Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
I the undersigned Yesha pansuriya a student of B.B.A. sem-4(2019) here by declare that this report is
work presented in this report is my own wok and has been carried out under the supervision and guidance of Mr.
Parag kaneriya of R.P.Bhalodia college Rajkot. This report has been presented to academic propose in the savrastra
university.
Date:-
Name:-
College:-
1
Acknowledgement:-
It may great pleasure to present this product project report before you. I think all who helped me through
out to get the information regarding the project.
For this, I sincerely express my gratitude to the honourable mr. Parag kaneriya for arranging the product
project report.
2
Preface:-
A B.B.A. study is a combination of therical knowledge ad practical studies. It serves the bridge between
the world of education of business of education of business and management and also it working practically.
The practical product project report is an essential creative of business studies by the help of various
surveys students can understand corporate environments and their problems and completities.
3
Sr No. Title Page No.
1. General Information:-
History and development of unit
Size of unit and firm of organization
Service information
Organisation structure
Time keeping system
Employeer service
Contribution of the unit to the industry
2. Service Department:-
3. Marketing Department:-
Introduction
Organisation of marketing department
Product planning
Market segmentation
Pricing policies
Channel of distribution
Sales promotion
Advertising
Marketing research
International marketing
4. Human Resource Department:-
Introduction
Organisation structure
Recruitment , selection and induction process
Training and management development process
Job description
Promotion and transfer policy
Wage and salary administration
ESI scheme
Provident fund scheme
Grievance handling procedure
5. Finance And Accounting Department:-
Introduction
Financial organisation structure
Financial planning
Capitalization and capital structure
Management of fixed assets
Capital budgeting
Review of last capital project, project cost, project
4
financing and implimentation
Management of working capital
Management of inventories
Management of receivable
Management of cost
Profitability and dividend distribution
6. SWOT Analysis:-
7. Conclusion:-
8. Reference:-
5
General
Information:-
Sr. No. title Page no.
1 History and development of unit
2 Size of unit and firm of organisation
3 Service information
4 Organisation structure
5 Time keeping system
6 Employeer service
7 Contribution of the unit to the industry
6
On August 10,2002, Rajkot. Shree Mansukhbhai G. Doshi , Shree Nileshbhai M. Doshi ,and Shree Nilaybhai
M. Doshi with their families are proud to announce the opening of their first hotel “Hotel everstar” with 15 rooms,
at that time they were unknown to hotel industry but as time goes and feel success in very short time. So in 2005
they started construction for another branch and its time for announcing their second hotel in 2007 in Rajkot with 39
rooms and suites they named it as “Hotel evershine”. As always “Ever” group was into the success in 2009 and
they decide to go for more.
February 10, 2012. They are proud to announce the opening of their third venture “The evergrand palace”.
Rajkot, a premier hotel with 63 rooms and suits. “the evergrand palace”. Is termed as business Rajkot’s premier
hotel.
On 18 januray, 2015. They are proud to anounce the opening of their fourth venture “Hotel everland”
Rajkot, a premier hotel with 57 rooms and suits.
7
Name of unit:- Hotel evershine
Unit address:- “Hotel evershine”
Limda chowk,
Rajkot, gujrat.
Year of establishment:- 10 December 2007
Firm of organisation:- Proprietor firm
Name of proprietor:- Mansukhbhai G. Doshi.
Total employee:- 41
Accounting year:- 1st april to 31st march
Working hours:- 9:00 A.M. to 9:00 P.M.
Service hours:- 24 hours
Service:- Restarant and hotel service
Website:- www.hotelevershine.com
Email address:- hotelevershine@yahoo.com
Rooms:- 39
Scale of unit:- Medium scale
Service Information:-
As the restaurant is only for hotel room guests, so the process gets minimize is only three steps. Which is as
under:-
8
Step:- 1
As and when the guest needed something they can call the room service and can give order.
Step:- 2
After giving order on call the things needed to guest is prepared.
Step:- 3
After preparing the order they deliver it to its specific room from where the order is taken and they
assure that they will deliver order within 25 to 30 minuites maximum.
