Assessment 2: Case study • Due: Thursday Week 10 4th May at 11PM • Length: 2500 words • Weighting: 40% Description • The Gold Coast Convention Centre offers as part of its operation, a newly created catering service for the various events and conferences held at the facility. The initial year of operation has seen an annual turnover of $800,000; represented by a 64% of food and a 36% of beverage sales. • The Food and Beverage (F&B) manager of the catering service was appointed to the job as a temporary replacement, which lasted for the whole first year. He came to this role with very limited food and beverage experience. Assessment 2 • While he is aware of exactly how the sales revenue is made up by each component of the service, he does not know what margins they make. • Being an inexperienced F&B manager he has decided that, there was no need to introduce any system for controlling stock or purchases, relying instead on employees and his own experience. He always assumed that employees are honest and know their job and therefore only checked the final yearly results. Assessment 2 • A brief look at the accounts identifies the following: • Food Sales $510,000 • Cost of food sales $315,000 • Beverage Sales $290,000 • Cost of beverage sales $112,000 • While it is considered successful in the eyes of the F&B manager, this operation is not performing as well as it could. Some negative feedback has been received by the General • Manager, from customers participating in various events and conferences. The following are some examples of feedback: • 1.We have attended at least three functions in the last few months as well as receiving some catering services from the kitchen. However, we decided not to come here as often as we would like because often what was ordered and organised was different from what was delivered. It is especially embarrassing when we have a private function for our guests and you cater for it, as we rarely get what we expected. • 2. Food quality and presentation is inconsistent and varies considerably e.g. meal sizes are big one time and very small the next. • 3. The last time we booked an event most of our participants reported being ill afterward and complained to our organisation that they will never participate again. Assessment 2 Your Task • You have been hired by the General Manager as an expert to advise him on what procedures they should adopt in terms of purchasing receiving storage and  production that would mitigate these customers’ comments and generally improve the performance of the catering service. Assessment 2 • Your task for this assessment is to analyse the information provided above critically evaluate current procedures and  make recommendations for improvement to the GM in the form of a report. • In your analysis you should also consider the accounting figures presented above which will help you further understand the situation and the difficulties management is facing. Assessment 2 • What phase are you asked to evaluate ? • Inventory cycle and inventory controls Assessment 2 Questions to consider on COGS • What is the cost of food sales? • What is the ideal % cost of Food Sales ? (Benchmarking ) • What factors may lead to such high cost of food sales? • Also for beverages Questions to consider on Customer Feedback • What factors contribute to : 1. Service delivery Gap 2. Inconsistent Food quality and presentation 1. Food poisoning Questions to consider on Inventory management control • What inventory management controls should be in place for: 1. Purchasing 2. Receiving 3. Storing 4. Production Marking Criteria • Marking criteria for the report 40% • Discussion of key issues/problems 10% • Critical evaluation of the inventory cycle procedures drawing on the relevant literature 10% • Discussion on suggested improvements supported by the literature 10% • Appropriateness and feasibility of recommendations 5% • Report format (spelling, grammar, referencing and logical flow of ideas) 5% Poor F Fair P Good C Very Good D Excellent HD % Max Discussion of key issues/problems Poor discussion of the issues or issues not identified <5 Limited discussion of some key issues. 5-6.4 Good discussion of the key issues but lacked detail 6.5-7.4 Very good discussion of all key issues 7.5-8.4 Excellent discussion of all key issues 8.5-10 10 Critical evaluation of the existing inventory cycle procedures in  purchasing  receiving  storage  production drawing on the relevant literature Poor evaluation of the existing inventory cycle procedures in less than 2 areas <5 Limited evaluation of the existing inventory procedures in 2-3 areas 5.0-6.4 Good evaluation of the existing inventory procedures in 3 areas 6.5-7.4 Very good critical evaluation of the current inventory cycle procedures in all 4 areas 7.5-8.4 Excellent critical evaluation of the current inventory cycle procedures in all 4 areas 8.5-10 10 Discussion on suggested improvements in  purchasing  receiving  storage  production supported by the literature Poor discussion with suggested improvements in 1 or no areas. 1-2 references <5. Limited discussion with basic improvement suggested in 2-3 areas. 2-3 appropriate references 5-6.4 Good discussion with suggested improvements in 3 areas. 3-4 appropriate references 6.5-7.4 Very good discussion with suggested improvements in all 4 areas. 4-5 appropriate references 7.5-8.4 Excellent discussion with suggested improvements in all 4 areas. 6 or more appropriate references 8.5-10 10 Appropriateness and feasibility of recommendations Less than 2 recs and may not be appropriate <2.5 2-3 appropriate recs made 2.5-3.25 3-4 appropriate recs made 3.25-3.74 4-5 appropriate rec’s made 3.75-4.5 6 or more appropriate recs made 4.5-5 5 Report format (spelling, grammar, referencing and logical flow of ideas) Report structure not used or very poorly done. Many grammar and written expression mistakes <2.5 Uses report format with all parts given but some not adequately done. Some grammar and spelling mistakes 2.5-3.25 Good report structure. Good grammar and written expression with a few mistakes. 3.25-3.74 Very good report structure. Very good grammar and written expression. 3.75-4.5 Excellent report structure. Excellent grammar and written expression. 4.5-5 5 Sample Table of Contents • Executive summary • 1.0 Introduction • 2.0 Gold Coast convention Centre: Key issues • 3.0 Critical Evaluation of current procedures • 4.0 Procedures for improvement • 5.0 Conclusion • 6.0Recommendations • Appendices My Readings • 5.2 • 5.3 • 5.4 • 6.1 • 7.1 • 7.2 • Good Readings for assessment 2 in THSS folder