Examination Paper: Hospitality
Management
1
IIBM Institute of Business
Management
IIBM Institute
of Business Management
Examination
Paper MM.100
Hospitality
Management
Section A:
Objective Type (30 marks)
· This section
consists of True and False.
· Answer all the
questions.
· Each question
carries 3 marks.
True and False:
1. ADA stands
for………………………………………………………………………………
2. NOT stands for National
Offices of Tourism.
3. Management contracts have been
responsible for the hotel industry’s rapid boom since the
1960s.
4. High-speed Internet service is
free form of information technology that these businesses can
utilize.
5. One of the most crucial IT
decisions is choosing the right POS system.
6. Forecasting is the prediction
of present outcomes.
7. The top independent restaurant
in terms of sales is the Tavern on the Green in New York
City, which opened in 1976.
8. A fine dining restaurant is
one where a good selection of seat arranged is offered.
9. Terms to understand in B&I
foodservices are contractors, self-operators, & Liaison
personnel.
10. Every manager must function
as a leader, motivating and encouraging employees is called
spokesperson role.
END OF SECTION A
Examination Paper: Hospitality
Management
2
IIBM Institute of Business
Management
Section B: Caselets
(40 marks)
· This section
consists of Caselets.
· Answer all the
questions.
· Each Caselet
carries 20 marks.
· Detailed
information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Airline
Commission Caps
Travel agents have begun legal
action and public campaigns to combat several airlines’ decisions to
lower commissions for writing
tickets, and have warned of higher ticket costs if other airlines follow.
Most U.S. airlines have lowered
the commission rate on tickets for domestic flights to a $20 cap for a
round-trip fare. International
commissions also fell and vary from airline to airline.As consumers
begin to balk at rising prices
and Wall Street presses for continued earnings growth, airlines must cut
costs by turning to their second
largest expense, the $12 billion spent annually for costs such as travel
agent commissions. It has become
clear that airlines can do nothing about fuel prices management has
any power over is the area of
distinction expenses.American Express Corporate Services Agencies,
which books mostly business
travelers, warned that if other airlines follow suit, some travel agencies
will go out of business. That
would send more businesses to airlines’ reservation agents, who do not
offer the lowest available fares
from all carries, or could result in travel agents passing costs along to
consumers.The American Society of
Travel Agents, which represent 24,000 agents, and The
Association of Retail Travel
Agents, a trade group that represents 4,000 travel agents, have
announced they will seek U.S.
congressional approval to allow small, “business-sized” travel agents
to bargain collectively with the
major airlines and to steer customers to “friendly” airlines when
negotiating fails. The
associations believe that the cut in commissions in less than three years is a
slap
in the face.After the
introduction of the initial cap of $25 for one-way domestic tickets and $50 for
round-trip tickets, many agents
complained caps would eliminate jobs and reduce earnings. A class
action lawsuit followed on behalf
of 33,000 travel agents, alleging price fixing. Some travel agents
also steered customers away from
other airlines such as Delta in retaliation.In September 1996,
American, Delta, Northwest, and
United agreed to pay $72 million in cash to settle the lawsuit.
Questions:
1. If you owned a travel agency,
what would your reaction to the reduced commission cap be?
2. What options would you
consider?
Caselet 2
Java Coffee
House
Michelle Wong is manager of the
Java Coffee House at a busy location on Union Street in San
Francisco. Michelle says that
there are several challenges in operating a busy coffeehouse, such as
training staff to handle unusual
circumstances. For example, one guest consumed a cup of coffee and
ate two-thirds of a piece of cake
and then said he didn’t like the cake. Another problem is suppliers
who quote good prices to get her
business and then, two weeks later, raise the price of some of the
items. Michelle says that young
employees she has at the Java Coffee House are her greatest
challenge of all. According to
Michelle, there are four kinds of employees – lazy; good , but not
responsible; those who steal; and
great ones who are no trouble.
Examination Paper: Hospitality
Management
3
IIBM Institute of Business
Management
Questions:
1. What are some suggestions for
training staff to handle unusual circumstances?
2. How do you ensure that
suppliers are delivering the product at the price quote?
END OF SECTION B
Section C:
Applied Theory (30 marks)
· This section
consists of Applied Theory Questions.
· Answer all the
questions.
· Each question
carries 15 marks.
· Detailed
information should form the part of your answer (Word limit 200 to 250 words).
1. Looking to the future, which
is the best organization structure for a theme park? A fifty-room
resort? A mid-priced Italian
restaurant? An economy 100 room hotel? A 3,000-room casino hotel?
2. Depict the main obstacles that
exist when motivating low-level employees, such as the
housekeeping staff of a hotel.
Give specific examples. What is different from this situation versus
motivating professional, such as
the head chef?
END OF SECTION C
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