Types of services:-
Basically, Hotel evershine offers various types of service like 3 different classes rooms, restaurant
and in-room dinning. Now in belong description we can see some of overview of all the services.
Hotel evershine brings its award winning hotel experience to Rajkot, Gujarat with Rajkot’s first
environmentally sensitive hotel.
Rooms:-
There are three types of rooms.
1) Semi deluxe
2) Deluxe
3) Executive deluxe
Organisation structure
A structure is then developed to establish how the organisation operates to execute its goals. There
are many types of organisational structures. There’s the more traditional functional structure, the divisional
structure , the matrix structure and the flatarchy structure.
9
Divisional organisational structure:-
Each unit or division dedicated to one product, geographical area, common technology or
customer based.
Here hotel evershine use the functional organisational structure. Which is as under....
Organisation structure:-
General Manager
Deputy General
Manager
10
Sales Deputy Finance HR Assistant
Manager Service
Manager Executive
Manager
Here , the time keeping system is very punctual. Timings are as follows.
11
Employer services:-
Hotel evershine is really careful about their hotel staff. The following service are provided by hotel to
their employs.
o Uniforms and clothes
o Safety equipments
o Food
o Bonus
o Insurance
o Provident fund.
12
Contribution of the unit in the industry:-
A quantitative assessment of the amount that each goods or service sold by a company add to its total
sales number. A sells manager might keep track of change in the contribution per unit of their company’s major
product. Now many unit need to be sold in order to make a profit.
Contribution is crucial one in business. It focus on the returns a business make from each unit of product
sold and whether that return is enough to allow the business to make money overall after taking account of its
fixed cost.
Contribution looks at the profit made on individual products. It is used in calculating how many item
needs to be sold to cover all the business cost.
Total contribution is the difference between total sales and total variable cost.
Out of the entire hotel sector in Rajkot hotel evershine is 3 star hotel so it contribution around 2% of the
hotel industry.
13
Service
Department:-
14
Introduction of service department:-
Introduction of food and beverage service department. Food and beverage service department is one of
the main service oriented and crucial division of the hotel.
It renders the service of prepared food items, beverages and tobacco in a hospitable way to the
customers as per their demand.
Typically, the basic hotel service includes reception, guest room service, food service including
restaurants in the family hotel clients are offered service of child care and game rooms. In the hotel for the
newlyweds there is a special for wedding.
Service is the act of handling a task. It is the intangible good that certain industries provides including
the hotel industry. Hotel service guests and they provide shelter and accommodation. Basic service is level one the
fast food of the hotel business where employees have little interaction with guest.
15
o Semi deluxe:-
Elegantly appointed semi deluxe feature a functional design and a contempory feel with subtle tone of
natural colours. Soft and diserete lighting and a classic decor.
A semi deluxe room is our basic category and offers both twin and king bed options. Modern yet simple
in design a comfort room offers guests winning combination of essential business service and comfort luxury
rooms with well appointed modern amentities. Understanding the business travellers need for workspace, relaxing
lounge chair, comfortable bed, T.V. with DVD player ad smoothing decors creates a perfect abode after busy
working day.
o Deluxe:-
Rooms are very spacious, featuring plush decor with carpet flooring aand tiles finished bathrooms.
The deluxe room guests receive free high speed wifi and access to lounge. An executive area for private
meeting, personalised service and complimentary snacks and beverages. An elegant design infused with warm
ambience, that clubroom is upgraded room option and offers a combination of twin and king bed option .
o Executive deluxe:-
The executive deluxe rooms are designed to give you maximum of facilities and comfortness, ldeally
rooms for business. Travellers who wants extra luxury. A fully functional separate working area.
The executive deluxe room offers grand living experience at a truly spacious room and offers full access
to lounge and free high speed wifi access. The bathroom has a luxury closet a 40” LED T.V. and a working desk.
Sink into the ultra soft duvet and enjoy exclusive DVDs on the large HD TV.
o Restaurant:-
In grand a multi cuisine fine dinning restaurant is regarded as finest ad most elegant of restaurants in
Rajkot. The exhilarating interior and lighting with beautiful courtyard view create a geacious backdrop for
exemplary service and tantasing gourment cuisine, providing you with themost glamorous dining experience.
o In room dinning:-
From the simple to the extravagant in room dinning you world class cuisine in the privacy of your room
or suit all within thirty minutes or less. Experience our refined and personalised dinning experience, 24 hours a
day.
