Supporting resources: Supporting resources include templates, journals, workbooks and portfolios which can be used to support you in providing evidence of your competence. Your assessor will provide you with these documents before you begin your assessment tasks. For this unit, the supporting resources comprise:

·           Marketing Budget Briefing Report Template (Assessment Task 2)

·           Profit and Loss Reports 2017/18 and 2018/19 (Assessment Task 2)

·           Finance Policy and Procedures(Assessment Task 2)

·           Marketing Expenditure(Assessment Task 3)

·           Marketing Budget Analysis and Recommendations Report Template(Assessment Task 3)

Information about how you should complete this assessment can be found in Appendix A of the Hospitality Works Student User Guide. Refer to the appendix for information on:

·           where this task should be completed

·           the maximum time allowed for completing this assessment task

·           whether or not this task is open-book.

Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix C of the Student User Guide. However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that.

It is ansecretarial term that labels actual costs which can be higher and lower than the standard cost.

The negative figure indicates a shortfall of the budget, which may happen revenues to error or costs to come in advanced than expected. This variance is calculated by subtracting actual or standard figures for each line item.

2) Care of payroll

3) It lets for various currencies

(Solihin,&Tugiantoro, 2021)

Online payroll

(Agostino, & Kirman, 2019)

2) Connect with your bank account
3) Bank feed transaction

(Solihin,&Tugiantoro, 2021)

Make extensive report

(Agostino, & Kirman, 2019)

The budget is very sensitive to economic conditions like an increase in direct tax automatically decreasing the disposable income of a person.

(Maisaroh, et al., 2019)

If the new legislation is implemented then the budget is also revised because of the new rules and regulations like the tax rates are changed and so on.

(Maisaroh, et al., 2019)

The organization’s objective has an impact on all budgets because the budget is prepared, how much cost will be expanded and how much profit will be earned is estimated by the budget and the objective.

(Maisaroh, et al., 2019)

Customer research is helpful in evaluating the complete result because the research is helpful to know your customers’ needs and satisfaction.

(Mannheimer, et al., 2019)

2) Provide efficiency

3) Accountability

2) Increase revenues on investment

3) Reducing the cost

Information about how you should complete this assessment can be found in Appendix A of the Hospitality Works Student User Guide.Refer to the appendix for information on:

·           where this task should be completed

·           how your assessment should be submitted.

Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix B of the Student User Guide. However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that.

Blue Healer is a health resort and convention centre based in the Blue Mountains near Sydney which has been operating for 5 years. The resort, Blue Healer, is made up of five areas: catering, spa, meeting rooms accommodation, and administration.

Blue Healer is very popular due to its competitive pricing structure, quality service and state of the art facilities.

The resort was set up by Paul Byrnes, a burnt out consultant who wanted to provide a service for corporate executives to retreat from their business for at least a short time. Paul had a lot of networks and to date most of the business has been from Paul’s existing networks and word of mouth referrals.  The business has a functional web site.

Sales continue to increase but Paul wants to retire completely and step back from the business. Thus he has hired a Resort Manager to oversee the business (you). An important aspect of the business that he wants the Resort Manager to focus on is preparing and monitoring budgets.

Current staff include an Accounts and Administration Manager, Resort Supervisor, Housekeeping staff, receptionist and contract therapists.

Profit and loss reports show the status of the business’ financial health.

In your new role, the first step you need to take is to the determine the scope and nature of all of the budgets that need to be prepared for Blue Healer.

Draft an email to send to Paul to find out this information. Ensure your email includes questions that will provide all of the information you need to know, as well as identifies internal data sources that you need to access.

Paul Byrnes (your assessor) will answer your email so that you are able to forget ahead with developing the required budgets.

Answer

EMAIL

To- Paul Byrnes

Subject- Getting information

Respected sir,

Good morning, sir, how are you? This mail is conducted for getting some information about the organization for preparing the budget. I want to know about the nature of the organization and the financial position of the organization for preparing the new budget. For preparing the current budget I want previous financial statements such as profit and loss statements and balance sheets of the previous year. Please give me the proper information about the previous finance strategy report, marketing report, and most important and how much workforce is conducted in the organization.

Are the policy and procedures being changed for the current year?

Is there needed for change in the budget and in which area changes are mostly required let me know so that I am taking the action or prepared the marketing budget?

Or if it is possible then I also want to know about the customer’s data and the competitor’s pricing policy for competition.

