Professional Documents
Culture Documents
Hospitality Bellringer S
Hospitality Bellringer S
Productivity is defined as the output per worker hour that is measured over a set period of time, such as a week,
month or year. Higher productivity increases profits. Businesses can increase their productivity by investing in
new equipment, technology or facilities, providing additional training to staff or increasing the responsibilities
of workers.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
A business cycle is a series of recurring changes in economic activity. Four phases make up a business cycle:
expansion, recession, trough, and recovery. During expansion, the economy is flourishing. It is a good time for
businesses to start up or expand due to the increased output of goods and services. Recession is a time of
economic slowdown lasting at least two quarters. Companies reduce their output during a recession, and
consumers have less money to spend on goods and services. A prolonged recession is called a depression.
A trough is the low point in a business cycle. It marks the beginning of the transition from recession/depression
to recovery when signs of economic growth are near. In the recovery phase, demand increases and businesses
respond by hiring more workers and supplying more goods.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Production is the process of creating, expanding, manufacturing, or improving on goods and services. It is a
function of business found in all industries and service-related operations. There are three main forms of
production: extraction and cultivation, processing, and manufacturing. The three categories of products used
by businesses and consumers are natural resources, agricultural products, and processed goods. Four types of
businesses that are responsible for production are producers, extractors, farmers, and manufacturers.
Company leaders focus on efficient production and consider the many situations that may affect it. Companies
that want to be industry leaders strive to produce the most innovative products as efficiently as possible.
Sources:
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western
Cengage Learning.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
A stereotype is an oversimplified distorted belief about a person or a group. It is important to recognize personal
biases or stereotypes so that we may correct them. When you learn about others you become more tolerant and
understanding.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
Self-confidence can be demonstrated by how you present yourself and through your actions. It is shown in your
personal hygiene and the way you dress. It can also be shown through your relationships with others and your
work habits.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
Interest and enthusiasm can be demonstrated verbally and non-verbally. When speaking choose words that are
descriptive, vary your tone, listen and ask relevant questions. Non-verbal cues can be seen in your facial
expressions, body language and eye contact.
Source: Human Relations LAP 20: Interest and Enthusiasm. MBA Research, Columbus, OH.
Service marketing is based on an impression; the impression of the environment, the staff, and the attention
given to the customer. Product marketing is based on a tangible product that the customer can use.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Operations can be defined as the daily activities that provide successful outputs for the business. Some common
types of operations are facility management, logistics, scheduling, information management and safety and
security.
Source: Dlabay, Burrow and Eggland (2006), Intro to Business 6e. Mason, OH. Thomson/South-Western.
What steps should an employee take to report noncompliance with business health and safety
regulations?
A compliance program enables employees to feel safe on the job. An employee should feel free to ask
questions, report violations to their supervisor and feel like an effective part of the organization.
Source: Charles Monaco, Oct 1998. Fast Lane, Noncompliance: your company and consequences? Smart
Business, Pittsburgh
http://www.sbnonline.com/Local/Article/4157/79/0/Noncompliance_your_company_and_consequences.aspx
Explain the nature of regulations affecting the hospitality and tourism industry.
Regulations are put in place to protect consumers’ health and safety. All hospitality and travel-related
businesses must comply with state and local laws governing fire, safety and health standards.
Source: Oelkers (2007), Travel and Tourism Marketing. Mason, OH. Thomson/South-Western.
Customers have the legal right to expect safe food and safe lodging in a safe environment on safe premises.
Source: National Restaurant Association, Educational Foundation (2005). Becoming a Restaurant and
Foodservice Professional, Year 2.
Personnel regulations are put in place for the protection of the employee. There are laws to protect employee’s
health and safety, to protect them from discrimination, and to provide adequate compensation in the terms of
pay and benefits.
Source: Everard & Burrow (2002). Business Principles and Management. Mason, OH. Thomson
Learning/South-Western.
Workplace regulations are put in place to protect workers. Two such regulations include:
x OSHA (Occupational Safety and Health Administration) is a broad set of rules that protects workers in
all trades and professions from unsafe working conditions. x ADA (Americans with Disabilities Act) was
put in place to prevent employers from discriminating against potential and existing employees with
disabilities.
Sources:
The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management Program
Year 1. Lansing, MI.
The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management Program
Year 2. Lansing, MI.
“ADA Title III prohibits the discrimination against individuals with disabilities in the full and equal enjoyment
of the goods, services, facilities, privileges, advantages or accommodations of any place of public
accommodation.” Hospitality services must make reasonable modifications to policies, practices and procedures
to give people with disabilities access to their facilities.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
A restaurant must follow food safety and sanitation laws or they may suffer serious consequences, such as
sickness or death of guests. If food safety codes are not met, the restaurant could suffer from a bad reputation
and be shut down by a regulatory agency.
Source: Chef McGreal (2008); Culinary Arts Principles and Applications. Homewood, IL. American Technical
Publishers, Inc.
It is important that all staff who handle food have a food handler’s certificate and understand the health codes.
Some of the critical safety knowledge is in personal hygiene, food preparation, cleaning and sanitizing, and safe
chemical handling.
Source: National Restaurant Association Solutions, LLC (2008). Servsafe Essentials, Chicago, IL. National
Restaurant Association Solutions, LLC.
Price stability is a factor that can enable economic growth. When prices are stable, investors and businesses
know what to expect in the marketplace and in government. Businesses can make long-term plans knowing that
market conditions will not change drastically and that the government will not run out of money. Globally,
investors are more likely to put their money into countries with price stability, leaving behind nations that could
use those investments for economic expansion.
Source: Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
When responding to guests, it is important to use effective listening techniques, such as the following:
x Identify the purpose of the message x
Give feedback to show understanding
x Ask appropriate questions to gather more information x
Watch for verbal cues
x Try to satisfy the customers need as quickly as possible
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
There are several main types of investment vehicles. Common stock is a unit of ownership of a company that
entities the owner to voting privileges. Preferred stock is a type of stock that gives the owner the advantage of
receiving cash dividends before common stockholders receive them. Stocks are attractive as an investment
because owners share in the success of the company. A corporate bond is a corporation’s written pledge to
repay a specific amount of money, plus interest. Similarly, a government bond is the written pledge of a
government or municipality to repay a specific amount of money, plus interest. When you buy a bond, you are
lending money to a corporation or government entity for a period of time.
Mutual funds are investments in which investors pool their money to buy stock, bonds, and/or other securities.
The investments are selected by professional managers who work for an investment company. Their expertise
can be beneficial to inexperienced investors. A final form of investment is to own real estate. The goal of this
is to own property that increases in value so you can sell it at a profit or receive rental income.
Source: Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hoyt, W. B. (2007). Business and Personal Finance.
New York, NY: Glencoe/McGraw-Hill.
Guests could be given a local map, drawn a map, provided with written driving directions, and provided with
landmarks that are easily recognized.
Source: Kent Sexton, Hamister Hospitality Group. “Getting Back to the Basics of Hospitality: Treating Our
Guests as Friends”. www.hamistergroup.com/expertarticles/hotel%20customer%20service%20tips.html
What are some ways that guests can be informed about local sites/events?
Guests could be directed to local sites/events through pamphlets, posters, a community event listing placed in
rooms, a local directory or recommendations from the staff.
Explain communication systems that can be used to assist clients with special needs.
Deaf clients can be assisted by using a TTY or relay service when they call. TTY stands for teletypewriter. This
device allows deaf people to communicate using the phone lines. The information is typed in and then
displayed on a small screen. TRS stands for telecommunications relay service. This is where a special operator
types whatever you are saying for the deaf person to read on their display unit.
Guests should be greeted by the first employee they encounter. This helps ensure that a good first impression is
made. Greeting the guests is where hospitality begins.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
Describe the determinants of exchange rates and their effects on the domestic economy.
Source: Dlabay, Burrow and Eggland (2006), Intro to Business 6e. Mason, OH. Thomson/South-Western.
Describe the impact of international policies on the travel and tourism industry.
U.S. citizens who travel internationally are subject to many rules and regulations that are constantly changing. It
is important for the travel and tourism industry to be up-to-date on the issues that will affect their customers.
Some of those may include the following: passports, immunizations, duties and safety of travel to a different
country.
Source: Oelkers (2007), Travel and Tourism Marketing. Mason, OH. Thomson/South-Western.
