Case Study: Horizontal and Vertical

This assignment asks you to complete a Horizontal analysis based on restaurant market share over the past year, and to complete a Vertical analysis for a Country Club working to improve its business mix and improve overall profitability.

HOSP 4055 Hospitality Operations Analysis
Week 13 Case Study: Horizontal and Vertical Analysis
Background:
Different types of analysis are applied to different data, based on the goal of the
analysis. The two primary types of analysis are Horizontal or Logitudinal and Vertical.
Horizontal analysis is performed when you want to examine trends over time for the
same data. This can be applied to virtually any set of data, including income statements
and balance sheets.
Vertical analysis is focused on analyzing the relationships between data as of a specific
period. This is most often applied to income statements, but can also be applied to
balance sheets and statements of cash flow. It is very useful for determining things like
cover capture in a hotel (the number of covers served at each meal period per occupied
room), or revenue and cost relationships.
There is really no right or wrong anwer on which type to use. The question is always,
“what will create the most useful and actionable information”?
Assignment:
In this assignment, you are given separate sets of data. In one, you will perform a
horizontal analysis. In the second, you will perform a vertical analysis.
The horizontal analysis is for market share data for a restaurant over time. You need to
create an appropriate visual representation (chart) for the data, and then copy/paste
that chart into a Word document. In the word document, you will explain to senior
management what this data represents and develop a SMART goal to improve that
metric which will most impact profitability.
The vertical analysis is for a Country Club. The Board of the country club has asked for
an analysis of the total spend per golf round for each of the ancillary services. Further,
they have asked for analysis of profitability of each of these services on a per round
basis.
On the same document, start a new page and format your response to the Board of the
club. Copy/Paste the appropriate information from the template into your document,
and then based on that data, develop a SMART goal designed to change the business
mix to drive maximum club profitability.
All work will be done in the Excel template provided.
Your SMART goal must be based on the metrics you have analyzed in Excel.
The M must be a number. Where are you now, what is the numerical goal.
The T must be a calendar month end date.
Submit:
The completed Excel template using the naming convention
“firstnamelastnameforecast.xlsx”. For example, “johnsmithforecast.xlsx”
Submit your completed Word document which contains both memos using the same
naming convention as above.
This assignment is worth 100 points.
HOSP 4055 Operations Analysis
Week 13: Vertical and Horizontal Analysis S24
The following information is related to the market share index metrics for a restaurant.
Prepare a data visulization (chart) that presents this data.
Covers per Available Seat
Average Check
Revenue per Available Seat
Jan
101.6%
99.3%
100.9%
Feb
103.1%
98.1%
101.1%
Mar
104.6%
96.9%
101.4%
Apr
106.1%
95.7%
101.5%
May
107.6%
94.5%
101.7%
Required:
Create an appropriate chart of the data above. Make certain your axis are formatted correctly.
Jun
109.1%
93.3%
101.8%
Jul
110.6%
92.1%
101.9%
Aug
112.1%
90.9%
101.9%
Sep
110.6%
92.1%
101.9%
Oct
109.1%
93.3%
101.8%
Nov
107.6%
94.5%
101.7%
Dec
106.1%
95.7%
101.5%
HOSP 4055 Operations Analysis
Week 13: Vertical and Horizontal Analysis S24
The following data is from a Country Club. The management has asked for an analysis of revenue relationships and
The object is to determine the “total spend” per golf round for all other Club services, and to analyize the profitabi
Based on this analysis, you will recommend to the Board of the club which areas they need to focus on to drive ma
Item
20X4
Golf Rounds
Golf Revenue
Cart Rental
On Course Beveragge Sales
Pro Shop
F&B Revenue
Spa Revenue
Total Revenue
Departmental Expenses
Golf Expenses
Cart Expenses
On Course Beverage Expense
Pro Shop Expense
F&B Expense
Spa Expense
Total Departmental Expense
Departmental Profit
Golf Profit
Cart Profit
On Course Beverage Profit
Pro Shop Profit
F&B Profit
Spa Profit
Total Departmental Profit
Revenue Per
Round
12,000
$
816,000
$
270,000
$
30,000
$
59,400
$
222,000
$
60,000
$ 1,457,400
Percentage
of related
Revenue
$
$
$
$
$
$
$
81,600
67,500
10,500
47,520
188,700
36,000
431,820
Profit per
Round
venue relationships and the profitability of the various departments from last year actual.
o analyize the profitability of each component to get to a “net profit per golf round”.