Week 10 EOC: My Plan

When I first moved to Las Vegas for school, it was my goal to work for at a high-end luxury boutique. I recently landed a part time job at Louis Vuitton located in the Fashion Show Mall. Louis Vuitton is a part of LVMH (Louis Vuitton Moet and Hennessy), which is a European luxury goods conglomerate, hardhearted in Paris. In 1987, Louis Vuitton and Moet Hennessy merged, forming a corporation that currently controls around 70 companies.

Louis Vuitton itself is number 17 on Forbes “World’s most Valuable Brands,” the brand value carries a hefty 27.3 Billion. Considering its humble beginning, I would say that is quite remarkable. Louis Vuitton was 16 years old when he arrived in Paris, he was a determined young man, and started as an apprentice for a box-maker and packing shop. In a short time, he became well known for his technique and innovative ideas. In 1854, he established his very own box-making and packing shop and today has expanded to the luxury empire that we all know and love today.  

It is my desire to grow within this company and learn and much as a possibly can. My interests are in buying, visual merchandising, and fashion design. With a company as large as this, the possibilities are endless. With hard work, determination, and the necessary tools, I believe my goal is attainable.

This class has helped me understand the numbers that drive a business and ultimately determine its overall success. Although, there is still much to learn, it is a good starting point and foundation for my personal success.

Eventually, I would like to own a fashion boutique one day, that is my end game. However, I believe it is essential to absorb as much information as I can before making a business venture of my own. Educating myself is the first step, after that, it is the application of what I have learned that will determine how far and how high I go. Sky is the limit!

Week 9 EOC: Acquire the restaurant?

 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. A fixed cost is one that remains constant despite increases or decreases in sales volume (Dopson,317). Five important fixed costs that would directly affect Dan's purchasing decisions regarding acquisition and property would be: mortgage, depreciation, insurance policies, property taxes, and management salaries.

 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. A variable cost is one that increases as sales volume increases and decreases as sales volume decreases. (Dopson, 317). Five important fixed costs that would directly affect the operating decisions Loralei would make as a manager of the restaurant would be: food cost, beverage cost, utility services, marketing, repairs. 

 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? 

Good managers seek to decrease their fixed costs to their lowest practical levels while still satisfying the needs of the business and its customers. Those same good managers, however, know that increases in variable costs are usually very good (Dopson, 219).While fixed costs lay a good foundation for a business, it is the skillful management of variable costs that determine the overall success of a business. Loralei will be making daily decision that could make or break the profitability of the restaurant. Increases in variable cost show sales, which is a direct reflection of profit!

Reference:

Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes].

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EOC: Chapter 8 Question 4

a. What were the total revenues in October 2009 and October 2010?

b. What was the GOP in dollars in October 2009 and October 2010?

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

d. What was the flow-through percentage achieved by Santi’s hotel? What is your assessment of that percentage?

Answers: 

a.    The total Revenue for October 2009 was $545,000 and the total Revenue for October

2010 was 583,000.

b. The GOP in dollars for October 2009 was $162,000 and the GOP in dollars for 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"(Dopson, 296).

c.  The percentage of GOP to total revenues for October 2009 was 29.72% and for October 2010 it was 31.66% "The GOPPAR is simply defined as a hotel’s total revenue minus its management’s controllable expenses per available room" (Dopson,297).

d.  The flow through percentage achieved by Santi's hotel was 59%

"Flow-through is computed to help managers identify the impact of increases in revenue on profitability. When it is high (over 50%), it usually reflects efficiency on the part of management in converting additional revenues into additional profits" (Dopson, 297). Santi's flow through percentage is at 59%, which reflects the efficiency of his management staff.

Week 7 EOC: Trump and Small Business

My post is based off an article written by Dhani Mau for Fashionista.com. The article is entitled:

HERE'S HOW TRUMP'S WIN COULD AFFECT THE FASHION INDUSTRY AND GLOBAL TRADE.

