. Which one is a “Chain” that is a member of a Larger Parent Company? A) Accor

CHIA PRACITES EXSAM

1. Most of the entities below are classified as “Parent Companies”. Which one is a “Chain” that is a member of a Larger Parent Company?

A) Accor

B) Holiday Inn

C) Choice

D) Starwood

2. Which one of the following statements about management companies is accurate?

A) Parent companies will always use a management company to manage their corporate owned hotels.

B) A management company can only manage hotels for a single chain.

C) A management company and an asset management company provide the same service.

D) A management company has a contract where it receives payment and/or some portion of profits.

3. Which one of the following statements regarding the Scale and Class categories is accurate?

A) STAR Reports compare the subject hotel to the competitive set, not to Scale or Class groups.

B) The Class category is used to combine independent hotels with chain hotels at similar ADR levels.

C) There are 6 Scale groups and 7 Class groups.

D) The Class category is most popular in the US and the Scale category is most popular outside the US.

4. Which one of the following statements regarding Scale and Class groups and a single chain is accurate?

A) It is possible for the Holiday Inn Chain to switch from one Scale group to another in the middle of the year if their average ADR changes dramatically.

B) A holiday Inn hotel in the US can be one Scale group and a Holiday Inn hotel in Germany can be in a different Scale group

C) A holiday Inn hotel in the US can be one Class group and a Holiday Inn hotel in Germany can be in a different Class group

D) A Holiday Inn Hotel will always be in the same Scale and Class groups in every country throughout the world.

5. Which one of the following is a non-geographic category used by the hotel industry?

A) Extended Stay

B) Location

C) Scale

D) All of the above categories are used

6. Which one of the following is NOT a good reason for a hotel to have an additional competitive set?

A) The hotel has one set that it can easily beat and another that is a realistic target.

B) A hotel is located between two cities so they have one competitive set related to one city and another related to the second city.

C) The hotel has a local competitive set based upon geography and another based upon a special feature or niche, i.e. waterpark, boutique, or conference.

D) The hotel has different sets for weekday/Weekend or group. Transient mix

7.

8. Compare

9. Which one of the following statements regarding the importance of the RevPAR metric is NOT accurate?

A) RevPAR is important since it is a combination of Occupancy and ADR.

B) REvPAR is calculated by dividing Room Revenue by Demand.

C) If a hotel has a very high Occupancy with a low ADR or a very high ADR with a low occupancy, the RevPAR would not reflect that unusual situation.

D) A general manager of a hotel might receive a bonus related to the RevPAR metric.

10. Which one of the following is NOT an accurate statement related to Full Availability?

A) The Full Availability methodologies are in place to ensure the most accurate and consistent comparisons possible.

B) When a hotel reports a Supply number it should be the number of rooms in the hotel times the number of days in the time period, e.g..: month.

C) If a hotel converts a guest room to another function, for example a meeting room, it cannot change their number of rooms until January of the next year.

D) When competitive set numbers are calculated, the methodologies assume full availability.

11. Which one of the following is an accurate statement regarding the methodology used to calculate KPIs for multiple time periods?

A) KPIs for multiple time periods are derived by aggregating the raw data for each time period then applying the KPI formulas to the aggregated raw data.

B) Companies can decide on which methodology to use.

C) KPIs for multiple time periods are derived by calculating the KPI for each individual time period, then adding up the KPIs and dividing by the number of time periods to obtain an average KPI.

D) The methodology differs when it comes to monthly and daily data.

12. If your hotels has an Occupancy Percent Change of 10% and an ADR Percent Change of -10%, the REvPAR Percent Change will be:

A) Close to 20

B) Close to 0

C) Close to -20

D) There is no way to tell.

13. On the last week during a month, you check the MTD number for your competitive set on your weekly STAR report. Weeks later when the Monthly STAR Report arrives, you notice that the number is different than what you expected. Which one of the following is NOT a possible explanation for the change?

A) The hotel may specify one competitive set for their Weekly STAR Report and a different competitive set for their Monthly STAR Report.

B) The daily data for one or more of the hotels in the comp set may not add up to the monthly data. Sometimes the daily data for a hotel may not add up to the monthly data to things like adjustments.

C) One or more of the hotels in your competitive set may have submitted a revision to their daily data between the time of your last Weekly report and the Monthly report.

