Australian Budget Monitoring and Preparation

Drafting the Blueprint: Budget Preparation Basics

Project 1
STUDENT NAME: KEITH BABYNHEL C MADALANG
BATCH:
TEACHER:

eVersity
Case Study 1: "Coastal Getaway Resort"
Background:
Coastal Getaway Resort is a small to medium-sized enterprise located in a popular beach destination, known for its seasonal peak during the summer months. The
resort has faced challenges in maintaining profitability during the off-season and seeks to make informed investment decisions to enhance year-round appeal.
Financial Scenario:
 Summer Season (Peak): High occupancy rates with increased revenue from room bookings and on-site services.
 Off-Season (Trough): A significant drop in occupancy, necessitating cost-saving measures and alternative revenue streams.
Strategic Goals:
1. To diversify services offered during the off-season to attract guests, such as wellness retreats and corporate events.
2. To invest in marketing campaigns targeting international tourists for off-season travel.
3. To renovate existing facilities to provide an all-weather indoor entertainment area.
Budgeting Challenges:
 Balancing the high operational costs during peak season with the need to minimize expenses during low demand periods.
 Allocating funds for renovations and marketing within the constraints of the seasonal cash flow.
Financial Data for Budgeting Exercise:
 Historical revenue data showing a marked seasonality.
 Expenditure reports indicating the variable costs tied to occupancy rates.
 Quotes for renovation works and marketing campaign proposals.
Performance Objectives for Students:
 Develop a budget that sustains operational costs while allocating funds for strategic investments.
 Justify budget decisions based on the resort's seasonal cash flow and long-term revenue generation plans.

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Case Study 2: "Gastronomy Tours Inc."
Background:
Gastronomy Tours Inc. is a boutique culinary tour operator that has successfully captured the local market and is now planning to expand its offerings to
international food enthusiasts. The company is strategizing on how to scale its operations without compromising the quality of its tours.
Financial Scenario:
 Current Operations: Steady revenue from local tours with manageable operational costs.
 Expansion Phase: Projected increase in revenue with significant upfront costs for market research, hiring guides fluent in multiple languages, and
developing partnerships with international culinary institutes.
Strategic Goals:
1. To establish the brand internationally and attract food tourists from various regions.
2. To develop a range of new tours catering to diverse culinary preferences and dietary requirements.
3. To create a scalable model for hiring and training tour guides.
Budgeting Challenges:
 Investing in international marketing while maintaining the quality and profitability of local tours.
 Ensuring the expanded operations do not lead to unsustainable increases in fixed costs.
Financial Data for Budgeting Exercise:
 Profit and loss statements from the last two years showing a solid local market base.
 Cost estimates for developing new tours, including research, training, and marketing.
 Forecasted revenue growth from international market penetration.
Performance Objectives for Students:
 Construct a budget that supports both the existing operations and the planned expansion.
 Formulate a strategic investment plan with a focus on marketing and operational scalability.

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 PRELIMINARY BUDGET DRAFT

TASK 1

Budget Item Estimated Cost Justification Alignment with Strategic Goals

200,000 To entails assessing and allocating resources based on anticipated This is to optimize income generation by diversifying revenue sources,
Revenue Streams incomesources toensure financialsustainability andmeetorganizational goals. maximizing profitability, and adapting strategies to market dynamics
and customer needs.
70,000 Allocating funds to provide appropriate lodging facilities that meet the needs To guarantee accommodation is to maintain peaceful relations and
- Accommodation of individuals or groups while staying within financial constraints and ensuring mitigate conflicts through compromise and flexibility.
quality standards are upheld.
50,000 To aims to balance cost efficiency with providing nutritious, appealing meals Typically aims to ensure customer satisfaction, optimize operational
- Food Services that meet dietary requirements and customer satisfaction. efficiency, maintain food safety standards, and drive profitability.

