Give an example of how general economic trends would affect sales, direct-labor,

Question

Give an example of how general economic trends would affect sales, direct-labor, and cash disbursement forecasting in the airline industry.

What data points/information would you seek out if you were responsible for a Bed and Breakfast sales budget as well as market share growth (ie increasing sales), and who or where would you seek out that information.

How could creating a product standard quantity and/or price be motivational or de-motivational to employees? How are comparing standards to actuals beneficial to those planning a budget?

Related to exhibit 11-10 in the book, if your role is Store Manager, what would your communication be to the person in charge of the kitchen ie the person in control of the indirect materials? What would be your goal, and in what ways will you try to motivate them to accomplish that goal?

Explanation / Answer

In any industry, the main goal is to maximize the profit and minimize the waste.in Airline Industry too, we need to understand the whole process which includes lots of different factors which we need to take in consideration while making the decision.

Now here we need to study the economic trends which affect the basic factors like direct-labor, cash disbursement forecasting. consider an example of indigo airlines: now here we need to seek the information which directly effects these factor and then it overall impact the profit of the company.

customer feedback, no of hours labor work (direct labor, indirect labor), monthly consumption of raw material, the basic fare of the different class, no of flight take off, discount period, festival period pay off etc are the basic information we take in consideration while calculating the after affect sales.

As a store manager, we need to check many data points to seek the information, the responsibility which we get is to evaluate the bed and breakfast sales budget. so for that, we check the previous sale budget to get the basic idea of money usage and then we try to forecast the demand of customers.for that we go to finance department of the company, and for forecasting, we go for sales and marketing department.

product standard quantity plays an important role in employees work life, as it provides motivation to achieve a set goal and standard. but sometimes it de-motivate too because always we cant achieve what we set while giving our 100%. comparing standards to actuals is quite useful for planning a budget because by that we understand the terms where we are lacking and we can improve in further times. so by planning this we can minimize the cost and know where to invest the money actually.

as a store manager, we need to communicate on daily basis to every person in charge of the different task, for example in the kitchen we need to understand the whole process of consumption of indirect materials as well as direct material. supervising is the key role because every person knows how to do the task but how to do it effectively in minimum time is what your role to make them understand. motivate them to achieve their small goals first then only go for the big goals, its a step by step process.

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