DECA CDC - Performance Indicators - Hospitality Cluster

Explain the use of consensus building skills

A consensus is a decision upon which each member of a group agrees. It is a critical component of teamwork as well as negotiation. To achieve a consensus, it is helpful to allow all members to state their opinions. It will often require members of the group to be flexible and accept a compromise. Allowing team members to be involved in setting and achieving the team's goals is important and often results in increased company loyalty and a stronger team spirit. Consensus building is also beneficial in that it leads to extra motivation and a sense of ownership among team members.

Explain the impact of political relationships within an organization

A company's culture affects the way it is organized. A formal culture may include a strict chain of command, with one person at the top making all decisions. Several levels of management, or bureaucracy, may follow. Job titles are important as indicators of power and status within a company in a business with a formal culture. Making changes and passing down decisions in such an organization can be complicated and time consuming. Other companies have an informal culture, where employees are encouraged to make their own decisions. In such a company, job titles are not as important as creativity and teamwork.

Describe connections between company actions and results. (e.g., influence buying behavior, etc.)

- Company actions that affect consumers include: advertising, pricing, product mix, supply of goods, sales and promotions, product development and improvement, product safety, payment options, etc. - Company actions that affect the competition include: advertising, pricing, product mix, supply of goods, sales and promotions, distribution methods and locations, etc. - Company actions that affect employees include: the use of technology in production and record keeping, managerial ethics, human resources management, production planning and scheduling, risk management, investing, etc. - Other actions to be considered include company actions that affect things like the environment, the global economy, etc.

What are the three main forms of production?

- Extraction and cultivation - Processing - Manufacturing

What should be included in a pre-departure briefing?

- Health (immunizations, if needed) - Medications (have a copy of prescriptions and extra medications) - Baggage (mark inside and out) - Documentation (passport, contact information) - Travel insurance (purchase if desired) - Currency (have credit cards and make exchange of traveling abroad)

What are some tips for responding to quest inquiries?

- Identify the purpose of the message - Give feedback to show understanding - Ask appropriate questions to gather more information - Watch for verbal cues - Try to satisfy the customer's need as quickly as possible

What are the two main workspace regulations?

- OSHA (Occupational Safety and Health Administration) - ADA (Americans with Disabilities Act)

Explain the nature of balance sheets

A balance sheet is a summary of a business' assets, liabilities, and owners' equity. Assets are anything of monetary value that you own and are classified as current or fixed. A current asset is cash or anything that can be converted into cash in a year. A fixed asset is something used over a period of time to operate your business, like property and equipment. Liabilities are the amounts that a business owes and are classified as current or long-term. A current liability is a debt the business must pay back during the upcoming year. A long-term liability is a debt that is due after 12 months' time, such as a long-term loan. Owners' equity (or net worth) is the amount of ownership interest in the business. The difference between assets and liabilities equals the owners' equity.

Describe the nature of budgets

A budget is a formal, written statement of expected revenue and expenses for a future period of time. To be effective, a budget should be evaluated periodically with actual income and expenses. Revenues may include cash sales, collections on accounts receivable, and other income. Expenses include purchases, insurance, taxes, payroll, and many other things. As part of budgeting, one should follow the following steps. Set goals and prioritize them. Estimate your income. Budget for unexpected events, fixed expenses, and for variable expenses. Record what you spend. Review your spending patterns and revise your goals as needed.

What are the four phases that make up a business cycle?

A business cycle is a series of recurring changes in economic activity. Four phases make up a business cycle: expansion, recession, trough, and recovery. During expansion, the economy is flourishing. It is a good time for businesses to start up or expand due to the increased output of goods and services. Recession is a time of economic slowdown lasting at least two quarters. Companies reduce their output during a recession, and consumers have less money to spend on goods and services. A prolonged recession is called a depression. A trough is the low point in a business cycle. It marks the beginning of the transition from recession/depression to recovery when signs of economic growth are near. In the recovery phase, demand increases and businesses respond by hiring more workers and supplying more goods.

How should a business store food products to prevent contamination and spoilage?

A business should store food products to prevent contamination and spoilage, by completing the following: 1. Use the right food-grade container (if food has been cooked) 2. Select the right storage location 3. Label and date the food 4. Move food into storage areas quickly

Describe the nature of cash flow statements

A cash flow statement is a monthly plan that tracks when you anticipate that cash will come into a business and when you expect to pay out cash. One purpose of a cash flow statement is to determine whether you will have enough money to pay your bills on time. Another purpose is to secure a business loan, as most lenders will request at least a first-year cash flow statement. A cash flow statement itemizes how much cash you started with, what your projected cash expenditures are, and how and when you plan to receive cash. It also shows when you will need to seek out additional funds or when you will have additional cash remaining.

Explain the nature and scope of purchasing

A person who purchases goods for business purposes is called an organizational buyer. The types of purchasing situations include: new task purchase, in which a purchase is made for the first time; modified rebuy, where the buyer has had experience buying the good or service but some aspect of the purchase has changed; and straight rebuy, when a buyer routinely orders the goods or services from the same vendor(s) as in the past. Suppliers should be selected using the following criteria: production capabilities, past experiences, special buying arrangements, and special services. Purchasing also involves the skill of negotiation. Items to be negotiated include prices, dating terms, delivery arrangements, and discounts.

How can someone determine the profitability of menu items?

A portion cost or total meal cost can be determined for menu items. - Portion Cost: Total cost of recipe ingredients / number of portions - Total Meal Cost: Add all portion cost for a meal together. That cost is subtracted from the selling price of the item or meal to determine the profit.

Explain how to handle telephone calls in a businesslike manner

Because in a phone conversation your listener cannot see you, a pleasant voice is very important, whether answering or initiating a call. You should enunciate clearly and speak directly into the mouthpiece, speaking loudly enough to be heard but do not shout. It is important to make sure all of the necessary information is conveyed between you and the other party, so you may wish to write down key points before or during the call. Listen actively, and do not interrupt the speaker. When answering, be prepared to take a message. A proper message includes the date and time of the call, the caller's name and message, a return phone number. It is courteous to repeat the name and phone number of the caller to ensure it is correct.

Describe health and safety regulations in business

Businesses must adhere to health and safety regulations established by the U.S. Department of Labor. Workplace safety regulations are enforced by the Occupational Safety and Health Administration (OSHA) through inspections and fines. Employers must maintain health and safety records and provide safety training. They must stay up-to-date on OSHA standards and resolve violations promptly.

What is CAS?

Call Accounting System

Identify skills needed to enhance career progression

Career progression can be achieved in a number of ways, including simply having seniority. Some skills that may assist you in furthering your career start with your own knowledge and competence. Also, you should display a willingness to learn and develop professionally. Display initiative and perseverance. Be cooperative and adapt to change. Demonstrate decision-making and critical thinking skills in your job duties.

What procedures should be followed to safeguard cash?

Cash can be safeguarded in several ways: - Make sure the cash drawer is closed between transactions - Employees must check and balance their drawer before and after each shift - Remove the money tendered and place in drawer after making change - Lock the cash drawer if the employee is leaving their station

What should be included in a daily revenue report?

A daily revenue report would include the following: - Total sales: the sum of sales, minus discounts - Gross sales: total sales plus total sales tax - Cash at end of day: physical count of all cash in register - Cash at start of day: beginning balance of cash in register - Total cash revenue: cash at end of day minus cash at start of day - Total card revenue: amount collected from credit, debit and gift cards - Total revenue: total cash revenue added to total card revenue; this amount should be equal to the gross sales - Over/Short: if the total revenue does not match gross sales, the report would show an overage or shortage

Explain communication techniques that support and encourage a speaker

Communication techniques include using your own body language and facial expressions to respond to the speaker. For example, sit up straight or lean toward the speaker to show that you are interested. React to the speaker with comments or questions. Taking notes keeps you involved in listening to the speaker and shows your level of interest. Maintain eye contact and minimize distracting thoughts and activities.