Assessing current business trends is important to both business and professional growth. Business owners and
entrepreneurs should keep up-to-date through a variety of means. Classes are offered at vocational/technical
schools, two- and four-year colleges, and online. Joining a professional association or club is an excellent way
to stay current with trends and knowledge relevant to an industry. Another way to stay up-to-date is by reading
journals, professional trade publications, news sources, websites, and blogs. Attend professional conferences,
meetings, seminars, and speakers. These activities also provide the opportunity for networking, wherein you
can learn from colleagues by sharing insight and experience.
Source: Bailey, L. J. (2003). Working: Career Success for the 21st Century (3rd ed.). Mason, OH: SouthWestern.
A gratuity is given when the customer is happy with the service provided. This amount is usually left up to the
customer, but in many types of businesses a set percentage of the total bill is accepted practice, such as 15% for
restaurant service.
Source: McGreal and Padilla (2010). Culinary Math, Principles and Applications. Orland Park, IL. American
Technical Publishers, Inc.
It is important to recognize the needs of the customer because it enables the employees to provide a pleasant and
favorable experience. It is important that the facility is accessible for those with disabilities and the staff is made
aware of the guests specific needs. Families with children may also require special services.
Source: Expanding Your Market: Accessible Customer Service Practices for Hotel and Lodging Guests with
Disabilities. www.ada.gov/accesscust.htm
Statistics are used to describe and summarize data in order to make the date more meaningful and easier to
understand. Commonly used statistics in business include distribution, central tendency, and dispersion.
Distribution is a summary of the frequency of values for a variable. The central tendency is an estimate of the
center of a distribution of values, including mean, median, and mode. Dispersion is the spread of values around
the central tendency, measured with the range.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
What steps should an employee take to verify customer’s identification when providing age-restricted
products?
When selling age-restricted products, it is important to verify the customer’s identification. The following steps
should be used:
x Check the birth date on the identification. x Check
the photo on the identification. x Know how to spot
fake identification cards. x Ask for a second form of
identification if uncertain.
x Refuse service if there is still doubt.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
The functions of an information system are to gather, analyze, store, and report on data. Records are kept
regarding financial information, production and inventory, marketing and sales, and human resources. Internal
data includes accounting records, inventory information, company sales figures, and more.
A company’s balance sheet, cash flow statement, and income statement are records that are monitored during a
specific period of time. They are used to calculate revenue, evaluate costs and expenses, and measure
profit/loss.
Sources:
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western
Cengage Learning.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Source: Morgan, Rebecca (1989). Calming Upset Customers, Menlo Park, CA. Crisp Publications, Inc.
Technology has made it easier and more efficient to maintain business records through management
information systems (MIS). The functions of an MIS are to gather, analyze, store, and report on data. Records
are kept regarding financial information, production and inventory, marketing and sales, and human resources.
Data sources may be external, such as from financial institutions or government agencies; or they may be
internal, including data from accounting, inventory, and sales figures. Business record keeping requires one to:
identify the information needs of the organization, obtain the data, process and analyze the data, organize the
data in a useful manner, distribute information to those who need it to make decisions, and update the data and
records as needed.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH:
SouthWestern Cengage Learning.
A portion cost or total meal cost can be determined for menu items.
Portion Cost: Total cost of recipe ingredients / number of portions
Total Meal Cost: Add all portion cost for a meal together
That cost is subtracted from the selling price of the item or meal to determine the profit.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
A person who purchases goods for business purposes is called an organizational buyer. The types of purchasing
situations include: new task purchase, in which a purchase is made for the first time; modified rebuy, where the
buyer has had experience buying the good or service but some aspect of the purchase has changed; and straight
rebuy, when a buyer routinely orders the goods or services from the same vendor(s) as in the past.
Suppliers should be selected using the following criteria: production capabilities, past experiences, special
buying arrangements, and special services. Purchasing also involves the skill of negotiation. Items to be
negotiated include prices, dating terms, delivery arrangements, and discounts.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
What can be used to analyze restaurant sales (average check, seat turnover, sales per square foot, etc...)
To evaluate source data, consider the following: Is the subject matter consistent with the defined problem or
issue? Do the data apply to the population and/or time period of interest? Do the data appear in the correct
units of measurement? Do the data cover the subject in adequate detail? Is the data accurate and timely? Can
the accuracy of the data be verified? Is/are the data source(s) reputable? Is the cost of data acquisition worth it?
Is there a possibility of bias?
Source: Zikmund, W. G. (1991). Exploring Marketing Research. (4th ed.) Orlando, FL: The Dryden Press.
The following factors should be considered when developing a food cost-control plan: menu, portion size,
purchasing, receiving, storing and waste.
Source: Chef McGreal (2008); Culinary Arts Principles and Applications. Homewood, IL. American Technical
Publishers, Inc.
Most businesses use some type of accounting software to record and report their business transactions. Even
when using an automated system, you still need to collect and keep your source documents and each business
transaction must be separated into its debit and credit parts. Computerized posting to accounts is faster and
eliminates accounting errors that a person might make doing it manually. Daily, weekly, monthly, and annual
reports can be generated quickly and accurately. Software is also available for tax collection and reporting.
Source: Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hoyt, W. B. (2007). Business and Personal Finance.
New York, NY: Glencoe/McGraw-Hill.
Source: McGreal and Padilla (2010). Culinary Math, Principles and Applications. Orland Park, IL. American
Technical Publishers, Inc.
Describe connections between company actions and results. (e.g., influence buying behavior, etc.)
Company actions that affect consumers include: advertising, pricing, product mix, supply of goods, sales and
promotions, product development and improvement, product safety, payment options, etc.
Company actions that affect the competition include: advertising, pricing, product mix, supply of goods, sales
and promotions, distribution methods and locations, etc.
Company actions that affect employees include: the use of technology in production and record keeping,
managerial ethics, human resources management, production planning and scheduling, risk management,
investing, etc.
Other actions to be considered include company actions that affect things like the environment, the global
economy, etc.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH:
SouthWestern Cengage Learning.
How can the revenue contribution of food service operations to a hotel’s profitability be analyzed?
Food service is only second to lodging when it comes to revenue generation. Most hotels see anywhere between
20-40% of revenue from their food service. Food service revenue can be determined by dividing food service
revenue by total property revenue.
Source: Prior, James T. “Food & Beverage Boost Hotels' Profit Margins”. Publication: New Jersey Business;
http://www.allbusiness.com/accounting-reporting/revenue-revenue-margin/912987-1.html
Source: McGreal and Padilla (2010). Culinary Math, Principles and Applications. Orland Park, IL. American
Technical Publishers, Inc.
Housekeeping and the front desk must be in constant communication. The executive housekeeper is given a
status report each morning and is then responsible for the staff preparing rooms for guest arrival. Rooms are
usually classified in four ways:
x Check out: Guest has checked out, but the room has not been cleaned yet. x
Stay over: Guest will spend another day in the hotel; the room needs cleaning.
x Vacant ready: Room is clean and ready to be occupied.
x Out of order: Room is not available due to a maintenance problem or renovation.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
An income statement is a summary of a business’ income and expenses during a specific period of time. Often
called a profit and loss statement, it is used to calculate revenue, costs and expenses, and profit/loss.
Income statements have several major parts: total sales, net sales, cost of goods sold, gross profit, operating
expenses, other income/expenses, net profit/loss before taxes, and net profit/loss after taxes. Some of these
figures must be estimated or projected, such as total sales and business expenses.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Explain ways that technology impacts the food and beverage industry.
Technology in the food and beverage industry is usually put in place to enhance or improve customer service.
Some uses of technology, include: restaurant point-of-sale systems, reservation applications for smart phones
and wi-fi for customer use.
Describe current issues and trends in the food and beverage industry.
Some trends that are currently affecting the food and beverage industry include the following:
x Health: people are eating healthier cooked meals
x Organic: people enjoy eating organic and locally grown foods
x Improving customer service: reservation and ordering applications for smart phones x
Rising number of single adults: they tend to eat out more often x Innovative farming
techniques: make fresh food available year round x Consumers have less time: Home meal
replacements, home delivery or cyber shopping.
Source: National Restaurant Association, Educational Foundation (2005). Becoming a Restaurant and
Foodservice Professional, Year 2.
All accountants follow the same set of rules to prepare financial reports. The Financial Accounting Standards
Board issues rules referred to as generally accepted accounting principles (GAAP). These principles provide a
way to communicate financial information in a form understood by those interested in the operations and
financial condition of a business. Accounting reports are used by individuals outside the business as well as
inside. Outside the business, investors, lenders, consumers, competitors, and government may be interested.
Workers, union leaders, and management all may have a need to see and clearly understand a business’
financial situation.
Source: Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World
Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Explain the nature of technological services that lodging facilities provide to improve guest service.
