Report: Financial Performance and HR Strategies for Sky Bud Espresso

This report provides a comprehensive analysis of Sky Bud Espresso restaurant's financial performance and human resources strategies. It covers key principles of managing and monitoring financial performance, including budgeting, financial outcome comparisons, and rectification strategies. The report delves into double-entry bookkeeping, detailing sales and purchase transactions, and the creation of trial balances. Furthermore, it explores the HR life cycle, emphasizing talent retention and development through recruitment, onboarding, and career development. The report also touches on relevant legislation within hospitality organizations and reflects on its impact on decision-making. The analysis includes examples of financial terms, accounting practices, and the importance of strategic talent management in the restaurant's operations. The report aims to provide Sky Bud Espresso with insights for sustainable growth and efficiency.

HBT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Principles of managing and monitoring financial performance........................................1
P2 Double entry bookkeeping system and trial balance in order to record sales and purchase
transactions in general ledger.................................................................................................3
P3 Creation of basic trial balance by applying balance off rule:............................................5
TASK 2............................................................................................................................................6
P4. Different stages of HR life cycle for retaining and developing talent.............................6
P5 A performance management plan.....................................................................................8
TASK 3............................................................................................................................................9
P6. Specific legislation adhere within hospitality organizations............................................9
P7 Reflection on potential impact of regulations, ethical principles and legislations on
decision-making process......................................................................................................10
TASK 4 .........................................................................................................................................11
Covered in PPT.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality is a term and a process which consists of different types of functions and
activities such as, receiving and welcoming, entertaining guest and many more (Bruce and
Stephens, 2017). Organisations those who engage in the offering of services relating to catering,
lodging, entertaining etc. to guest. All these activities are done in order to fulfil every essential
need of customer and acquire more profitability in a marketplace. Present report has been
conducted on, Sky bud espresso restaurant situated at Bishops gate in London EC2N. Restaurant
is commonly famous for their salads, blended juices and smoothies. Restaurant is looking
forward to expand their services by mixing juices and smoothies with exotic alcoholic spirits in
order to make helathy alternative. In this report discussions has been made on, government
legislations, management plan along with interconnections in between departments in hospitality
sector. In addition with this, present report consists numerous mode of communication and
effective way of coordination in organisation departments.
TASK 1
P1 Principles of managing and monitoring financial performance
In order to maximise productivity and profitably of business organisations while ensuring
effective performance of employees it is necessary for company manager to evaluate and
monitor organisational activities on regular basis. This will not only benefit them to increase
suitability of company but also aid in maximising proficiencies of employees. While, financial
performance is related to an ability which lead towards achieving high end growth and targets of
companies in best effective way. In context with, Sky bud espresso restaurant, there are some
principles that will help them to effectively control and carry off financial performance:
Establishment of budget is required to in a proper way:
It is the most important and basic function of a manager to monitor and control ratio of
their financial resources in order to operate their business activities in systematic way. In context
with, Sky bud espresso restaurant, it is required to manager to frame effective strategies in order
to create systematized budget as to manage and control actual ratio of their waste results and
utilize funds in best possible manner.
Budget need to be based to through analysis:
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It is important for, Sky bud espresso restaurant, manager to develop overall business
factors and elements and them frame a budget as to fulfils targets and goals of restaurant in
effective way (Ervin, 2016). Along with this, it is the basic responsibility of managers to create
systematic strategies and related policies in order to combat any kind of future uncertainties.
Actual financial outcome is required to be compared with day to day budget:
It is considered as one the most important and basis function which is required to be
done by Sky bud espresso restaurant, manager. As this will benefit them to determine errors and
mistakes in a proper time frame. This will effectively aid them to manage their financial
performances in best possible way.
Appropriate rectification of condition is required to be done when financial budget exceeds
pre determined budget:
It is important for Sky bud espresso restaurant, manager to evaluate and properly analyse
business activities conditions in day-to-day manner in order to evaluate any kind of causes in a
variable of business financial outcomes. For this managers of restaurant is required to develop
appropriate framework of strategies in order to take further initiative actions.
