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Please answer all of these questions based on looking at the chapters files, and I have answers that are examples which are included in the questions file. questions.docx ch13.pptx ch14.pptx ch.15.pptx Unformatted Attachment Preview Please answer all of these questions based on looking in the book and the example files p.423 Test Your Knowledge chapter 13 1. Why is the current ratio termed a liquidity ratio, whereas the debt to asset ratio is termed a solvency ratio? 2. What are examples of operating ratios? Why would these be used by a foodservice manager? 3. How do changes in fixed costs impact the break-even point? 4. Why might the chief financial officer of a hospital prefer that the foodservice director analyze a proposed equipment purchase using NPV rather than the payback period? Answer examples of chapter13: 2) Why is the current ratio termed a liquidity ratio, whereas the debt to asset ratio is termed a solvency ratio? (pg 424) Liquidity ratio is termed current ratio because it deals with the organization paying its bills and Current assets debts on time using the general formula Current Ratio = Current liabilities . Solvent is defined as having assets exceeding liabilities, thus solvency is comparing asset to debt ratio. T otal assets Solvency ratio = T otal liabilities . 3) What are examples of operating ratios? Why would these be used by foodservice managers? Examples of operating ratios: Comparing newly implemented decisions, performance reports, and revenue reports to the previous system’s performance and revenue reports. This would be important for foodservice managers to use because they can see what area of their organization is bringing in revenue and know which expenses they can adjust. 4) How do changes in fixed costs impact the break-even point? (pg 426) Changes in the fixed cost impacts the break even point in that it could either tip the break even point one way or the other. If the fixed costs increase due to increase in equipment costs, space, insurance, rent taxes, etc. but profits remain the same, then the organization will be under the break-even point. 5) Why might the chief financial officer of a hospital prefer that the food service director analyze a proposed equipment purchase using NPV rather than the payback period? He or she may prefer the food-service director to analyze purchases using NPV because it is more sophisticated than using the payback period. NPV takes into consideration the time value of money, or the fluctuations in monetary value. This allows the analysis to be more accurate since it is reliant on “real time” information rather than fixed information. p.443 Test Your Knowledge ch.14 1. What is the marketing environment? How does it impact the development and execution of a marketing plan? 2. Define the term marketing concept and describe how it applies to a foodservice operation. 3. What are variables that influence the marketing mix and market segmentation? 4. Explain the four characteristics of services and describe how they impact marketing in foodservice operations. 5. Describe how strategic planning might be used to enhance foodservice marketing. 6. What is involved in creating a brand? 7. How might social media be used in marketing an operation? Answer examples of chapter14: 1. What is the marketing environment? How does it impact the development and execution of the marketing plan? The market environment includes factors that influence the organization’s ability to create and maintain successful relationships with their target market. This impacts the development and execution of the marketing plan in that it must be tailored to appeal to their target market. 2. Define the term marketing concept and describe how it applies to a foodservice operation. Marketing concept is the idea of discovering what the needs of their target customers are then taking steps to satisfy those needs better than their competitors. 3. What are variables that influence the marketing mix and market segmentation? Variables that influence the marketing mix and marketing segmentation are the following: Product, distribution, promotion, and price, people physical evidence, and process. 4. Explain the four characteristics of service and describe how they impact marketing in food service operations. Intangibility describes what services are not, such as “cannot be seen, touched, tasted, smelled, or possessed (Gregoire 450). Inseparability of production and consumption can be related to intangibility. It means that services are normally produced at the same rate they are being consumed. Perishability is termed for services or products that cannot be saved for future use Heterogeneity the variation and lack of uniformity in the performance of people (Gregoire 451) 5. Describe how strategic planning might be used to enhance foodservice marketing. Strategic planning has four defined steps: define the organizational mission, establish strategic business units, set up marketing objectives, perform a situation analysis, develop a marketing strategy, implement tactical plans, monitor results. Using each of these steps, a foodservice manager will be able to enhance the foodservice market. More specifically, these set of steps help the organization identify a common goal as well as effective steps to ensure it’s functionality. 6. What is involved in creating a brand? The 11 P’s are involved in creating a brand: Principles , play, promise, place, people, production element, props, price, promotion, press, performance reviews and prizes. 7. How might social media be used in marketing in an operation? Social media can be used in the marketing operation as a cost-effective way of reaching their target market. p.462 Test Your Knowledge ch.15 1. How might you determine whether quality ingredients are being used? 2. What information might a foodservice manager collect to determine whether customers are satisfied? 