In today’s market it is important to provide technology for the business traveler as well as the leisure traveler.
To be competitive a facility should include the following: multiple phone lines, voice mail, dataports, wireless
internet access and a business center.
Source: Kaser and Freeman (2002). Hospitality Marketing. Thomson Learning, South-Western. Mason, OH.
The call accounting system (CAS) is software that helps with the placement, pricing and posting of calls for
guests. The CAS works with the hotel’s billing system to post charges to guest’s folios.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Describe types of guest reservations.
Guest reservations fall into two categories: guaranteed reservations and non-guaranteed reservations.
Guaranteed reservations assure the guest that the hotel will hold a room until a specific time on the
scheduled arrival date because the room is secured through payment.
1. Prepayment: requires that the guest pay in full before arrival.
2. Credit/Debit Card: unless properly cancelled the card will be charged.
3. Advance Deposit: requires that the guest pay the hotel a specified amount of money before
arrival.
4. Travel Agent: the room is secured and held by a travel agency.
5. Voucher or MCO: a travel agency voucher or miscellaneous charge order, which are
guaranteed through the agency and regulated by the Airline Reporting Corporation (ARC).
6. Corporate: a contractual agreement between the corporation and the hotel which states the
financial responsibility of the corporation.
Non-guaranteed reservations, assure that the hotel will hold a room for the guest until a stated time,
but no guaranteed payment is required if the guest does not show.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Factors that should be considered for forecasting occupancy, include the following:
x Knowledge of the surrounding area (including special events, etc.)
x Occupancy data from the past several months and the same period from the previous year
x Reservation trends
x The number of non-guaranteed and guaranteed reservations x
The estimated number of no-shows
x Plans for remodeling or renovating the property as well as plans for remodeling and renovation at
competing properties
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
The cash handling policy should have employees ask for and verify identification that matches the information
on the check. Employees should be aware of what to look for and how to identify a potential bad check. Signs
to look for when identifying a bad check include: the check number is missing, the check number is low, the
customer’s address is missing, the bank’s address is missing or if additions to the check are handwritten
Source: Portland Police Bureau. “A Guide to Robbery Prevention and Response to Robbery”.
http://www.portlandonline.com/police/index.cfm?a=31555&c=29869
Food on display should not be at room temperature for more than one hour. Cold foods can be kept cold using
ice or refrigeration. Hot foods can be kept hot by using steam tables or chafing dishes.
Source: Chef Michael J. McGreal (2008). Culinary Arts, Principles and Applications. Homewood, IL. American
Technical Publishers, Inc.
To prevent sanitation problems, the following policies and procedures should be in place:
x Know and follow food safety procedures x
Prevent cross contamination of food
x Know the proper time and temperature to store and cook food x
Wash, rinse, and sanitize dishes
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Garnishes increase the visual appeal of a meal. Garnishes can include fruits and vegetables, or any item that
complements the flavors of the meal.
Source: Chef McGreal (2008); Culinary Arts Principles and Applications. Homewood, IL. American Technical
Publishers, Inc.
Source: Emergency Management Guide for Business and Industry. Federal Emergency Management Agency.
www.fema.gov.
Protecting national security is important, as well as protecting the health and safety of travelers. The travel
industry and the government try to work closely to make rules and regulations that are beneficial to both.
Source: Oelkers (2007), Travel and Tourism Marketing. Mason, OH. Thomson/South-Western.
In an emergency the staff should know how to handle the situation because they have had training. It is
important to stay calm, assess the situation, contact 911 (if appropriate), contact guests via the emergency phone
system and make sure everyone is accounted for.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Most housekeeping departments are responsible for cleaning guestrooms, corridors, public areas, pool and patio
areas, management offices, storage areas, linen rooms, laundry rooms and back-of-the-house areas, such as
employee locker rooms.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
The executive housekeeper sets standards to ensure conformity. Daily inspections and performance evaluations
allow for on-the-job coaching and retraining.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Productivity standards determine the acceptable quantity of work that can be completed. By determining how
long it will take a staff member to complete each task, a schedule can be created and the budget can be met.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Security procedures may include the following: front desk agents not releasing room numbers, keys, messages
or mail without verifying identification, withholding guest information from callers or visitors, holding guest
items in a secure area, securing all valet parking keys, using surveillance equipment, providing safe deposit
boxes, protection of funds, and providing electronic locking systems on exterior doors.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
ProgramYear 1. Lansing, MI.
__________________________________________________________________________________________
Develop policies and procedures for responsible alcohol service and intervention.
Careful service of alcohol is important to any establishment. In many states the server can be held liable if there
is an alcohol related accident. Some policies and procedures to establish may include the following:
1. Servers should be licensed/certified (if appropriate)
2. Verify that the guest is of legal drinking age
3. View identification
4. Monitor guest intake
5. Be aware of signs that a guest is intoxicated
6. Know how to cut off a guest
7. Provide continued training for employees
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
The hospitality and tourism industry is service driven and covers a wide array of businesses. Some examples
are: hotels/motels, B&Bs, conference centers, resorts, restaurants, airlines, cruise ships, theme parks,
outdoor/adventure, and many more. Tourism is a big revenue generator for cities, counties, and states. Hotels
and motels, restaurants, and other shops all benefit from travelers. Tourism also provides jobs.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Describe the development of the hospitality and tourism industry.
Tourism began its expansion in the eighteenth century due to improvements brought about by the Industrial
Revolution. Improvements in transportation, communication, and leisure time influenced the expansion of
tourism into the major industry of today.
Source: Oelkers (2007), Travel and Tourism Marketing. Mason, OH. Thomson/South-Western.
Jobs in the food and beverage industry can be broken into two categories – front of house and back of house.
Back of house: Another division is the kitchen where food is prepared to serve to guests.
Executive chefs train and manage the kitchen staff and operations.
Sous chefs, from the French word for “under”, are assistant chefs to the executive chef.
Expeditor takes orders from the dining room and delivers them to the stations in the kitchen.
Production chefs are responsible for specific categories of food.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
No matter what type of restaurant consumers choose, they expect good quality food and excellent customer
service. The National Restaurant Association defines three primary types of restaurants: Table service-
includes restaurants where consumers are served, at a table, by waitstaff
Quick service – includes restaurants where consumers order at a counter
On-site food service – includes catering companies
A higher menu price increases the customer’s expectation of the dining experience.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Source: Chef Michael J. McGreal (2008). Culinary Arts, Principles and Applications. Homewood, IL. American
Technical Publishers, Inc.
The most significant changes to corporate governance and accounting practice came with the Sarbanes-Oxley
Act of 2002. The act requires that CEOs, financial officers, accountants, and auditors comply with regulations
and procedures designed to ensure accurate representation of companies’ financial positions. It prohibits most
loans to directors and executive officers, and forces company insiders to report changes in ownership within
two days after a transaction has been executed. Securities regulation ensures that purchasers can learn the true
nature of the securities they buy by providing a way to uncover fraud and unfair practices.
Sources:
Brown, G. W. & Sukys, P. A. (2006). Understanding Business and Personal Law. New York, NY:
Glencoe/McGraw-Hill.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications &
Connections. New York, NY: Glencoe/McGraw-Hill.
Describe traits important to the success of employees in the travel and tourism industry.
Some important traits in travel and tourism include flexibility, self-motivation, honesty, dependability,
communication, maturity and listening skills.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Employees are also motivated by the freedom to be creative. Encouraging them to show creativity without risk
of penalty often yields positive and ingenious results.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Some geographic factors that might influence travel are weather and location. Weather may be a deciding factor
on clients travel destinations. They may choose warm or cold weather, depending on the activities they wish to
pursue. Location: Many people like to travel to areas that are different from where they live. They like to
experience the culture of different regions.
Source: Oelkers (2007), Travel and Tourism Marketing, Mason, OH. Thomson/South-Western.
A balance sheet is a summary of a business’ assets, liabilities, and owners’ equity. Assets are anything of
monetary value that you own and are classified as current or fixed. A current asset is cash or anything that can
be converted into cash in a year. A fixed asset is something used over a period of time to operate your business,
like property and equipment.
Liabilities are the amounts that a business owes and are classified as current or long-term. A current liability is
a debt the business must pay back during the upcoming year. A long-term liability is a debt that is due after 12
months’ time, such as a long-term loan. Owners’ equity (or net worth) is the amount of ownership interest in
the business. The difference between assets and liabilities equals the owners’ equity.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Explain factors affecting the development and growth of the travel and tourism industry.