Sometimes the perfect place to go is no place at all than to be in the room. In room dinning service
presents a high quality dinning experience in the comfort of your room . from a menu of 150+ items, we offer
international and Indian cuisines for all meal and snacks. For room guests only served 24*7.
16
Incl. Breakfast
Free wi-fi
Satellite LED T.V.
Daily newspaper
Stocked minibar
Hot & cold water
Elevator facilities
Doctor on call (24*7)
Airport transfers
Travel desk
Currency exchange/ all major cards are accepted
Valet parking.
17
Marketing
Department:-
Sr. no. Title Page no.
1 Introduction
2 Organisation structure of marketing department
3 Product planning
4 Market segmentation
5 Pricing policy
6 Channel of distribution
7 Sales promotion
8 Advertising
9 Marketing research
10 International marketing
18
Introduction:-
“Marketing is the activity, set of institutions and process for creating, communicating, delivering and
exchanging offering that have value for customer clients , partners and society at large.”
Marketing include activities such as public relations, sales promotion, advertising, social media, pricing,
distribution and many other functions.
Organization structure:-
Marketing Manager
19
Sales Manager
Assistant Sales
Manager
Sales
Executive
Sales man
Product planning:-
In the hotel evershine, service planning is done very precise and exact.
Here as restaurant is not open for all customers and it is only available for room guest only, the
service planning of restaurant is very small but exact. The preparation of food/service get started from 6 P.M.
onwards in evening. At morning from 5 A.M. and for noon it starts from 10 A.M.
20
And here room service is available for 24 hours. So guests can give their order at anytime they want.
For room service, firstly the call has been received from guest to give order to room service team.
After taking order from guest they prepare the order and deliver it to the ordered room within maximum 30 minutes
of time.
Market segmentation:-
“Market segmentation is the process of dividing a market of potential customers into groups or
segments, based on different characteristics. The segments created are composed of customers who will respond
similary to marketing strategies and who share traits such as similar interests, needs or locations.”
21
Generally, market segmentation can be done on 7 bases. They are as under:-
Gender
Age group
Income
Place
Occupation
Usage
Life style
In this hotel market segmentation help to identify the purpose of the trip. Either business or leisure
the price does not decide of the market segmentation. By this market segmentation in this hotel clear distinction
must also be achieved between individual and group business.
Pricing policies:-
22
Target pricing policy:-
Target will match the price of a qualifying item, if you find the identical item for less at select online
competitors in local competitor print ads or on target.com within 14 days of purchase. Price matches may be
requested at time of purchase.
Hotel have right to sell room at any rate but hotel evershine has fixed a tariff as per below:-
23
Channel of distribution:-
“ A distribution channel is a chain of business or intermediaries through which is good or service passes
until it reaches the end consumer. It can include wholesalers, retailers, distributors and even internet itself. “
It also has location advantages as hotel evershine, Rajkot is located at limda chowk road in the centre of
Rajkot. It is a short drive from the airport, the railway station and close to all important business districts.
Hotel evershine is located in Rajkot which has a number of attractive tourist destinations that magnetise
large numbers of travellers from all over country. Rajkot holds unlimited opportunities for shopping and you are
sure to leave this city with colourful and happy memories.
24
Adverting :-
“ Advertising is an audio or visual of marketing communication that employees an opening sponsored,
non personal message to promote or sell a product, service of idea.”
Generally hotel evershine marketing department does marketing of the hotel at micro level. Likewise,
in newspaper and sometime in radio and television.
They do marketing also through sources like hoarding, pamphlets, social websites and youtube.
Hotel is also registered with online travel agents like goibibo, make my trip, agoda, booking.com,
cleartrip, yatra and etc.
25
Sales promotion:-
A business use product promotion to convince prospect s to select their goods or service intend of a
competitors brand.
Market scheme:-
Pyramids are illegal and are based on taking advantage of people. For a person to actually make money
in a pyramid scheme. Someone else has to lose money. But in network marketing. Each person can multiply his or
her efforts, skill and talents by helping others be successful.
