Exam 2 Study guide CHAPTER 5 Independent and Entrepreneurial Operations Independent operations Hospitality industry gives people opportunities due to its low barriers to entry 3 5 million new business start ups in recent years 78 8 of businesses are small enough to have no paid employees 86 7 of small businesses that do not employee anybody are owned by minorities Independent operations are those operations that have one unit and up to a few units that have distinct differences from other units small number of units easy to implement new changes and policies but no backing of a corporate headquarters which can provide advice and financial support Independent operations cannot buy in bulk with distributors so chain organizations can usually offer products cheaper Lack of brand recognition hurts independent operations Entrepreneur someone who is willing to take the risk to start a business manages a business and assumes the risk and rewards of a business Different from a independent operator because they assume risk Angel investor An investor which provides for much needed capital to grow the business think the show shark tank A successful business plan includes the when where why and how of a new company Single unit management In control of one unit of the business opening and closing resupplying staffing They do it all TOP 5 Skills Needed of a Single Unit Manager o organizational skills o interpersonal skills o restaurant experience o knowledge of the business o leadership skills Types of company ownership o Sole Proprietorship lots of risk inexpensive o Limited liability Corporation moderate risk o Corporation limited risk expensive CHAPTER 6 Chain Operations and franchising Brands vs Chains Chain operation business under one management or ownership owned by same company but offer different goods or service but offered in different geographic locations example McDonalds Brand Specific business identity The aim is to convey a personality with the chain BUSINESS MODELS Simple Form Mixed franchise Form Management Franchise Form Brand Management form Advantages Chains provide efficiency through economies of scale streamlined operations enhanced marketing power value added service options access to financers and professional management Disadvantages Operational constraints financial strain legal forces CHAPTER 8 Hospitality Trade Associations and Rating Services Industry Associations professional organizations that assist members by providing opportunities for networking education and training recognition and support within a given industry Associations may be created to meet the needs of individuals businesses and All organizations will have governing documents that include a mission vision board organizations in a certain area of directions and advisors Mission statements act as a guide to steer the organizations activities A vision statement acts as an umbrela to show where the organization sees itself in an industry Joining an association will help you network and meet important people tat could help you in the future Some organizations extend benefits such think AAA Associations in the Food and Lodging Arena National Restaurant Association American Dietetic Association American Culinary Federation American Hotel Lodging Association Association in Travel and Tourism Tourism Industry Association of America World Tourism Organization Travel and Tourism research Association Joining an industry Association can Help develop professional skills Provide networking opportunities Communicate information about trends market forces and legislation affecting industry Rating Systems set standards and criteria and judge hotels and food establishments so a consumer can make an educated decision Triple A AAA is the most widely known Restaurants use diamonds 1 4 4 being highest CHAPTER 12 Human Resource Management Human resource management is the process of how organizations treat their people to accomplish the goals and objectives of the firm Planning Staffing job analysis job specifications job design job simplification job enlargement job enrichment job rotation team building Recruiting candidates and staffing positions with high quality recruits Conducting interviews Training and development is important to get the new employee accustomed the corporate culture and provide them instruction for their position Turnover is a term used when an organization loses an employee and must find a replacement Evaluations are important because they provide management feedback on how well a employee is performing and whether or not they need more training Compensation and benefits Direct compensation Merit pay Bonuses Benefits Creating attractive benefit packages for employees is difficult especially because health insurance is expensive HR is also tasked with keeping with health and safety standards as well as being up to date with employment legislation that may affect the business
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