A. In an accounting period, income and expenditure of organisation is mentioned below:
Incomings (Source of
Income)
Outgoings (Types of
expenditures)
Wages Weekly food shopping
Gifts Drinks
Benefits Lunch Purchases
As per the discussions, following recommendations for Sky bud espresso restaurant
manager is, to make proper balance sheet of organisation and different types of other financial
and related documents in proper way. Along with this, it is necessary for the manager to
continuously evaluate and monitor financial performances a to improve their stability. It is also
important for managers to maintain proper records of financial ratios, inventory control, debtors
trial balance and working capital requirements in a proper and systematic manner. This will
significantly aid them to ensure their sustainability in marketplace while determining their actual
cash outflow and inflow as to maintain performance level in effective way. ]
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Explanation to some Key Financial Terms:
Sales:
Sale is related to, delivery actual of products and services done by a business
organisations. Sales element is termed as an crucial terminology in context with financial
aspects. In this overall selling transaction of actual sales and credit sales is recorded in a proper
and periodical way. It will aid Sky bud espresso restaurant, manager, to effectively maintain and
control quantity of their raw material purchase and other related expenses on daily basis as to
cope up with any future obstacles and misunderstanding.
Purchase:
In this factor, overall purchase ratio is calculated by calculating, current available stock
and purchase of inventory. For instance, Sky bud espresso restaurant opening balance is 50,000
and purchase of inventory done is 80,000 Euro, actual good sold cost of Sky bud espresso
restaurant in a month, is 11,000 that showcase restaurant actual ending balance of inventory.
( Opening inventory + Purchase- Closing inventory) = Cost of good sold
(50,000 Euro+ 80,000- 11,000)=2,000,00 Euro
Types of Cost:
Cost acts as an basic and key element of expenditure. It is important for organisations to
calculate and monitor their cost factors in order to measure financial performance in best
effective way. In a cost factor there are some certain elements that are categorised in cost that
include, financial accounting, cost accounting, capital budgeting etc. there are two different
determinants in which cost can be classified, fixed cost and variable cost (Weinstein and Morritt,
2012). In context with fixed cost, cost variable stay fix and does not even change with any out
any output. While in variable cost, there is a change in this variable with every change in output.
P2 Double entry bookkeeping system and trial balance in order to record sales and purchase
transactions in general ledger
Double entry bookkeeping is a proper framework in which a transaction is recorded in a
dual aspect manner while having two fundamental characteristic. In this dual aspect, one hold
factors of receiving benefits while other include giving benefits. Double entry bookkeeping
system is a process in which each and every transaction records in a two aspectual manner. There
is a account mentioned below that shows account balance of Sky bud espresso restaurant:
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Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 575
Cash sales 14795
Credit card sales 3350
Free issues 750
New kitchen equipments 6540
Food purchase 12970
Beverage purchases 7900
Purchase return 2300
Discount received 200
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
There is a detailed evaluation of purchase and sales transaction as to accumulate trail balance
suing system of double entry:
Sales:
This factor of double entry include, overall sum of credit and cash transaction that shows
approximate quantity of total goods and services sold and provided. In relation with, Sky bud
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espresso restaurant their overall balance of sales mainly consists of, wages and other related
monitory terms (Godnov and Redek, 2018).
Purchase: Purchase is related to, cash and credit dealing in this, overall record of Sky bud
espresso restaurant weekly transactions are recorded that include, purchase of clothes, food,
drinks etc.
Mentioned below there is a Sky bud espresso restaurant trial balance which is accompanying to
table no 1 of double entry bookkeeping system. Major purpose of this balance sheet is to
showcase overall amount of income and expenditure of a month:
Particulars Debit Credit Transaction amount
Wages 16489 24000
Gifts 24000 16489
Benefits 25000 15900
Allowances 15900 25000
Weekly food shopping 17809 17809
Clothes 26415 26415
Gifts 3678 3678
Household utility bills 15000 15000
Drinks 8455 8455
Lunch purchases 10032 10032
Total 81389 81389 162778
P3 Creation of basic trial balance by applying balance off rule:
Balance off rule:
Terminology of balance-off rule is also referred as balancing off accounts. It is conducted
at the end of an accounting term (Nickson, 2013). Sky bud espresso restaurant manager is
required to evaluate overall actual transactions and end balance of ledger accounts in order to get
a trial balance which plays an important and essential role in a accounting cycle. In context with,
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Sky bud espresso restaurant it is the basic responsibility of mangers to periodically evaluate and
analyse trial balance as to develop a proper financial statement:
TRIAL BALANCE
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12000
Sales 14600
Sundry creditors 1620
Debtors 12400
bank loan interest 1400
Other expenses 11020
Vehicles 2020
Total 52420 52420
As per the above stated trial balance, it has been evaluated that, all the recorded
transactions are stated in a proper and correct way. In a trial balance there is appropriate
assemblage of income and expenditure. Equal balancing of trial balance display appropriate
usage of accounting principles.
