tailieunhanh - Lecture Hospitality financial management: Chapter 5 - DeFranco, Lattin

The fifth chapter, entitled “Growing the business” discusses the need for growth, shareholder value, benefits of growth and growth strategies. The relationship of risk and reward is also covered in this chapter which is a very extensive topic itself. Risk and reward relationship is explained briefly using hospitality industry related examples. | Chapter 5 Growing the Business Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Need for Growth Shareholder Value Benefits of Growth Growth Strategies Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Need for Growth Essential to a company’s success Private company owners expect profits, cash flow, and ROI to increase Stockholders expect the price of their stock to rise Growth company’s earnings increase at least 15% each year Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Shareholder Value Shareholder Value = Market Value Market Value Public Company Current market price of common stock multiplied by number of shares outstanding Private Company Sale price of the company on the open market Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Public Company Goals Increase earnings per share (EPS) EPS = EBIDTA / Shares of Common Stock Increase the company’s stock multiple Multiple = Current Market Price / EPS Increase the market price of common stock Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Risk and Reward Investors are risk averse The greater the risk, the higher the ROI demanded by investors Beta Market-related risk measurement Market beta = 1 Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Private Company Goals Increase cash flow Generate a favorable return for owners Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Benefits of Growth Clear career paths for employees Attract qualified employees Increase market share Limit new competition Diversify risk Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Growth Strategies Increase sales and Productivity of Existing Properties Increase Profit Margin Increase sales Reduce expenses Increase labor productivity Reduce credit card commissions Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Growth Strategies Expansion of Physical Facilities Focus on current or new . | Chapter 5 Growing the Business Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter Overview Need for Growth Shareholder Value Benefits of Growth Growth Strategies Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Need for Growth Essential to a company’s success Private company owners expect profits, cash flow, and ROI to increase Stockholders expect the price of their stock to rise Growth company’s earnings increase at least 15% each year Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Shareholder Value Shareholder Value = Market Value Market Value Public Company Current market price of common stock multiplied by number of shares outstanding Private Company Sale price of the company on the open market Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Public Company Goals Increase earnings per share (EPS) EPS = EBIDTA / Shares of Common Stock Increase the company’s stock multiple Multiple = Current Market Price / EPS .

• Quản trị kinh doanh
• Financial management
• Hospitality financial management
• Hospitality industry management
• Growing the business
• Growth strategies
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Quản lý tài chính
• Multinational financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point