For ending this email thank you so much for giving me this opportunity, I hope I will get all information soon.

Thank you

Resort manager

As per the response provided to you, you are to focus on developing a Marketing Budget Briefing Report.

Use Marketing Budget Briefing Report Template to develop your report.

Review profit and loss for previous financial years to identify amounts spent on marketing for the previous two financial years, as well as the information provided to you by Paul

Identify at least two sources of information on recommended marketing expenditure that could be used to inform the marketing budget.

In addition, identify external factors that could impact on the marketing budget. This means that you should conduct market research on trends within the industry in terms of growth and opportunities and the types of marketing that similar businesses are conducting.

Answer.

Marketing Budget Briefing Report

Summary

It is a health resort and convention center which is based in Sydney in the blue mountains and runs the business for the past five years, such as a spa, catering, and provide meeting rooms, and administration, as the resort manager it is my responsibility to know about the organization.

In the marketing expenditure report, we are getting some information regarding the marketing expenditure I will show you the difference between the previous year and the current year which are given in the marketing expenditure report of the center. In The previous year, the marketing expenditure is estimated for 2019-2020 to be $ 82000 but the actual expenditure is $ 92000. Which is high than the expecting.

Marketing expenditure

The expenditure conducted from 2017-2018 is & 7,07,795 and in 2018-2019 the expenditure incurred $ 8,16,875 which is higher than the previous year.(Pani, et al., 2019) The expenditure cost is high than the previous year which is not good for the center as the cost increases, the income decreases automatically.(Pani, et al., 2019)

Sources of information

The sources of information are given below:

1) Business magazines- It is helpful for getting information about the organization, about their policies and procedures and it also gives information about companies plan and important information.

2) Current customers- Customers are vital for all businesses to get their products, and their satisfaction so that the organization knows about their product’s reputation and qualities.

External factors

1) Social and cultural factors- the social culture of the organization is a lifestyle, and customs that characterize a society, and the social factors prejudiced the welfare of the health care center.

2)  Economic environment- the economic environment also plays a vital role in achieving the goal because these factors include taxes, demand, supply of products, inflation, taxes, and recession this factor indicates the spending power for products.(Tran, & Nguyen, 2019)

These are the external factor that could be impactful on the marketing budget. The growth of the business can be increased by developing new technologies in the center. The trends in the spa which been developed in the current year for improving the health care resort, such as crystal healing therapies, forest bathing, goat yoga, and all. (Tran, & Nguyen, 2019)as we know this health care center has very good pricing policies. These trends are helping in improving health care services and attracting new customers from all over the world.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Attach your Marketing Budget Briefing Report to the email.

Ask for input on your Marketing Budget Briefing Report. The CEO and Accounts and Administration Manager (your assessor) will provide you with feedback for input into your budget.

Answer

EMAIL

To- CEO, Accountant, and Administration manager

Subject

Respected sir,

This email is written to inform you about the marketing budget report which is developed by the health care center. In the marketing expenditure report, we are getting some information regarding the marketing expenditure I will show you the difference between the previous year and the current year which are given in the marketing expenditure report of the center. In The previous year, the marketing expenditure is estimated for 2019-2020 to be $ 82000 but the actual expenditure is $ 92000. Which is high than the expecting.

In this report, we also mention the external factors which are useful for our health care center, for enhancing the profit. The source of the information also provides me with the marketing budgeting project. I put my all efforts into this project. I will attach the marketing budget briefing report so that you know about that, and give us feedback, so we could proceed for the implementation of the budget.

Thank you

Resort Manager

You are required to draft a Marketing Budget based on your Marketing Briefing Report and the input provided from the CEO and Accounts and Administration Manager (your assessor).

To develop the Marketing Budget, you should use the accounting software used by your RTO.

Save this document as a draft Marketing Budget and send it via email to the CEO and Accounts and Administration Manager (your assessor).Your email should clearly outline the options for marketing expenditure as per your marketing budget, as well as your recommendations for the budget.

You will discuss your draft budget at a meeting with the CEO and Senior Managers. Your assessor will advise you of the date of the meeting.

Answer

EMAIL

To- CEO, Account and Administration manager

Subject- Marketing budget

Respected sir,

This mail is written to inform you about the marketing budget expenditures, as you know that this budget is estimated by the blue healer health center’s owner Paul Byrnes, which is run the business for over five years and now wants to retire from the business so that he appoints me as the Resort Manager, and according to my post I am developing the budget for the current year, so I make the budgeting expenditure budget which is sent by me to you in the previous email. In this email, I will send you the marketing expenditure budget attachment which explains the position of the expenditure budget.