26
Personal selling:-
Personal selling occurs when a sales representative meets with a potential client for the purpose of
transacting sale. Many sales representatives rely on a sequential sales process that typically includes nine steps.
Some sales representative develop scripts for all or part of the sales process.
Sales promotion:-
Sales promotion is the process of persuading a potential customer to buy the product sales promotion
designed to be used as a short term tactic to boost sales it is rarely suitable as a method of building long term
customer loyalty. Some sales promotion are aimed at cosumers.
“Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution
channel. It is used to introduce new product , clear out invertories, attract traffic and to lift sales temporaries.”
Marketing research:-
“ Marketing research is the function that links the consumer, customer and public to the marketer
through information- information used to identify and define marketing opportunities and problems: generate,
refine and evaluate marketing actions, monitor marketing performance and improve understanding of marketing as
a process.”
According to marketing research team of hotel evershine there are numbes of competitios in the market.
They are as under:-
Imperial palace
Fern residency
Hotel platinum
Hotel grand thakkar
Hotel bizz
Hotel seasons
27
Sarovar portico comfort inn
Current rates prevailing in the market according to the rates of other competitive hotels.
And they take survey feedback through feedback book kept at reception and through talking to
consumers while their checking out.
International marketing:-
International marketing is define as the performance of business activities design to plan, price, promote
and direct the flow of a company’s goods and services to consumers or users in more then nation for a profit. No
matter domestic or national the marketing objective remains the same for marketers.
Here, hotel evershine they have o international marketing.
28
Human resource
department:-
Sr. no Title Page no.
1 Introduction
2 Organisation structure
3 Recruitment, selection and induction process
4 Training and development programme
5 Job description
6 Promotion and transfer policy
7 Wage and salary administration
8 ESI scheme
9 Provident fund scheme
29
10 Grievance handling procedure
Introduction:-
Human resource management also called personnel management consist of all the activities undertaken by
an enterprise to ensure the effective utilization of employees toward the attainment of individual ,group and
organisational goals. An organisation’s HRM’s function focuses o the people side of management. It consists of
practices that help the organisation to deal effiectively with its people during the various phases of the employment
cycle including pre-hire, staffing and post-hire.
30
31
Organisation structure:-
HR
Manager
HR
Executive
HR
Supervisor
Trainee
Employees
32
Recruitment, selection and induction process:-
1) Recruitment:-
“ it is the process of searching prospective employees ad stimulates them to apply for jobs in the
organisation.”
Traditional sources:-
Internal sources:-
Present employees
Retired employees
Department of employees
External sources:-
Employment exchange
Advertisement
Campus recruitment
Professional firms
Casual applicants
Computer database
Trade union
Others
Modern sources:-
Walk in
Consultants
Consult in
Employee leasing firms
Sharing of human resource
Supply firms
E-recruitment:-
In hotel evershine recruitment is done generally with the help of social networking sites. For
example:- online advertisement(e-recruitment)
2) Selection:-
It is the process in which candidates for employment are divided into two classes. Those who are to
be offered employment and those who are not.
Preliminary interview
Application form
33
Test
Interview
Medical examination
Reference cheaking
Final selection
3) Induction:-
It is function where by a new employee made familiar with the job organisation and other employee
with whom he has to work when a new employee is placed on a new job he feels insecure or may
be uncomfortable, therefore induction is necessary to make them feel comfortable in the new
environment.
Step-1
Greeting the new comer cordially explaining the importance of the job in relation to other
job.
Step-2
Displaying a personal interest in the new comer. introducing the new comer to rest of the
work team.
Step-3
Reviewing his terms of employment. Telling the new comer his duties.
Step-4
Giving additional information-selecting a person who can arrest the new comer on the job.
Step-5
Showing the new comer-around following up frequently.
In hotel evershine once the candidate is selected he is gone through the induction process.
He is introduced to each staff members of the hotel. He is shown the whole hotel and service
provided by them..he is made aware by the rules and regulations of the hotel.