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TASK 2
P4. Different stages of HR life cycle for retaining and developing talent
Strategic talent management plan plays a crucial role in HR life cycle which will be
beneficial in recruiting skilled and potential candidates as it will help in maximising proficiency
for an organisation (Mejia and Torres, 2018). The different stages included in HR life cycle
which will play vital role for the manager of Sky bud Espresso restaurant. As, this will help in
increasing proficiencies and retaining employee’s in effective manner. The various stages are
discussed below:-
Recruitment- This is most important stage in HR life cycle. It is a positive process of
attracting and hiring new employees in organisation. The role of HR managers is to assist in
hiring. This includes placing of job ads and web portals, selecting resumes of promising
candidates, preparation of interview. Therefore, HR manager of Sky bud Espresso restaurant for
recruiting chef in cooking department will use external sources of recruitment.
On-boardng- This is important stage in HR Life cycle in which new employees decide
their time period for which they want to stay in organisation. It is a process of setting up of a new
employee as a successful applicant. In context of Sky bud Espresso restaurant, HR manager can
provide training of 60 days to its employees, as it will help in retention and building harmonious
relationship with them.
Career Development- opportunities for career development helps in keeping employees
engage within the company over a longer period of time . As, employee is been established in the
company and determined long-term career goals than HR department must focus on
accomplishing their goals and objectives. At the time of interview HR manager of Sky bud
Espresso restaurant must note down career objectives of employees and set their goals
accordingly. As, it will help Sky bud Espresso restaurant to retain employees for long run.
Employee Recognition- The fourth stage of HR life cycle focuses on measuring
employees performance and provide opportunity of being recognized for their hard work and
dedication. Employees can be given recognition by offering monetary or non-monetary benefits
as this will help company to achieve company goals effectively. Leaders can provide employees
by giving them sense of ownership. With respect to, Sky bud Espresso restaurant employees can
be motivated by giving them flexible working schedules, extra incentives, discount coupons etc.
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Off-boarding – The last stage in HR life cycle is Off-boarding which means when
employees leave the company within scope of work or service contract. Also, known as
separation process. This leaves a adverse impact on existing employees as, it increases feeling of
demoralisation in them (Ervin, 2016). In context to HR manager of Sky bud Espresso restaurant
need to formulate effective policies and strategies related to Off-boarding of employee’s in
effective manner.
Importance of HR life-cycle for talent management
It is very important for HR manager of Sky bud Espresso restaurant to have a brief
knowledge about HR life cycle as it helps in recruiting, developing, and retaining talented and
best workforce. This will help in finding solutions to issues related to accretion and retention of
employees for longer period. HR life cycle helps in increasing and improving efficiencies of
employees. Managers can develop efficient approach for selection of candidates by background
screening procedure. Company can also use exit approach which will help in evaluating the
reason behind switching and leaving job. Also, influence employees to remain in the company.
Recommendations for improving HR processes
It is recommended to managers of Sky bud Espresso restaurant that to retain efficient
workers strong policies need to be developed to improve their HR processes. Also, proper
approaches should also be adopted for evaluation of employee’s performance. After process of
evaluation open discussion should be their for workers not performing well and training needs to
be provided. Further, managers can develop policies for increasing productivity of employees
and engaging them in group task.
P5 A performance management plan
In order to effectively improve productivity and profitability of employees within
workplace performance management tool efficiently aid managers of Sky bud espresso
restaurant to analyse their aspects of poor performance and formulate strategies as to improve
them (Nickson, 2013). Along with this, reviewing of organisation past experiences also benefit
managers to set proper and clear realistic goals:
Script1:
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Manager: From past many days I have observed that Mr. Richard behaviour is not in a cordial
way with their colleagues.
Employee: Yes sir, I am also one of the victim of Mr. Richard rude behaviour.
Managers: Are the actual reason of his rude behaviour is known by you?
Employee: Yes sir, Mr. Richard feel exhausted and work pressurised from past many days
which is the main reason of his rude behaviour.
Manager: So, can you suggest best effective solution of this?
Employee: Sir, by recruiting new employee work pressure can be reduced.
Manager: Thank you, I will surely talk about with this form high authorities.
Script 2
Manager: From past many recent days I have observed that Richard is not on proper office
time?
Employee: Yes sir, The same seen is also observed by me.
Manager: So, are the reason behind this is known by you?
Employee: Yes sir, Richard is struggling form families issues which causes delays.
