SITXFIN003 Manage Finances: NBH Budget Analysis Role Play Project

This assignment presents a role-play scenario where a student analyzes the budget of the Naja Business Hotel (NBH). The student discusses various aspects of budgeting, including different types of budgets, the importance of aligning budgets with actual performance, and key financial elements like financial records and cash flow statements. The student highlights discrepancies in the previous year's budget allocation, noting shortfalls in the operations department and excess allocation to the marketing department. The student also suggests improvements, such as purchasing cleaning machines to reduce expenses and implementing a performance bonus system to manage staffing costs. The trainer acknowledges the points and plans to incorporate the recommendations in the next budget. The assignment demonstrates the student's understanding of budget management, financial analysis, and cost-saving strategies within a hotel context.

Manage finances within a budget
Name of the student
Name of the university
Student ID
Author note

Role play –
Me: Good morning sir
Trainer: Very good morning. Tell me about your assessment and the findings you feel as
important
Me: Sure sir, under this assessment I have learnt different aspects of budget like different
types of budget, how budget shall be developed so that it has minimum gap with the actual
performances and different aspects of finance like financial records, cash flows statement
Trainer: tell me something about your findings.
Me: I have found that NBH’s previous year’s allocation was not successful as the operation
department informed that they had a shortfall of $ 137,830 in the allocated budget. Further,
marketing department had requirement for 80% of the allocated budget.
Trainer: apart from that other departments allocated budget were in line?
Me: no sir, Marketing department can be allocated 20% lower than the previous budget as
they require only 80%. As finance department implemented new accounting processes and
have purchased new cost saving software they will save $551,320 of their forecasted
expenses and hence shall be allocated less budget of $ 551,320 as compared to previous year.
However, due to requirement of additional staff, human resource department will require
additional fund amounting to 3.5% of revenue.
Trainer: so what do you suggest now? Is there any area that can be improved?
Me: huge amount is allocated for room cleaning. Instead the hotel can purchase a machine for
cleaning purpose with one time investment that will definitely reduce the regular expenses.

Further. Staffing cost is significantly high. Hence, the hotel may reduce the monthly wages
and instead can introduce performance bonus.
Trainer: ok I will definitely keep in mind the points highlighted by you and will try to
incorporate the recommendation in next budget.
Me: thank you sir, have a good day.