In this budget, the actual expenditure incurred is 1,16,500 and the expecting expenditure is $ 96,500. This difference is very much, which is not good, it reduces our revenue income. According to me, there is a recommendation for the budget which is important that is:

Prepare separate fixed and variable expenses, set the budget expectation, and review the budget. Look at that budget and let us know what recommendation is useful according to you all.

Thank you

Resort manager

The next part of the assessment requires you to participate in a meeting with the CEO (role-played by your assessor) and the Accounts and Administration Manager (role-played by another student to discuss the marketing budget. At the meeting, the CEO will attempt to negotiate another option for the budget. You are required to demonstrate your negotiation skills to persuade the meeting participants that your budget is the best option.

At the meeting, you will need to:

·           Explain the marketing budget you have developed and the various options.

·           Seek input on the budget.

·           Negotiate for your budget as presented.

During the meeting, you will need to demonstrate effective communication skills including:

·           Speaking clearly and concisely

·           Using non-verbal communication to assist with understanding

·           Asking questions to identify required information

·           Responding to questions as required.

Answer

MEETING

Resort Manager- Good morning all of you, how are you all

CEO, Administration manager – Give us your introduction

Resort Manager- I am the new Resort manager and my job role is to monitor the budget and make changes if needed.

CEO, Administration manager – ok, that is great, introduced with your budget.

Resort Manager- Yes, sure according to me first of all collect all previous information from all budgets such as sales budgets, purchase budgets, expenditure budgets, financial budgets,

Fixed cost and all, then prepare the standard budget.

CEO, Administration manager – ok but as a CEO of the company, there are lots of ways to maintain and prepare the budget by calculating the net income, and tracking the spending. Used zero-based budget, pay-yourself-first budget.

Resort Manager- That is good but my budget is more effective than yours.

CEO, Administration manager –How?

Resort Manager- Because my budget is flexible, it also supports the management, my budget is coordinated, and the estimation of the budget is right and suitable for the current situation.

CEO, Administration manager – But the process of your budget is a lengthy instance of mine.

Resort Manager- NO, the process of my budget is lengthy but it is very effective to improve the previous budget of the center.

CEO, Administration manager – Your expenditure is more than mine, there is no need for that much expenditure.

Resort Manager- It is needed because if we want that the customer like our services then we have to change our old strategy and the accommodation style and it would take cost which is long term investment.

CEO, Administration manager – But Zero-based accounting is easy than it is based on funding, in this budgeting no item is added automatically.

Resort Manager- My budget is Advertisement, sponsored web content, SEM PPC, and social ads are also developed which attract the shareholder and more investors Zero budget is for allocating the debts payments and the money expenses.

Following the meeting, revise your marketing budget to incorporate feedback from the CEO and Accounts and Administration Manager.

You are to revise your marketing budget and send it out as Final Marketing Budget within 2 days of holding the meeting. You will be assessed on meeting this timeline.

Save this document as Final Marketing Budget and send it out via email to the CEO and Senior Managers.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Answer

To- CEO, Senior Manager

Subject- Final marketing budget

Respected sir,

This mail is conducted for informing you about the final budget which is changed according to your feedback sir. The Budget is revised, in the revised budget, we change some figures in the budget for estimating the expenditure and the income, I am attaching that budget changes.

This is the revised budget for the marketing, I hope this change is right, if it has been mistaken then let us know so we take action on that.

Thank you

Resort Manager

The final part of the assessment requires you to meet with colleagues to confirm the Marketing Budget for the year.

You are also required to introduce the team to the company’s Finance Policies and Procedures. This is to ensure that they understand financial management responsibilities and reporting arrangements so that the marketing budget can be accurately implemented and monitored.

These requirements form part of the company’s requirements for finalising budgets.

At the meeting, you will need to:

·           Discuss the overall budget allocation for marketing

·           Discuss the amounts allocated to each marketing activity

·           Provide an outline of the Finance Policies and Procedures.

During the meeting, you will need to demonstrate effective communication skills including:

·           Speaking clearly and concisely

·           Using non-verbal communication to assist with understanding

·           Asking questions to identify required information

·           Responding to questions as required.

·           Using active listening techniques to confirm understanding.

Answer

Meeting

Resort manager- good morning all of you, how are you? I hope you all are doing well in your job.

