1 B (ii) Interpret and comment on the performance of the three companies Gross Profit Margin The gross profit margin of Shangri-LA Hotel is 16.58%, Pan Malaysia Holding is -7.15% and Grand Central is -20.87%. Shangri-LA Hotel has the highest gross profit margin compare with Pan Malaysia Holding and Grand Central. This mean that Shangri-LA Hotel controlled its cost of goods sold very well and can make a higher gross profit. Return on Equity The return on equity of Shangri-LA Hotel is 7.25%, Pan Malaysia Holding is -1.64% and Grand Central is -2.39%. Shangri-LA Hotel get the highest net profit margin that is 7.25% compare with Pan Malaysia Holding is -1.64% and Grand Central is -2.39%. Shangri-LA Hotel is effectiveness on using its equity …show more content…
According to the information, Grand Central is more liquidity than Pan Malaysia Holding and Shangri-LA Hotel. It mean that Grand Central are able to pay short-term obligation by using current assets, thus minimize the risk of experiencing financial stress or encountering bankruptcy. Quick Ratio The Quick ratio of Shangri-LA Hotel 0.684 times, Pan Malaysia Holding is 10.979 times and Grand Central is 13.14 times. Based on the ratio Grand Central get the highest compare with other two companies. It mean that Grand Central are able to pay the short-term debt and without depend on the inventory sold. Inventory Turnover The inventory turnover of Shangri-LA Hotel 28.38 times, Pan Malaysia Holding is 27.21 times and Grand Central is 8.63 times. The highest inventory turnover is Shangri-LA Hotel 28.38 times. It means that the company has more frequently to replace the inventory as compared with others. This is may be due to the company does not overspend in purchasing too much inventories or storing non-saleable inventory that can cause a waste of resources. Account Receivable …show more content…
The project committed each hotel to a 5-10-year partnership with a chosen beneficiary working on children’s health or education programmes. It is a school, health center or orphanage; the entity must require resources that the hotel can very ably deliver on. These include infrastructure support, fundraising, life skills training and even hotel apprenticeships. Yearly goals and targets are defined for a period of 10-15 years, seeing children through until they would have finished their higher education and are capable of caring for themselves and finding employment based on their own merits. Whenever possible, hotels are encouraged to look at performing hotel skills training with the goal of offering students a sustainable career, whether in or outside the hotel. Pan Malaysia
With this company the inventory management ratios further indicate that there may be an issue with inventory and inventory controls. The inventory turnover ratio is lower than the industry average and the days’ sales in inventory are high. A company wants to turn inventory quickly to reduce storage costs, and
Liquidity ratio. The firm’s liquidity shows a downward trend through time. The current ratio is decreasing because the growth in current liabilities outpaces the growth of current assets. The quick ratio is also declining but not as fast as the current ratio. From 1991 to 1992, it only decreased 0.35 units while the current ratio decreased 0.93 units. Looking at the common size balance sheet, we also see that the percentage of inventory is growing from 33% to 48% indicating Mark X could not convert its inventory to cash.
In Bangkok, Thailand, a group of financial investors invested in a hotel called The Regency Grand Hotel. This hotel is the most cherished hotel in town, where the employees and guests enjoy spending time at this five-star hotel. This place hosts approximate 700 employees that give fantastic benefits, year-end bonuses and ensures job security.
Cultural Heritage: A Comparison of Cultural Values in Hong Kong, Taiwan, and the People’s Republic of China, Journal of Asia-Pacific Business, Vol. 2(4).
Secondly, the customers who use the hotel are diversified. Not as in 1980s or 1990s, so many customers from different countries which have very different culture are coming nowadays. To follow up these different customers’ wants, the company should train employees more intensively and precisely, so I think seven days are too short to do that. For example, managers can add probation time that a senior member works with their juniors for one or two weeks and gives them real-time experiences which is very
This group of ratios emphasis can easily indicate the Amcor’s capability to meet short term debt obligations. Current ratio and Quick ratio will be calculated in this part. These two ratios are quite similar, short term creditors, such as bankers and suppliers are interested in this class of ratios, because they can measure the short term debt-paying ability of company.
In comparing the companies to each other it is important to take into account the liquidity or ability of a firm to meet its current obligations, and solvency
Intercontinental Hotels Group – It is British company and the most profitable among the four industry leaders. It owns, manages, leases and franchises approximately 3,741 hotels in approximately 100 countries as of 2006. It ranks number one in gross margins (54%), operating margins (24.7%) and earnings per share ($2.10) even if it’s smallest in the strategic group. It appears to be the cost leader among the big four companies in the industry.
The quick ratio of 1.46 is a further analysis into the actual monetary values that are highly liquid and excluding fixed assets as part of the assets. The CFO/Avg. current liabilities also show a healthy 73%, 28% in 2004, on average of which is still higher than the industry.
The Net Profit Margin in 2012 was 10.5% while in 2013 it was 66.6%. This increase in the Net Profit Margin can be attributed to the increase in net profits after taxes despite the fact that there was a slight decrease in revenues.
Millennium Partners and The Ritz Carlton Hotel have partnered up to open a hotel located in Washington D.C. This hotel will be a multi-use facility called the “Hospitality Complex” where you will find the 300-room Ritz Carlton Hotel, luxurious condos at the top of the complex, restaurants, spas, sports facilities, and retail shops. There is a huge concern that the time frame of the seven-day training process is not enough time from new employees to deliver the supreme guest service that the Ritz Carlton is known for. This Seven Day countdown prohibits the hotel from opening at a higher occupancy rate which means the hotel not making revenue.
Company B (88.9%) has a higher gross profit margin most likely because the firm not only manufactures and mass markets a broad line of prescription pharmaceuticals, over-the-counter remedies, consumer health and beauty products but also manufactures medical diagnostics and devices. Company A is lower (76.1%) due to its limited product range (only manufactures drugs).
In the year 2000, The Ritz-Carlton Hotel Company paired with luxury real estate developer Millennium Partners to build a $225 million hospitality complex in the heart of Washington DC. This 300-room hotel was set to be the first out of a six-hotel deal between these two companies. The structure of the deal was that Millennium Partners would be the owners of the properties and The Ritz-Carlton would manage them.
The ratio expresses the relationship of gross profit on sales to net sales in terms of percentage (Van Horne, Wachowicz & Bhaduri, 2005). Goss profit is the result of the relationship between prices, sales volume and costs. Gross profit margin of Starbucks Corporation is 23% whereas the ratio for McDonald’s is 35%. McDonald’s ratio is high as compared to Starbucks which is a sign of good management. It implies that the cost of production of the firm is relatively low. The McDonald’s has reasonable gross margin which ensures adequate coverage for operating expenses of the firm and sufficient return to the owners of the business, which is reflected in the net profit margin.
The main objective of the company is not only to attract but also to retain staff who are interested to work in the hotel business for the five-star level of high service, taking into account the wishes of clients, and which offers an innovative, dynamic environment and reflects the culture of the local country. To achieve this, Hyatt strives to be a company listening to well-informed and concerned people. Hyatt provides plenty of opportunities at all levels for their employees, which are accompanied by numerous development