Week 10 EOC: My Plans

As I grow closer to completing the Advertising program, I am beginning to obsess over a single question, what next? Long-term goals and far-off dreams are very simple to string together and talk about everyday but the tables start to turn when the time for action seems to come. This is when society starts compromising their dreams for safer realities and life seems to change their path. I find myself racking my brain for the right answer, scouring my surroundings for even the slightest hint as to what my next step should be. Yet, I always seem to go back to the same thought each time. My whole life I have been forced into a path of education. From a toddler to a young adult, the government mandated that I received a standardized form of training. Upon completing the public education system, I found myself right back on same path of conditioning. The socially constructed goal of a high school diploma seemingly morphed into a college degree as soon as my graduation cap was flung into the air. All of the hours spent studying, the mornings spent waking to an alarm clock, the virtually endless standardized tests and we never think to stop and ask why. Even years later, I can still here my mother say, "You need to get your bachelors degree so you can get a good job and make money." I never argued with her on the topic. Both of my parents received their degrees while raising a family and working to provide for us. They are in a much better financial position now directly because of it. So here I am, on the final stretch to the ultimate goal that society has dangled in front of my nose and I refuse to believe it is just to get me qualified to take some low-level corporate position. As children we start learning as soon as we are able to, we are put through a 12-year-long government mandated training camp in order to get ready to work and stimulate the economy. This is not why I am here. I am here to love, create, and inspire others. Sure, I may find myself working for a large advertising agency trying to get a promotion one day but that will not define me. I may find myself still mixing drinks in ten years and still, that will not define me. Maybe I will take this knowledge I have accumulated and open up my dream businesses and make more money than I ever could have hoped for. That still will not define me. Dreaming is a healthy outlet for our minds but it is important to remember the words of a very wise man known as Albus Dumbledore, "It does not do to dwell on dreams and forget to live." Society has taught us to hope for that dream job or dream salary but this is a common misconception. Our souls crave something a job and money can not reach. My past and all of the lessons that I have learned up to the present day have equipped me with the tools necessary to bring me to my wildest dreams and also to my lowest downfalls. As long as I stay true to myself, surrounded by loved ones and never stop inspiring, I will achieve goals that I can not even currently fathom. I will not deny, I do have a desired path towards my entrepreneurial and monetary success but I refuse to label that as my plans. As far as I am concerned, my only plan is to wake up every morning with a smile on my face and whatever gets me there, so be it.  

Week 9 EOC: Book Question

1. If Dan and Loralei decide to buy the restaurant, some fixed costs would be incurred. List at least five important fixed costs that would be directly affected by the purchase decisions Dan would make regarding the acquisition of the property. Five important fixed cost that would be directly affected include management salaries, property taxes, insurance policies, mortgage and depreciation. "A fixed cost is one that remains constant despite increases or decreases in sales volume (number of guests served or number of rooms sold)." (316)
2. If Dan and Loralei operate the restaurant, some variable costs would be incurred. List at least five important variable costs that would be directly affected by the operating decisions Loralei will make as she manages the restaurant. Five important variable costs that would be directly affected would be food costs, beverage costs, labor costs, utilities and commissions. "A variable cost is one that increases as sales volume increases and decreases as sales volume decreases." (317)
3. Consider the decisions Dan and Loralei will make if they choose to acquire the restaurant. While clearly both are important, whose decisions do you think are the most important to ensuring the future profitability of the Watershed? Why do you think so? In order to create a successful business, Dan and Loralei will have to combine their efforts to maintain a productive business strategy. In order to create a profit, an increase in sale and a decrease in costs would both be very helpful. The duo will have to first analyze the current situation for the fixed cost to determine exactly how much it actually costs to run the business. "Good managers seek to decrease their fixed costs to their lowest practical levels while still satisfying the needs of the business and its customers." (318) This is where certain costs are cut in order to set the business up for profitability. From there, variable costs will be analyzed during operation and costs will be cut where needed. This combine effort will set the business up for the fastest track to profitability. 

EOC Week 8: Chapter 8 Question 4

a. What were the total revenues in October 2009 and October 2010? The total revenues in October 2009 were 545,000 and 583,000 in October 2010. "Because revenue is a product of both price and number sold, yield in the hotel industry is a product of ADR and occupancy." (288)

b. What was the GOP in dollars in October 2009 and October 2010? The GOP in October 2009 was 162,000 and October 2010 was 184,550. "Gross operating profit (GOP) is, in effect, total hotel revenue less those expenses that are considered directly controllable by management." (296) 

c. What was the percentage of GOP to total revenues in October 2009 and October 2010? The percentage of GOP to total revenues in October 2009 was 29.72% and October 2010 was 31.66%

d. What was the flow-through percentage achieved by Santi’s hotel? What is your assessment of that percentage? The flow-through percentage achieved by Santi's hotel was 59.34%. This is a great percentage and it proves that the business is running efficiently. "When flow-through is high (over 50%), it reflects efficiency on the part of management in converting additional revenues into additional profits." (43)