Describe factors that affect the business environment

A number of factors affect the business environment, therefore it is important to research the industry and understand the surrounding economy. Industry trends and patterns of change in areas such as sales growth and government regulation should be considered. Understanding the competition will help you plan a strategy of success. Barriers to entry in an industry may exist, such as a dominant competitor, economies of scale, and customer brand loyalty. Other industry factors include threats from substitute products, supply sources, and technology. A critical area to analyze is the demographics of your business environment, including number of companies, annual revenues, and average number of workers employed. Assessing the competition includes looking at market share and analyzing the position of your company relative to others in the marketplace.

Describe current issues and trends in the food and beverage industry

Some trends that are currently affecting the food and beverage industry include the following: - Health: people are eating healthier cooked meals - Organic: people enjoy eating organic and locally grown foods - Improving customer service: reservation and ordering applications for smart phones - Rising number of single adults: they tend to eat out more often - Innovative farming techniques: make fresh food available year round - Consumers have less time: Home meal replacements, home delivery or cyber shopping.

Identify sources that provide relevant, valid written material

Sources for written material may be obtained internally or externally. Internal sources include such data as a company's monthly sales records or previously collected market research. External sources include the Internet, government, specialized research companies, and business/trade publications and associations. The Internet provides a nearly limitless source of free or fee-based information from companies' own websites or business clearinghouses. Data collected by government agencies is available online regarding topics such as demographics, product and economic news, and legislative trends. Government agencies also serve as good sources for written material, such as the Small Business Administration, U.S. Census Bureau, Securities and Exchange Commission, etc. Specialized research companies sell demographic data, sales forecasts, and other business data they have collected.

Identify tips for making oral presentations

Start off by knowing your purpose for speaking. It may be to greet, to inform, to request to persuade, or to propose. Sometimes you may have overlapping purposes. Next you need to know your audience. Who are your listeners? What are their beliefs, values, and interests? What do they already know about the subject and what do they need to know? What does the audience expect to learn? Next you must know your subject and organize your thoughts. Relate your subject to the audience and decide how to clearly make your point(s). The best approach is to be clear, brief, and direct. Good speaking skills are important, and your delivery, style, and attitude are as important as your message. Speak at an appropriate volume and speed. Use inflection and tone of your voice to stress key ideas. Try to make emotional contact with your audience, and make eye contact. Use posture and body language that match your message. Avoid nonwords, such as uh and um. Pronounce words correctly and enunciate clearly. Project enthusiasm and a positive attitude.

Describe how to interpret statistical findings

Statistics are used to describe and summarize data in order to make the date more meaningful and easier to understand. Commonly used statistics in business include distribution, central tendency, and dispersion. Distribution is a summary of the frequency of values for a variable. The central tendency is an estimate of the center of a distribution of values, including mean, median, and mode. Dispersion is the spread of values around the central tendency, measured with the range.

Describe the nature of business records

Technology has made it easier and more efficient to maintain business records through management information systems (MIS). The functions of an MIS are to gather, analyze, store, and report on data. Records are kept regarding financial information, production and inventory, marketing and sales, and human resources. Data sources may be external, such as from financial institutions or government agencies; or they may be internal, including data from accounting, inventory, and sales figures. Business record keeping requires one to: - identify the information needs of the organization, obtain the data, process and analyze the data, organize the data in a useful manner, distribute information to those who need it to make decisions, and update the data and records as needed.

Explain the role of finance in business

Finance is the function of business that pertains to money management. A financial plan is an important element of an overall business plan. Elements that pertain to the role of finance in a business include start up/equity financing, debt financing, and growth financing. Various financial statements, such as a balance sheet and income statement, provide a way to analyze a company's overall financial standing. Managing your business' finances will include planning for profits by forecasting sales, evaluating profit potential, controlling costs, and budgeting. Business financing also requires managing taxes and credit.

Describe the use of technology in human resources management

Technology is used more and more in the area of recruiting and hiring employees. Effective sources for locating prospective employees now include Internet career services and company websites. Many companies ask applicants to fill out an application online or at a computer terminal at the company's location. New employee orientation also makes use of technology for job training and disseminating company policies. Payroll functions are automated in many companies.

Explain marketing and its importance in a global economy

Marketing is the process of planning, pricing, promoting, and distributing ideas, goods, and services to create exchanges that satisfy customers. The benefits of marketing are numerous. It provides the means for competition in the marketplace, leading to lower prices and higher quality goods and services. Marketing generates new and improved products and adds value (or utility) to existing products. The global marketplace benefits from marketing because of the need to trade with each other.

Explain the use of technology in accounting

Most businesses use some type of accounting software to record and report their business transactions. Even when using an automated system, you still need to collect and keep your source documents and each business transaction must be separated into its debit and credit parts. Computerized posting to accounts is faster and eliminates accounting errors that a person might make doing it manually. Daily, weekly, monthly, and annual reports can be generated quickly and accurately. Software is also available for tax collection and reporting.

Describe features and benefits of restaurant service styles

Restaurant service styles include: - Plate service: The fastest table-service, does not require servers to have as much experience, has low equipment costs. - Cart service: Considered elaborate, items are cooked table side, size of portions may be modified, usually highend/gourmet restaurants. - Platter service: Food is prepared in kitchen, portions can be modified, faster and less expensive than cart service, highly trained staff - Family-style service: Easy to implement, requires little dining area space or special equipment, table turnover rates are high, can charge a reduced price. - Buffet service: May be simple or elaborate, small batches of food are displayed to keep appropriate temperatures, extensive planning is involved, lower labor and production costs.

Describe the concept of promotion in the travel and tourism/hospitality industry

Promotion in the travel and tourism/hospitality industry is made up of the following components: advertising, personal selling, sales promotion, publicity and public relations. These components are combined to create a promotion mix that will successfully communicate what the business has to offer.

Explain promotional methods used by the travel and tourism industry

Promotional methods used in the travel and tourism industry, include: - Personal Selling: Any staff that come in contact with guests/clients are involved in personal selling. - Advertising: Any promotion that is paid for, is considered advertising. This includes all paid promotion that is seen in three categories: print, broadcast, and specialty. - Public Relations: Public relations enhances a business's image or reputation. This form of promotion includes publicity which is unpaid promotion. - Sales Promotion: Any activity that engages guests/clients. These include contests, games, coupons or sweepstakes.

Explain hotel security considerations

Security procedures may include the following: front desk agents not releasing room numbers, keys, messages or mail without verifying identification, withholding guest information from callers or visitors, holding guest items in a secure area, securing all valet parking keys, using surveillance equipment, providing safe deposit boxes, protection of funds, and providing electronic locking systems on exterior doors.

Explain security considerations in the travel and tourism industry

Protecting national security is important, as well as protecting the health and safety of travelers. The travel industry and the government try to work closely to make rules and regulations that are beneficial to both. Security measures usually include the following: - Sanitation rules and regulations - Passenger and luggage screening - Providing identification and/or a passport - Providing travel alerts and warnings

How would you calculate inventory shrinkage?

Shrinkage can be determined using the following information: Beginning Inventory + Purchases - Net Sales = Ending Inventory If the ending inventory is less than the physical inventory count, shrinkage has occurred.

What are some things a business can do to establish relationships with customers?

Relationship marketing requires that all the company's department's work together to serve the customer. A company can adopt any of three customer value-binding approaches: 1. Adding financial benefits (frequent flyer, etc) 2. Adding social benefits (learning names, remembering needs and wants, etc) 3. Adding structural ties (airline lounges, flexible check-in, etc)

Describe traits important to the success of employees in the travel and tourism industry

Some important traits in travel and tourism include flexibility, self-motivation, honesty, dependability, communication, maturity and listening skills.

