Term
| Key points of revenue appraisal? |
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Definition
Revenue is a product of price and volume
Appraisal needs to take into account changes in both price and volume
Averages not always accurate and prone to misinterpretation
Allow for inflation and price rises
Need to compare like with like
Incorporate 12 month rolling totals to determine true trends and performance
Revenue cannot fully be appraised by itself |
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Term
| Key points of cost appraisal? |
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Definition
Structures vary and change over time
Can be measured in cash or percentages
Proportional relationship between costs
Relationship between costs and inflation
Cross sectional and time series analyses useful
!2 month rolling totals identify true performance
Operators with the lowest costs perceived as having key advantage
Allocating indirect costs more complex than allocating direct costs |
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Term
| What are management reports? |
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Definition
Inform the management about current progress
Tool for cost control
Tool for sales information
Reports need to be comprehensive and cover all major aspects of the operation
Reports can be: daily, weekly, monthly, half yearly, annual and quaterly |
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Term
| What is a daily food cost report? |
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Definition
A record of:
Stock levels
Requisitions
Food sales
Food cost %
Tool for quick cost control
Can be simple and easy to follow
Good indicator of day to day performance
Relies on accurate information
Can ignore some costs e.g staff meals |
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Term
| What is the sequence of planning? |
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Definition
vision
mission
long range plan
business plan
marketing plan
operational budget |
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Term
| What is the planning process? |
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Definition
Define the goal purpose of problem
Collect and evaluate data relevant to forecasting the future
Develop alternative courses of action
Decide the best course of action
Carry out the plan
Control and evaluate results |
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Term
| What is evaluation used for? |
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Definition
Reviewing the operations progress towards achieving overall organizational goals
Measuring employee performance
Assessing the effectiveness of training programs. The constant question from managers must be "how are we doing?" |
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Term
| Explain conflict between collegues |
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Definition
This type of conflict frequently arises in the workplace
It may result from any number of issues including:
Cultural differences
Personality differences
Differences in values or work ethics and values |
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Term
| What are conflict resolution techniques? |
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Definition
Compromising
Accommodating
Competing
Avoiding
Collaborating
Not all techniques lead to win win |
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Term
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Definition
This technique attempts to find the middle ground between the conflicting parties
It requires each party to give up something they value to resolve the conflict |
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Term
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Definition
| This technique involves playing down the real issues at hand and plays up the similarities between the parties in the hope of smoothing things over |
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Term
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Definition
This technique frequently leads to a clear winner and loser
It is often used through force, domination or superior skill
This technique is used when the issue is more important than the relationship. This is not usually appropriate in resolving conflict with a guest |
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Term
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Definition
This technique usually results in a lose lose situation
It means that all parties ignore the conflict issues in the hope that they will go away. They do not! |
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Term
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Definition
This technique is the most effective and direct approach for achieving win win
This technique uses problem solving techniques to meet the expectations of each party to the conflict |
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Term
| How do you resolve conflict situations? |
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Definition
If conflict indeed arises, it is important that action be taken that satisfies all parties
The quicker the problem is addressed, the quicker it is likely to be resolved and there is increased likelihood the conflict will not grow into a potentially harmful situation |
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Term
| How do guests express complaints? |
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Definition
Immediately the problem arises
After the have left
To another department
Aggressively or pleasantly |
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Term
| Immediately as the problem arises? |
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Definition
You have an opportunity to immediately respond and resolve the problem
If you do not handle the complaint well at this stage, the guest is likely to be dissatisfied with you and the venue. You may lose the guest |
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Term
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Definition
| Many guests complain after departure because it avoids direct confrontation. It can also indicate that the guest has later thought the problem was serious enough to warrant a complaint but not so serious that you will lose their business |
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Term
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Definition
This frequently happens when a guest has built up a relationship with a particular staff member in another department
It may also happen when the guest is unsure to whom they should complain
It often indicates that the guest is looking for nothing more than acknowledgement of the problem and an apology |
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Term
| Aggressively or pleasantly? |
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Definition
Guests express their complaints in a number of ways. Sometimes it is aggressively and therefore offensive. At other times it will be pleasantly
However a guest complains it is important not to take it personally, not to take offense and to remain pleasant yourself |
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Term
| What is the complaint handling strategy? |
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Definition
Most guest complaints will be satisfactorily resolved when an appropriate complaint handling strategy is used:
Listen to the guest and acknowledge the problem
Express concern and empathize
Take responsibility for resolving the complaint
Indicate what action will be taken
Take action to resolve the complaint
Follow up |
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Term
| How do you turn complaints into opportunities? |
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Definition
Most guest complaints are an opportunity for you and the venue to:
Prove your professionalism
Demonstrate your excellent interpersonal skills
Prove the guests' worth
demonstrate your high customer service stand
Create a positive impression
Improve the way the venue does things |
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Term
| How do you handle problem identification? |
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Definition
1. Identify
2. Explore
3. Set goals
4. Look at alternatives
5. Select
6. Implement
7. Evaluate |
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Term
| What are the six steps in the decision making process? |
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Definition
1. recognition of decision requirement
2. Diagnosis and analysis of causes
3. Development of alternatives
4. Selection of desired alternative
5. implementation of desired alternative
6. Evaluation and feedback |
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Term
| What three levels are used when assessing the current performance of an operation? |
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Definition
1. Operational
Includes day to day sales and the way the product is provided and promoted
2. Business
The performance of the enterprise in terms of profitability, competitiveness and other business measures
3. Corporate
The strategic direction of the operation at how this is being achieved |
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Term
| What is quantative analysis? |
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Definition
Business environment analyses
Qualitive evaluation |
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Term
| What is quantitive analysis? |
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Definition
Essential part of appraisal
Considered over time
Evaluation is more important than data itself |
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Term
| What is business environment appraisal? |
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Definition
-Macro environment:
Political
Economic
Socio- cultural
Technological
Legal
Ecological
-Industry environment:
The forces
1. Potential entrants
2. Industry competitors
3. Buyers
4. Suppliers
5. Substitutes |
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Term
| What is qualitative evaluation? |
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Definition
Making informed evaluation of the business
Allowing for external comparison
Asking the right questions |
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Term
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Definition
COGS=
opening stock+purchases-purchase returns-closing stock |
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Term
| Calculation for gross profit? |
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Definition
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Term
| Calculation for net profit? |
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Definition
Net profit=
gross profit- controllable and non controllable expenses |
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Term
| Calculation for menu pricing? |
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Definition
Menu price=
food costs+labour costs+overhead costs/ %of total costs as decimal |
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Term
| Calculation for profit per menu item? |
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Definition
Profit per menu item=
desired profit/ projected # of customers |
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