BLDC1020 Financial Planning and Budget Management

Q1

A

The main purpose of the budget is to organize, plan, track and improve the overall financial condition of an individual or organization. It helps in controlling the spending and ensure consistent spending and investing of the income.

B

The budget is prepared at the beginning of any initiative. The preparation method should be comprehensively regimented so as to ensure that the budget is ready at the beginning of an initiative, fiscal year or at the beginning of a project.

C

The budget policy is the adopted framework that helps in the clarification of the budget process.

D

The purpose for the budget policy is to help in addressing the roles and responsibilities during the budgeting process, the existing timelines, various definition of terms that lead to a balanced budget and the budget control.

E

Hotels and other organizations engage in budgeting since it helps in estimating the general revenue expected in the firm, planning of their expenditure and it helps in restricting ant=y expenditure that is not planned. It ensures that hotels and organizations allocate money to activities that ill lead to the attainment of the strategic objectives in the firm.

Q2

A

The budget is considered as a guide by doing the comparison  of the actual expenses with the allocated expenses in the budget thus it helps the executive house keeper to ensure efficiency. They are able to ensure that the actual expenses incurred are according to the budgeted amount.

B

Budget is necessary to the chief engineer lies on its ability to help in the prevention of unnecessary costs and help in the optimal allocation of the right amount of the budget according to the corresponding needs of the project.

C

Budget preparation is a long process that usually takes a longer period of time, with several individuals from different departments taking part in its creation. The budget is developed through a consultative approach which involves the finance department, the project planning team and the reviews of other employees are also considered.

D

Yes. The Food and Beverages manager should be able to know the budgetary allocation for t rooms division. This is because it will help him in the evaluation and benchmarking on the performance of the division. Also, it can help in the evaluation of different projects within the organization.

Q3

The hotel is facing challenge on improving the occupancy of the expensive rooms. This is an expected challenge in the hotelier industry. In order to improve the sales volume of the expensive rooms, the hotel should;

1. Budget for communication and promotion purpose- the hotel should focus on communicating with the existing customers since they are the most prized assets in the firm. It is easy to upscale the existing customers on a low budget as compared to gaining the trust of a new customer which will need a high amount of finances to market and promote. This will help the firm to save on the budget and focus on other pressing issues.
2. Marketing for new customer is an expensive exercise. The firm can engage on cheaper strategies such as introducing a referral system in the business. Creation of a customer referral program to replace the promotion and marketing exercise which is expensive will help in cutting on the budget in the same way increase the number sales.
3. Adopt less expensive ways of product promotion. There are numerous imaginative and less expensive ways that you can all the while use for advancement. For instance, you can utilize your vehicle as a versatile announcement, or you can convey specially crafted alluring business cards at different spots that have vital worth as far as business. You can make limited time flyers without help from anyone else. Perhaps the most ideal ways you can use for advancement is guerrilla promoting, which accentuates innovativeness over financial plan, and its systems are frequently modest and simple to carry out. It will include your serious level of creative mind to get a handle on the consideration of people in general. Another method of advancing your item or administration is to help a social reason; so, turning into a socially cognizant organization can build your deals for the time being