34
Training and development programme:-
Training:-
“ it is aprocess of learning a sequence of programmed behaviour. It is an application of knowledge it gives
people and awareness of the rules and regulation to guide their behaviour performing the job and make
improvement in it.”
“it is a related process it covers those activities which improves the performance as well as growth of the
personality to become better excellent employee.”
Methods of training:-
o Coaching
o Job rotation
o Understudy
o Multiple management
o Off the job training
Lecture method
Case study
Role play method
In basket method
Incident method
Simulation
Sensitivity
Conference
Business game
Others
Generally in hotel sector the training is given for food, office handling and house keeping.
In “hotel evershine” on the job training is followed. They provide training to each and every employee working
under them. For the office staff grooming, Personality, communication etc type of training is provided.
Similarly for food and beverages service. they are trained for preparing delicious food innovation in preparing
food, new food items and serving the food, etc.
35
Job description:-
“ A statement containing the details of the job like title, place, job performance, working condition and
responsibilities it includes why and how the work is to be done.”
1. General manager:-
Main client service and overall observation of all the department.
3. Chief manager:-
It under takes the work assigned by the top management and also takes care of the work if it is
done properly or not.
4. Hospitality manager:-
Co-ordination with the main clientes hospitality of clients and other important.
36
Promotion and transfer policy:-
Promotion:-
“ promotion is vertical movement of an employee within the organisation. In other words promotion
refers to the upward movement of an employee. From one job to another nigher one. With increase in
salary, status and responsibilitie.”
“In hotel evershine promotion is given on the basis of the performance of the employee. If the
performance is more beneficial for the hotel. Then he is promoted on the other hand if the performance
of the employee is poor than he is demoted.”
Transfer:-
“A transfer refers to lateral movement of employees. Within the same grade from one job to another.
According to flippo “a transfer is a change in the job of an employee without a change in responsibilities
or remuneration.”
“hotel evershine” has having its many other branches. So transfer of an employee can be possible in any
of branch. Due to this the employee will get a new environment and he will get motivated.”
37
Wage and salary administration:-
“ It refers to the establishment and implementation of some policies and practices of employee.”
“A wage is the remunerations paid for the services of labour in production periodically to an employee or
work. It refers to the hourly or daily rate paid to such grous like production and maintenance employees.”
In hotel evershine they are well aware about the mentality of employee that’s why providing a handsome
amount of salary to their employees wage and salary are paid to all the employees on the 7th of every next month.
If any employee’s service is appreciated by any guest or customer then he is paid with an incentive. It is
also one of the motivating factos of the employee to work with more efficiency and maintain the same.
38
ESI scheme:-
“Employees state insurance is a self-financing social security and health insurance scheme for Indian
workers. ESCI is an autonomous corporation by a statutory creation under ministry of labour and employment
government of India.”
39
Provident fund scheme:-
“Employee provided fund EPF is employee benefit scheme generally prescribed by statutory body of the
government which provides facilities to the employees of an organisation which regard to medical assistance,
retirement, education of children insurance support and housing.”
In hotel evershine the employees contributes 12 % of his/her basic salary and the same amount is
contribution by the employer.
40
Grievance handling procedure:-
Grievance handling procedure are a means of dispute resolution that can be used by a company to
address complaints by employees, suppliers, customers and/ or competitors. A grievance procedure provides a
hierarchical structure for presenting and setting workplace disputes.
Step-1:- oral grievance:-
Employee presents oral grievance to immediate supervisor with in timeframe specified by
company policy.
Step-2:-written grievance:-
The aggrieved can submit the grievance in writing to the department head on a standard
grievance from signed by employee.
41
Finance
department:-
Sr. No. Title Page no.
1 Introduction
2 Organisational structure
3 Financial planning
4 Capitalisation and capital structure
5 Management of fixed assests
- Capital budegetig
- Review of last capital project, project cost,
project financing and emplimentation
6 Management of working capital
- Management of inventories
- Management of receivable
- Management of cost
7 Profitability and dividend distribution
8 Leverage analysis
Introduction:-
42
An accounting department provides accounting service and financial support to the organisation it
belongs to. The department’s accountants review the records of each department to determine the company’s
financial position and any changes required to run the organisation cost effectively.