Explain responsibilities of food-service employees

Responsibilities of food-service employees can be broken into front-of-house and back-of-house. - Front-of-house: These employees are responsible for making reservations, greeting and seating guests, taking orders, serving, handling payments and clearing and resetting tables. - Back-of-house: These employees are responsible for handling and preparing food for the guests and washing dishes.

What can be used to analyze restaurant sales (average check, seat turnover, sales per square foot, etc...)

Restaurant sales can be analyzed using the following methods: - Average Daily Seat Turnover: Average number of times a seat is filled during the day - Average Check: Average food and beverage spending per guest - Sales per Square Foot: Sales divided by the size of the property

Describe how to monitor internal records for business information

The functions of an information system are to gather, analyze, store, and report on data. Records are kept regarding financial information, production and inventory, marketing and sales, and human resources. Internal data includes accounting records, inventory information, company sales figures, and more. A company's balance sheet, cash flow statement, and income statement are records that are monitored during a specific period of time. They are used to calculate revenue, evaluate costs and expenses, and measure profit/loss.

Describe the United States' judicial system

The judicial branch of the federal government interprets, applies, and administers the laws of the US. It consists of a network of courts at all levels of government. Two types of courts are trial and appellate courts. Federal courts include district courts, federal courts of appeals, and the U.S. Supreme Court. The state court system also includes a state Supreme Court, associate circuit courts, city or municipal courts, small claims courts, juvenile courts, and probate courts.

What can an employee do to convert customer objections into selling points?

The most important thing an employee can do is listen to the customer and address the objection. There are several methods that can be used; some of them are listed below: - Substitution: recommend a substitute product to the customer - Boomerang: turn the objection into a selling point - Question: ask more questions to clarify the objection - Superior Point: acknowledge and then provide superior points to offset the objection - Denial: correct the misinformation with facts - Demonstration: show the customer how the product works - Third-party: use a testimonial from previous customers

Explain legal considerations for accounting

The most significant changes to corporate governance and accounting practice came with the Sarbanes-Oxley Act of 2002. The act requires that CEOs, financial officers, accountants, and auditors comply with regulations and procedures designed to ensure accurate representation of companies' financial positions. It prohibits most loans to directors and executive officers, and forces company insiders to report changes in ownership within two days after a transaction has been executed. Securities regulation ensures that purchasers can learn the true nature of the securities they buy by providing a way to uncover fraud and unfair practices.

Explain the nature of positive customer relations

A positive customer relations mindset means believing that your customers: deserve the very best, are your employers, deserve your focused attention, have the right to expect things of me, and have important problems and complaints. Positive customer relations yield benefits to the business, the employees, and the customer. Businesses benefit by being more competitive, obtaining repeat business, and greater profits. Employees may receive customer compliments and perhaps a raise or promotion for good customer service skills. Customers benefit by having a more pleasant, satisfactory buying experience. This creates an atmosphere of goodwill. Positive customer relations need to be demonstrated when speaking to customers in person, over the phone, or online. It should also be evident while handling complaints, inquiries, and requests. Demonstrate good customer relations by doing the following: considering and attempting to meet their needs, concentrating on them without distractions, following up with them, following through on what you say you are going to do, and being efficient in handling issues.

Explain the nature of restaurant health and sanitation laws

A restaurant must follow food safety and sanitation laws or they may suffer serious consequences, such as sickness or death of guests. If food safety codes are not met, the restaurant could suffer from a bad reputation and be shut down by a regulatory agency.

Explain methods for motivating team members

A variety of methods can be useful for management to motivate team members. Factors that motivate employees are achievement, recognition, responsibility, advancement, growth, and the reward from doing the work itself. The use of rewards for good work can be effective. When giving rewards, identify those workers who are effective and efficient, and not those who simply get the work done. Also, reward and recognize long term employees for their loyalty to the company. Employees are also motivated by the freedom to be creative. Encouraging them to show creativity without risk of penalty often yields positive and ingenious results.

Identify ways to demonstrate active listening skills

Active listening is where a person recognizes and evaluates what is being heard. Active listening involves the following skills. 1. Identify the purpose—review the purpose of the communication and prepare to respond. 2. Look for a plan—be aware of the structure of the communication to make it easier to see how it all fits together. 3. Give feedback—these verbal and non-verbal cues indicate whether or not you understand the message. Ask questions at an appropriate time. 4. Search for a common interest—try to find something that interests you in order to avoid tuning out the speaker. 5. Evaluate the message—do so from the speaker's point of view as well as your own, and try to limit bias and personal judgment. 6. Listen for more than verbal content—assess what is being communicated non-verbally through rate of speech, pitch, volume, and voice quality. 7. Listen for a conclusion—at this time you may wish to take action or ask questions. 8. Take notes—structure your notes around the plan and check them to see you have understood the main ideas.

Explain the need for accounting standards

All accountants follow the same set of rules to prepare financial reports. The Financial Accounting Standards Board issues rules referred to as generally accepted accounting principles (GAAP). These principles provide a way to communicate financial information in a form understood by those interested in the operations and financial condition of a business. Accounting reports are used by individuals outside the business as well as inside. Outside the business, investors, lenders, consumers, competitors, and government may be interested. Workers, union leaders, and management all may have a need to see and clearly understand a business' financial situation.

Explain procedures for handling accidents

Always survey an accident scene before you do anything. Do not make any assumptions. Figure out what has already happened, and determine what may happen next. If someone is injured, administer first aid and get help if needed. Do not move a victim who may have a back or neck injury. Clear the victim's airway and check to see if he/she is breathing. Check for a pulse or severe bleeding. In the event of a fire, leave the building immediately using the stairs or a window. If you cannot leave, stay close to the floor to avoid smoke. Before opening a door, put your hand on it to feel if it is hot. If your clothes catch fire, stop, drop to the floor, and roll to put the fire out. Do not try to put out the flames yourself. During an earthquake, stay inside and move to a doorway or under a table. If you are outside, stand out in the open away from things that may fall. If a tornado threatens, go indoors and stay away from windows. Cover yourself with a mattress or blanket. If you are outside and cannot get inside, dive into a ditch or other low ground area and stay down.

Describe legal issues affecting businesses

Among the legal issues affecting businesses are the following. Consumer protection issues include product safety (for everything from toys to furniture), zoning laws to protect real estate value and quality of life, public health (i.e. at restaurants), and licensing for personal service providers (such as hairstylists and electricians). Employee protection issues include minimum wage standards, equal opportunity employment provisions, guidelines for workplace safety, and the Family and Medical Leave Act. Other legal issues businesses must be aware of include laws protecting investors and the environment as well as maintaining competition in the marketplace. The Securities and Exchange Commission regulates the sale of stocks and bonds and investigates deals among corporations. Businesses must follow various other laws to protect human health and the environment in regard to pollution, waste disposal, and recycling. Companies are also faced with legal standards that protect against anti-competitive mergers and business practices. Laws also exist that regulate the distribution of products such as alcohol and tobacco.

Explain the types of economic systems

An economic system, or economy, is the way a nation provides for the needs and wants of its people. It defines how a country will use its resources to produce and distribute goods and services. Four types of economic systems exist: traditional, market, command, and mixed. A traditional economy determines the use of its resources based on the cultural or religious traditions that have been used for generations. Mostly small, developing nations use this type of economy today. In a market economy, there is no government involvement in the decision making process regarding economic resources. The marketplace determines what, how, and for whom goods will be produced. A command economy is a system in which a nation's government makes all of these economic decisions. The government also controls the factors of production in this system. No country, however, is a purely traditional, market, or command economy. There are always influences that make it somewhat mixed.

