TABLE OF CONTENTS
Title
page
Certification
Dedication
Acknowledgement
Table
of contents
CHAPTER
ONE
1.1
Introduction
1.2
Statement of the problem
1.3
Objectives of the study
1.4
Significance of the study
1.5
Research methodology
1.6
Research hypothesis
1.7
Plan of the study
CHAPTER
TWO: LITERATURE REVIEW
2.1 Market feasibility and fundamentals
2.2 Financial planning and control
2.3 Control ratio and variance analysis
2.4 Budgeting and budgetary control
2.5 Management of working capital
2.6 Control of cost and costing
2.7 Capital structure in hotel operations
2.8 Management reporting
2.9 References
CHAPTER
THREE
3.1 Brief history of circular hotel limited
Ilorin
3.2 Design of the study
3.3 Sources of data
3.4 Method of data analysis
3.5 Limitation of the study
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Data presentation
4.2 Data Analysis
4.3 Findings of the study
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
References
CHAPTER ONE
1.1
INTRODUCTION
Although we know that
setting up hospitality industry in a prominent position in the Nigeria
industrial league table with regards to the number of employees and annual
turnover, in its present state, it is fairly of displeased origin dating from
the introduction of regular mail coaches in the eightieth century and
developing further during the colonial era, with the advert of railways and
their motor car which gave ordinary men the means of travelling easily than
ever before. Whenever a person leaves his home for more than a few days, he has
to seek hospitality from his kind elsewhere. It may be that he requires a meal
because he is too far away to go home and eat. He may be staying away overnight
which will require a room and a bed. If a man goes to work in the morning and does not return until late in the night,
unless he takes his own food and makes his own tend he will have his meal in a
staff canteen at work or to the services he obtained, he will expected at home
such as a smile and a welcome. “The object of a hospitality industry is
pressing that of providing temporary substitute for home”.
There had certainly been
hotels since biblical times and no doubt before, and all the eastern regions at
least enjoy one to provide for travelers, an obligation which has continued up
to date. This was even supported by the legal requirement of the United Kingdom
(UK). Hotel proprietors acts of 1958 the history in several languages, and some
terms come and go in popularity from time to time. The two main roots appear to
be Latin and German.
Hospital is a Latin word
which means a place for guests, while her Bergen is a German word which means
to hide shelter.
1.2 STATEMENT
OF THE PROBLEM
Hotel and catering
establishments play a major role in the twist industry in Nigeria just as the
volume of sales of the various individual, catering establishment depends to
some extent on the level of efficient management of their financial resources
and their level of prices if hotels are to continue in making substantial
contributions to the earnings of foreign exchange, it must be conscious of the
importance of financial planning and control of certain aid, hotel
establishments and carryout in depth analysis of the main features of their
operation decide what problems for accounting and financial control purposes.
The inherent problems
existing with respect to financial management in the hospitality industry could
be viewed with respect to the following:
i.
Implore cost control system
ii.
Lack of people budgetary system
iii.
Inflexibility in the cost structure and
nature of the products.
iv.
Little attention had been paid to the
importance of financial planning.
v.
Complex sales instability and cycle of
operations.
vi.
Inefficient sourcing of finance and
improper planning and control with respect to how they should be utilized.
The problems listed above
and others stated in the objectives of the motivating force behind the study.
1.3 OBJECTIVES
OF THE STUDY
The main objectives of the study is to device
a means of improving on the management of scarce financial resources with
particular reference to planning and control in circular hotel Ilorin. The
study also sets out to determine the following objectives:
1. The
extent to which budgeting and budgetary would aid the proper control of its
financial resources.
2. How
the resources of financial form appropriate sources and at the right cost would
maximize the wealth of the investors in catering and hotel operations.
3. To
determine the appropriate credit control policy which help in the minimization
of bad debt.
4. To
determine the extent to which management, not liquid financial resources would
obstinate the possibility of shortage of excessive holding of cash.
5. To
show how standard costing and budgetary control is used as a tool for control
in the hotel operations.
6. To
determine the extent to which the management of stock or investors in the hotel
operations would help in reducing wastage, pilferage and reduction in excessive
investment in perishable stock.
7. Finally,
to appraise the system in use at circular hotel Ilorin.
1.4 SIGNIFICANCE
OF THE STUDY
Hotels
and catering establishments that are successful hardly succeed by chance. They
are often the outcome of extensive planning and control on the parts of the
efficient management team, especially as it relates to the management of their
scarce financial resources, since financial have been described as the
“life blood” of any business venture.
Moreso,
finance had also been described as the resources input to the proper management
of men, money, materials and machinery without growth planning and control
(even in hotels with service in great demand) will be unable to sustain the
level of operations required. Therefore, long range forecast can be useful for
planning and control. Uncertainly and change is a luxury that is hardly enjoyed
by hotels and catering establishment operating in a volatile economy like
Nigeria, it then follows that there is every need for hotels to determine ways
and means by which the planning and control of their financial resources would
help its service in the imply competitive business environment.
By
carrying out a study on the financial operations in circular hotel Ilorin. The
study will go a long way to achieve the following benefits:
a. The
study will help to review the optimum stock level.
b. The
effective management of working capital with the object of reducing excessive
investment on it.
c. The
study will help to add in no small measure to literature in financial
management in catering and hotel operation.
d. The
study will also helped to explore the instability in sales and list structure
in which plans was devised to mitigate against the uncertain future.
e. To
put in place a comprehensive control system for their credit policy.
1.5 RESEARCH
METHODOLOGY
The
tools for data collection was mostly interview and questionnaire, comprised of
open ended and close ended questions, descriptive method of data analysis was
used.
The
primary and secondary data collection used including going to the case of study
and related establishment, to carry out personal and direct administration of
questionnaire, personnel interviews, interview of personal and the company and
statements issued by the company that are relevant to the study was equally
used.
The
secondary method of data collection and analysis involves the collection of
processed data; information from other sources other than the company extensive
use of the library facilities in the campus (Kwara State Polytechnic), Kwara
State Library Complex Ilorin was also used, such materials as journals,
magazine and texts relating to the area under the study was extensively used.
1.6 RESEARCH
HYPOTHESIS
In
order to provide solution to the research problems identified, to pursue the
purpose of this study, the following hypothesis were formulated and tested
empirically:
Hypothesis One:
(1) Hi:
Financial planning and control enhance hotel operations.
Ho: Financial planning and control
does not enhance hotel operations.
Hypothesis Two:
(2) Hi:
There is a relationship between financial planning, and control of hotel
operations.
Ho: There is relationship between
financial planning, and control of hotel operations.
1.7 PLAN
OF THE STUDY
The
entire study is made up of five chapters, chapter one took a critical review of
hospitality industries, the theoretical background the need for the study and
what the study had setout to achieve.
Chapter
two reviewed related literature that have “direct relationship to the study”
the variance analysis and views of various authorities control, and management
as it affects accounting and finance.
Chapter
three focused on the research method, the sources of data through descriptive
analysis and brief history of the case of study.
Chapter
four based on the data analysis, data presentation and findings of the study.
Chapter
five served as the conclusion and recommendation and the areas of further
research of the study.
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