Travel appeals to all ages and incomes and several trends have emerged. The Baby Boomer generation travels
often. They not only travel alone, but travel with their grandchildren. Younger people are trending toward
shorter, more expensive vacations. Business travel is balanced between males and females, where it was
predominately males in the past. Business travelers also bring their families along and make it a family
vacation.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Many travelers visit areas based on the weather or outdoor activities that they wish to pursue. If they have
children they are more likely to travel during school vacation times. People that are retired, typically travel on
the “off season”, so they can escape the crowds.
Describe the impact of international considerations in the travel and tourism industry.
There are entire segments that drive and impact international tourism. Some of these segments are:
x Culture: this segment focuses on heritage, art, food, clothing, geographic points of interest, historic sites
and museums.
x Language: English is the universal language of business. However, it is important for travel professionals
tohave a background in other languages, it makes them more desirable
x Religion: Many people travel for religious reasons and it is important to be sensitive to their beliefs and
customs.
Source: Oelkers (2007), Travel and Tourism Marketing. Mason, OH. Thomson/South-Western.
Back of house operations can include business functions – such as human resources, management, accounting,
reservations, operations and sales. These functions are the driving force behind the scenes on any property. The
housekeeping department is mainly responsible for the daily cleaning and care of guest rooms, the front desk
and lobby areas, restaurants, banquet and meeting rooms, restrooms and other offices or rooms on the property.
The engineering department takes care of mechanical equipment and the physical upkeep of the hotel.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Explain the functions performed by the divisions and departments in a lodging operation.
The following divisions and departments in a lodging operation perform these functions:
Rooms: Provide services directly to guests
Food & Beverage: Provide food for guests
Engineering & Maintenance: Maintain the appearance of the property
Marketing & Sales: Provide sales, convention services, advertising and public relations
Accounting: Handles all financial activities
Human Resources: Recruit and select employees
Security: Provide security for guests and staff
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
The hospitality is a large thriving industry that usually includes these four areas: lodging, food, entertainment
and travel.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
__________________________________________________________________________________
An organizational structure shows the communication chain in a hotel. The divisions can be divided in two
different ways:
1. Revenue and support centers
2. Front of house and back of house
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Employers want someone who has strong personal characteristics such as honesty, dependability, work ethic,
adaptability, and maturity. Self-motivation and communication skills are also valuable in the hospitality
industry.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
How should a business store food products to prevent contamination and spoilage?
A business should store food products to prevent contamination and spoilage, by completing the following: 1.
Use the right food-grade container (if food has been cooked)
2. Select the right storage location
3. Label and date the food
4. Move food into storage areas quickly
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
Inventory control systems are used to track the amount of inventory that is on hand. These numbers are used to
determine what product should be ordered, replaced or deleted.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
If the ending inventory is less than the physical inventory count, shrinkage has occurred.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
The following procedures should be followed when purchasing food and beverage items:
x Know the current menu and selections offered x
Know what stock is on hand x Know when to
purchase perishable items x Verify the order
when it is received
x Check for freshness, spoilage, and proper temperature of items received x
Pay for items received
Source: Chef Michael J. McGreal (2008). Culinary Arts, Principles and Applications. Homewood, IL. American
Technical Publishers, Inc.
The location/destination is important because it is a driver as to where potential clients may want to travel. It is
important for the agent to have information about the areas that they are sending their clients. Many travel
agents travel extensively to view properties and be able to relay first hand experiences.
The distribution of travel has changed significantly with the use of the internet. Many travelers use the internet
to book and reserve their travel. Options for travel may be booked directly with the business or through an
intermediary, such as: Priceline or Expedia.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
The cost of a product can be determined by adding the cost of the items that are used to manufacture it and the
cost of the labor that is used to produce it.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
A cash flow statement is a monthly plan that tracks when you anticipate that cash will come into a business and
when you expect to pay out cash. One purpose of a cash flow statement is to determine whether you will have
enough money to pay your bills on time. Another purpose is to secure a business loan, as most lenders will
request at least a first-year cash flow statement.
A cash flow statement itemizes how much cash you started with, what your projected cash expenditures are, and
how and when you plan to receive cash. It also shows when you will need to seek out additional funds or when
you will have additional cash remaining.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
The break-even point is the point at which sales revenue equals the cost and expenses of making and
distributing a product. The break-even point is calculated using the following information:
Units x Cost/Selling Price = Break-even
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
In the travel and tourism industry, supply and demand play a significant role in pricing. A variable pricing
strategy is common and often based on what consumers consider to be a fair price for the product.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Internal and external factors affect a company’s pricing decisions. Internal factors may include the company’s
marketing objectives, marketing mix strategy, costs and organizational goals. External factors include the nature
of the market, demand, competition, and other environmental elements.
Source: Kotler, Bowen,& Makens (2003); Marketing for Hospitality and Tourism. 3rd Edition, Upper Saddle
River, NJ. Pearson Education, Inc.
How can a business ensure continuity of service quality when unexpected situations arise?
It is important for a business to have an emergency plan in place. The staff should be familiar with and
understand the emergency plan. It is also important to practice emergency drills with the staff to make sure they
are prepared in case of an emergency.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
Merchandise plans are calculated using the previous year’s sales and then adding the desired percentage
increase for the current year. The plan should also include stock figures, purchases and expected reductions.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
No other feature or service will impress a guest more than a spotlessly clean and comfortable guestroom. It
shows the care that the property puts into creating a clean, safe and pleasant environment for its guests.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 1. Lansing, MI.
In the hospitality industry, product is not just a tangible object. The product definition is extended to include the
following: experiences, people, places, organizations, information and ideas. Consumers decide where to visit,
where to stay, what to eat and what entertainment they wish to see. All of these are viewed as products by the
consumer.
Source: Kotler, Bowen,& Makens (2003); Marketing for Hospitality and Tourism. 3rd Edition, Upper Saddle
River, NJ. Pearson Education, Inc.
Source: National Restaurant Association, Educational Foundation (2005). Becoming a Restaurant and
Foodservice Professional. Year 2.
When displaying food, it needs to be protected from contamination by the use of packaging, a sneeze guard, or
display cases. It is important that the display also maintains the integrity of the food temperature.
Source: Oregon Health Division, Center for Environment and Health Systems (1996). Portland, OR.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
Source: Kaser and Freeman (2002), Hospitality Marketing. Mason, OH. Thomson/South-Western.
What are some things a business can do to establish relationships with customers?
Relationship marketing requires that all the company’s department’s work together to serve the customer. A
company can adopt any of three customer value-binding approaches:
1. Adding financial benefits (frequent flyer, etc)
2. Adding social benefits (learning names, remembering needs and wants, etc)
3. Adding structural ties (airline lounges, flexible check-in, etc)
Source: Kotler, Bowen,& Makens (2003); Marketing for Hospitality and Tourism. 3rd Edition, Upper Saddle
River, NJ. Pearson Education, Inc.
The most important thing an employee can do is listen to the customer and address the objection. There are
several methods that can be used; some of them are listed below:
Substitution: recommend a substitute product to the customer
Boomerang: turn the objection into a selling point
Question: ask more questions to clarify the objection
Superior Point: acknowledge and then provide superior points to offset the objection
Denial: correct the misinformation with facts
Demonstration: show the customer how the product works Third-party:
use a testimonial from previous customers
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
Describe features and benefits of restaurant service styles.
Source: The Educational Institute of the American Hotel & Lodging Association (2005); Lodging Management
Program Year 2. Lansing, MI.
Destination attractions include: national or state parks, resorts, shopping areas, theme parks and international
travel.
Source: National Restaurant Association, Educational Foundation (2005). Becoming a Restaurant and
Foodservice Professional. Year 2.
Some factors that motivate people to travel include: prestige, escape, education, social interaction, family
bonding, relaxation and self-discovery.
Source: Kotler, Bowen,& Makens (2003); Marketing for Hospitality and Tourism. 3rd Edition, Upper Saddle
River, NJ. Pearson Education, Inc.
Consumers are motivated to travel based on the benefits they will receive from a specific destination. They take
into consideration the experience, fun, relaxation and memories. Convenience is something that all consumers
are motivated by, so they may also consider time, language barriers, cleanliness/sanitation, access to
interests/activities and special needs.
Source: Kotler, Bowen,& Makens (2003); Marketing for Hospitality and Tourism. 3rd Edition, Upper Saddle
River, NJ. Pearson Education, Inc.
How can you determine a client’s travel preferences/needs?
There are three methods that can be used to determine a client’s needs: observation, listening and questioning.
When observing a client, it is important to look for buying motives that are communicated nonverbally.