EOC Week 7: Trump and Small Business

This November, the people of the United States made a decision that stuck a chord throughout the globe. Markets crashed, people rioted and many foreign investors seemingly lost hope in the future of the United States. Without even being assigned the official presidency, president-elect Donald Trump has shaken up the world. "As unpredictable as this election has been, researchers at Bespoke Investment Group have found that stocks have been fairly predictable after the election, tending to sell off." (Marketwatch.com) With the markets scattered across the board and the American people torn, the election of Trump will surely have a noticeable effect on the lives of small-town Americans and especially small business owners. While Trump may have personality differences, his policies are actually pretty familiar to the American people, taking stances on issues that we've seen from both major political parties. When it comes to small business, a Trump presidency actually seems promising. "Karen Kerrigan, president and CEO of The Small Business and Entrepreneurship Council (SBE Council), looks forward to working with Trump’s administration, stating that 'His agenda of lower taxes and simplifying the tax code, relieving small businesses of excessive regulation and red tape, competitive solutions for more affordable health insurance, bringing down barriers to capital access and formation, leveraging our energy resources and America’s energy renaissance more fully, smarter trade agreements, and advancing growth-oriented policies to restore healthy investment won the day.'" (Blackenterprise.com) Small business owners everywhere are starting to regain some hope with a Trump presidency. With certain policies in place a certain promises fulfilled, a Trump administration is looking to be quite promising for small business owners throughout the country. "Part of Trump’s so-called “new deal,” which he revealed during one of his election stops, included new tax incentives for inner cities, new microloans for African Americans to start companies and hire workers, and a plan to reinvest money from suspended refugee programs in inner cities." (Blackenterprise.com) Since the election, markets have returned to stability and most people have calmed down for the most part. Now us as Americans are left to wait and hope for the change that we have all been looking for. 

Week 6 EOC: Weed In The Workplace

The prohibition of cannabis throughout the twentieth century has made it easy for strict regulations to be established by corporations and lawmakers for marijuana use by employees and citizens. Since the legalization movement started gaining ground and medical marijuana became popular throughout various states, a whole new classification of regulations and laws were now needed. Are you going to fire a 60-year-old man fighting cancer for using cannabis oil to mitigate his disease? It was obvious that a change was needed. Now, some new changes are necessary as more and more states are choosing to legalize marijuana for recreational use. One major conflict that this movement is causing is employment regulations. Should a qualified candidate not be hired for a position for using marijuana if they live in a recreational state? What is the legal difference now between alcohol use and "pot" use? These are questions that employers all over the country are being faced with and it has not been easy to answer. "Fortunately for employers, the marijuana laws in Alaska, Colorado and the District of Columbia provide express protections, indicating that employers are not required to permit or accommodate the use, sale, possession, transfer or the like of marijuana in the workplace. The laws in Oregon and Washington, however, are silent as to the impact of recreational marijuana in the workplace." The recreational marijuana programs have already been established in states are tightly ran and, of course, highly taxed. The distribution of the drug is practically forced into the legal scene, where the state government has control. Similar programs are found throughout the country in liquor regulation, in fact, liquor regulation in states like Virginia are much stricter than the marijuana regulation in recreational states. Employers should look at marijuana use like they look at alcohol use. "...alcohol use is legal, but companies have a right to prohibit employees from working under the influence of this substance. So, therefore, employers certainly may institute drug-free-workplace policies..." You would not lose your possibilities for the job position for having a beer the night before the interview, therefore, you should not do the same for enjoying a joint the night before. As such, showing up to work drunk probably will get you fired, smoking one right before going into work should not be tolerated. If the employee's performance is compromised or influenced by marijuana or alcohol in the workplace, disciplinary action should follow according to the employers regulations in place. "The potential consequences of marijuana use in the workplace include the risk and associated cost of adverse events and the loss of productivity." The legalization of marijuana is a great thing for the people of American and each state's economy when handled correctly. As long as regulations are set and the limitations are clear, this movement is one step in the right direction for the United States of America.

Week 4 EOC: Chapter 5 Question 2

a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change? The change in cash from 336,000 to 350,000 is considered a Use of 14,000 "Sources represent inflows and uses represent outflows of funds for the hospitality business." (147)

b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change? The change in net recieveables from 1,520,000 to 1,550,000 is considered a Source of 30,000

c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change? The change in notes payable from 134,000 to 90,000 is considered a Use of 44,000. "One tool that can be used to help you identify money inflows and outflows of a hospitality business is to calculate its sources and uses of funds from its balance sheets from last period to this period." (147)

d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change? The change in retained earnings from 1,146,000 to 1,250,000 is considered a Source of 104,000 "Retained earnings refer simply to the accumulated amount of profits over the life of the business that have not been distributed as dividends." (128)

e. What was the total amount of Sources and Uses of Funds? The total amount of sources was 453,000 and the uses were 1,033,000

Week 4 EOC: Chapter 4 Question 3

a. Compare Rachel’s Cash % with the chain’s %.  Is it higher or lower?  What might this mean? Rachel's Cash % is 3.7% while the chain's is 6.70%. Rachel's is lower so that means she has a lower cash flow than chain's average. 

b. Compare Rachel’s Inventories % with the chain’s %.  Is it higher or lower?  What might this mean? Rachel's Inventory % is 2.3% as opposed to the chain's 1.30%. Which means that her inventory is more than the chain's average inventories."There is no guarantee that payment for all inventories will be collected in full, and thus some may end up being reported as receivables." (124)

c. Compare Rachel’s Accounts Payable % with the chain’s %.  Is it higher or lower?  What might this mean? Rachel's Accounts Payable % is 11.3% and the chain's average is. "10.50%. This implies that Rachel has more into her accounts payable than the chain's average rate. "The most important sub-classifications of current liabilities include notes payable, income taxes payable, and accounts payable." (127)

d. Compare Rachel’s Notes Payable % with the chain’s %.  Is it higher or lower?  What might this mean? Rachel's Notes Payable % is 2.5% while the chain's rate is 1.10%. This means that Rachels has more into her notes payble than the average. "In the hospitality industry, current liabilities typically consist of payables resulting from the purchase of food, beverages, products, services, and labor." (127)