Australian Budget Monitoring and Preparation

Strategic Allocation: Advanced Budgeting Techniques

Project 2
STUDENT NAME: SHANE JASMINE LOPEZ
BATCH:
TEACHER: MR. JOSEPH DIMAANO

eVersity
Case Study 1: "Seasons of Change: Adapting Budgets in a Coastal Resort"
Background:
The Coastal Haven Resort, a picturesque seaside destination known for its summer peaks and off-season tranquillity, faced the challenge of maintaining
profitability year-round. To address this, the financial team embarked on a budget overhaul, applying advanced budgeting techniques to adapt to seasonal
fluctuations.
Strategy Development:
 Q1-Q2 (High Season): The team projected higher revenue based on historical occupancy rates, allocating increased budgets for marketing campaigns to
maximize occupancy and upsell services.
 Q3 (Shoulder Season): Budgets were adjusted to reflect the reduced foot traffic, shifting focus to maintenance and staff training without compromising
service quality.
 Q4 (Low Season): Introduced innovative budget-friendly packages to attract locals and implemented cost-saving measures.
Budget Adjustments:
 Revenue Diversification: Explored alternative revenue streams like hosting events and partnering with local businesses for exclusive guest experiences.
 Cost Management: Implemented energy-saving initiatives and vendor renegotiations during the low season to manage operational costs.
Outcomes:
 Enhanced revenue stability across seasons, with a 15% year-over-year profit increase.
 Improved staff retention and guest satisfaction scores due to better resource allocation.

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Case Study 2: "Tech-Savvy Dining: Budgeting for Innovation in the Culinary Scene"
Background:
Gastronomy Innovations, a mid-sized restaurant group, sought to revolutionize the dining experience by integrating technology. Their strategy involved budgeting
for tech upgrades and staff training, anticipating a substantial return on investment through increased efficiency and customer engagement.
Strategy Development:
 Tech Integration: Budgeted for the acquisition of a state-of-the-art reservation and table management system to streamline operations.
 Customer Experience: Allocated funds for immersive digital menu experiences and interactive ordering systems at tables.
 Staff Upskilling: Invested in comprehensive training programs to ensure the staff were adept at using new technologies.
Budget Adjustments:
 Marketing Focus: Redirected traditional advertising funds to digital marketing, emphasizing the unique tech-forward dining experience.
 Operational Efficiency: The new tech implementations led to reduced wait times and increased table turnover, positively impacting revenue.
Outcomes:
 A 20% increase in online reservations and a noticeable uptick in positive online reviews.
 Achieved a higher average bill value due to the interactive menu's upselling features.

These case studies are designed to demonstrate the practical application of advanced budgeting techniques, showcasing the importance of flexibility, innovation,
and strategic foresight in financial planning. Students can draw on these examples to understand how dynamic budgeting directly impacts an organization's
success.

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 INITIAL BUDGET REVIEW AND FEEDBACK IMPLEMENTATION TEMPLATE

TASK 1

Budget Item Initial Estimate Feedback Summary Adjusted Estimate Rationale for Adjustment

Revenue Streams

$1,000,000 Adjust projections considering $950,000 Decrease high season

 Accommodation external factors. revenue by 5%, considering
weather.
$500,000 Analyze historical data for $535,000 Increase budget by 7% to
 Food & Beverage menu optimization. promote high-margin items.

$200,000 Explore themed events for $224,000 Increase budget by 12% for
 Events low season attraction. event marketing.

Operating Costs

$300,000 Review staff allocation for $305,000 Minor increase to account for
 Staff Salaries efficiency. inflation.

$100,000 Allocate funds for digital $110,000 Increase budget for digital
 Marketing marketing. marketing strategies.

$50,000 Implement energy-saving $48,000 Slight decrease due to energy-

 Utilities initiatives. saving measures.

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 This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

Note:

This document should be filled out with the specific details pertinent to the context.

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 FINANCIAL FORECASTING AND STRATEGIC ADJUSTMENTS TEMPLATE

TASK 2

Forecasting Element Current Trend Analysis Predicted Changes Impact on Budget Strategy for Adjustment
Stable growth in tourism Anticipated increase in tourist Increase in marketing budget Allocate additional funds for
Market Growth industry. arrivals. to capitalize. targeted marketing
campaigns.
Competitors introducing new Expectation of intensified Allocate budget for Invest in differentiation
Competitor Activity amenities. competition. competitive pricing. strategies to stand out.

Regional economy showing Predicted inflation may impact Allocate buffer funds for Negotiate contracts with
Economic Indicators signs of recovery. operating costs. potential cost rises. vendors for cost stability.

Seasonal Trends Historical data showing Predicted shifts in tourist Adjust budget allocation Invest in diversified offerings to
seasonal revenue patterns. preferences. based on seasonality. attract off-peak season guests.

Customer Feedback Positive feedback on service Anticipated demand for Increase budget for staff Invest in staff training programs
quality. personalized experiences. training. for enhanced guest satisfaction.

Technological Advancement Adoption of new booking Expectation of increased Allocate budget for tech Invest in staff training for
platforms. efficiency with new tech. integration. optimal utilization of new
technology.

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

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 SCENARIO PLANNING AND CONTINGENCY BUDGETING TEMPLATE

TASK 3

Scenario Likelihood Impact Contingency Plan Contingency Budget Allocation

Moderate High Collaborate with local tourism Allocate 10% of marketing
Increase in Tourism boards for marketing. budget for targeted
campaigns
Low Moderate Diversify suppliers and Allocate 5% of operating
Change in Supplier Costs negotiate long-term contracts. budget for supplier flexibility.

High High Stay informed through Allocate 8% of legal budget for

New Regulatory Policies industry associations. compliance adjustments.

Natural Disasters Low High Develop emergency response Allocate 5% of operational

and evacuation plans. budget for disaster readiness.

Shift in Consumer Moderate Moderate Conduct market research to Allocate 5% of marketing budget
Preferences understand preferences. for product diversification.

Economic Recession Low High Implement cost-saving measures Allocate 10% of operating
and promote value. budget for recession-proofing.

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

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 PERFORMANCE METRICS AND EVALUATION FRAMEWORK TEMPLATE

TASK 4

Performance Metric Target Actual Variance Strategic Response

85% 82% -3% Increase targeted marketing
Occupancy Rate efforts during low season.

10% 12% +2% Invest additional funds in

Revenue Growth successful revenue streams.

$10,000 $9,500 -$500 Implement cost-saving measures

Cost Efficiency in non-essential areas.

Guest Satisfaction 90% 92% +2% Recognize and reward staff for
outstanding service.

Employee Turnover 15% 12% -3% Enhance employee benefits to

improve retention.

Marketing ROI 5:1 6:1 +1 Allocate more budget to high-

performing marketing channels

Customer Acquisition Cost $50 $45 -$5 Optimize marketing strategies to

reduce acquisition cost.

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

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Instructions for Students:
 Fill in all sections with data relevant to your assigned or chosen hospitality business.
 Use the feedback summary to adjust initial estimates responsibly.
 Analyse trends and predict changes to input into the financial forecasting section.
 Consider various scenarios that could impact the business and plan contingencies accordingly.
 Establish performance metrics before the project starts and compare them with actual data during the review phase.
 The rationale column should be filled with thoughtful insights explaining why certain adjustments were made.
 All figures should be supported with valid, reliable, and relevant information.

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