- Tours and 25,000 To allocate resources efficiently to provide memorable experiences for This indicates that the event utilized the allocated budget for
customers while ensuring financial viability and a positive return on entertainment.
Activities investment for the organization.
500,000 Ensuring that expenses incurred are necessary, and reasonable, and The alignment of strategic goals of cost involves optimizing
Costs contribute positively to the organization's objectives and financial expenditure while maintaining or enhancing product or service quality
sustainability. to maximize value and profitability for the organization.
100,000 Allocating resources effectively to recruit, retain, and develop talent in This can ensure the right people are in the right positions at the right
- Staffing alignment with organizational needs and objectives. time to meet organizational objectives and foster long-term success.
80,000 This can lie in allocating resources effectively to generate a positive return on This is to effectively promote products or services, build brand
- Marketing investment (ROI) through targeted promotional efforts that drive sales and awareness, and drive customer engagement and loyalty to achieve
enhance brand perception. business growth and competitive advantage.
150,000 To allocate resources efficiently to cover essential services such as electricity, It involves optimizing operations, ensuring regulatory compliance, and
- Utilities water, and heating, balancing cost-effectiveness with operational needs delivering reliable services to meet customer needs while maximizing
efficiency and sustainability.
170,000 To balance the cost of improvements against potential benefits such as To optimize physical spaces to meet current and future needs,
- Renovations increased property value, enhanced functionality, and improved aesthetics. enhance functionality, and align with organizational objectives and
values.
200,000 To ensure that projected income covers expenses and enables the To optimize sales, pricing, and distribution strategies to maximize
Total Revenue organization to achieve its financial goals and sustainability. overall revenue generation and profitability.
500,000 Allocating resources efficiently to support organizational objectives and Aims to optimize expenses across all facets of operations while
Total Costs ensure optimal utilization of funds across all operational areas. maintaining quality and efficiency to maximize overall profitability and
competitiveness.
300,000 This can lie in assessing revenues against expenses to determine the financial To maximize revenue while minimizing expenses to ensure sustainable
Net Profit/Loss viability and sustainability of the organization's operations. financial viability and growth.

This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.

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Note:

Instructions for Students: Fill in each field with the appropriate information. Under 'Estimated Cost', provide a financial figure. 'Justification' should explain why
this cost is necessary. 'Alignment with Strategic Goals' should describe how this cost contributes to the organisation's strategic objective

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 BRIEF REPORT OUTLINE

TASK 2

Section Content Description

Introduction
A budget is a financial plan outlining expected income and expenses over a specific period, typically in a year, serving as a roadmap for
allocating resources efficiently, controlling spending, and achieving financial goals, for businesses.

Methodology The budget is drafted through a collaborative process involving financial experts and department heads, utilizing financial forecasting
models, historical data analysis, market research, and input from stakeholders to estimate revenues, and project expenditures, and
allocate resources effectively, often supported by budgeting spreadsheets.
Budget Overview Revenue streams encompass sales of goods/services, accommodation, food/services, and tours and activities, while costs consist of
expenses such as staffing, marketing/advertising, utilities, and renovation, to maximize revenue while minimizing costs to achieve
profitability and sustain operations effectively.
Strategic Alignment The budget aligns with the organization's strategic goals by allocating resources in accordance with key objectives, such as investing in
research and development to drive innovation, increasing marketing expenditures to expand market reach, and prioritizing training
and development to enhance employee skills, all aimed at advancing long-term growth and competitiveness.
Conclusion The budget outlines anticipated revenues and expenses, detailing resource allocation to support strategic objectives such as
innovation, market expansion, and talent development, serving as a financial roadmap to guide decision-making and ensure resources
are optimally utilized to achieve organizational goals and sustain long-term growth and competitiveness.

Note:

Instructions for Students:Complete each section with details relevant to your budget. This report should complement the Preliminary Budget Draft by providing
narrative context to your financial decisions.

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TASK 3
Case Study Key Financial Challenge
Coastal gateway resorts face
significant financial
challenges due to fluctuating
Coastal Getaway Resort
revenues driven by seasonal
tourism patterns.
Requiring careful budgeting,
cost control measures, and
strategic investment
decisions to ensure
Gastronomy Tours Inc.
sustainable growth without
compromising financial
stability.
This template was provided by eVersity for the purpose of this project. All entries and content are the responsibility of the student.
Note:
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CASE STUDY REVIEW FORMAT
Strategic Goal Addressed
Addresses the strategic goal of
maximizing revenue stability
and operational sustainability
by leveraging additional
income streams throughout
the year.
Increasing market reach and
revenue diversification,
fostering business growth, and
capitalizing on global culinary
tourism trends to enhance
competitiveness and
sustainability.
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Budgetary Response
A strategic budgetary
response aimed at
enhancing guest experience,
attracting visitors year-
round, and sustaining
competitiveness in the
hospitality industry.
Aimed at identifying
customer preferences,
exploring untapped markets,
and innovating tour offerings
to drive growth and
maintain a competitive edge
in theculinary tourism
industry.
Outcome
Reflect successful strategies
in diversifying services,
marketing efforts, and facility
enhancements, contributing
to financial stability and
overall competitiveness in the
tourism market.
Signifies effective strategic
planning and execution,
resulting in increased market
presence, expanded
customer base, and enhanced
revenue streams, positioning
the company for sustained
growth and global recognition
in the culinary tourism sector.
Instructions for Students:Analyse each case study provided and complete the table with insights on how each enterprise addressed their financial challenges
through budgeting.

Guidance:

** Please note that the above templates are examples designed for educational purposes and should be adapted to fit the specific details of your project
assignments and the data you have available. The structure provided will help students follow a systematic approach while also encouraging critical thinking and
analysis related to the project work.

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