Individual Case Analysis

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Clearly identify: 1. Case & Hotel & 2. Event Choice 1. Sales Revenues: i. Provide a two-level analysis for the events sales revenues. This analysis includes the calculations of the master budget variance, price variance and sales volume variance. [Provide a copy of your excel results-table in your report.] ii. Identify and explain potential reasons for the sales price and sales volume variance [Level 2 Analysis]. 2. Direct Material Costs: i. Provide a three-level analysis for the direct materials, the main ingredients for the Beverage and Food. This analysis includes the calculations of the master budget, flexible budget, inbetweener, master budget variance, the flexible budget variance, sales volume variance, the direct material price variance and efficiency variance. [Provide a copy of your excel results-table in your report.] ii. Identify and explain quantitative and potential qualitative reasons for the direct material cost variance and efficiency variances (3rd level of the analysis). iii. Reflect on recommendations how to address the variances, identified (2ii) by providing control measures to prevent these variances to occur. You need to discuss all favourable and unfavourable variances. 3. Profitability of Event: Comment on the profitability of the event i. Provide the actual and budgeted gross profit margins as well as the proportion of the Food and beverage percentages of total revenue for the actual and budgeted results. ii. Comment on the change in the profitability of your event and discuss how the variances affected it. 3214THS A2_Individual Case Analysis 4 | 6 P a g e s NOTE: ‼ In Excel, you must indicate whether each of the variances is favourable (in GREEN) or unfavourable (in RED) by using the colour coding. ‼ You must use the format provided in Excel and use formulas to show your workings. If you fail to comply with the instructions, penalties apply. Task 3 (T 3): Strategic Considerations (10 marks -500 words ) Copy the BSC from A1: Group Assignment in the appendix 1. Assess how all variances found in T2 (1ii) & (2ii) support or contradict the strategic objectives2 formulated in your strategic map from the A1: Group Assignment. 2. Discuss the implications from the variances T2 (1ii) & (2ii) for building a beneficial longterm customer relationship.