It is basically an overview of what experts are saying in regards to Trump winning the election as well as what to expect and what damage has already been done to the markets. “Asian indexes tumbled as early projections of the U.S. election showed Donald Trump pulling ahead in the presidential race” (WWD, 2016). Also, luxury stock for European retailers such as L’Oreal and Prada are down across the board. It is important to recognize that much of what we wear and buy in America as far as apparel and accessories are made in other countries. Trumps intention to place limitations on Global Trade, could have adverse effects on the fashion industry. “When it comes to trade, Trump has proposed some pretty radical changes that could inhibit globalization, including getting rid of the Trans-Pacific Partnership deal” (Mau, 2016).  The United States is currently participating in negotiations of the Trans-Pacific Partnership (TPP) Agreement. Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam are among the 11 Asia-Pacific counties involved in negotiations. The “trade agreement that will open markets, set high-standard trade rules, and address 21^st-century issues in the global economy.  By doing so, TPP will promote jobs and growth in the United States and across the Asia-Pacific region” (United States Trade Representative, 2016). If Trump seeks to eradicate or limit the TPP, international luxury brands could take a significant hit due to increased taxes on foreign goods. Honestly, it is hard to say at this point what will or will not happen, Trumps volatile nature makes the outcome unpredictable. We will just have to wait and see what his next move is and pray that his strategy has a positive impact on the economy and global trade.  

Week 6 EOC: Marijuana in the workplace

As a business owner I would have zero tolerance for the use of marijuana in the work place. A job requires that you are fully capable of carrying out duties and responsibilities on a daily basis. That includes handling cash, interacting with customers, operating a POS system. If you show up to work high and are unable to effectively carry out those duties, you have no business working in my store.

The Food and Drug Administration classifies marijuana as a Schedule I drug, defined as the most dangerous of all drug schedules, with “no currently accepted medical use and a high potential for abuse.”

http://lifehacker.com/what-marijuana-actually-does-to-your-brain-and-body-1693986467

As a business professional working in the fashion industry you are required to maintain a polished appearance in the workplace at all times. If you are high you and display any of the following physical effects, it would be cause for dismissal. According to WebMD the physical effects of marijuana include:

dizziness, shallow breathing, red eyes and dilated pupils, dry mouth, increased appetite, slowed reaction time (If you drive after using marijuana, your risk of being in a car accident more than doubles.)http://www.webmd.com/mental-health/addiction/marijuana-use-and-its-effects

Because there are so many different ways to use marijuana and some are undetectable physically. It would be a policy at my store to do random drug testing. Even if my store was located in a state where marijuana was made legal, it is still my right as the employer to enforce company policy.

Most of the time after being hired an employer requires reasonable suspicion before having an employee take a drug test. Even with the recent legalization of marijuana in some states, employees in those states can still be punished for testing positive. The punishments for a failed drug test can include rehabilitation, termination, and losing unemployment benefits.

http://www.workplacefairness.org/drug-testing-workplace

Week 4 EOC: Chapter 5 Quiz Question 2

a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change?

b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change?

c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change?

d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change?

e. What was the total amount of Sources and Uses of Funds?

Answers: 

a.  It was a Use of Funds in the amount of $14,000.

Cash on the balance sheet represents an account in the bank. When you withdraw money from the bank (decrease the cash account), you have a source of funds (MGT,149).

b.  It was a Use of Funds in the amount of $30,000. Accounts receivable represents money that guests owe you for products or services that you have provided (MGT, 149).

c.   It was a Use of Funds in the amount of $44,000. Notes payable are short-term loans (less than a year). If you decrease notes payable by paying back money you borrowed, this is a use of funds for you (MGT, 152).

d.  It was a Source of Funds in the amount of $104,000, Retained earnings represent the accumulated account of profits over the life of the business that have not been distributed as dividends. If your retained earnings increases, that means you have increased your net income for the year, thus providing a source of funds (MGT, 152).

e.  Total amount of Sources is $743,000 and the Total amount of Uses is $743,000.

Sources and uses of funds are the inflows and outflows of money affecting the cash position (MGT, 147).

Week 4 EOC: Quiz Chapter 4 Question 3

a. Compare Rachel’s Cash % with the chain’s %.  Is it higher or lower?  What might this mean?

b. Compare Rachel’s Inventories % with the chain’s %.  Is it higher or lower?  What might this mean?

c. Compare Rachel’s Accounts Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

d. Compare Rachel’s Notes Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

Answers:

a. Rachel's cash % is higher at 18.9% because her restaurant has more of its assets in the  form of cash.

b. Rachel's inventories % is higher at 11.4% because her restaurant has more of its assets in the form of inventories.

c. Rachel's accounts payable % is higher at 11.3% because the chain has less that it owes to others.

d. Rachel's notes payable % is higher at 2.5% She owes more than the chain.

