Credible and relevant resources support and develop ideas

2.Submit two files; Excel Workbook and the Business Report.

3.For calculation questions show all workings through appropriate Excel formulas. Copy pasted numbers without appropriate Excel formulas will not be accepted.

Crystal Hotel Case Study

While the hotel is located in a very popular location, close proximity to a river and in the city centre, it is becoming quite out-dated. The owners rely heavily on their corporate clientele. Clients usually use the hotel for their expat employees. Due to long-term contracts, they pay on credit with invoices being issued at the end of each month. The hotel is often faced with outstanding invoices. The owners have so far tolerated it as it usually occurs with their long-term clients. Additionally, to the accommodation services, they often use hotel facilities for their functions and conferences.

The hotel is constantly having difficulties retaining a good quality staff as they always get junior personnel, which once gaining experience will usually leave for better opportunities in hotels with higher ratings. The biggest issue is to retain high quality personnel in the hotel restaurant, especially a chef.

You are expected to conduct the financial statement analysis in an Excel

BIZ201 Assessment 3 Brief 20191111 Page 2 of 12

1.Vertical Analysis:

a.Conduct a Vertical Analysis of Crystal Hotel’s Statement of Profit and Loss for the year ended 30 June 2018 using Vertical Analysis P&Lworksheet.

Comment on:

• How the business is performing compared to industry • Revenue
• Cost of sales
• Personnel costs
• Unallocated Operating costs and
• Total costs proportions

BIZ201 Assessment 3 Brief 20191111 Page 3 of 12

Although the financial calculations and business report are individual items, if you have reached similar conclusions, you may undertake this section of the assessment in pairs.

Face to Face On-campus Students
This section of the assessment will take place in class in Week 10 of the trimester. Failure to attend will result in ‘0’ grade for this section of the assessment.

BIZ201 Assessment 3 Brief 20191111 Page 4 of 12

➢Introduction - The introduction sets the scene and provides context for the aim. It provides background to the issues being addressed only. (Approximately 10% of word count)

➢Main Discussion – (Rename the headings/sub-headings to reflect your report). This section should provide information regarding the analysis you undertook addressing the key deliverables i.e. Part 2

BIZ201 Assessment 3 Brief 20191111 Page 5 of 12

Table 2 Vertical Analysis of Statement of Profit and Loss based on Average Room Price Range


Pass is awarded for work showing a satisfactory achievement of all learning outcomes and an adequate understanding of theory and application of skills. A consistent academic referencing system is used and sources are appropriately acknowledged.	Credit is awarded for work showing a more than satisfactory achievement of all learning outcomes and a more than adequate understanding of theory and application of skills. A consistent academic referencing system is used and sources are appropriately acknowledged.
Demonstrates limited evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.	Demonstrates consistent evidence of use excel formulas and relevant worksheets to calculate appropriate ratios.

Excel formulas are not used for calculation.

Comparison of Vertical analysis of financial
statements calculations with industry values
including comments on various types of costs

BIZ201 Assessment 3 Brief 20191111	Page 8 of 12

		Appendix. Good comments on Revenue, Cost of Sales, Personnel Costs, Unallocated Operating Costs and Total Costs proportions.
	Some comments are made with reference to industry data provided.	Thoroughly developed understanding of Profitability, Efficiency, Liquidity and Solvency of the business by using ratio analysis. Good comments were made with reference to industry data provided.

Application of own
research to further
develop comparative analysis of hotel

	Page 10 of 12

Limited understanding of financial terms and
concepts.

Limited knowledge of
financial matters and its relationship to business strategy and operations.

Very good understanding of financial terms and
concepts.

Very good knowledge of financial matters and its relationship to business strategy and operations.

Demonstrates use of
credible and relevant
resources to support and
develop ideas, but these are not always explicit or well developed. At least 4 good quality references provided.

Multiple mistakes and errors in reference list.