Monday, November 28, 2016

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.

Monday, November 14, 2016

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 21st-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.  




Monday, November 7, 2016

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.”

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.