Team- Very good morning, sir, we all are good and doing good thank you, how are you, sir?

Resort manager- I am also good, now we are focusing on our topic which is the marketing budget of the company which is allocated by the Finance manager and it is the final budget.

Team- ok sir, so what budget is allocated to what area.

Resort manager- The total amount for the marketing budget for the current year is $ 1,30000 and the community sponsorship is $ 1000 in July, radio advertisement is for $ 1500, the exclamation expenditure is for $ 3500, the budget is provided by us, we are attaching the marketing budget.

Team- ok sir what is the new fiscal policy and procedure for the budget?

Resort manager- The finance policy and procedures are allocated by the post like the financial manager develops the financial statements and balance sheets, cost allocation, Credit used, and data management this is financial policies, and I am, as the Resort manager, it is my duty to monitor the budget activities.

Team- Ok sir.

Resort manager- I hope you all are getting my point and understand the budget and the finance policies.

Team- yes sir, thank you sir for giving us such information.

Resort manger- Thank you all for attending the meeting.

·           Speaking clearly and concisely

·           Using non-verbal communication to assist with understanding

·           Asking questions to identify required information

·           Responding to questions as required

·           Using active listening techniques to confirm understanding

Information about how you should complete this assessment can be found in Appendix A of the Hospitality Works Student User Guide.Refer to the appendix for information on:

·           where this task should be completed

·           how your assessment should be submitted.

Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix B of the Student User Guide. However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that.

Assume it is twelve months later and you are reviewing the marketing budget against actual amounts using the Marketing Expenditure Report.

Note: that the company deems a standard variance in budgets of up to 5% acceptable.

You have also been recently informed that a competitor has set up a resort in the nearby area and you are required to assess how this will impact the marketing budget for the following year.

Review the marketing budget expenditure to assess actual performance against estimated performance.

Based on your review and using the accounting software, prepare a report that shows actual expenditure against budgeted expenditure. Include graphs to make your report clear.

Save this report as Marketing Performance Budget Report.

Prepare an accompanying report, Marketing Budget Analysis and Recommendations Report, that analyses:

·           Projected budget and actual budget

·           Deviations from the budget

·           Reasons for deviations

·           Recommendations for next year’s budget based on marketing performance and new competitor.

Use the Marketing Budget Analysis and Recommendations Template to guide your work.

Answer

Marketing Budget Analysis and Recommendations Report

Introduction

The purpose of the report is to estimate the estimated and actual performance of the marketing budget. In this report, we are discussing the performance of the budget.The total amount for the marketing budget for the current year is $ 1,30000 and the community sponsorship is $ 1000 in July, radio advertisement is for $ 1500, the exclamation expenditure is for $ 3500, and the budget is provided by us, we are attaching the marketing budget.

Marketing Budget Information

The budget is estimated during 2019-2020 to be $96,500 but the actual and final budget is $ 130000, in the marketing report we are discussing the external factors of the company which are very important and impactful factors on budget. In the marketing budget, community sponsorship is $ 1000 in July, radio advertisement is for $ 1500, the exclamation expenditure is for $ 3500, and so on expenditure which is important to conduct. The graph is attached below:

Deviations

The deviation is the process in which funds are available for a specific project which is different from the predetermined budget. The master budget represents the policy of the business, and it is applicable for all that budget which have differences in actual and standard budgets.

Deviation reasons

1) Error in figures

2) planned activity not same as occur

3) Changes in planned activity

4) Cost high the budget

Recommendations

The recommendation for the new budget is to reduce the cost and develop the right budget and maintain the cost so that the cost expands the same and aim to strengthen the infrastructure.

As the previous budget marketing performance is affected also, and as we know that our new competitor open resort nearby us, so that the competition is high now.

1) Separate fixed and variable

2) Set the truthful budget expectation

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments.

Attach the following to your email:

·           Marketing Budget Performance Report

·           Marketing Budget Report Analysis and Recommendations

Answer

Email to Management

To- Management

Attachment- Marketing Budget analysis and recommendation report, Marketing Budget      Report

Subject- introduce the performance report and recommendation

Respected sir,

This email is written to inform you about the marketing budget performance report which can be very helpful to identify the actual performance of the business and what cost is expended actually and what cost is predetermined, and I have also attached the marketing budget report analysis and recommendation for the next budget so we are not doing the same mistakes in next year.

Kindly look at the reports and give your feedback response, so we continue our process.

Thank you

Resort manager