Explain how to conduct an environmental scan to obtain business information

An environmental scan is an analysis of outside influences that may have an impact on an organization. It is a methodical look at the world that includes political, economic, socio-cultural, and technological areas. It is important to understand how each of these areas may be changing in order to determine the potential for opportunity or threat to a business. - Political factors include the stability of a government and its laws and regulations that affect business. - Economic factors include infrastructure, quality and cost of labor, employee wages and benefits, taxes, the standard of living, and possibly foreign exchange rates. In international business, socio-cultural factors include understanding another country's language, values, traditions, and social/business etiquette. Keeping up to date with technology and using it properly are other factors of an environmental scan.

Explain the role of ethics in human resources management

An ethics policy for employees may discuss working hours, wages and benefits. incentives, flexibility, safety and health issues, and termination procedures. Ethical operations will maintain fairness and safety for all employees and customers, be open and up-front about their policies, and handle problems promptly and equitably. Train your employees in safety and emergency procedures, then reinforce the training with signage in the workspace. Ethical behavior must be maintained in employee evaluation, as well as when giving consideration for promotions, transfers, and bonuses.

Explain how to write an executive summary

An executive summary may also be called an abstract or a synopsis. Its purpose is to summarize the key points of a report to the reader. An executive summary is often used with the report is long and/or technical so that busy readers can get the main points quickly without having to read the entire report. The format of an executive summary should match the main report. If the report is written in direct order, write the executive summary in direct order. An executive summary is typically a one-page document. The formatting may not match exactly the report that follows. Line spacing and headings may be different between the two, and it is usually not numbered in sequence with the body of the report.

Describe the nature of income statements

An income statement is a summary of a business' income and expenses during a specific period of time. Often called a profit and loss statement, it is used to calculate revenue, costs and expenses, and profit/loss. Income statements have several major parts: total sales, net sales, cost of goods sold, gross profit, operating expenses, other income/expenses, net profit/loss before taxes, and net profit/loss after taxes. Some of these figures must be estimated or projected, such as total sales and business expenses.

Explain the role of information systems

An information system is a set of procedures and methods that generate, store, analyze, and distribute information for use in making business decisions. Such systems organize, collect, and store data for current use or future decisions. Most information systems rely on data about current customers, sales reports, and inventory levels. Businesses use this information to make decisions about advertising, product planning, and pricing. Information can be secured through the use of primary data, including company records or government data, or secondary data, such as customer surveys.

Describe the concept of insurance

An insurance policy is a contract between a business or individual and an insurance company to cover risks. Business risks include economic risks, natural risks, and human risks. Insurance companies estimate the probability of loss due to risk and determine a rate to charge for the policy, called a premium. Property insurance is one common type of insurance, which covers loss or damage to buildings and equipment. Property insurance can be purchased to cover full replacement cost, automatic increase protection, and business interruption. Liability insurance is a form of insurance that protects against damages for which a business or individual may be liable, including injury or property damage to others.

Describe the nature of the divisions of a hotel's organizational structure

An organizational structure shows the communication chain in a hotel. The divisions can be divided in two different ways: 1. Revenue and support centers 2. Front of house and back of house

Describe current business trends

Assessing current business trends is important to both business and professional growth. Business owners and entrepreneurs should keep up-to-date through a variety of means. Classes are offered at vocational/technical schools, two- and four-year colleges, and online. Joining a professional association or club is an excellent way to stay current with trends and knowledge relevant to an industry. Another way to stay up-to-date is by reading journals, professional trade publications, news sources, websites, and blogs. Attend professional conferences, meetings, seminars, and speakers. These activities also provide the opportunity for networking, wherein you can learn from colleagues by sharing insight and experience.

Describe the duties of employees in back-of-house operations

Back of house operations can include business functions - such as human resources, management, accounting, reservations, operations and sales. These functions are the driving force behind the scenes on any property. The housekeeping department is mainly responsible for the daily cleaning and care of guest rooms, the front desk and lobby areas, restaurants, banquet and meeting rooms, restrooms and other offices or rooms on the property. The engineering department takes care of mechanical equipment and the physical upkeep of the hotel.

What is MIS?

Management Information Systems

Explain the concept of competition

Competition is the struggle among businesses for customers. As an essential component of the free enterprise system, competition forces businesses to produce quality goods at reasonable prices. Competition also encourages businesses to develop new products, enhance or improve existing products, and expand product selection in order to attract new customers. Businesses compete in two ways: price and nonprice competition. Price competition assumes that, with all other considerations being equal, a customer will buy the lowest-priced product. Nonprice competition is where businesses compete on factors such as product quality, business location and reputation, customer service, and payment or financing options available. A monopoly exists when there is no competition in the market for a particular good or service. Monopolies are not permitted in a free enterprise system.

Describe what motivates people to choose a destination

Consumers are motivated to travel based on the benefits they will receive from a specific destination. They take into consideration the experience, fun, relaxation and memories. Convenience is something that all consumers are motivated by, so they may also consider time, language barriers, cleanliness/sanitation, access to interests/activities and special needs.

Explain forms of financial exchange. (cash, credit, debit, electronic funds transfer, etc...)

Credit enables a business or individual to purchase goods and services in exchange for a promise to pay later. It is most helpful when consumers want to make major purchases, though it is often used for more common, less expensive items. Customers are typically issued a credit card from a bank to make such purchases. Debit is a variation of credit. Consumers using a debit card authorize a seller to withdraw funds directly from the consumer's bank account at the time of sale. A cash sale is any transaction in which the customer pays for the item with cash or a check. Other forms of retail sales transactions include layaway, on-approval, and cash-on-delivery (COD). Layaway means removing merchandise from stock and keeping it in a separate storage area until the customer pays. In an on-approval sale, an agreement is made permitting a customer to take merchandise home for further consideration before paying. A COD sale is a transaction that occurs when a customer pays for goods at the time they are delivered.

Explain the purposes and importance of credit

Credit enables businesses or individuals to obtain products or money in exchange for a promise to pay later. Businesses use credit to buy materials and supplies from other businesses. Credit makes it possible for millions of people and companies to purchase goods and services who otherwise would not have the means to do so. By extending credit, businesses provide a purchasing incentive to customers, thus enhancing their sales revenue and supporting the overall economy.

Describe the use of technology in customer relationship management

Customer relationship management (CRM) involves finding customers and keeping them satisfied through a variety of means, and is useful for developing and maintaining customer relationships. Database marketing is the element of CRM that is the process of creating and maintaining customer lists. These lists can be developed from face-to-face sales, direct mail responses, phone or e-mail purchases, service requests, Web site visits, or they can be purchased from a third party. CRM data is also obtained through customer satisfaction surveys, often giving a customer a reward while sharing demographic and purchase information with the company. Modern CRM software applications are Internet-enabled web applications. They allow a customer to create and check accounts and orders online while the company collects valuable data. Touch-screen computers are becoming popular in retail marketing. Customers like them and the costs to operate them are low. Interactive TV is a modern method of allowing viewers to interact with the programming. This method gives customers instant access to product information, links to online stores, and downloads for additional content, among other benefits.

Explain the role of ethics in customer relationship management

Customer relationship management involves finding customers and keeping them satisfied through a variety of means. It is useful for developing and maintaining customer relationships. The sharing of customer information among businesses has led to privacy issues. The government has regulations protecting the privacy of consumers, including offering customers the option of being added to mailing lists.

Describe the rights of customers in the hospitality and tourism industry

Customers have the legal right to expect safe food and safe lodging in a safe environment on safe premises.

Explain how to maintain customer records

Data about customers and their buying habits is kept in a computer program called a database. Data can be about customers' contact or other personal information, or it can be about their purchase/account history. This data can be developed from face-to-face sales, direct mail responses, phone or e-mail purchases, service requests, website visits, customer comment cards, or they can be purchased from a third party. Database programs act like filing cabinets that allow you to sort, find, choose, and organize information.