Listening helps to pick up clues to the customer’s needs. Questioning can help clarify the customer’s needs.
Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA.
Glencoe/McGraw Hill.
There are four possible forms of business organization: sole proprietorship, partnership, corporation, and
limited liability company (LLC). The choice depends on the financial and tax situation of the owner, the type
of business, the number of employees, and the level of risk involved. Each has advantages and disadvantages to
be explored.
A sole proprietorship is a business owned and operated by one person. A partnership is a legal agreement
between two or more people. The two types of partnerships are general and limited. A corporation is a legal
entity created by a government statute authorizing individuals to operate an enterprise. A limited liability
company is a hybrid of a partnership and a corporation. In an LLC the owners are shielded from personal
liability while all profits/losses pass directly to the owners without taxation of the business itself.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
________________________________________________________________________________________
Active listening is where a person recognizes and evaluates what is being heard. Active listening involves the
following skills.
1) Identify the purpose—review the purpose of the communication and prepare to respond.
2) Look for a plan—be aware of the structure of the communication to make it easier to see how it all fits
together.
3) Give feedback—these verbal and non-verbal cues indicate whether or not you understand the message. Ask
questions at an appropriate time.
4) Search for a common interest—try to find something that interests you in order to avoid tuning out the
speaker.
5) Evaluate the message—do so from the speaker’s point of view as well as your own, and try to limit bias and
personal judgment.
6) Listen for more than verbal content—assess what is being communicated non-verbally through rate of
speech, pitch, volume, and voice quality.
7) Listen for a conclusion—at this time you may wish to take action or ask questions.
8) Take notes—structure your notes around the plan and check them to see you have understood the main ideas.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
__________________________________________________________________________________________
Discuss the nature of law and sources of law in the United States.
Laws are enforceable rules of society that reflect the culture and circumstances that create them. Laws may be
grouped into an organized form called a code. They should be both predictable and flexible. A number of
forms of law exist, including common law, positive law, English common law, and equity.
In the U.S., sources of law include the Constitution, state constitutions, statutes, ordinances, administrative
regulations, and criminal or civil cases.
Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH:
SouthWestern.
Sources for written material may be obtained internally or externally. Internal sources include such data as a
company’s monthly sales records or previously collected market research. External sources include the
Internet, government, specialized research companies, and business/trade publications and associations.
The Internet provides a nearly limitless source of free or fee-based information from companies’ own websites
or business clearinghouses. Data collected by government agencies is available online regarding topics such as
demographics, product and economic news, and legislative trends. Government agencies also serve as good
sources for written material, such as the Small Business Administration, U.S. Census Bureau, Securities and
Exchange Commission, etc. Specialized research companies sell demographic data, sales forecasts, and other
business data they have collected.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Customer relationship management involves finding customers and keeping them satisfied through a variety of
means. It is useful for developing and maintaining customer relationships. The sharing of customer
information among businesses has led to privacy issues. The government has regulations protecting the privacy
of consumers, including offering customers the option of being added to mailing lists.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
Among the legal issues affecting businesses are the following. Consumer protection issues include product
safety (for everything from toys to furniture), zoning laws to protect real estate value and quality of life, public
health (i.e. at restaurants), and licensing for personal service providers (such as hairstylists and electricians).
Employee protection issues include minimum wage standards, equal opportunity employment provisions,
guidelines for workplace safety, and the Family and Medical Leave Act.
Other legal issues businesses must be aware of include laws protecting investors and the environment as well as
maintaining competition in the marketplace. The Securities and Exchange Commission regulates the sale of
stocks and bonds and investigates deals among corporations. Businesses must follow various other laws to
protect human health and the environment in regard to pollution, waste disposal, and recycling. Companies are
also faced with legal standards that protect against anti-competitive mergers and business practices. Laws also
exist that regulate the distribution of products such as alcohol and tobacco.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Because in a phone conversation your listener cannot see you, a pleasant voice is very important, whether
answering or initiating a call. You should enunciate clearly and speak directly into the mouthpiece, speaking
loudly enough to be heard but do not shout. It is important to make sure all of the necessary information is
conveyed between you and the other party, so you may wish to write down key points before or during the call.
Listen actively, and do not interrupt the speaker. When answering, be prepared to take a message. A proper
message includes the date and time of the call, the caller’s name and message, a return phone number. It is
courteous to repeat the name and phone number of the caller to ensure it is correct.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Note taking helps you remember facts and keeps your attention focused. Do not try to write down everything
that is said; focus on key words and main ideas. Jot down summaries in your own words. Take note of actions
you need to take. Use bulleted lists, asterisks, and arrows to show relationships among ideas. Review your
notes to make sure you understand concepts and instructions. If you cannot take notes, make mental notes of
the main points.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
Explain forms of financial exchange. (cash, credit, debit, electronic funds transfer, etc...)
Credit enables a business or individual to purchase goods and services in exchange for a promise to pay later. It
is most helpful when consumers want to make major purchases, though it is often used for more common, less
expensive items. Customers are typically issued a credit card from a bank to make such purchases. Debit is a
variation of credit. Consumers using a debit card authorize a seller to withdraw funds directly from the
consumer’s bank account at the time of sale. A cash sale is any transaction in which the customer pays for the
item with cash or a check.
Other forms of retail sales transactions include layaway, on-approval, and cash-on-delivery (COD). Layaway
means removing merchandise from stock and keeping it in a separate storage area until the customer pays. In
an on-approval sale, an agreement is made permitting a customer to take merchandise home for further
consideration before paying. A COD sale is a transaction that occurs when a customer pays for goods at the
time they are delivered.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
First of all, you must decide if a piece of information is important. Information you do not need becomes
clutter. Try to do something with important information the first time you look at it. Put information you will
look at later in a file or folder. Categorize information by type and label each file or folder. Avoid putting each
document in a separate file and do not let files get too large—divide them by subtopics. Color-code files,
folders, or labels. Maintain your files on a regular basis.
Organize your writing by using a logical order, such as chronological order or order of importance. Use
heading and subheadings when writing longer documents.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
Explain the nature of effective written communications.
Effective written communications require some basic considerations: knowing your audience, knowing your
purpose, and knowing your subject. You must assess who your target audience consists of in order to which
form of communication to use. Next, knowing your purpose for writing helps you organize your thoughts. You
must decide if you are trying to inform, confirm, inquire, answer, or persuade the audience. Lastly, written
communication requires that you have in-depth knowledge of the subject and how to relate what you know to
the intended audience.
The form of written communication you choose to use will depend on the above considerations. Letters are
formal methods of communicating outside the business. E-mail is an informal method used to reach those
inside or outside the company. Memos, while being replaced by e-mail, are a more formal way to communicate
within a company. Business reports are for lengthy topics, typically for internal use or for stockholders.
Similarly, company publications may be used internally (for company policies) or externally (for marketing
purposes).
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Customer relationship management (CRM) involves finding customers and keeping them satisfied through a
variety of means, and is useful for developing and maintaining customer relationships. Database marketing is
the element of CRM that is the process of creating and maintaining customer lists. These lists can be developed
from face-to-face sales, direct mail responses, phone or e-mail purchases, service requests, Web site visits, or
they can be purchased from a third party. CRM data is also obtained through customer satisfaction surveys,
often giving a customer a reward while sharing demographic and purchase information with the company.
Modern CRM software applications are Internet-enabled web applications. They allow a customer to create and
check accounts and orders online while the company collects valuable data. Touch-screen computers are
becoming popular in retail marketing. Customers like them and the costs to operate them are low. Interactive
TV is a modern method of allowing viewers to interact with the programming. This method gives customers
instant access to product information, links to online stores, and downloads for additional content, among other
benefits.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Good speaking skills are important, and your delivery, style, and attitude are as important as your message.
Speak at an appropriate volume and speed. Use inflection and tone of your voice to stress key ideas. Try to
make emotional contact with your audience, and make eye contact. Use posture and body language that match
your message. Avoid nonwords, such as uh and um. Pronounce words correctly and enunciate clearly. Project
enthusiasm and a positive attitude.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
In economic terms, goods are tangible items that have monetary value and satisfy your needs and wants (such as
cars and clothing). Services are intangible items (meaning you cannot physically touch them) that have
monetary value and satisfy your needs and wants. Services involve a task, such as cooking food or repairing a
computer.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
When assessing your strengths and weaknesses, many areas can be explored. Interpersonal skills that can be
assessed include self esteem, attitude, initiative, self control, creativity, flexibility, stress management, and time
management skills. You will also want to assess more concrete skills and abilities. These are things that you
will be asked to do in the workplace, such as selling a product or organizing an activity.