3. How might the data collected in a walk-through audit differ from that collected by talking to guests? 4. What are factors that impact an employee’s job satisfaction? 5. In a menu engineering analysis, what is the difference between menu mix and contribution margin? 6. How would the manager’s strategy differ when working with a menu item classified as a plow horse compared to one classified as a puzzle? 7. How might you assess sustainability practices in a foodservice operation? Answer examples of chapter15: 1. How might you determine whether quality ingredients are being used? (pg 460) Quality of ingredients can be determined by reading the food specifications written by the food service manager. 2. What information might a foodservice manager collect determine whether customers are satisfied? A foodservice manager may use a walk-through audit, talk with their guests and customers, read customer comment cards, exit interviews, read mystery shopper reports, read customer surveys, and conduct focus groups. 3. How might the data collected in a walk-through audit differ from that collected by talking to guests? Walk through audits have a greater chance of being influenced by bias opinion since it is just the operations manager who is analyzing the organization’s environment; whereas talking to guests provides more diverse or accurate customer interpretation of the services being provided. 4. What are factors that impact an employees job satisfaction? (pg 469) The four factors that influence employee satisfaction are the following: personality, values, work situations, and social influences. 5. In a menu engineering analysis, what is the difference between menu mix and contribution margin? Contribution margin: the amount of remaining money after the food cost has been subtracted from its selling price (four-squared profitability table; plow horse, star, dog, puzzle). Menu Mix: is more defined in that it uses a spreadsheet that includes each variables that are being analyzed and each menu items data. 6. How would the manager’s strategy differs when working with a menu item classified as a plow horse compared to one classified as a puzzle? An item classified as a plow horse could be priced higher than one classified as a puzzle, since the prices are driven by the customer wants and needs. 7. How might you assess sustainability practices in a foodservice operation? Sustainability practices in a foodservice operation could be assessed by using a checklist that includes the following variables: Purchasing practices for food supplies and equipment; waste stream management; energy and water conservation; building design. Foodservice Organizations Ninth Edition CHAPTER 13 Management of Financial Resources Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Learning Objectives 13.1 Define selected accounting principles, such as the business entity concept, the going concern concept, cost principle, cost versus accrual bases of accounting, consistency principle, and conservatism. 13.2 Evaluate information presented in balance sheets and income statements. 13.3 Differentiate among liquidity, solvency, profitability, and operating ratios. 13.4 Describe break-even analysis and its component parts, fixed and variable costs. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Learning Objectives 13.5 Prepare an operating budget. 13.6 Calculate the payback period and net present value of a proposed equipment purchase. 13.7 Describe strategies for pricing a menu. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Users of Financial Statements Owners Employees Boards of Directors Governmental Agencies Managers Financial Analysts Creditors Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Aspects of Accounting Auditing Cost Accounting Financial Accounting Managerial Accounting Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Selected Accounting Principles Business Entity Concept Matching Revenues & Expenses The Fundamental Equation Depreciation Going-Concern Concept Adequate Disclosure Money as a Unit of Measure Consistency Principle Cost Principle Materiality Principle Cash vs. Accrual Bases Conservatism Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Basic Financial Statements Balance Sheet Foodservice Organizations, 9e Gregoire Financial Statements Income Statement © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved FIGURE 13-2 Example of a balance sheet. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved FIGURE 13-3 Example of an income statement. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Tools for Comparison and Analysis Ratio Analysis Trend Analysis Common-Size Statements Break-Even Analysis Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Table 13-1 Foodservice Organizations, 9e Gregoire Ratios Categorized by Primary Use © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Budgets Operating Cash Foodservice Organizations, 9e Gregoire Capital © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Investment Decisions Payback Period Foodservice Organizations, 9e Gregoire Investment Evaluation Methods Net Present Value © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Menu Pricing Methods Factor Actual Cost Foodservice Organizations, 9e Gregoire Prime Cost © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Controlling Costs Labor Costs Controlling Costs Food Costs Cash Handling Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Assets Resources of a company. Auditing An area of accounting concerned with an independent review of accounting records involving examination of records that support financial reports and formulation of an opinion regarding the fairness and reliability of these reports. Balance