Explain communication systems that can be used to assist clients with special needs

Deaf clients can be assisted by using a TTY or relay service when they call. TTY stands for teletypewriter. This device allows deaf people to communicate using the phone lines. The information is typed in and then displayed on a small screen. TRS stands for telecommunications relay service. This is where a special operator types whatever you are saying for the deaf person to read on their display unit.

Explain procedures for handling robbery situations

During a robbery attempt, it is important to keep several things in mind: 1. Remain calm 2. Do not argue, fight or attempt to use a weapon against the robber 3. Cooperate with the robber, but do not offer assistance 4. Activate the silent alarm or security system 5. Watch the robber's hands 6. Give the robber your "bait" money - money whose serial number is recorded, making for easier tracking of stolen money. 7. Be systematic in your observations 8. Notice the type and description of any weapon that is used 9. If it can be done safely, observe the direction that the robber leaves the scene

Explain the nature of effective written communications

Effective written communications require some basic considerations: knowing your audience, knowing your purpose, and knowing your subject. You must assess who your target audience consists of in order to which form of communication to use. Next, knowing your purpose for writing helps you organize your thoughts. You must decide if you are trying to inform, confirm, inquire, answer, or persuade the audience. Lastly, written communication requires that you have in-depth knowledge of the subject and how to relate what you know to the intended audience. The form of written communication you choose to use will depend on the above considerations. Letters are formal methods of communicating outside the business. E-mail is an informal method used to reach those inside or outside the company. Memos, while being replaced by e-mail, are a more formal way to communicate within a company. Business reports are for lengthy topics, typically for internal use or for stockholders. Similarly, company publications may be used internally (for company policies) or externally (for marketing purposes).

Describe the nature of emotional intelligence

Emotional intelligence is a set of personal skills in the following areas. - Foster self-understanding to recognize the impact of personal feelings on others. • Develop personal traits to foster career advancement. - Apply ethics to demonstrate trustworthiness in working with others. - Exhibit techniques to manage emotional reactions to people and situations. -Identify with others' feelings, needs and concerns to enhance interpersonal relations. - Use communication skills to foster open, honest communications. - Use communication skills to influence others' point of view. - Apply problem solving techniques to obtain solutions to issues and questions. - Manage stressful situations to minimize negative workplace situations. - Implement teamwork techniques to accomplish goals. - Employ leadership skills to achieve workplace objectives. - Manage internal and external business relationships to foster positive interactions.

How can you show empathy for others?

Empathy is an understanding of another person's situation or frame of mind. On the job, you should be open-minded, realizing that many people are under pressure. Treat others considerately, and call on your own experiences. Before you react to someone, think of the position the other person is in. You may see things differently, and your reaction may be more effective. Be aware of how you appear to someone else, trying not to hurt or offend them. Speak carefully, and think about the way others will feel when they hear what you have to say. Let other people know you are interested in them, smile, and make them feel important. Do not assume that certain behaviors and views are universal; many people in the world have ideas that are very different from yours.

Determine ways of reinforcing the company's image through employee performance

Employee performance can reinforce a company's image through suggestion selling, order processing and fulfillment, and effective selling skills. Suggestion selling is useful for making the customer happier with his/her original purchase. Sales employees can improve customer satisfaction by the speed and care in which they handle orders. This applies, as well, to handling returns and refunds. Selling skills, such as an appropriate, pleasant greeting and a reassuring departure are useful tools in maintaining a good image. Offer helpful comments during and after a sale and always thank the customer in order to build a good relationship. Follow up on all promises made to a customer, and check on their level of satisfaction after a purchase. Positive customer-client relations require compassionate and immediate action when dealing with complaints and inquiries.

Describe traits important to the success of employees in the hospitality industry

Employers want someone who has strong personal characteristics such as honesty, dependability, work ethic, adaptability, and maturity. Self-motivation and communication skills are also valuable in the hospitality industry.

Discuss the role of ethics in operations

Ethical considerations include those that deal with employees and those that deal with customers. An ethics policy for employees may discuss working hours, overtime pay, flexibility, safety, and health issues. Regarding customers, operational ethics deals with product and consumer safety, credit concerns, delivery policies, hours of operation, customer service policies, and return policies. Ethical operations will maintain fairness and safety for all employees and customers, be open and up-front about their policies, and handle problems promptly and equitably.

Discuss the role of ethics in finance

Ethics are guidelines for good behavior, based on knowing the difference between right and wrong. Behaving ethically means being truthful, fair, open, and mindful of the law. Companies and their executives can now be held accountable for misinformation or improper recording of a company's financial situation. A company must keep an accurate, honest, and complete record of its accounting transactions. Finance professionals should be educated about insider trading and other unethical practices. They must refrain from misrepresenting the facts to achieve short-term goals. Confidentiality must be maintained with regard to clients' personal information as well as company information. Efforts must also be made to avoid conflicts of interest between employees and customers.

Explain the nature of business ethics

Ethics are guidelines for good behavior, based on knowing the difference between right and wrong. Behaving ethically means being truthful, fair, open, and mindful of the law. In marketing, business ethics involves a company's efforts to protect individual consumers and society as a whole. Businesses must keep consumers informed and protected against fraud and deceit, and they must not produce unsafe goods. Another ethical consideration for marketers is price gouging, or pricing products unreasonably high. In sales, ethical issues to be aware of concern bribes, kickbacks, and high pressure tactics. Businesses must behave ethically in management, as well, including personnel and accounting issues. The standards of ethics within a business are in large part determined by the owner's principles and values. Remember, people do not all share the same ethical values. As a result, businesses should create a clear policy on ethics standards.

Describe the determinants of exchange rates and their effects on the domestic economy

Exchange rates are determined by the: - Balance of payments: a positive balance of payments creates a stable or rising currency. - Economic conditions: inflation and interest rates can affect a countries currency rate. - Political stability: a stable political environment creates a stable currency.

Explain the concept of accounting

Financial information for a business can be recorded, summarized, and reported in a variety of ways. The way in which information is kept and reported is determined by the size, type, and complexity of a business. Businesses should also consider the types of decisions that will be made when designing an accounting system. Types of information to be gathered include purchases, sales, expenses, and payroll. There are two basic types of accounting methods: cash and accrual. In the cash accounting method, income and expenses are recorded at the time the money changes hands. The accrual method of accounting records transactions at the time they occur even if no money changes hands at that time. Accounting records show changes and the current account balance of each asset, liability, and owners' equity account. The recording of debit and credit parts of a transaction is called double-entry accounting. A record summarizing the information relevant to a single item in the accounting equation is called an account. With every action, at least two accounts will change. A group of accounts is called a ledger. A form for recording transactions is called a journal.

Explain how to organize information

First of all, you must decide if a piece of information is important. Information you do not need becomes clutter. Try to do something with important information the first time you look at it. Put information you will look at later in a file or folder. Categorize information by type and label each file or folder. Avoid putting each document in a separate file and do not let files get too large—divide them by subtopics. Color-code files, folders, or labels. Maintain your files on a regular basis. Organize your writing by using a logical order, such as chronological order or order of importance. Use heading and subheadings when writing longer documents.

How can the revenue contribution of food service operations to a hotel's profitability be analyzed?

Food service is only second to lodging when it comes to revenue generation. Most hotels see anywhere between 20-40% of revenue from their food service. Food service revenue can be determined by dividing food service revenue by total property revenue.

Describe the duties of employees in front-end operations

Front end operations include: - Front Office: Register guests, assign rooms and check out guests - Communications: Receiving calls, placing calls, tracking and relaying charges, answering questions, making wake-up calls, and monitoring automated systems. - Reservations: Receiving, accepting and making reservations - Uniformed Service: Meet, greet and help guests to the front desk and to their rooms

What is GAAP?