“ The accounting department is responsible for recording and reporting the cashflow transaction of a
company. Finally, the accounting department must maintain the roper financial controls over every function.”
Account receivable
Account payable
Payroll
Financial control
Financial reporting
All other financial elements.
43
Organisation structure:-
Financial
Manager
Deputy Finance
Manager
Chartered
Accountant
Assistant
Accountant
Employees
44
Financial planning:-
“It is the assessment of financial requirements clear arrangement of various sources of capital so as to
optimise on the cost and increase return to share holder and accommodate all the time caring of the assests.”
“it includes the determination of financial objectives financial policies and procedure.”
Step-3:-financial procedure:-
A finance manager designs the procedure for the implementation of decisions. It includes fund
allocation standard, control system, comparing actual results with the standard, forecasting ratio and
budgetary control etc.
In hotel evershine financial planning is completely done by the top management that is
managing director of the hotel.
Here, the financial planning is done by MD only and on the short term basis so no paper
written paper work is done.
45
Capitalization and capital structure:-
Overcapitalization:-
Whenever the agreement per value of shares and debentures outstanding of company exceed
the true value of its fixed assets the company is said to be over capitalised, when....
Capitalization exceed the real economic value of its net assests.
A fair return is not realising on capitalization.
Business has more net assests then it needs.
Example:- if a business earn rs. 50000 profit in a similar industry normal return rate is
20% so the capitalisation value rs. 250000. If a firm has more than 250000 shares and
debenture then it is called overcapitalisation.
Undercapitalization:-
It means the excess of true value of assets against per value of shares and debentures. It
includes situation of...
Under estimation of future earning.
Sudden increase in earnings regarding letter on development.
When a company earns sufficient income and ability to pay on a fixed intrest and
divided charges.
In hotel evershine total capital investment is rs. 15 crore ad as MD mr. Nilay doshi said that
from that 6 crores were external sources from bank and rest 9 crore was internal sources.
46
Capital structure:-
In finance, particularly corporate finance capital structure is way a corporation finances its assets
through some combination of equity, debt, or hybrid securities.
profits
Year Profits
2014-2015 25413650
2015-2016 28421950
2016-2017 30615820
47
Management of fixed assets:-
capital budgeting:-
it means making capital investment decision in a long term projects. It evalutes profitability of project
and helps in selecting the appropriate projects that gives reasonable return to the investor. The method are:-
1) payback period
=cost of assets / net annual cashflow
Project evaluation:-
It is necessary to determine which project proposal is most profitable by most suitable evaluation
method. There will be two factors need to consider
Payback period
The average rate of return
48
capital budgeting:-
capital budgeting is company’s forms process for evaluating potential expense or invest that are
significant in amount. It involves the decision to invest the current funds for addition , deposition ,
modification or replacement of fixed assets.
49
Management of working capital:-
Working capital:-
It involves deciding the amount and composition of current assets and the manner in which to finance them
gross working capital means total current assets and net working capital.
Management of inventories:-
Management of inventory includes a major investment in current assets it includes various forms.
Raw material:-
An input purchased and stored to be converted into product by pass through certain specific
process.
Work in progress:-
A semi finished products which needs further processing before converting in into finished
product.
Finished good:-
A final product ready for sell in the market.
Management of receivable:-
Receivable of book debt is created by the trade and arises out of credit transaction a firm grants
trade credit to protect its sales from competitors ad to attract potential customers. These receivable
are expected to be collected in the future the customer from when receivables or a book debt have
to be collected in the fund tied up in receivables but also the loss from the accounts that do or pay.
Management of cash:-
Cash is the most liquid assets in any business. It is needs to manage day to day operation of the
business organisation. The cash management includes
Cash flow into out of the firm
Cashflow within the firm
Cash balance help by the firm for investing
Surplus cash at a point of time.
50
Managing cashflow
Optimum cashflow
Investing ideal cash
Cash budget:-
It is a schedule to record cash inflow and outflow over a period of time in order to located timing
and magnitude of cash surplus and cash storage. A planning based upon by adding to the present cash
balance the profit derives from income statement is misleading since items of expenditure involving cash
are not included as expenses in the income statement.
