Operation Analysis Essay Example | Topics and Well Written Essays - 500 words

Operation Analysis - Essay Example Corporate contract bookings were also increased as a result. The average revenue earned by the Business and corporate segment together amounted to 40% of total revenue in Year 1. The percentage remained constant in year 1, and the same two segments with average revenue earnings of 38% approx. also support the current revenue. The company, however, is striving hard in the marketing department to increase its leisure standard and premium sales that are expected to be increased in July due to holidays and successful marketing campaigns. Total revenues of the company were observed to be lowest in February this year with $0.8 million. This also had a negative impact on cash flows of the company. However, the subsequent increase in advertisement expenditures and holiday’s factor, the revenues were reported in this month to be equal to $1.1 million approx. with a net profit of $0.18 million. Departmental financial analysis revealed that departmental profits of the company had increased over time and this month’s departmental profits were reported to be 62% as compared to 54% last year. The growth in profit percentage was due to the cost control measures adopted in the food and beverages expenses, which successfully resulted in the total expenses to be 68% as compared to 95% in the last year. The room services in which profits net of departmental expense were 45% earned major revenues of the company. Cost control measures were also adopted in the administrative and general expenses, which resulted in a decrease of expenses to 12% as compared to 17% last year. Marketing and sales, however, were increased slightly due to the advertisement campaigns and discounts offered by the company to increase the summer sales packages. Fixed expenses of the company were reported to be performing positively, and the positive decline in total fixed expenses was observed. Fixed expenses this month were 13.4% as against 18.4% reported in