin
Entertainment Ltd (Elshaer, 2019). This has been performed to record the profit and loss that is
gained by the company in a specified period of time that is as defined below as:
Purchase A/C
Date Particular Amount Date Particular Amount
01st March To Kate's Kitchen 5001 28th March By balance c/d 34553
01st March To Harry 29552
Total 34553 Total 34553
Archway Kitchen A/C
Date Particular Amount Date Particular Amount
6th March To Bank 5001 01st March By purchase 5001
Total 5001 Total 5001
Lewin A/C
Date Particular Amount Date Particular Amount
14th March To Meganne 2008 01st March By purchase 29552
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17th March To Bank 29552 28th March By balance c/d 2008
Total 31560 Total 31560
Bank A/C
Date Particular Amount Date Particular Amount
6th March By Kate's Kitchen 5001
28th March To balance b/d 34553 17th March By Harry 29552
Total 34553 Total 34553
Beverage A/C
Date Particular Amount Date Particular Amount
3rd March To sale 11203 28th March By balance c/d 42493
10th March To sale 8966
22nd March To sale 10614
17th March To sale 11710
Total 42493 Total 42493
Sales A/C
Date Particular Amount Date Particular Amount
3rd March By Beverage 11203
3rd March By Food 1824
10th March By Beverage 8996
10th March By Food 1687
17th March By Food 1611
17th March By Beverage 11710
28th March To balance b/d 49360 22nd March By Beverage 10614
22nd March By Food 1715
Total 49360 Total 49360
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Food A/C
Date Particular Amount Date Particular Amount
3rd March To sale 1824
10th March To sale 1687 28th March By balance c/d 6837
22nd March To sale 1715
17th March To sale 1611
Total 6837 Total 6837
Jones A/C
Date Particular Amount Date Particular Amount
14th
March By Bank 2008
28th March To balance b/d 2008
Total 2008 Total 2008
P3) Produce trial balance to complete the ledger.
Trial balance: It contains the list of all the general ledger account in the ledger of
Merlin Entertainment Ltd. It will contain the amount of ledger with the name and each ledger
either been located in debit sale or credit sales (Filimonau, 2019). Trail balance has been used by
the company to measure all the different factors that has been happened in the business and with
the help of this balance company resolve its different issues related to financial dis-balance. The
errors will be sort it out by using trail balance by cross checking each and every activity related
to debit and credit. There are some of the components of trial balance that is as described below
as:
 Trail balance has been developed after closing the Ledger as to maintain the record of
cash statements for the certain period of time.
 It mainly consist three columns i.e. for basis, credit and debit sales.
 The amount of each particular has been assigned in front of that row i.e. is either is credit
or debit sales.
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 Both the column of debit and credit sales must be equal at the end.
Budget: It is an estimated plan of the company that has been developed for the specified
period of time and that is developed to control and manager the stability of the company and
includes some factors that are as defined below as:
Income streams: It is the path through which company gains the income or sales that is
from the customers or the stakeholders and many other as well (Ford, 2018).
Fixed cost and variable cost: It is the cost of the different products and services that is
offered by the company. Fixed cost is always remains same and never be changes as per time
whereas, variable cost has been changes as per the time.
Margin target: It is the difference between the sales and profit that is gained by the
company and by knowing this Merlin Entertainment Ltd develops different pricing strategies to
gain the profit.
Trail balance also controls the budget of the company and help to assign amount to
different activities that is performed in the business these are as follows as:
Inventory costing: It is the cost that is assigned by the company to controls and manages
the stock that is used in future.
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System of waste management: It is the factor through which waste has been managed b
using scarcity of resources and with the help of this company reduces the cost and enhances the
profit (Groen, 2019).
LO 2
P4) Review the different stages of HR life cycle.
HR life cycle defines the different functions and role of human resource manager of
Merlin Entertainment Ltd. HR performs different roles to manage, controls, direct and
implement the best strategies within the business to gain the target and objectives of the
company in an effective manner. There are different stages of HR life cycle that is as defined
below as:
Recruitment and selection: It is the most important role of HR in which they select the
validate candidates for the vacant and free profile of the company. In recruitment process
company collects the a lot of candidates while in selection process select the validate candidate.
( Source: A guide to the HR life cycle, 2018)
On boarding and orientation: It is the first stage of HR life cycle in which HR provides
all the relevant and important information to the employees by which they feel quite comfortable
within the premises of Merlin Entertainment Ltd.
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Exit and transaction: It is the role in which HR develops different strategies for to exit
or transact the role as per their performance and experience and includes different activities as
like transfer, hiring and firing, retirement etc.