Complete a self-assessment by asking yourself if you have these types of skills and taking inventory of your
workplace values and needs. Determine what skills you are lacking and where you can make improvements.
Develop your skills and abilities by reading, observing, and working in a real-world situation.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
People act in order to have their own needs met. Thus, it is important to show your reader why he/she has a
need to do what you want. To plan a persuasive document, first identify your objective. Then identify the main
idea to show that the requested action will meet the reader’s needs. Determine the supporting information that
will convince the reader to do what you wish. Finally, adjust the content to the reader, considering his/her
values and concerns.
Organize a persuasive document by 1) gaining the reader’s attention, 2) showing the reader that he/she has a
need, 3) explaining your solution to that need, 4) present the supporting information, and 5) end by asking for a
specific action. Persuasive documents might include sales letters, collection letters, proposals, and newsletters.
To be effective in drafting persuasive documents, you should also present a solution that is clear, logical, and
practical.
Ethics are guidelines for good behavior, based on knowing the difference between right and wrong. Behaving
ethically means being truthful, fair, open, and mindful of the law. In marketing, business ethics involves a
company’s efforts to protect individual consumers and society as a whole. Businesses must keep consumers
informed and protected against fraud and deceit, and they must not produce unsafe goods. Another ethical
consideration for marketers is price gouging, or pricing products unreasonably high. In sales, ethical issues to
be aware of concern bribes, kickbacks, and high pressure tactics.
Businesses must behave ethically in management, as well, including personnel and accounting issues. The
standards of ethics within a business are in large part determined by the owner’s principles and values.
Remember, people do not all share the same ethical values. As a result, businesses should create a clear policy
on ethics standards.
Sources: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
An executive summary may also be called an abstract or a synopsis. Its purpose is to summarize the key points
of a report to the reader. An executive summary is often used with the report is long and/or technical so that
busy readers can get the main points quickly without having to read the entire report.
The format of an executive summary should match the main report. If the report is written in direct order, write
the executive summary in direct order. An executive summary is typically a one-page document. The
formatting may not match exactly the report that follows. Line spacing and headings may be different between
the two, and it is usually not numbered in sequence with the body of the report.
An economic system, or economy, is the way a nation provides for the needs and wants of its people. It defines
how a country will use its resources to produce and distribute goods and services. Four types of economic
systems exist: traditional, market, command, and mixed.
A traditional economy determines the use of its resources based on the cultural or religious traditions that have
been used for generations. Mostly small, developing nations use this type of economy today. In a market
economy, there is no government involvement in the decision making process regarding economic resources.
The marketplace determines what, how, and for whom goods will be produced. A command economy is a
system in which a nation’s government makes all of these economic decisions. The government also controls
the factors of production in this system. No country, however, is a purely traditional, market, or command
economy. There are always influences that make it somewhat mixed.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Managing your business’ finances will include planning for profits by forecasting sales, evaluating profit
potential, controlling costs, and budgeting. Business financing also requires managing taxes and credit.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Two types of simple written reports exist. A formal report is generally long, analytical, and impersonal, often
containing preliminary and supplementary parts. An informal report is shorter and written in a less formal style.
They generally have no preliminary or supplemental parts and are concerned with everyday topics. Both types
of reports may be organized in direct order (if the report is routine or you expect a favorable response from the
reader) or indirect order (when persuasion is necessary or if the subject matter is negative).
The steps in planning both formal and informal reports are to 1) identify the problem, 2) decide on areas to
investigate, 3) determine the scope, 4) plan the research, 5) develop a preliminary outline, 6) collect the data,
and 7) analyze the data, draw conclusions, and make recommendations. Three parts of an informal report
include opening, body, and closing. The parts of a formal report are the preliminary parts, body, and
supplementary parts. Most formal reports follow specific formatting guidelines with respect to margins,
spacing, and headings.
A positive customer relations mindset means believing that your customers: deserve the very best, are your
employers, deserve your focused attention, have the right to expect things of me, and have important problems
and complaints. Positive customer relations yield benefits to the business, the employees, and the customer.
Businesses benefit by being more competitive, obtaining repeat business, and greater profits. Employees may
receive customer compliments and perhaps a raise or promotion for good customer service skills. Customers
benefit by having a more pleasant, satisfactory buying experience. This creates an atmosphere of goodwill.
Positive customer relations need to be demonstrated when speaking to customers in person, over the phone, or
online. It should also be evident while handling complaints, inquiries, and requests. Demonstrate good
customer relations by doing the following: considering and attempting to meet their needs, concentrating on
them without distractions, following up with them, following through on what you say you are going to do, and
being efficient in handling issues.
Source: Customer-Service Mindset. (Human Relations LAP 32: Career-Sustaining Level). (1999). Columbus,
OH: Marketing Education Resource Center.
Employee performance can reinforce a company’s image through suggestion selling, order processing and
fulfillment, and effective selling skills. Suggestion selling is useful for making the customer happier with
his/her original purchase. Sales employees can improve customer satisfaction by the speed and care in which
they handle orders. This applies, as well, to handling returns and refunds.
Selling skills, such as an appropriate, pleasant greeting and a reassuring departure are useful tools in
maintaining a good image. Offer helpful comments during and after a sale and always thank the customer in
order to build a good relationship. Follow up on all promises made to a customer, and check on their level of
satisfaction after a purchase. Positive customer-client relations require compassionate and immediate action
when dealing with complaints and inquiries.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Credit enables businesses or individuals to obtain products or money in exchange for a promise to pay later.
Businesses use credit to buy materials and supplies from other businesses. Credit makes it possible for millions
of people and companies to purchase goods and services who otherwise would not have the means to do so. By
extending credit, businesses provide a purchasing incentive to customers, thus enhancing their sales revenue
and supporting the overall economy.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Self esteem is the way you perceive your worth or value as a person. It is an important interpersonal skill that
allows you to believe in yourself and helps you relate positively to others. You can demonstrate positive self
esteem by treating others with respect and friendliness, dressing appropriately on the job, and behaving in a
confident yet courteous manner.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Profit is the monetary return a business’ owner receives for taking the risk of investing in the business. In
simple terms, profit equals income less expenses. More specifically, there are two types of profit: gross profit
and net profit. Gross profit is the money left over after the cost of goods is subtracted from income from sales.
Net profit is the money left over after operating expenses are subtracted from gross profit.
Factors that affect profit include demand for the good/service, expenses, prices, the economy, and chance. To
try to increase profit, a business can increase worker efficiency, increase sales, and/or decrease expenses.
Source: Profit. (Economics LAP 2: Career-Sustaining Level). (1997). Columbus, OH: Marketing Education
Resource Center.
In a market-oriented economy like in the United States, supply and demand determine the prices and quantities
of goods and services produced. Supply is the amount of goods and services producers are willing to make and
sell. Demand is the willingness and ability of consumers to buy goods and services. Supply and demand
interact in the marketplace resulting in a state of equilibrium, surplus, or shortage.
The law of supply states that price and quantity supplied move in the same direction (a direct relationship).
Thus, as price increases, the amount of goods and services supplied increases. Conversely, the law of demand
states that as price increases, the amount desired by consumers will decrease (an inverse relationship). When
the amount of a product/service being supplied equals the amount being demanded, equilibrium exists in the
marketplace at that price. If, however, there is more supply than demand for a product a surplus exists,
potentially leading to lower prices. A shortage exists when demand exceeds supply, a condition that can lead to
rising prices.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Competition is the struggle among businesses for customers. As an essential component of the free enterprise
system, competition forces businesses to produce quality goods at reasonable prices. Competition also
encourages businesses to develop new products, enhance or improve existing products, and expand product
selection in order to attract new customers. Businesses compete in two ways: price and nonprice competition.
Price competition assumes that, with all other considerations being equal, a customer will buy the lowest-priced
product. Nonprice competition is where businesses compete on factors such as product quality, business
location and reputation, customer service, and payment or financing options available.
A monopoly exists when there is no competition in the market for a particular good or service. Monopolies are
not permitted in a free enterprise system.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Analyze impact of specialization/division of labor on productivity.
Productivity is the measure of worker output over a given period of time. Specialization and division of labor
are important elements to increasing productivity. The theory behind this is that work can be completed faster
and more efficiently when workers specialize in a certain area of production. An assembly line is an example
of specialization and division of labor.