D) The subject hotel may have one or more hotels in their comp set that reports monthly data, but does not reports daily data.

14. Which one of the following is NOT an accurate statement regarding comparable time periods?

A) Weekend days in a month this year are compared to weekend days in the same month last year regardless of the dates.

B) Monthly numbers this year are compared to the same month last year.

C) The months included in the Year-to –Date data this year are compared to the same months included in the Year-to-Date period last year.

D) With daily data, the date this year is always compared to the same date last year.

Use the spreadsheet below to answer question 15-16.

  A B C D E F G
1 2013 Supply Demand Revenue Occupancy ADR RevPAR
2 Jan 6200 3875 697500      
3 Feb 5600 3360 590016      
4 Mar 6200 4030 719758      
5 April 6000 3804 698034      

 

15. The occupancy for February (E3) is _______.

A) 50%

B) 55%

C) 60%

D) 65%

16. The ADR for March (F4) is ______.

A) $173.21

B) 175.30

C) $178.60

D) $183.50

 

Use the spread sheet below to answer questions 17-18,

  A B C D E F G
1 2013 Supply Demand Revenue Occupancy ADR RevPAR
2 Jan 6200 3875 697500      
3 Feb 5600 3360 590016      
4 Mar 6200 4030 719758      
5 Mar YTD            

 

17. The March YTD Occupancy (E5) is_______.

A) 60%

B) 62.6%

C) 72.5%

D) 75%

18. The March YTD RevPAR (G5) is_______.

A) $111.52

B) $137.17

C) $148.50

D) $155.48

Use the spreadsheet below to answer question 19-20

  A B C D E F G
1 2013 Occupancy

This Year

ADR

This Year

Occupancy

Last Year

ADR

Last Year

Occupancy

% Change

ADR

% Change

2 Jan 60.5 $175.52 60.0 $172.70    
3 Feb 62.7 $170.10 61.2 $168.44    
4 Mar 63.4 $176.80 64.5 $177.30    
5 April 63.8 $180.63 62.7 $179.83    

 

19. The ADR percent change for January (G2) is _____.

A) 0.0% 0,6 5 8

B) 1.0%

C) 1.6%

D) 2.5%

20. The occupancy percent change for March (F4) _______

A) 1.7%

B) 1.1%

C) -1.1%

D) -1.7%

 

Use the table to answer the questions below.

  A   B C D E F G
1                
2                
3                
4                
5                
6                

 

21. The competitive set Occupancy for April is______

A) 54.97%

B) 63.7%

C) 61.9%

D) 72.7%

22. The competitive set RevPAR (G6) for Apr is________.

A) $100.93

B) 61.7%

C) 61.9%

D) 72.7%

 

  A   B C D E F G
1 2013   Occupancy index this year ADR index this year Occupancy index last year ADR index last year Occupancy index change % ADR index change %
2 Jan   102,4 98,4 101,7 101,3    
3 Feb   101,8 99,7 105,6 99,9    
4 Mar   103,6 97,3 103,9 96,4    
5 April   100,2 96,6 98,4 103,7    
6                

 

 

 

23. The occupancy Index % change for February (F3) is_______.

A) 3.8%

B) 3.6%

C) -3.6%

D) -3.8%

24. The ADR Index % change for April (G5) is _________?

A) -5.3%

B) -6.6%

C) -6.8%

D) -7.1%

25. Which one of the following statements regarding Index numbers and Index Percent Changes is true?

A) Index Percent Change numbers are derived using the Index number this year, the Index number last year and the standard PERCENT Change formula.

B) The STAR Reports will show index number for occupancy, ADR, and RevPAR, comparing your performance to the performance of the competitive set.

C) The Index Percent Change number are important since they show relative improvement of the subject compared to the competitive set.

D) All of the above statements are true.

26. Which of the following statement is accurate regarding sufficiency as it relates to competitive set data.

A) If you have five hotels in your compititeve set and only for reported for a month the monthly compititve set number would not be sufficient.

B) When it comes to apercent change number for a single month one of the current month number ethier the (this year) or the (last year) number must be sufficient.

C) The sufficinenty rules are implaies to protect the confidentiality of the data.

D) If the competitive set number for a single month is not sufficient it will still be displayed on the start report.

