FINANCIAL DECISION-MAKING IN THE TOURISM AND EVENTS INDUSTRY

SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N325587
Module Leader Edward Thompson
School Glasgow School for Business and Society
Subject Tourism, Events and Sport
Trimester
  • A (September start)

Summary of Content

Success in the tourism and events sector is driven by the ability to manage finance well. This module will introduce students to financial management concepts so that students gain understanding of: the role of finance, investment and funding, viability and growth, and will also be introduced to feasibility studies. The module aims to get the student to analyse the 'why', 'how' and 'what' in financial terms as applied to the tourism and events sectors, whether this concerns private, public and not-for profit organisations. Students will get an opportunity to apply their learning in a simulation exercise specifically designed for the tourism, hospitality and events sectors. This provides a safe active-learning environment where students have an opportunity to not only learn to read financial statements, but also make financial decisions based on a number of macro, mezzo and micro environmental factors, and see how these play out. Summary of how PRME-related issues / topics are covered in this module: This module seeks to explore the notion of financial sustainability in a highly competitive market and trading environment.

Syllabus

Interpretation and analysis of financial statements in regard to the tourism and events industry Understanding and analysis of the business planning and control functions within the sector Evaluation of company performance at divisional/organisational level within profit/not-for-profit organisations Understanding and consideration of the differing sources of finance available to the sector

Learning Outcomes

On successful completion of this module, the student should be able to:1. Appreciate the nature, scope and constraints of the tourism, hospitality and events sectors from a financial perspective;2. Evaluate strategic approaches to the raising of finance to fund the organisation;3. Examine and critically appraise the methods used to evaluate how key investment decisions are made through the planning and feasibility processes;4. Evaluate the financial performance at organisational or divisional level to facilitate improvement planning.

Teaching / Learning Strategy

The module will be taught via a combination of lectures and seminars. Lecture materials will be drawn from both academic and industry publications, will make the use of relevant case studies, and will be supplemented and underpinned by directed reading. Guest speakers will be invited to share their insights and expertise where possible. The simulation exercise provides an experiential yet competitive learning environment where students actively engage in an exercise that allows them to apply their learning, make decisions and witness the effects of their decisions. The simulation serves as the basis for the first assignment where students must reflect on their groups' simulation decisions and results in an individual Report to Shareholders on their Company's performance. Whilst students will be encouraged to use financial language and analytical techniques in seminar activities, the second assignment consists of a group presentation where students have to display critical understanding of investment appraisal techniques. This is akin to a role play: the lecturer will set a case scenario where a business is looking to expand, grow and/or improve. Students are the business consultants contracted to provide recommendations for financing the investment necessary to grow, expand or improve. GSBS will continue to use GCULearn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCU Learn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within three working weeks of submission. Internationalisation: The simulation is set within an international context where students must consider different market characteristics - from buying hotel rooms in certain destinations to consumer segments including originating market. In addition, students will gain understanding of the importance of the macro-environment to influence financial decision making.

Indicative Reading

Books Core texts ARNOLD, G. (2012) Essentials of Corporate Financial Management. (2nd Ed). London: Pearson. ATRILL, P. & McLANEY, E. (2014). Accounting & Finance for Non-Specialists (10th Ed). London: Financial Times/Prentice Hall Further indicative readings CILELLA SALVATORE, G. (2011) Fundraising for Small Museums: In Good Times and Bad. US: AltaMira Press COLTMAN, M. (2012) Hospitality Management Accounting, Van Reinhold? DORNER, J., SEELY, J. & BAUMGERTNER-COHEN, J. (2004) Writing Bids and Funding Applications .Oxford: OUP. DYSON, J, R. (2010) Accounting for Non-Accounting Students, (8th Ed). London: Financial Times/Prentice Hall? HAYES, D.K. & MILLER, A. (2010) Revenue Management for the Hospitality Industry. Oxford: John Wiley & Sons.? INGOLD, A, McMAHON-BEATE, U. & YEOMAN, I. (2001) Yield Management: Strategies for the Service Industries, (2nd Ed). London: Cengage Learning.? JAGELS, M. (2007) Hospitality Management Accounting. London: John Wiley & Sons. LUBY, A. & O'DONOGHUE, D. (2005) Financial Accounting for the Hospitality, Tourism and Retail Sectors. London: Blackhall Publishing Ltd.? WEYGANDT, J. J. (2009) Hospitality Financial. John Wiley & Sons. WHALEY, S. (2007) Fundraising for a Community Project: How to Research Grants and Secure Financing for Local Groups and Projects in the UK. London: How To Books? WOOD, F. & SANGSTER, A. (2015) Business Accounting Volume 1, (12th Ed) London: Financial Times/Prentice Hall Online sources MyAccountingLab (MAL) Journals Annals of Tourism Research Current Issues in Tourism Event Management International Journal of Tourism Research Tourism Economics Tourism Management Finance Journals/Media Ft.com The Economist Eurostat HM Treasury Bloomberg.com

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: -360 Independence Knowledge of Financial issues Ability to reflect/ consider Ethics/awareness Time management Communication Skills in respect of numeracy Commercial awareness Project Management Communication and presentation skills Interactive and group skills Problem solving skills Ability to self appraise and reflect on practice Ability to plan and manage learning Written and spoken communication Self-confidence Ability to work in teams and leadership skills

Module Structure

Activity Total Hours
Independent Learning (FT) 114.00
Seminars (FT) 24.00
Lectures (FT) 12.00
Assessment (FT) 50.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 02 n/a 40.00 35% Group presentation (20 minutes) - week 12
Course Work 01 n/a 60.00 35% Individual Report 3,000 words - week 9