Manage Australian finances within a budget

Areas of Improvement - Proposed Budget

Project 2
STUDENT NAME: MARK ANGELO V. TORIO
BATCH: 2023 -2024
TEACHER: MR. JOHN MATHEW MALABAYABAS

eVersity
 WRITTEN REPORT TEMPLATE

1. New budget strategy:

Section Description Input

Introduction The financial situation of our company is Up until now, the majority of our organization's budgeting strategies
characterized by a variety of issues and have been traditional ones, which might not be flexible enough to
possibilities. In recent years, the hotel handle the fast-paced hospitality sector. The new budget plan is
sector has experienced increased
competition, shifting consumer
described in this paper, with the goal of addressing our financial
preferences, and rising operating costs. It difficulties and taking advantage of new opportunities.
has become evident that in order to ensure
our continued success, a new budget plan
is needed. This strategy aims to address
these challenges, preserve financial
stability, and take advantage of
development opportunities.

Objective The main goal of the new budget Boost Cost Management: Reduce and maximize our overhead expenses to
plan is to attain a financial increase revenue without sacrificing the caliber of our services.
performance that is more flexible
and long-lasting. through
strengthening financial resilience, Boost Revenue Generation: Create plans to raise money using creative
facilitating strategic investments, marketing, dynamic pricing, and a variety of income sources.
enhancing income generation, and
improving expense management.
Enhance Financial Resilience: Put policies in place to reduce financial risks
and accumulate savings to withstand changes in the economy.

Enable Strategic Investments: Invest resources wisely to upgrade our

infrastructure, offerings, and technological capabilities in order to satisfy

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 changing client demands.
Methods The new budget plan was developed using Financial Analysis: Our past financial data, including measurements for profitability,
an all-encompassing, data-driven costs, and sales, were carefully examined. We can now better understand our financial
methodology. We'll make use of bench- strengths and shortcomings thanks to this analysis.
marking, best practices, market research,
stakeholder consultation, and financial Market Research: To comprehend changing consumer tastes, new market trends, and
analysis. the competitive environment, we carried out extensive market research.

Consultation with Stakeholders: In order to gain important feedback, evaluate needs,

and acquire insights, it was imperative to engage with department heads, financial
experts, and other key stakeholders.

Best Practices and Bench-marking: We found best practices that might be put into
practice by comparing our financial performance to industry norms.
Findings The findings resulting from our Operational Efficiency: We can significantly reduce our running costs by improving
analysis indicate the following key procurement, labor management, and energy use, among other areas.
areas for improvement: Operational Revenue Diversification: It's critical to increase our revenue streams by focused
Efficiency, Revenue Diversification, marketing, investigating untapped markets, and refining our price policies.
Risk Mitigation, and Strategic
Investments.
Risk Mitigation: A more robust framework for risk management is required since our
firm is vulnerable to unanticipated events and market swings.
Recommendations The new budget strategy includes the
Cost Optimization: To increase operational efficiency, implement cost-cutting
following recommendations—cost
optimization, revenue enhancement, risk
management, and investment plan— strategies include renegotiating supplier contracts, streamlining labor
based on the findings.
schedules, and using energy-efficient technologies.

Revenue Enhancement: Create a thorough revenue plan that includes

adopting dynamic pricing methods, introducing additional services, and

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 diversifying your market.

Risk management: To detect and reduce financial risks and maintain the

viability of our operations, form a specialized risk management team.

Investment Plan: To ensure our long-term prosperity and competitive position,

set aside funds for strategic investments in technology, sustainability

programs, and improvements to the guest experience.

Conclusion In conclusion, this new budget

strategy is designed to address our
current financial challenges and
leverage opportunities for growth. By
implementing the recommended
changes, we aim to position our
organization for long-term success,
ensuring financial stability and a
competitive edge in the hospitality
industry.

References https://edu.eversityonlinecampus.com/
https://corporatefinanceinstitute.com/

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

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 SPREADSHEET DETAILING THE PROPOSED BUDGET TEMPLATE

2. Areas of Improvement Table:

Description/Category Current Budget ($) Proposed Budget ($) Rationale for Change

$250,000 $230,000 To optimize labor costs, we are

restructuring staff schedules
and roles. This includes
reducing overtime and
Salaries & Wages streamlining staffing levels.

Utilities $50,000 $45,000 By implementing energy-

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 efficient technologies and
practices, we expect to reduce
utility expenses and promote
sustainability.

$30,000 $35,000 We plan to increase marketing

spending to expand our
customer base and improve
Marketing brand visibility.

$120,000 $115,000 Negotiating lease agreements

with landlords and exploring
options to reduce occupancy
Rent & Leases costs.

$40,000 $45,000 We're allocating more funds for

preventive maintenance to
reduce costly repairs and
extend the lifespan of our
Maintenance assets.

$20,000 $18,000 Reevaluating suppliers and

bulk purchasing to reduce
supply costs while maintaining
Supplies quality.

$25,000 $22,000 Streamlining other operational

expenses by evaluating
contracts and service
Other Expenses providers.

Total $535,000 $510,000 The proposed budget aims to

achieve a total cost reduction
while maintaining or improving
service quality and guest

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 experience.

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

Instructions:

 Input the current budget and the proposed budget for each category.
 Provide a rationale for the change in budget figures. This rationale should tie back to the findings and recommendations in the report.

SPREADSHEET DETAILING THE PROPOSED BUDGET TEMPLATE

3. Proposed Budget Figures Table:

Description/Category Previous Year ($) Current Year ($) Proposed Year ($) Changes (%)

Salaries & Wages $250,000 $255,000 $245,000 -4%

Utilities $50,000 $52,000 $48,000 -8%

Marketing $30,000 $32,000 $36,000 12%

Rent & Leases $120,000 $118,000 $115,000 -3%

Maintenance $40,000 $42,000 $45,000 7%

Supplies $20,000 $22,000 $18,000 -18%

Other Expenses $25,000 $28,000 $26,000 -7%

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 Total $535,000 $549,000 $533,000 -3%

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

Instructions:

 Input the figures from the previous year, current year, and proposed year for each category.
 Calculate the percentage change between the current year and the proposed year.

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