 

 

27. Suppose you are looking at the Number of Rooms Available for a market at the beginning of a time period and compare that to the Number of Rooms Available for the market at the end of a time period. Which of the following would NOT factor into the supply difference between the starting date and the ending date?

A) Hotels that closed within the market.

B) Room addition or room drops to hotels within the market.

C) Hotels that converted from one chain to another chain within the market.

D) New hotels that opened within the market.

28. Which one of the following is not an accurate statement regarding the STAR reports?

A) STAR reports display the following types of data: KPIs (Occupancy, ADR, and RevPAR), Percent Changes, Index numbers, and Profit and Loss numbers.

B) The STAR Report compares the subject hotel to the competitive set and one or more industry segments.

C) STAR reports will contain additional pages if the subject hotel has more than one competitive set, submits Segmentation (Group, Contract, Transient) data, or submits Additional Revenue data.

D) STAR Reports are generated on a monthly and weekly basis.

29. Which one of the following is an accurate statement regarding Segmentation and Additional Revenue data on the STAR Reports?

A) Group Rooms and Revenue are defined as business sold in blocks of 25 rooms or more.

B) The most common example of Contract Rooms and Revenue is airline crew business.

C) The majority of Economy and Midscale chain hotels submit Segmentation and/or Additional Revenue data.

D) Additional Revenue categories include “Telecommunications” and “Rentals” in addition to Room Revenue.

 

Use the sample “At a Glance” page from your Monthly STAR Report to answer the questions that follows.

August 2013
    Occupancy % ADR   RevPAR
    My Prop Comp set Index

(MPI)

  My

Prop

Comp

set

Index

(ARI)

  My

Prop

Comp

set

Index

(RGI)

                         
Current

Month

  73.7 66.2 111.4   100.55 124.93 80.5   74.08 82.65 89. 6
                         
Year To

Date

  78.9 79.6 99.1   140.33 176.49 79.5   110.70 140.45 78.8
                         
Running 3 Month   74.1 73.6 100.7   104.40 131.95 79.1   77.38 97.09 79.7
                         
Running 12 Month   72.3 74.1 97.5   136.30 171.34 79.6   98.51 127.04 77.5

 

30. Based on the information above, which one of the following statements regarding the performance of your hotel is accurate?

A) Your Occupancy Index has surpassed 100 during two of the four different time periods.

B) Your REvPAR index has remained in the 70s for all four of the different time periods.

C) Your ADR index has varied dramatically during the four different time periods.

D) Your Current Month ADR was almost exactly the same as the Competitive Set’s ADR.

31. Which one of the following questions can be answered by checking the Response tab of the STAR Report?

A) Hotels in your competitive set that recently completed a renovation?

B) Have new hotels opened in your market?

C) Were there hotels in your competitive set that did not submit monthly data?

D) Were there any hotels in your competitive set that had a change in ownership?

32. You take over a Manger of a hotel where your YTD occupancy index is 105 and your YTD ADR index is 105 you star to analize the performance of your hotel. What would not be part of your plan?

A) Compare the compitive set data to the industry data and check to be sure that your comietive set is an accurate comparable group.

B) Take a look at the day of week data to see if there are specific days where there are opproutintes for improvement

C) See if segmntation data is available to see how your group and transient numbers compare

D) All of the above would be important to analayze

 

Three months ago, you took over as the General Manger for a hotel whose performance has been struggling. Use the sample excerpt from the “Competitive set” Page of your Monthly STAR Report to answer questions 33-35.

 

Occupancy (%) Year To date
  Apr May Jun Jul Aug 2011 2012 2013
My property 78.9 70.2 67.4 81.1 73.7 68.7 70.9 78.9
Competitive Set 83.1 71.3 74.5 80.1 66.2 69.6 73.6 79.6
Index(MPI) 94.9 98.4 90.4 101.2 111.4 98.7 96.4 99.1
Rank 4 of 6 4 of 6 5 of 6 4 of 6 3 of 6 3 0f 6 4 of 6 5 of 6
%Chg                
My property 4.3 2.1 19.0 9.0 21.0 -1.2 3.2 11.2
Competitive Set -0.7 1.4 8.8 11.2 12.6 6.2 5.7 8.2
Index (MPI) 5.1 0.7 9.4 -2.0 7.4 -7.0 -2.3 2.8
Rank 2 of 6 4 of 6 2 0f 6 4 of 6 2 of 6 5 of 6 5 of 6 2 of 6

 

33. Based upon the graph above, which of the following statements best describes the historic performance of your hotel during the prior 18 months?