Generally Accepted Accounting Principles

Explain the concept of Gross Domestic Product

Gross Domestic Product (GDP) is the output of goods and services produced by labor and property located within a country. GDP is one measure of a nation's productivity, or the output of workers in a given period of time. GDP is made up of several elements: private investment, government spending, personal spending, net exports of goods, and change in business inventories. Two types of GDP are nominal GDP and real GDP. Nominal GDP is stated in the price levels in which the GDP was measured; real GDP is the nominal GDP adjusted for changes in prices. Calculate GDP as follows: add private business spending, government spending, and personal spending. Then either add a trade surplus or subtract a trade deficit, and either add expanding inventories or subtract shrinking inventories. A similar measure to GDP is Gross National Product. GNP is the total dollar value of goods and services produced by a nation, including those produced outside of its own territory by its own citizens.

Describe types of guest reservations

Guest reservations fall into two categories: guaranteed reservations and non-guaranteed reservations. Guaranteed reservations assure the guest that the hotel will hold a room until a specific time on the scheduled arrival date because the room is secured through payment. 1. Prepayment: requires that the guest pay in full before arrival. 2. Credit/Debit Card: unless properly cancelled the card will be charged. 3. Advance Deposit: requires that the guest pay the hotel a specified amount of money before arrival. 4. Travel Agent: the room is secured and held by a travel agency. 5. Voucher or MCO: a travel agency voucher or miscellaneous charge order, which are guaranteed through the agency and regulated by the Airline Reporting Corporation (ARC). 6. Corporate: a contractual agreement between the corporation and the hotel which states the financial responsibility of the corporation. Non-guaranteed reservations, assure that the hotel will hold a room for the guest until a stated time, but no guaranteed payment is required if the guest does not show.

Explain ways in which guests make reservations

Guests can make reservations through a number of methods, including: - In person: by coming into the property • Telephone: by calling the property directly - Mail: by sending a request through the mail to the property - Fax: by faxing in a request to the property - Intersell agency: through a system that contracts to handle reservations for more than one product line (airline, car rental, hotel, etc.) - Internet: by accessing the properties reservation system on the internet - Central Reservation System: by contacting the chain or independent contractor that secures reservations for multiple properties - Global distribution system: through a system that provide worldwide distribution of hotel reservation information.

Describe the process of coordinating the preparation of guest rooms

Housekeeping and the front desk must be in constant communication. The executive housekeeper is given a status report each morning and is then responsible for the staff preparing rooms for guest arrival. Rooms are usually classified in four ways: - Check out: Guest has checked out, but the room has not been cleaned yet. - Stay over: Guest will spend another day in the hotel; the room needs cleaning. - Vacant ready: Room is clean and ready to be occupied. - Out of order: Room is not available due to a maintenance problem or renovation.

Explain the principles of supply and demand

In a market-oriented economy like in the United States, supply and demand determine the prices and quantities of goods and services produced. Supply is the amount of goods and services producers are willing to make and sell. Demand is the willingness and ability of consumers to buy goods and services. Supply and demand interact in the marketplace resulting in a state of equilibrium, surplus, or shortage. The law of supply states that price and quantity supplied move in the same direction (a direct relationship). Thus, as price increases, the amount of goods and services supplied increases. Conversely, the law of demand states that as price increases, the amount desired by consumers will decrease (an inverse relationship). When the amount of a product/service being supplied equals the amount being demanded, equilibrium exists in the marketplace at that price. If, however, there is more supply than demand for a product a surplus exists, potentially leading to lower prices. A shortage exists when demand exceeds supply, a condition that can lead to rising prices.

Explain the concept of product in the hospitality industry

In the hospitality industry, product is not just a tangible object. The product definition is extended to include the following: experiences, people, places, organizations, information and ideas. Consumers decide where to visit, where to stay, what to eat and what entertainment they wish to see. All of these are viewed as products by the consumer.

Describe the economic impact of inflation on business

Inflation refers to rising prices; it is an indicator of the stability of an economy. A low level of inflation (between 1 and 5 percent per year) is considered good because it indicates a stable economy. Higher levels of inflation are harmful to businesses. Rising prices cause consumers to spend less, slowing the overall economy. Inflation also leads to higher wages. A high level of inflation may cause wages to increase beyond what businesses can afford to pay, which can lead to layoffs and downsizing. Interest rates rise in periods of inflation. Rising interest rates mean that borrowing money becomes more expensive. Businesses are, thus, less likely to borrow money to expand their operations. With inflation, the value of a dollar decreases so businesses and individuals cannot buy as much with the same dollar as they could before. Inflation can be helpful to individuals and businesses who are borrowers. Those who borrow at a fixed rate of interest can repay the debt with dollars that are worth less, which makes their repayments smaller than they would have been without inflation.

Explain how to demonstrate interest and enthusiasm

Interest and enthusiasm can be demonstrated verbally and non-verbally. When speaking choose words that are descriptive, vary your tone, listen and ask relevant questions. Non-verbal cues can be seen in your facial expressions, body language and eye contact.

Describe factors affecting the prices of travel and tourism products

Internal and external factors affect a company's pricing decisions. Internal factors may include the company's marketing objectives, marketing mix strategy, costs and organizational goals. External factors include the nature of the market, demand, competition, and other environmental elements.

What can an employee do to ensure a restaurant is in compliance with health codes?

It is important that all staff who handle food have a food handler's certificate and understand the health codes. Some of the critical safety knowledge is in personal hygiene, food preparation, cleaning and sanitizing, and safe chemical handling.

Explain employment opportunities in the food and beverage industry

Jobs in the food and beverage industry can be broken into two categories - front of house and back of house. - Front of house: Employees who have direct contact with guests. - Maitre d'hotel, from the French for "master", manages reservations, greets and seats guests, and handles complaints. - Cashier accepts payment from guests and balances the register. - Wait staff, take guest orders, see to their needs, and serve food. - Bus staff assists waitpersons in serving food, refilling beverages, cleaning tables and re-settingtables. - Back of house: Another division is the kitchen where food is prepared to serve to guests. - Executive chefs train and manage the kitchen staff and operations. - Sous chefs, from the French word for "under", are assistant chefs to the executive chef. - Expeditor takes orders from the dining room and delivers them to the stations in the kitchen. - Production chefs are responsible for specific categories of food.

Explain types of lodging accommodations in the hospitality industry

Lodging accommodations in the hospitality industry include: 1. Commercial hotels: usually located in downtown areas and cater to business travelers. 2. Airport hotels: located close to major travel centers and cater to business travelers, airline passengers, and airline personnel. 3. Suite hotels: feature rooms with a seating area and a separate bedroom. They cater to frequent travelers, people relocating, vacationing families and the traveling professional. 4. Extended Stay hotels: are similar to suite hotels but offer kitchen amenities in the room and they cater to long term stays of five days or longer. 5. Residential hotels: usually provide long-term or permanent accommodations for people in urban or suburban areas. 6. Resort hotels: are planned destination or vacation spots and they provide recreational facilities, and extensive dining options. 7. Bed & Breakfast hotels: B&Bs are usually homes or cottages that are operated by the owner who serve breakfast to the guests. 8. Vacation Ownership & Condominium hotels: these properties typically involve individuals who purchase the ownership of accommodations for a specific time period. 9. Casino hotels: the guestrooms and food and beverage operations in a casino hotel may be quite luxurious. Their function is secondary to casino operations. They tend to cater to leisure, vacation travelers. 10. Conference Centers: handle group meetings and most provide overnight accommodations for meeting attendees. 11. Convention hotels: may have upward of 2000 rooms to accommodate large conventions for state, regional, national or international organizations. 12. Alternative lodging: recreational vehicle parks, campgrounds, mobile home parks, and cruise ships.

