•   Profitability Planning ECO001RE1AE-3002 13.01.2025-14.03.2025  5   (REE4HA1, ...) +-
    Learning objectives
    A student who has completed this course or acquired equivalent competence is familiar with the following activities of the hospitality, restaurant and tourism business:
    - Calculate the key operational indicators of the activity
    - Take into account the factors affecting profitability (pricing, demand analysis, cost structure)
    - Make and interpret profitability calculations of product, customer group and profit center
    - Use the principles of activity-based costing
    - Basics of operational budgeting
    - Utilize Excel spreadsheets in profitability planning
    Starting level and linkage with other courses
    Basics of Financial Management have to be completed before this course.
    Contents
    Key Performance Indicators (KPIs)
    Impact of pricing on demand and profitability
    Product group specific profitability calculation
    Profit unit specific profitability calculations
    Activity-based costing in profitability planning
    Basics of operational budgeting
    Assessment criteria
    Assessment criteria - grade 1
    When the implementation type of the course is CONTACT, ONLINE or BLENDED it is required that the student is present during those teaching hours that are marked in the study schedule. If you are absent more than 25 %, your grade will be lowered by one. If you are absent more than 50 %, the course is failed.

    The student recognizes key elements of performance and is able to draw up a company's profitability plan, he/she is mastered in the basic use of spreadsheets in profitability planning. He/she is able to name the basic factors for the company's financial success.
    Assessment criteria - grade 3
    The student is able to independently prepare the company's basic operational budgets, taking into account the key performance factors, and masters the basic use of spreadsheets in profitability planning. He/she is able to calculate profitability indicators and to analyze the factors that led to the company's financial success by customer groups and operations.
    Assessment criteria - grade 5
    The student is able to independently prepare the company's basic operational budgets, taking into account the key performance factors, and masters the basic use of spreadsheets in profitability planning. He/she is able to calculate profitability indicators and to analyze the factors that led to the company's financial success by customer groups and operations. He/she is also able to develop the business using the contents of this course.
    Teaching methods and instruction

    Teaching is based on contact lessons (starting from calendar week xx): 48 contact hours, 87 hours independent study.

    Learning material and recommended literature

    Schmidgall, R. 2009 (or later). Hospitality Industry Managerial Accounting. Educational Institute of the American Hotel & Motel Association, USA. Chapters: 6-9 and 10
    Other study materials in Moodle

    Working life connections

    Students are encouraged to actively present their own thoughts and knowledge from their working experiences . All the assignments are working life related and based on practical cases.

    Campus

    Haaga Campus

    Exam dates and re-exam possibilities

    Two classroom exams by Excel (max 2 * 30 p = 60 p) and two home-assignments (max 2 * 10 p = 20 p) during the course will include practical cases related to studied topics.

    Teaching language

    English

    Internationality

    International reporting standards of the hospitality industry are applied in assignments.

    Timing

    13.01.2025 - 14.03.2025

    Learning assignments

    Two individual home-assignments will be given during the implementation.

    Enrollment

    02.01.2025 - 10.01.2025

    Content scheduling

    Weeks 1 and 2: Approach to budgeting and forecasting sales, Key Performance Indicators (KPIs) of the hospitality industry
    Weeks 3 and 4: Impact of pricing on demand and profitability and Profitability calculations of profit centers
    Weeks 5 and 6: Profitability calculations of customer segments
    Weeks 7 and 8: Operational budgeting and Variance Analysis

    Groups
    • REE4HA1
    • CONTACT
    • EXCH
    Alternative learning methods

    If you have prior learning of topics studied during this implementation you can demonstrate your competencies: procedure is to be discussed individually, please contact the teacher of this implementation.

    Teachers

    Pekka Heikkilä

    Seats

    15 - 40

    Further information

    Exam and Home assignments 100% (total max 80 p) showing:
    Student´s skills to produce forecasts and use hospitality KPIs (Key Performance Indicators)
    Student´s skills to apply in solving managerial accounting problems,
    Student´s skills to apply operational and cash budgets included in course contents and handle them as management tools

    Evaluation table: S1 = 36 - 43 p / S2 = 44 - 51 p / G3 = 52 - 59 p / G4 = 60 - 67 p / E5 = 68 - 80 p

    Haaga-Helia study attendance rules: When the implementation type of the course is contact, it is required that the student is present during those teaching hours that are marked in the study schedule. If you are absent more than 25 %, your grade will be lowered by one. If you are absent more than 50 %, the course is failed.

    Degree Programme

    EXPER Hospitality and Tourism Experience Management

    R&D proportion

    0.00 cr

    Virtual proportion

    0.00 cr

    Evaluation scale

    H-5