A) Your occupancy, ADR, and RevPAR have always been below the competitive set average.

B) Your occupancy has generally been above the competitive set average .However, your ADR and therefore your RevPAR is just slightly below the competitive set average.

C) Both your occupancy and your ADR have generally been below the competitive set average; however there are months where both the occupancy and the ADR have surpassed the competitive set average.

D) Although your occupancy has generally been below the competitive set average, there have been months where the occupancy surpassed the competitive set. However, your ADR and therefore your RevPAR has consistently been well below the competitive set average.

 

34. Based on the graph above, which of the following statements best describes the results from the strategy that you have implemented over the last three months?

A) Focus on Occupancy. Try to increase Occupancy significantly and that will have a positive effect on RevPAR. Keep ADR consistent, but do not let it drop .Later, you can increase ADR.

B) Lower ADR significantly and try to increase Occupancy. Then later you can increase rates.

C) Focus on ADR. Increase rate significantly and therefore increase REvPAR. Later you can increase Occupancy.

D) Focus on Occupancy and ADR simultaneously. Try to increase both significantly at the same time.

35. Based upon the table above, which one of the following statements regarding the performance of your hotel is accurate?

A) Your hotel has achieved a positive Occupancy Index Percent Change for the last three months.

B) In August, your hotel had the lowest Occupancy Index number over the last 18 months.

C) Your hotel had a higher Occupancy Percent Change number than your Competitive Set four of the last five months.

D) In August, your hotel had the 2nd highest Occupancy value and the 3rd highest Occupancy Percent Change.

 

Use the sample “Day of Week and Weekday/Weekend Report” page from your Monthly STAR Report to answer the following question.

 

  Average Daily Rate
  My property Competitive set Index (ARI)
   
Weekday/Weekend  
Weekday Current Month 99.06 -2.8 123.59 -2.0 80.2 -0.7
(Sun-Thu) Year to date 138.63 5.5 174.56 -3.1 79.4 8.9
  Running 3 Month 102.85 1.1 130.05 -2.3 79.1 3.5
  Running 12 Month 134.29 8.7 169.41 -2.9 79.3 11.9
 
Weekend

(Fri-sat)

Current Month 103.18 1.7 127.64 -1.7 80.8 3.4
  Year to Date 143.73 12.2 180.81 1.9 79.5 10.1
  Running 3 Months

 

107.16 2.2 135.78 0.5 78.9 1.7
  Running 12 Months 140.00 12.7 175.40 2.2 79.8 10.3
 
Total Current Month 100.55 -1.2 124.93 -1.9 80.5 0.7
  Year To Date 140.33 7.7 176.49 -1.6 79.5 9.5
  Running 3 Month 104.40 1.5 131.95 -1.4 79.1 2.9
  Running 12 Month 136.30 10.1 171.34 -1.3 79.6 11.5

 

 

36. Based on the information provided above, which one of the following is an accurate statement?

A) The Weekend ADR Percent Changes for your hotel are consistently higher than your competitive set.

B) For the total week, the current month and Running 3-month ADR values for both your hotel and the competitive set are greater than the YTD and Running 12-month ADRs.

C) The Weekday ADRs for both your hotel and the competitive set are consistently above the Weekend ADRs for all time periods.

D) Weekday ADRs this year for the competitive set are increasing in all four time periods compared to last year.

 

 

table

37. Based on the information provided above, which one of the following is an accurate statement regarding August Segmentation Occupancy performance

A) Your Transient Occupancy decreased significantly this year over last year.

B) Your hotel’s Transient and Contract Occupancy were lower than the competitive set average.

C) Your Group Occupancy decreased significantly this year over last year.

D) Your Contract Occupancy Percent Change was lower than the competitive sets.

38. Based on the information provided above, which one of the following is an accurate statement regarding August ADR performance?

A) The Contract ADR Percent Changes for your hotel and for the competitive set were very similar.

B) Your Contract ADR was lower than the competitive set average.

C) The Transient and Group ADR Percent Changes for your hotel and for the competitive set were all negative.

D) Your hotel’s Transient ADR is significantly higher than the competitive set average.