Here in hotel evershine as the most of the transaction takes place through net banking so the cash
flow is of rs. 1 crore during a year.
51
Profitability and dividend distribution:-
Profitability affect the dividend policy for the dividend is a portion of the net income of the company.
Therefore, the dividend will be distributed if the company’s profit. A decent profit and will be distributed to
the share holders is profit after the compay meet its fixed abligations i.e. interest and texes.
profit
years profit
2014-15 2396484
2015-16 2739370
2016-17 4010458
52
Leverage:-
It is the ability of firm to use fixed cost assets or fund to magnify the return to its owners leverage is
meeting as fixed cost or paying fixed return for employing assets or fund.
Operating leverage:-
= contribution / EBIT
If the value of operating leverage equal to 1 then there is o operating leverage. The value of DOL
must be greater than 1.
Financial leverage:-
it indicates firms ability to use fixed financial charges to magnify the effect of changes in EBIT
on the firm EPS. It indicates the extent to which the earning per share will be affected with the
earning per share will affect with change in earnings before interest and tax.
=EBIT /EBIT-interest
It implies the use of an external device or external finance to the firm for which the company pays
a fixed cost. The higher the degree of financial leverage the higher the degree of financial leverage
the higher the financial risk. It should be greater than 1. It is also called as trading on equity
Combined leverage:-
=operating leverage*financial leverage
53
A. Operating leverage:-
= Contribution
EBIT
2014-2015:-
Sales/income = 12346598
Variablecost = 264260
Contribution= 12082338
Fixed cost = 4561335
EBIT = 7521003
Operating leverage=1.61
2015-2016:-
Sales/income= 13547782
Veriable cost= 577498
Contribution= 12970284
Fixed cost = 4411355
EBIT = 8558929
Operating leverage=1.52
2016-2017:-
Sales/ income= 15703115
Variable cost= 567490
Contribution= 15135625
Fixed cost = 4962880
EBIT = 10172745
Operating leverage=1.49
B. Financial leverage:--
= EBIT
EBT
54
2014-2015:-
EBIT =7521003
Interest= 320589
EBT =7200414
Financial leverage=1.04
2015-2016:-
EBIT =8558929
Interest = 484078
EBT =8074845
Financial leverage=1.06
2016-2017:-
EBIT =10172745
Interest= 603920
EBT = 9568825
Financial leverage=1.06
C. Combination leverage:-
2014-2015:-
1.61*1.04 = 1.67
2015-2016:-
1.52*1.06 = 1.61
2016-2017:-
1.49*1.06 = 1.58
55
SWOT
analysis:-
56
Strength:-
i. It has eco- friendly hotel in Rajkot.
ii. Quality of rooms are good.
iii. There are clear policies and procedure.
iv. There are luxuries rooms and restaurants.
v. Pure vegetarian hotel.
vi. Alcohol is strictly prohibited.
vii. Unmarried couple are not allowed.
Weakness:-
i. Main road is too busy due to heavy traffic.
ii. Four hotel are in single line so more competition.
iii. No shopping are near by.
Opportunities:-
i. Growing business in state and city.
ii. Restaurant should be advertised differently because Rajkot are highly habituated of having
lunch and dinner outsides.
iii. Attracting corporate companies in their target.
iv. There are lots of regional offices situated in Rajkot so they get more business.
Therates:-
i. There are already established hotel in Rajkot like Imperial palace, TGB, Sarovar potico etc.
Are its cut throat competation.
57
Suggestions:-
58
Learning:-
This report learn to practical knowledge about the business. how business run that learn from report theory
knowledge is also important but practical knowledge is also important this report learn how you face future
problem and how to solve them and also learn that how business run actually. This experience is useful in our
future carrier. We have to knowledge about how business can make profit hoe to you identify the future needs of
customers and satisfy them. It is wonderful experience.
59
Conclusion:-
As by studing all the department by visiting personally to it. I have reach to conclusion that the hotel
evershine is very accurate and best customer chosen hotel as it has most effective and efficient management system
and this is the main reason behind its department.
From the study of this report , it is very clear that hotel evershine is quickly climbing up the ladder of
success.
60
Reference:-
61