Explain how to utilize negotiation skills in business

Negotiation is the process of working with or among the parties in a conflict to find a resolution, and requires a willingness to work together to achieve a mutually-agreeable solution. No company will completely avoid conflict in the workplace, so learning and practicing negotiation skills is important. Six effective techniques for negotiating conflict are: 1. show respect 2. recognize and define the problem 3. seek a variety of possible solutions 4. collaborate, or work together 5. be reliable 6. preserve your relationship The two most important negotiation skills are speaking and listening. Each party must first present the problem from their point of view. Use a non-aggressive tone and "I statements" to make your point, trying not to cast blame. Active listening on your part shows you are interested in the other person's ideas and feelings. Try to empathize with the person who is speaking. The problem is solved only when both/all parties reach a common agreement.

Describe the nature of the food and beverage industry

No matter what type of restaurant consumers choose, they expect good quality food and excellent customer service. The National Restaurant Association defines three primary types of restaurants: - Table service- includes restaurants where consumers are served, at a table, by waitstaff - Quick service - includes restaurants where consumers order at a counter - On-site food service - includes catering companies A higher menu price increases the customer's expectation of the dining experience.

Explain how to interpret others' nonverbal cues

Nonverbal communication refers to communication other than spoken language, including distance, eye contact, facial expressions, and gestures. Nonverbal cues can help you determine another's attitude and personal feelings. The distance you place between yourself and another can convey messages of attraction, interest, status, or respect. When you maintain eye contact, you show sincerity, interest, and confidence. Facial expressions are sometimes conscious and sometimes unconscious. They convey meaning, emotion, and attitude. Positive gestures, or hand movements, are often open, natural, and smooth. Negative gestures, such as crossing your arms, are more closed and rigid.

Explain the nature of operations

Operations can be defined as the daily activities that provide successful outputs for the business. Some common types of operations are facility management, logistics, scheduling, information management and safety and security.

Explain how to write persuasive messages

People act in order to have their own needs met. Thus, it is important to show your reader why he/she has a need to do what you want. To plan a persuasive document, first identify your objective. Then identify the main idea to show that the requested action will meet the reader's needs. Determine the supporting information that will convince the reader to do what you wish. Finally, adjust the content to the reader, considering his/her values and concerns. Organize a persuasive document by 1) gaining the reader's attention, 2) showing the reader that he/she has a need, 3) explaining your solution to that need, 4) present the supporting information, and 5) end by asking for a specific action. Persuasive documents might include sales letters, collection letters, proposals, and newsletters. To be effective in drafting persuasive documents, you should also present a solution that is clear, logical, and practical.

Explain the concept of place in the travel and tourism industry

Place, in the travel and tourism industry, is twofold. It can focus on the location/destination or the distribution of travel. The location/destination is important because it is a driver as to where potential clients may want to travel. It is important for the agent to have information about the areas that they are sending their clients. Many travel agents travel extensively to view properties and be able to relay first hand experiences. The distribution of travel has changed significantly with the use of the internet. Many travelers use the internet to book and reserve their travel. Options for travel may be booked directly with the business or through an intermediary, such as: Priceline or Expedia.

Describe the concept of price stability as an economic measure

Price stability is a factor that can enable economic growth. When prices are stable, investors and businesses know what to expect in the marketplace and in government. Businesses can make long-term plans knowing that market conditions will not change drastically and that the government will not run out of money. Globally, investors are more likely to put their money into countries with price stability, leaving behind nations that could use those investments for economic expansion.

Explain the concept of production

Production is the process of creating, expanding, manufacturing, or improving on goods and services. It is a function of business found in all industries and service-related operations. There are three main forms of production: extraction and cultivation, processing, and manufacturing. The three categories of products used by businesses and consumers are natural resources, agricultural products, and processed goods. Four types of businesses that are responsible for production are producers, extractors, farmers, and manufacturers. Company leaders focus on efficient production and consider the many situations that may affect it. Companies that want to be industry leaders strive to produce the most innovative products as efficiently as possible.

Analyze impact of specialization/division of labor on productivity

Productivity is the measure of worker output over a given period of time. Specialization and division of labor are important elements to increasing productivity. The theory behind this is that work can be completed faster and more efficiently when workers specialize in a certain area of production. An assembly line is an example of specialization and division of labor. Automation is the use of machines to do the work of people. It can cut production time, reduce errors, and simplify procedures, leading to greater overall productivity of the business.

Identify factors affecting a business's profit

Profit is the monetary return a business' owner receives for taking the risk of investing in the business. In simple terms, profit equals income less expenses. More specifically, there are two types of profit: gross profit and net profit. Gross profit is the money left over after the cost of goods is subtracted from income from sales. Net profit is the money left over after operating expenses are subtracted from gross profit. Factors that affect profit include demand for the good/service, expenses, prices, the economy, and chance. To try to increase profit, a business can increase worker efficiency, increase sales, and/or decrease expenses.

Discuss the role of ethics in accounting

The AICPA Code of Professional Conduct outlines a number of rules regarding ethics in accounting. A company must keep an accurate, honest, and complete record of its accounting transactions. Company audits should be carried out by an independent party. Confidentiality must be maintained with regard to clients' personal information as well as company information. Efforts must be made to avoid conflicts of interest between employees and customers. Ethical accountants exercise due care in the performance of their professional services. They should also be educated about insider trading as an unethical practice. Accountants must refrain from misrepresenting the facts to achieve short-term goals that are contrary to a business' long-term objectives. Internal auditors work independently within a business to review and improve the company's operations. They use strict standards to ensure the business sticks to its agreements, to design plans to protect assets, and to make the best use of company resources.

Explain the need for ongoing education as a worker

The average American has at least seven jobs before he/she reaches age thirty. People can expect to change employers several more times before they retire. While some people end up losing their jobs due to downsizing, everyone is affected by it. If managers are cut, individual workers may acquire more responsibilities. The skills you will need to manage new responsibilities may require more education. You may need to update your skills or learn new ones to keep pace with employment trends, as job opportunities shift from one industry to another. The competitive global market puts added demands on workers, as businesses try to stay up-to-date with technology and ways of doing business.

How do you calculate break-even point?

The break-even point is the point at which sales revenue equals the cost and expenses of making and distributing a product. The break-even point is calculated using the following information: Units x Cost/Selling Price = Break-even

Describe the functions of a call accounting system

The call accounting system (CAS) is software that helps with the placement, pricing and posting of calls for guests. The CAS works with the hotel's billing system to post charges to guest's folios.

Explain procedures for reducing bad check losses

The cash handling policy should have employees ask for and verify identification that matches the information on the check. Employees should be aware of what to look for and how to identify a potential bad check. Signs to look for when identifying a bad check include: the check number is missing, the check number is low, the customer's address is missing, the bank's address is missing or if additions to the check are handwritten

Explain the impact of the law of diminishing returns

The change in total product output that results from hiring one more worker is called the marginal product. Diminishing returns is experienced when the number of workers being utilized causes output to increase at a decreasing rate. Utilizing too many workers may actually cause production to decrease.

Identify methods for evaluating vendor performance

The criteria for selecting and evaluating vendors include production capabilities, past experience, product quality, the availability of special buying arrangements or services, and pricing. When dealing with a vendor for the first time, buyers might solicit references to determine the vendor's reputation. Many businesses maintain resource files and journals that document past experience with vendors. Such a journal may include an evaluation of product quality, delivery performance, and customer service. Returns relating to the quality of products may cause a vendor to be dropped.

Explain legal considerations for finance

The federal government regulates interstate commerce through the commerce clause of the U.S. Constitution. Securities regulation, especially the Securities Act of 1933 and the Securities Exchange Act of 1934, have been enacted to protect investors. These laws ensure that purchasers can learn the true nature of the securities they buy and provide a way to discover fraud and unfair practices. Included in the definition of securities are corporate stocks, interests in savings and loans, interests in racehorses or sports teams, and sales of coins. The Securities and Exchange Commission administers the laws regulating securities sales, brokers, dealers, and bankers who sell securities. The Federal Trade Commission was created in 1914 to protect businesses from the wrongful acts of other firms, especially referring to competitive practices. The Sherman Antitrust Act of 1890 was passed to stop the formation of monopolies. The Sarbanes-Oxley Act of 2002 contains important rules affecting the reporting and corporate governance of public companies and their officers.