39. Which one of the following is an accurate statement regarding the Weekly STAR Reports?

A) If a hotel has additional competitive set or submits Segmentation (Group/Transient) data, the Weekly STAR report will not include additional pages.

B) Weekly STAR Reports include Year –to-Date data.

C) Weekly “Perspective” pages display 28 days of daily data and graph 4 weeks of weekly data.

D) There are separate Weekly Perspective pages for Occupancy, ADR, and RevPAR.

 

 

 

 

 

 

 

 

 

 

  Sunday Monday Friday Saturday Total
  %Chg %Chg %Chg %Chg %Chg
Occupancy My property 45.2% -4.2 29.9% -15.6 21.6% -7.2 24.4% -19.6 23.5 16.9
  Comp Set 42.3% 5.7 54.5% 55.3 62.8% 16.8 64.0% 25.9 49.9 33.5
  Index(MPI) 106.0 -9.4 54.8% -46.3 34.6% -20.5 37.6% -36.1 47.0 -37.9
ADR My property 67.65 -2.6 103.66% -5.6 73.36% 2.9 70.21 1.4 84.54 -0.2
  Comp set 85.86 -3.6 94.49% -20,7 86.66 -0.4 79.57 6 or8.4 64.71 -9.0
  Index (ARI) 102.1 1.1 109.9 19.1 84.4 3.3 66.2 8.3 99.9 9.7
RevPAR My property 39.61 -6.8 31.03 -21.2 16.01 -4.5 17.11 -18.4 19.58 -17.1
  Comp set 36.33 2.2 51.46 23.1 54.52 16.3 61.60 17.9 42.35 21.7
  Index(RGI) 109.0 -8.3 60.3 -36.0 29.4 -17.9 33.2 -30.8 47.0 -31.9

 

 

40. Based on the information above, which of the following most likely cause your hotel’s low RevPAR index number for the week?

A) Your ADR general is very weak.

B) The competitive set’s ADR in general is very strong.

C) Sunday performance is weak.

D) Your Occupancy in general is weak compared to the competitive set.

41. Which of the following is a rule related to requesting Trend report(s)?

A) A single hotel may account for maximum of 40 percent in the U.S. or 50 percent outside the U.S. of the participating room supply.

B) If you request multiple Trend reports, the hotels you have selected must differ by two or more participating hotels on subsequent Trend requests.

C) You must select four or more participating hotels.

D) All of the above are rules related to requesting a Trend report.

 

 

42. What is the best explanation of why Twelve Month Moving average data is useful on a Trend Reports?

A) By including Twelve Month Moving average data you have the opportunity to see additional industry segments.

B) The Twelve Month Moving Average data removes the radical peak and trough (high and low) year over year changes found in monthly data and it is great for graphing performance over time.

C) The Twelve Month Moving Average data includes other KPIs not shown with monthly performance data.

D) There isn’t a good reason to include Twelve Month Moving Average data in a Trend report.

43. Which one of the following in NOT a good reason to include daily data on a Trend reports?

A) To compare performance on holidays from one year to the next

B) To study Day of Week performance differences over a long period of time.

C) To analyze special events and their impact upon daily performance

D) To determine the identity of new hotels that opened in market place over time.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use the sample “Classic” page from a Trend to answer questions 44-45.

Data Occupancy ADR RevPAR
  This year %Chg This Year % Chg This Year %chg
Jan 12 46.2 -8.7 88.55 -4.7 40.92 -13.0
Feb 12 51.955.0 -13.3 93.43 -4.0 48.52 -16.8
Mar 12 55.0 -14.0 92.14 -3.6 50.70 -17.1
April 12 56.4 -15.6 93.34 -6.2 52.65 -20.8
May 12 54.4 -9.3 90.85 -4.3 49.40 -13.2
Jun 12 63.0 -8.9 93.97 -3.9 59.17 -12.5
Jul 12 60.1 -9.6 85.78 -8.4 51.56 -17.2
Aug 12 52.3 -13.7 85.39 -5.9 44.66 -18.8
Sept 12 54.2 -4.8 88.28 -7.2 47.84 -11.7
Oct 12 59.5 -5.1 92.90 -7.1 55.28 -11.8
Nov 12 53.3 -5.3 90.08 -7.5 48.06 -12.4
Dec 12 47.2 -0.7 87.91 -5.0 41.50 -5.7
Sep YTD 2012