Automation is the use of machines to do the work of people. It can cut production time, reduce errors, and
simplify procedures, leading to greater overall productivity of the business.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
There are many characteristics of successful businesspeople, including persistence, creativity, responsibility,
confidence, and enthusiasm. A businessperson should be inquisitive, goal-oriented, independent, a risk taker,
and action oriented. Essential skills for running a business include the following: communication, math,
problem solving, technology, decision making, organizing, teamwork, social, and basic business skills.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
The federal government regulates interstate commerce through the commerce clause of the U.S. Constitution.
Securities regulation, especially the Securities Act of 1933 and the Securities Exchange Act of 1934, have been
enacted to protect investors. These laws ensure that purchasers can learn the true nature of the securities they
buy and provide a way to discover fraud and unfair practices. Included in the definition of securities are
corporate stocks, interests in savings and loans, interests in racehorses or sports teams, and sales of coins. The
Securities and Exchange Commission administers the laws regulating securities sales, brokers, dealers, and
bankers who sell securities.
The Federal Trade Commission was created in 1914 to protect businesses from the wrongful acts of other firms,
especially referring to competitive practices. The Sherman Antitrust Act of 1890 was passed to stop the
formation of monopolies. The Sarbanes-Oxley Act of 2002 contains important rules affecting the reporting and
corporate governance of public companies and their officers.
Source: Brown, G. W. & Sukys, P. A. (2006). Understanding Business and Personal Law. New York, NY:
Glencoe/McGraw-Hill.
Explain the impact of the law of diminishing returns.
The change in total product output that results from hiring one more worker is called the marginal product.
Diminishing returns is experienced when the number of workers being utilized causes output to increase at a
decreasing rate. Utilizing too many workers may actually cause production to decrease.
Source: Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
The way feedback is given often affects the way you accept it. Destructive criticism focuses just on the bad
things and gives the recipient no help. Conversely, constructive criticism is designed to be helpful. It is said
calmly with a focus on the problem, not the person, and suggestions for improvements are given. Anyone who
is new to a job must expect criticism.
One can control his/her reaction to feedback. Maintain a positive attitude and try to avoid getting defensive.
People who respond to negative feedback in a positive way generally impress others. Those who work on
correcting their weaknesses tend to move ahead in their careers. When giving feedback, it is important that
your message be clear and easily understood. Give feedback in a nonthreatening manner, discussing problems
with others one-on-one when possible.
Source: Kelly-Plate, J. & Volz-Patton, R. (1991). Career Skills (2nd ed.). New York, NY: Glencoe/McGrawHill.
Empathy is an understanding of another person’s situation or frame of mind. On the job, you should be
openminded, realizing that many people are under pressure. Treat others considerately, and call on your own
experiences. Before you react to someone, think of the position the other person is in. You may see things
differently, and your reaction may be more effective. Be aware of how you appear to someone else, trying not
to hurt or offend them. Speak carefully, and think about the way others will feel when they hear what you have
to say. Let other people know you are interested in them, smile, and make them feel important. Do not assume
that certain behaviors and views are universal; many people in the world have ideas that are very different from
yours.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Gross Domestic Product (GDP) is the output of goods and services produced by labor and property located
within a country. GDP is one measure of a nation’s productivity, or the output of workers in a given period of
time. GDP is made up of several elements: private investment, government spending, personal spending, net
exports of goods, and change in business inventories. Two types of GDP are nominal GDP and real GDP.
Nominal GDP is stated in the price levels in which the GDP was measured; real GDP is the nominal GDP
adjusted for changes in prices.
Calculate GDP as follows: add private business spending, government spending, and personal spending. Then
either add a trade surplus or subtract a trade deficit, and either add expanding inventories or subtract shrinking
inventories. A similar measure to GDP is Gross National Product. GNP is the total dollar value of goods and
services produced by a nation, including those produced outside of its own territory by its own citizens.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
An information system is a set of procedures and methods that generate, store, analyze, and distribute
information for use in making business decisions. Such systems organize, collect, and store data for current use
or future decisions. Most information systems rely on data about current customers, sales reports, and inventory
levels. Businesses use this information to make decisions about advertising, product planning, and pricing.
Information can be secured through the use of primary data, including company records or government data, or
secondary data, such as customer surveys.
Sources:
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications &
Connections. New York, NY: Glencoe/McGraw-Hill.
There are three main impacts of lingering unemployment on an economy: efficiency, inequality, and
discouraged workers. Unemployment is inefficient in that it wastes human resources. It leads to inequality
because those with the least experience tend to lose their jobs first, which are usually minorities and the young.
Lastly, unemployed people tend to get discouraged about themselves and their abilities, and may give up their
search for work.
Unemployment is an important indicator of the overall strength of an economy. The higher the unemployment
rate, the greater the chances of an economic slowdown. Likewise, the lower the unemployment rate, the greater
the chances of an economic recovery. When more people are working, more people are spending money and
paying taxes to help the economy grow.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Inflation refers to rising prices; it is an indicator of the stability of an economy. A low level of inflation
(between 1 and 5 percent per year) is considered good because it indicates a stable economy. Higher levels of
inflation are harmful to businesses. Rising prices cause consumers to spend less, slowing the overall economy.
Inflation also leads to higher wages. A high level of inflation may cause wages to increase beyond what
businesses can afford to pay, which can lead to layoffs and downsizing. Interest rates rise in periods of
inflation. Rising interest rates mean that borrowing money becomes more expensive. Businesses are, thus, less
likely to borrow money to expand their operations. With inflation, the value of a dollar decreases so businesses
and individuals cannot buy as much with the same dollar as they could before.
Inflation can be helpful to individuals and businesses who are borrowers. Those who borrow at a fixed rate of
interest can repay the debt with dollars that are worth less, which makes their repayments smaller than they
would have been without inflation.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
An insurance policy is a contract between a business or individual and an insurance company to cover risks.
Business risks include economic risks, natural risks, and human risks. Insurance companies estimate the
probability of loss due to risk and determine a rate to charge for the policy, called a premium.
Property insurance is one common type of insurance, which covers loss or damage to buildings and equipment.
Property insurance can be purchased to cover full replacement cost, automatic increase protection, and business
interruption. Liability insurance is a form of insurance that protects against damages for which a business or
individual may be liable, including injury or property damage to others.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Source: Ohio Department of Education. (2008). Marketing Career Field Content Standards Document.
Columbus, OH: Author.
A number of factors affect the business environment, therefore it is important to research the industry and
understand the surrounding economy. Industry trends and patterns of change in areas such as sales growth and
government regulation should be considered. Understanding the competition will help you plan a strategy of
success. Barriers to entry in an industry may exist, such as a dominant competitor, economies of scale, and
customer brand loyalty. Other industry factors include threats from substitute products, supply sources, and
technology.
A critical area to analyze is the demographics of your business environment, including number of companies,
annual revenues, and average number of workers employed. Assessing the competition includes looking at
market share and analyzing the position of your company relative to others in the marketplace.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
A company’s culture affects the way it is organized. A formal culture may include a strict chain of command,
with one person at the top making all decisions. Several levels of management, or bureaucracy, may follow.
Job titles are important as indicators of power and status within a company in a business with a formal culture.
Making changes and passing down decisions in such an organization can be complicated and time consuming.
Other companies have an informal culture, where employees are encouraged to make their own decisions. In
such a company, job titles are not as important as creativity and teamwork.
Source: Brown, B. J. & Clow, J. E. (2006). Introduction to Business. New York, NY: Glencoe/McGraw-Hill.
Describe the use of technology in human resources management.
Technology is used more and more in the area of recruiting and hiring employees. Effective sources for
locating prospective employees now include Internet career services and company websites. Many companies
ask applicants to fill out an application online or at a computer terminal at the company’s location. New
employee orientation also makes use of technology for job training and disseminating company policies.
Payroll functions are automated in many companies.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH:
SouthWestern Cengage Learning.
Negotiation is the process of working with or among the parties in a conflict to find a resolution, and requires a
willingness to work together to achieve a mutually-agreeable solution. No company will completely avoid
conflict in the workplace, so learning and practicing negotiation skills is important. Six effective techniques for
negotiating conflict are:
1) show respect
2) recognize and define the problem
3) seek a variety of possible solutions
4) collaborate, or work together
5) be reliable
6) preserve your relationship
The two most important negotiation skills are speaking and listening.