Manager: Do you have any suggestions for this?
Employee: Warning letter to Richard will restrict him to come late.
Manager: Thank you, I will certainly give him 7 days notice period and if this habit of Richard
is not changed termination letter will be given to him.
TASK 3
P6. Specific legislation adhere within hospitality organizations
In an every organisation for running or managing business activities effectively they
should follow legal rules and regulation. In context of SKY BUD ESPRESSO, managers follows
a governmental rules and regulations for achieving a organisational goal effectively and
efficiently. Their are some laws which are discussed as below:
Food Act 1997: In this act health protection services, manages food and also they
provide an information regarding food businesses (Godnov, and Redek, 2018). They also
generate an awareness at market place in which they says about a consumption of healthy and
hygiene food. In context of Sky bud espresso manager offer a food to their customers according
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to this act procedure. It helps in attracting a new customers and to develop a growth of their
restaurant.
Liquor Control Act 1987: As per according to this act, organisation can offered a
beverages in their businesses as per the norms and legislation of government. In context of Sky
bud espresso restaurant, they follow this act for providing beverages to customers in their
organisation. They also serves organic food or salad which makes a healthy environment or
satisfying a customers effectively. Trough this they attract customers toward their restaurant and
increasing a standard of living.
Impact of company, contract law and employment law on decision-making
In every organisation it is compulsory to follow a legal rules and regulations for
performing business functions or activities effectively. It also helps in making a relationship
between employer and employees, improving performance, and also in decision-making
effectively. So, it is necessary to follow a governmental rules and regulations in their
organisation and also it helps in providing a proper guidance to an employees for doing a work
ethically.
Recommendations:
As per the mentioned ...., it has been analysed that hospitality is a very good and fastest
leading sector . It contains many ways of communication through which information is passes
from one person to another such as Skype, telephonic call, meetings and so on. It helps an
organisation to perform their activities or functions effectively and achieve a organisational goal
or objectives. In context of Sky bud espresso restaurant, they take an advantages of these
measures by passing an information from one person to another. Nowadays people are using
Whatsapp and Skype as an professional way for performing business activities effectively.
Sources of funding is also an important factor for performing a business function in an effective
way.
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P7 Reflection on potential impact of regulations, ethical principles and legislations on decision-
making process
It is important to abide all legal and ethical rules and regulations framed by government
and have proper and adequate understanding of governmental rules in order to decrease risk of
illegal uncertainties for a business organisation (King and Lee, 2016). In context with Sky bud
espresso restaurant there are some basic legislation which is required to be adhered in a proper of
conduct way such rules are, Health & Safety Act 1974 , Liquor Act 1987, Food Act 1997 etc.
This will benefit managers of Sky bud espresso restaurant to conduct their operations in ethical
manner as avoiding of these legislation results in heavy compensation penalties some examples
of this:
Companies Act or Regulation Result Fine
Bupa Care Homes Health and Safety At
Work Act 1974
Guilty £3,000,000.00
Award wining
Greenfingers Ltd.
Construction
Regulation 2005
Guilty £20,000.00
Toby Smith Health and Safety At
Work Act 1974
Guilty £615.00
Elysium Healthcare
Ltd.
Health and Safety At
Work Act 1974
Guilty £500,000.00
TASK 4
Covered in PPT
CONCLUSION
From the above report it has been concluded that, nowadays people are running their
businesses at hospitality sector. It also attract new and fresh talented or highly skilled candidates
with their new and creative ideas. In addition to this, communication is also plays an important
role in this sector. It helps in passing or conveying an information to others and generate
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awareness at marketplace. It also enhance a productivity an employees and develop a growth of
economy. At last, organisation can perform a business activities and functions effectively by
following a governmental rules and regulations in an effective way.
REFERENCES
Books and Journals
Bruce, J. and Stephens, C. A., 2017. Bridging secondary and postsecondary leadership
experiences: A toolkit for leadership learning facilitators. New directions for student
leadership. 2017(155). pp.95-106.
Dirrigl Jr, F. J. and Noe, M., 2018. The teacher writing toolkit: enhancing undergraduate
teaching of scientific writing in the biological sciences. Journal of Biological Education,
pp.1-17.
Eltayeb, N., 2018. Evaluating the Service Quality of Egypt National Railways from Tourists
Perspective. International Journal of Heritage, Tourism, and Hospitality. 11(2/2).
Ervin, S. A., 2016. Social Business Plan and Publishing Proposal for Global Toolkit.
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