sheet Statement of assets, liabilities or debts, and capital or owner’s equity at a given time or at the end of the accounting period. Foodservice Organizations, 9e Gregoire Break-even analysis Technique for assessing financial data to determine the point at which profit is not being made and losses are not being incurred. Budget Plan for operating a business expressed in financial terms. Common-size statements Financial statement in which data are expressed as percentages for comparing results from one accounting period to another. © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Contribution margin Proportion of Owner’s equity Money value of a sales that can contribute to fixed costs and profits after variable costs have been covered. company in excess of its debts that is held by the owners. Fixed costs (FCs) Costs that do that projects expected income and expenditures. not vary with changes in the volume of sales. Income statement Financial report that presents the net income or profit of an organization for the accounting period. Liabilities Debts of a company. Foodservice Organizations, 9e Gregoire Pro forma statement Statement Time value of money Money has a differing value over time; having $1 today is worth more than receiving $1 in the future. Variable costs (VCs) Costs that vary directly with changes in sales. © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Foodservice Organizations Ninth Edition CHAPTER 14 Marketing Foodservice Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Learning Objectives 14.1 Define core marketing terms such as marketing mix, target market, market segmentation, and promotion. 14.2 Develop a marketing plan for a foodservice operation. 14.3 Describe ways a market may be segmented, based on demographic, geographic, or psychographic characteristics. 14.4 Compare and contrast the characteristics of service 14.5 Participate in strategic marketing planning Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Marketing Philosophies Manufacturing/ Production Concept Selling Concept Marketing Philosophies Product Concept Marketing Concept Societal Marketing Concept Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Marketing Mix Product Price Promotion Place Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved FIGURE 14-3 Environmental forces impacting the marketing mix. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Market Segmentation Demographic Geographic Segmentation Variables Psychographic Foodservice Organizations, 9e Gregoire Behavioristic © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Characteristics of Services Service Characteristics Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved FIGURE 14-4 Marketing research process. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The Marketing Plan Types of Plans Control & Evaluation Foodservice Organizations, 9e Gregoire Integration of Plans © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Atmospherics Physical elements in Customer satisfaction Positive, an operation’s design that appeal to customers’ emotions. neutral, or negative feelings about the value received from a product. Brand Name, term, design, symbol, Demographic variables or feature that identifies one seller’s good or service as different from another’s. Population characteristics that might influence product selection, such as age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class, and price sensitivity. Brand equity Value of a brand. Brand loyalty Repeated customer purchase of a specific brand. Geographic variables Include Customer loyalty Frequency with climate, terrain, natural resources, population density, and subcultural values that influence customers’ product needs. which a customer consistently purchases a specific brand. Foodservice Organizations, 9e Gregoire © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Heterogeneity of service Marketing An organizational function Variation and lack of uniformity in the performance by different service employees. and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Inseparability Inability to separate production and service. Intangibility of services Inability of services to be seen, touched, tasted, smelled, or possessed before buying. Market segmentation Division of total market into groups of customers who have similar needs, wants, values, and buying behavior. Market share Percentage of industry sales for a product. Foodservice Organizations, 9e Gregoire Marketing mix Combination of product, price, place, and promotion to satisfy target market. Marketing objective A statement of what is to be accomplished through marketing activities. Marketing plan Written document or blueprint governing an organization’s marketing activities. © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Marketing research The function Micromarketing Marketing to the that links the consumer, customer, and public to the marketer through information that is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. single customer, the smallest niche. Marketing strategy The selection identifying small but profitable segments of the market and making products specifically for this segment. and analysis of a group of people, identified as a target market, which the organization wants to reach; includes the creation and maintenance of an appropriate marketing mix that will satisfy those people. Foodservice Organizations, 9e Gregoire Mission statement A summation of the organization’s purpose, competition, target market, product, and service and of the recipients of the service, including consumers, employees, owners, and the community. Niche marketing Focuses on Perishability of services Services cannot be stored for future sale. © 2017 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07 ... Purchase answer to see full attachment