Each party must first present the problem from their point of view. Use a non-aggressive tone and “I
statements” to make your point, trying not to cast blame. Active listening on your part shows you are interested
in the other person’s ideas and feelings. Try to empathize with the person who is speaking. The problem is
solved only when both/all parties reach a common agreement.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
A consensus is a decision upon which each member of a group agrees. It is a critical component of teamwork
as well as negotiation. To achieve a consensus, it is helpful to allow all members to state their opinions. It will
often require members of the group to be flexible and accept a compromise. Allowing team members to be
involved in setting and achieving the team’s goals is important and often results in increased company loyalty
and a stronger team spirit. Consensus building is also beneficial in that it leads to extra motivation and a sense
of ownership among team members.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Financial information for a business can be recorded, summarized, and reported in a variety of ways. The way
in which information is kept and reported is determined by the size, type, and complexity of a business.
Businesses should also consider the types of decisions that will be made when designing an accounting system.
Types of information to be gathered include purchases, sales, expenses, and payroll. There are two basic types
of accounting methods: cash and accrual. In the cash accounting method, income and expenses are recorded at
the time the money changes hands. The accrual method of accounting records transactions at the time they
occur even if no money changes hands at that time.
Accounting records show changes and the current account balance of each asset, liability, and owners’ equity
account. The recording of debit and credit parts of a transaction is called double-entry accounting. A record
summarizing the information relevant to a single item in the accounting equation is called an account. With
every action, at least two accounts will change. A group of accounts is called a ledger. A form for recording
transactions is called a journal.
Sources:
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH:
South-Western Cengage Learning.
Nature of Accounting. (Marketing and Business LAP 9: Career-Sustaining Level). (1996). Columbus, OH:
Marketing Education Resource Center.
Marketing is the process of planning, pricing, promoting, and distributing ideas, goods, and services to create
exchanges that satisfy customers. The benefits of marketing are numerous. It provides the means for
competition in the marketplace, leading to lower prices and higher quality goods and services. Marketing
generates new and improved products and adds value (or utility) to existing products. The global marketplace
benefits from marketing because of the need to trade with each other.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
The AICPA Code of Professional Conduct outlines a number of rules regarding ethics in accounting. A
company must keep an accurate, honest, and complete record of its accounting transactions. Company audits
should be carried out by an independent party. Confidentiality must be maintained with regard to clients’
personal information as well as company information. Efforts must be made to avoid conflicts of interest
between employees and customers. Ethical accountants exercise due care in the performance of their
professional services. They should also be educated about insider trading as an unethical practice. Accountants
must refrain from misrepresenting the facts to achieve short-term goals that are contrary to a business’ longterm
objectives.
Internal auditors work independently within a business to review and improve the company’s operations. They
use strict standards to ensure the business sticks to its agreements, to design plans to protect assets, and to make
the best use of company resources.
Sources:
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH:
South-Western Cengage Learning.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications &
Connections. New York, NY: Glencoe/McGraw-Hill.
Businesses that maintain databases of personal customer information have a responsibility to keep that
information private. Many companies that collect information about their customers often sell that information
to others. This exchange of customers’ personal information among businesses has led to invasion of privacy
complaints. Many businesses now also offer clients the choice of being added to mailing lists.
Confidentiality must be maintained with regard to employees’ and clients’ personal information. Accountants
must refrain from misrepresenting the facts to achieve short-term goals that are contrary to a business’ longterm
objectives.
Sources:
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH:
South-Western Cengage Learning.
Ethics are guidelines for good behavior, based on knowing the difference between right and wrong. Behaving
ethically means being truthful, fair, open, and mindful of the law. Companies and their executives can now be
held accountable for misinformation or improper recording of a company’s financial situation. A company
must keep an accurate, honest, and complete record of its accounting transactions. Finance professionals should
be educated about insider trading and other unethical practices. They must refrain from misrepresenting the
facts to achieve short-term goals. Confidentiality must be maintained with regard to clients’ personal
information as well as company information. Efforts must also be made to avoid conflicts of interest between
employees and customers.
Sources:
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH:
South-Western Cengage Learning.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications &
Connections. New York, NY: Glencoe/McGraw-Hill.
A budget is a formal, written statement of expected revenue and expenses for a future period of time. To be
effective, a budget should be evaluated periodically with actual income and expenses. Revenues may include
cash sales, collections on accounts receivable, and other income. Expenses include purchases, insurance, taxes,
payroll, and many other things.
As part of budgeting, one should follow the following steps. Set goals and prioritize them. Estimate your
income. Budget for unexpected events, fixed expenses, and for variable expenses. Record what you spend.
Review your spending patterns and revise your goals as needed.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
An ethics policy for employees may discuss working hours, wages and benefits. incentives, flexibility, safety
and health issues, and termination procedures. Ethical operations will maintain fairness and safety for all
employees and customers, be open and up-front about their policies, and handle problems promptly and
equitably. Train your employees in safety and emergency procedures, then reinforce the training with signage
in the workspace. Ethical behavior must be maintained in employee evaluation, as well as when giving
consideration for promotions, transfers, and bonuses.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western
Cengage Learning.
The criteria for selecting and evaluating vendors include production capabilities, past experience, product
quality, the availability of special buying arrangements or services, and pricing. When dealing with a vendor for
the first time, buyers might solicit references to determine the vendor’s reputation. Many businesses maintain
resource files and journals that document past experience with vendors. Such a journal may include an
evaluation of product quality, delivery performance, and customer service. Returns relating to the quality of
products may cause a vendor to be dropped.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Data about customers and their buying habits is kept in a computer program called a database. Data can be
about customers’ contact or other personal information, or it can be about their purchase/account history. This
data can be developed from face-to-face sales, direct mail responses, phone or e-mail purchases, service
requests, website visits, customer comment cards, or they can be purchased from a third party. Database
programs act like filing cabinets that allow you to sort, find, choose, and organize information.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
An environmental scan is an analysis of outside influences that may have an impact on an organization. It is a
methodical look at the world that includes political, economic, socio-cultural, and technological areas. It is
important to understand how each of these areas may be changing in order to determine the potential for
opportunity or threat to a business.
Political factors include the stability of a government and its laws and regulations that affect business.
Economic factors include infrastructure, quality and cost of labor, employee wages and benefits, taxes, the
standard of living, and possibly foreign exchange rates. In international business, socio-cultural factors include
understanding another country’s language, values, traditions, and social/business etiquette. Keeping up to date
with technology and using it properly are other factors of an environmental scan.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Businesses must adhere to health and safety regulations established by the U.S. Department of Labor.
Workplace safety regulations are enforced by the Occupational Safety and Health Administration (OSHA)
through inspections and fines. Employers must maintain health and safety records and provide safety training.
They must stay up-to-date on OSHA standards and resolve violations promptly.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY:
Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Always survey an accident scene before you do anything. Do not make any assumptions. Figure out what has
already happened, and determine what may happen next. If someone is injured, administer first aid and get help
if needed. Do not move a victim who may have a back or neck injury. Clear the victim’s airway and check to
see if he/she is breathing. Check for a pulse or severe bleeding.
In the event of a fire, leave the building immediately using the stairs or a window. If you cannot leave, stay
close to the floor to avoid smoke. Before opening a door, put your hand on it to feel if it is hot. If your clothes
catch fire, stop, drop to the floor, and roll to put the fire out. Do not try to put out the flames yourself.
During an earthquake, stay inside and move to a doorway or under a table. If you are outside, stand out in the
open away from things that may fall. If a tornado threatens, go indoors and stay away from windows. Cover
yourself with a mattress or blanket. If you are outside and cannot get inside, dive into a ditch or other low
ground area and stay down.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
The average American has at least seven jobs before he/she reaches age thirty. People can expect to change
employers several more times before they retire. While some people end up losing their jobs due to
downsizing, everyone is affected by it. If managers are cut, individual workers may acquire more
responsibilities. The skills you will need to manage new responsibilities may require more education. You may
need to update your skills or learn new ones to keep pace with employment trends, as job opportunities shift
from one industry to another. The competitive global market puts added demands on workers, as businesses try
to stay up-to-date with technology and ways of doing business.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
Career progression can be achieved in a number of ways, including simply having seniority. Some skills that
may assist you in furthering your career start with your own knowledge and competence. Also, you should
display a willingness to learn and develop professionally. Display initiative and perseverance. Be cooperative
and adapt to change. Demonstrate decision-making and critical thinking skills in your job duties.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY:
Glencoe/McGraw Hill.
Describe the United States’ judicial system.
The judicial branch of the federal government interprets, applies, and administers the laws of the US. It consists
of a network of courts at all levels of government. Two types of courts are trial and appellate courts. Federal
courts include district courts, federal courts of appeals, and the U.S. Supreme Court. The state court system
also includes a state Supreme Court, associate circuit courts, city or municipal courts, small claims courts,
juvenile courts, and probate courts.
Sources:
Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: South-Western.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA:
Glencoe/McGraw-Hill.