Explain the functions performed by the divisions and departments in a lodging operation

The following divisions and departments in a lodging operation perform these functions: - Rooms: Provide services directly to guests - Food & Beverage: Provide food for guests - Engineering & Maintenance: Maintain the appearance of the property - Marketing & Sales: Provide sales, convention services, advertising and public relations - Accounting: Handles all financial activities - Human Resources: Recruit and select employees - Security: Provide security for guests and staff

Explain promotional methods used by restaurants

The following promotional methods are often used by restaurants: - Point of Sale: table tents, posters, etc - Samplings: offering customers bite size portions of the product - Special discounts or coupons: providing discounts to customers - Frequent diner programs: giving discounts for those that make purchases often

What techniques can be employed to resolve disputes raised by customers?

The following steps can be used to resolve a dispute: 1. Show empathy for the customer 2. Acknowledge the customer's feelings 3. Apologize for the situation 4. Let the customer know you want to help 5. Ask for more information 6. Repeat the customer's concern 7. Let the customer know you value their patronage 8. Explain options that are available to fix the situation 9. Summarize the actions that will be taken 10. End on a pleasant note

Explain the use of feedback for personal growth

The way feedback is given often affects the way you accept it. Destructive criticism focuses just on the bad things and gives the recipient no help. Conversely, constructive criticism is designed to be helpful. It is said calmly with a focus on the problem, not the person, and suggestions for improvements are given. Anyone who is new to a job must expect criticism. One can control his/her reaction to feedback. Maintain a positive attitude and try to avoid getting defensive. People who respond to negative feedback in a positive way generally impress others. Those who work on correcting their weaknesses tend to move ahead in their careers. When giving feedback, it is important that your message be clear and easily understood. Give feedback in a nonthreatening manner, discussing problems with others one-on-one when possible.

Explain types of business ownership

There are four possible forms of business organization: sole proprietorship, partnership, corporation, and limited liability company (LLC). The choice depends on the financial and tax situation of the owner, the type of business, the number of employees, and the level of risk involved. Each has advantages and disadvantages to be explored. - A sole proprietorship is a business owned and operated by one person. - A partnership is a legal agreement between two or more people. The two types of partnerships are general and limited. A corporation is a legal entity created by a government statute authorizing individuals to operate an enterprise. - A limited liability company is a hybrid of a partnership and a corporation. In an LLC the owners are shielded from personal - liability while all profits/losses pass directly to the owners without taxation of the business itself.

Identify desirable personality traits important to business

There are many characteristics of successful businesspeople, including persistence, creativity, responsibility, confidence, and enthusiasm. A businessperson should be inquisitive, goal-oriented, independent, a risk taker, and action oriented. Essential skills for running a business include the following: communication, math, problem solving, technology, decision making, organizing, teamwork, social, and basic business skills.

Explain types of investments

There are several main types of investment vehicles. Common stock is a unit of ownership of a company that entities the owner to voting privileges. Preferred stock is a type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive them. Stocks are attractive as an investment because owners share in the success of the company. A corporate bond is a corporation's written pledge to repay a specific amount of money, plus interest. Similarly, a government bond is the written pledge of a government or municipality to repay a specific amount of money, plus interest. When you buy a bond, you are lending money to a corporation or government entity for a period of time. Mutual funds are investments in which investors pool their money to buy stock, bonds, and/or other securities. The investments are selected by professional managers who work for an investment company. Their expertise can be beneficial to inexperienced investors. A final form of investment is to own real estate. The goal of this is to own property that increases in value so you can sell it at a profit or receive rental income.

Describe an approach for setting a base price (cost, demand, competition)

There are three approaches for setting price. - Cost-Oriented Pricing: The business would determine all costs associated with making the product and would add on their intended profit. - Demand-Oriented Pricing: The business would determine what consumers were willing to pay for their product and their perceived value of the product. - Competition-Oriented Pricing: The business would determine what their competitors were charging for the product and decide whether they wanted to sell below, in-line with or above their competitors' price.

Explain employment opportunities in the hospitality industry

There are three levels of employment opportunities in the hospitality industry: - Entry Level: high school education and no experience in the industry - Skilled Level: move up from entry level, come from other disciplines or have a degree from a technical school or junior college - Management Level: many have college degrees and some move up with experience in the industry

Discuss the impact of a nation's unemployment rates

There are three main impacts of lingering unemployment on an economy: efficiency, inequality, and discouraged workers. Unemployment is inefficient in that it wastes human resources. It leads to inequality because those with the least experience tend to lose their jobs first, which are usually minorities and the young. Lastly, unemployed people tend to get discouraged about themselves and their abilities, and may give up their search for work. Unemployment is an important indicator of the overall strength of an economy. The higher the unemployment rate, the greater the chances of an economic slowdown. Likewise, the lower the unemployment rate, the greater the chances of an economic recovery. When more people are working, more people are spending money and paying taxes to help the economy grow.

How can you determine a client's travel preferences/needs?

There are three methods that can be used to determine a client's needs: observation, listening and questioning. When observing a client, it is important to look for buying motives that are communicated nonverbally. Listening helps to pick up clues to the customer's needs. Questioning can help clarify the customer's needs.

What policies and procedures should be in place to prevent sanitation problems?

To prevent sanitation problems, the following policies and procedures should be in place: - Know and follow food safety procedures - Prevent cross contamination of food - Know the proper time and temperature to store and cook food - Wash, rinse, and sanitize dishes

Explain factors affecting the development and growth of the travel and tourism industry

Travel appeals to all ages and incomes and several trends have emerged. The Baby Boomer generation travels often. They not only travel alone, but travel with their grandchildren. Younger people are trending toward shorter, more expensive vacations. Business travel is balanced between males and females, where it was predominately males in the past. Business travelers also bring their families along and make it a family vacation.

Identify how to prepare simple written reports

Two types of simple written reports exist. A formal report is generally long, analytical, and impersonal, often containing preliminary and supplementary parts. An informal report is shorter and written in a less formal style. They generally have no preliminary or supplemental parts and are concerned with everyday topics. Both types of reports may be organized in direct order (if the report is routine or you expect a favorable response from the reader) or indirect order (when persuasion is necessary or if the subject matter is negative). The steps in planning both formal and informal reports are to 1) identify the problem, 2) decide on areas to investigate, 3) determine the scope, 4) plan the research, 5) develop a preliminary outline, 6) collect the data, and 7) analyze the data, draw conclusions, and make recommendations. Three parts of an informal report include opening, body, and closing. The parts of a formal report are the preliminary parts, body, and supplementary parts. Most formal reports follow specific formatting guidelines with respect to margins, spacing, and headings.

Identify how to assess personal strengths and weaknesses

When assessing your strengths and weaknesses, many areas can be explored. Interpersonal skills that can be assessed include self esteem, attitude, initiative, self control, creativity, flexibility, stress management, and time management skills. You will also want to assess more concrete skills and abilities. These are things that you will be asked to do in the workplace, such as selling a product or organizing an activity. Complete a self-assessment by asking yourself if you have these types of skills and taking inventory of your workplace values and needs. Determine what skills you are lacking and where you can make improvements. Develop your skills and abilities by reading, observing, and working in a real-world situation.

Explain the nature of workspace regulations such as OSHA and ADA

Workplace regulations are put in place to protect workers. Two such regulations include: - OSHA is a broad set of rules that protects workers in all trades and professions from unsafe working conditions - ADA was put in place to prevent employers from discriminating against potential and existing employees with disabilities