There are some different methods of recruitments that has been adopted by the HR that
are as defined as:
Internal recruitment: In this HR recruit the employees as per the referrals of the
existing employee or opportunities has been provided to the employee to apply for the vacant
position of the company and that has been filled as per the behaviour and experience of the
employee (Jarratt, 2019).
Promotion: It is the process through which employee get promoted to up next level as
per their performance.
Employee referrals: It is the process in which the working employee refereed their
known one for the vacant position of the company.
The company has been gone through with the issue of staff retention and for that HR
performs different roles to retain the employees that are as defined below as:
Performance management: It is the process in which HR manages and recorded the
performance of the employee and also provides required guidance to measure the growth and
success (Jasnoff, 2019). For to retain them HR provides perks, bonus, appraisal and recognition
as well to motivate the employees.
Training and development: It is the process through which HR provide accurate
training to the employee to enhances the performance of the company and employee as well.
P5) Develop a performance management plan.
Performance management plan has been developed by the HR to retain the staff of
Merlin Entertainment Ltd and that is as described below as:
Objectives Providing training Review performance Monitoring and
control
Encourage
equity and
diversity
Equity and diversity
reflects the acceptance of
all the people that are
related to different
HR review and controls the
performance of each
individual employee and
then add that aspect at the
HR monitors and
control the
performance of each
employee and provide
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culture, religion, caste,
sex, colour, age etc. In
context of Merlin
Entertainment Ltd, HR
manager performs
different activities by
which all the people get
interact and understand
the behaviour of each
other.
time of appraisal (Mariani,
2018).
equal environment and
opportunity for all to
measure development
in themselves.
Managing
multicultural
and global
teams.
Merlin Entertainment Ltd
works on larger scale
thus HR will manages the
team and provide
accurate and required
training to the employee
by which there
involvement has been
increased.
HR would review the
performance of all and
measure different aspects as
like there work, interaction
with other employee,
involvement in business
activities and many others
as well.
HR will monitors and
controls the
performance of the
employee and fulfil
there demand and on
behalf of that expects
the better work from
them that enhances the
productivity of the
company.
LO 3
P6) Identify specific legislation that has to comply and adhere by the company..
Legislation are the laws that is published by the government and it is the rules and
regulations that has been developed by the governance. It is the instructions that has been set as
the standard and every one must have to followed that. It is the administrative laws where the
standard must be set by which customers get the best services and environment keeps remain
safe and secure (Melissen, 2018). There are some different legislations that has been followed by
the Merlin Entertainment Ltd are as defined as:
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Environment legislation: It is published in 1974, to controls the pollution level of the
country hence Merlin Entertainment Ltd ensures that consumption and utilisation of the
resources has not been waste.
Food and safety legislation: This act has been published in 1990, and it contains the
procurement from the hygiene and food ingredients. In context of Merlin Entertainment Ltd they
promote their services in ethical manner and maintains the balance quality in their services.
Cyber security: This is an act that is developed to secure the cyber crime and for that
Merlin Entertainment Ltd ensures that customers data can't be misused and only use for to
complete the details that is required at the time of check-in.
Consumer legislation: UK has powerful legislation for their citizens hence company
provides the quality products and doesn't sale the expired products (Morrison, 2018).
Employee legislation: It is to developed to secure the employees from anti-
discrimination and other replicate activities.
P7) Illustrate, how company employment and contract law has potential impact upon business
decision-making.
Employment and contract law has been developed to balance the relationship between the
different parties where one provides the employment as job with wages and salary while other
gave the best work on behalf of that employment. Merlin Entertainment Ltd manages their
values and belief under ethical consideration and serves the best and quality services to the
customers.
Business ethics reflects the norms and values of the company that develops the best and
strong relationship with the customers, employees, clients, suppliers and many other as well.
Corporate social responsibility is the self regulation of the business with the aim to
provide the support and contribution towards the welfare of the society. In context of Merlin
Entertainment Ltd they donate some amount to the society for the growth and development and
to raise the life standard of the society (Nayak, 2018).
Employment law: It is the law that is in favour of employee in terms of wages, leave as
like maternity, health related as well, bonus, insurance, healthcare, flexible working hour and
many other as well. Hence, Merlin Entertainment Ltd provides the relevant salary to the
employees as per their profile.
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Contract law: It is in between the two persons as like employee, customers, clients,
owner etc. It meets the requirement of the employee in terms of money, goods, appraisal etc.\
LO 4
Covered in ppt
CONCLUSION
It has been concluded from the above report that hospitality industry works to fulfil the
basic requirement and demand of the customers in effective and efficient manner. To measure
the financial performance Merlin Entertainment Ltd uses ledger and trail balance, analyse HR
life cycle to retain the staff for the longer period of time. Furthermore, concludes the
performance management plan to control and manages the issue of staff retentions and analyse
the legislations to adhere and comply the performance of the company.
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