Week 3 EOC: Best Restaurant Experience

Carol Wilson, a member of the Food Writer’s Guild once stated “food isn't the only ingredient of an enjoyable dining experience.” For me this is very true, not only does the food have to be good, but the ambiance, cleanliness and overall service are all elements that ultimately will make me want to return. Some of my most memorable dining experiences were actually in Japan. I taught English there and became really good friends with my students Junko and Yoko. One thing we loved to do regularly was go to dinner after class. One night Junko decided she wanted to take us to this restaurant called “Goose,” this particular restaurant specialized in Italian cuisine so I was very excited and intrigued.  “A good restaurant should have one or more unique features that stand out in a customer’s mind” (smallbusiness.com, 2016). The restaurant was uniquely and beautifully decorated. Each table was different with its very own bell (we had a gong, which was used to call our server). The restaurant also had beautiful light fixtures that gave off just the right amount of ambient lighting, it was cozy and I loved it. We ordered many things off the menu, however my favorite part of the meal was the giant meatball. It was served in a small pot and came out steaming and swimming in the most fragrant and delicious red sauce I have ever tasted and to make it even better there was a layer of melted cheese on top! I am salivating as I type by the way. This restaurant was by no means fancy but the food was just that good and you could tell the dishes were made to order and from fresh ingredients. As the lovely Julia Childs would say… “You don't have to cook fancy or complicated masterpieces - just good food from fresh ingredients.”

Week 2 EOC: Chapter 2 Question 4

Answers:

a. Lisas's Accrual accounting method shows the higher profit because "revenue is recorded when it is earned, regardless of when it is collected, and expenses are recorded when they are incurred, regardless of when they are paid." So in conclusion it will show the big picture once all accounts are reconciled.

b. The accounting Method that best shows the amount of cash on hand would be the accrual method.

c. The Accrual Method "instructs accountants to record expenses when they are incurred regardless of when they are paid."

d. The accounting method that most accurately shows the expenses incurred regardless of when they are paid is the Accrual accounting system.

e. The Cash accounting system would show actual cash inflows and outflow because "the system is a method that records revenue as being earned when it is actually received."

f. The accounting method that shows the most accurate reflection of the restaurants true profitability is the Accrual accounting system.

Week 1 EOC: Question 3

Laurie Tenk is a purchasing agent for a restaurant chain.  One of her suppliers has been late on deliveries the past two weeks.  She has discussed this with the salesperson, and he assures her that the problem will be solved.  In an effort to "make things right" the salesperson delivers two cases of hot dogs to her office for "sampling".   She plans to have a back yard barbecue this weekend for her neighbors.  From an ethical point of view, how should she handle this situation? Explain your decision making process and defend your answer.  Use the five Ethical Guidelines in this chapter as a basis for your answer to explain what should be  done with the hot dogs. Answers: a. Is it legal? If there are no company policies forbidding the acceptance of "gifts", then it is probably legal for  Laurie to take the hot dogs home. "Any course of action that violates written law or company policies and procedures is wrong." b. Does it hurt anyone? Laurie would personally benefit from utilizing the two cases of hot dogs.  "Discounts, rebates, and free products are the property of the business, not the manager." c. Am I being honest? No it is not honest, because the product does not belong to her,  it belongs to the company. She may not be able to professionally handle future problems  with the supplier. Especially if she feels that the supplier will "reward" her again for future mistakes. d. Would I care if it happened to me? As a business owner I would care, because product  is being withheld from my company and being used for personal use. How would I feel  about my purchasing manager accepting gifts. e. Would I publicize my action? No, I would not. If I am not comfortable telling people  about it, it is because I know it is unethical. "If you wouldn’t want your action to be read  aloud in a court of law (even if your action is legal), you probably shouldn’t do it." f. What should be done with the two cases of hot dogs? 1. Laurie should return the hot dogs to the supplier expressing her gratitude, however it is  not company policy to accept gifts from suppliers. 2. Laurie could return the two cases of hot dogs to the company for the company Christmas party 3. Laurie could donate the hot dogs to charity.

Week 1 EOC: My Voice

Fashion is a form of art in which an individual can express themselves without actually touching pen to paper or paint to canvas. I believe it is an expression of one’s true self, their personal style, and bold creativity. What you choose to dress like on that day can make you feel sexy, confident, or just chill. My idea of fashion is not necessarily subscribing to the season’ latest and greatest, but whatever makes you feel good. Sometimes it is you that sets the trend. One of my favorite things to do is people watch, I find that the first thing I look at is what a person is wearing, their shoes, and even how they styled their hair.  As a fashion buyer it is important to follow current fashion designers and understand market trends. However, understanding and being able to relate to the consumer is an even more vital part of the industry. Looking to them for inspiration and guidance is what fuels and drives a store or company to be successful. Upon graduation I hope to take the knowledge I have gained and my overall experience to establish a career with a high end fashion company. It is my desire to not only empower myself, but those around me and ultimately make a personalized impact on the evolving world of fashion.