Question

PART F

It is the end of December and the actual cash amount is down 53% on the original projection. A large contributing factor is that income targets have not been met and the food and beverage budgets have been over spent by 20%. Betsy has asked you to come up with recommendations to solve the income problem, forecast for the remaining six months of the financial year and communicate the new targets and the importance of meeting budgets to the cook.

The good news is that you have heard through the grapevine that there are a number of events happening in the region in the last half of the year. These are weekday tourism events and there are a number of big construction projects where employees drive-in and drive-out for shifts Monday to Friday.

1. What sources of information might you need to set realistic projections for the rest of the year, including finding out more information about what is coming up in the region? Make a list of at least four people or places you could seek information from.

2. Identify at least three solutions for the income slump. The solutions should concentrate on increasing income and revenue rather than on reducing expenses.

3. Write a memo or email to Betsy and the Cook at the B&B outlining the answers to the above questions and including a discussion aimed at the cook about the importance of meeting budget restrictions, what the cook should do if they are having trouble meeting the budget or find it challenging keeping relationships with suppliers. Submit your memo to your assessor in the role of Betsy.

Answer 1

1. What sources of information might you need to set realistic projections for the rest of the year, including finding out more information about what is coming up in the region? Make a list of at least four people or places you could seek information from.

Answer:

To set realistic projections for the rest of the year we need to know the total number of events going to happen in the region, the number of people going to attend these events, the total number of tourism events going to happen in the region, and number of tourists going to attend it, the total number of big construction projects are running or about to start in the region and number of employees work in these construction projects

We can seek information from the following people or places:

1. Tourism department

2. The organizer of the tourism event in case the tourism department is not organizing these events

3. We can get the information by visiting construction sites

4. The project manager is the right person to know how many employees are drive-in and drive-out for shifts Monday to Friday

2. Identify at least three solutions for the income slump. The solutions should concentrate on increasing income and revenue rather than on reducing expenses.

Answer:

The solution for income slump is as follows:

1. Look at the location if the location is not correct then it would be better to change the location of business from low-foot fall to high foot traffic area.

2. Listing business in ‘Google My Business’, having a good website, social media presence would be a great idea to tell people about your business and increase income

3. Employees should well-trained for upselling so the more revenue could be generated from each customer

4. Increase the marketing budget to create a buzz about the brand could also help to improve income

3. Write a memo or email to Betsy and the Cook at the B&B outlining the answers to the above questions and including a discussion aimed at the cook about the importance of meeting budget restrictions, what the cook should do if they are having trouble meeting the budget or find it challenging keeping relationships with suppliers. Submit your memo to your assessor in the role of Betsy.

Answer:

Subject: To Increase Income

Date: September 9, 2020

To: @betsy, @cook

From: @studentname

Dear All,

As we know the actual cash amount is down by 53% on the original projection due to income slump and overspent on account of food and beverage budgets. To overcome this problem, we need to discuss how to improve the sale and forecast the numbers for the rest of the six months of the financial year.

I have identified the following places and people from where we can get various information to set reliable forecast and set new targets:

1. We can get information from the tourism department or organizer of a tourism event in case the tourism department is not organizing these events

2. We can get the information about the number of employees by visiting construction sites

3. The project manager is the right person to know how many employees are drive-in and drive-out for shifts Monday to Friday

Here, I have come up with some recommendation to improve sales:

· We could look for the new location for our business which has a high footfall

· Increase the marketing budget to improve the visibility of our brand

· Work of online presence of our business

· Increase upselling

We need to call for a meeting asap to discuss all these things.

Regards,

Student name