 

54.9 -10.9 90.19 -5.4 49.47 -15.8
Total 2012 54.5 -9.3 90.27 -5.7 49.17 -14.5
Jan 13 43.0 -6.9 84.36 -4.7 36.31 -11.3
Feb 13 53.0 2.0 86.72 -7.2 45.93 -5.4
Mar 13 60.5 9.9 91.61 -0.6 55.41 9.3
Apr 13 58.7 4.1 90.72 -2.8 53.29 1.2
May 13 67.8 24.6 82.90 -8.7 56.17 13.7
Jun 13 68.8 9.3 88.88 -5.4 61.15 3.3
Jul 13 67.8 12.8 83.04 -3.2 56.33 9.2
Aug 13 57.3 9.6 80.39 -5.8 46.10 3.2
Sept 13 60.0 10.7 85.10 -3.6 51.04 6.7
Sep YTD 2013 59.5 8.5 86.05 -4.6 51.19 3.5

 

44. Based on the information above, which one of the following is an accurate statement?

A) The ADR in every month of 2012 was greater than the same months in 2011.

B) The occupancy for the year-to date period ending September 2012 is up from the same period in 2011.

C) The RevPAR for the first two months of 2013 was down from the same two periods in 2012.

D) The occupancy in very month of 2013 was less than the same months in 2012.

 

45. Which one of the following can be determined from the 2013 monthly percent changes presented above?

A) Both the occupancy and the ADR improved year-over-year.

B) The 2013 percent changes were very similar to the 2012 percent changes

C) The occupancy and the ADR year-over-year changes balanced each other out, yielding no RevPAR change.

D) The occupancy improved year-over-year, while the ADR declined.

 

46. Which one of the following is NOT an accurate statement regarding the data displayed on a Pipeline Report?

A) A feasibility study would often include Pipeline information.

B) Pipeline Reports show number of properties and rooms under construction and in planning by Scale and Chain.

C) Pipeline Reports show hotel performance information (Occupancy, ADR, RevPAR).

D) Pipeline Reports show information about Supply changes in an area over time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use the sample “Supply Summary” page from a Pipeline Reports to answer question 47-48

 

 

 

 

Rooms

Historic Supply   Pipeline Projects
  Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13   In Constr. Final Planning Planning Pre Planning
  Luxury 462 462 462 462 462 462         410
  Upper Upscale 7654 7654 7654 7937 7937 5056       100  
  Upscale 2823 2823 2934 3329 3,904 4,121     350 314 120
  Upper Midscale 3162 2887 3075 3099 3,034 3,034       310  
  Midscale 7372 7315 7790 8098 8,362 8,511   344 63 489 83
  Economy 7212 7068 7456 7350 7,379 7,378          
  Independent 4338 4541 3953 4162 4,333 4,333       200  
  Total 33,023 32,750 33,324 34 437 35,411 32,895       2,113 613

 

 

 

 

47. Based on the information above, which one of the following is an accurate statement regarding Supply growth over the last 5 years?

A) The Upper Upscale group experienced a significant decrease between 2012 and 2013.

B) The Upper Midscale group experienced a small increase in Supply.

C) The Economy Scale experienced no Supply growth.

D) The Luxury Scale group experienced a significant decrease in Supply.

 

48. Based on the information above, which two chain scales will probably experience the largest Supply growth in near future?

A) Upper Midscale and Midscale

B) Luxury and Independent

C) Upscale and Midscale

D) Upper Upscale and Midscale

 

 

49. HOST and profitability Reports include all but this type of Profit and Loss account?

A) Revenues

B) Expenses

C) Profit

D) Assets

 

50. What metrics do HOST and Profitably Reports display?

A) Amount per Occupied Room

B) Ratio to Sales

C) Amount per Available Room

D) All of the above

 

ACR Index Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 70 76 67 68 77 77 76 76 76 86 80 80 78 76 76 67 74 80 RevPAR Index Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 86 86 96 77 96 96 84 96 86 96 98 100 94 95 96 86 96 116 Occupancy index Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 66 75 67 56 77 77 66 76 66 86 80 80 76 74 76 66 70 76

 
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Week 1 Written, Strat_Man

Week 1 Individual Assignment – Under Armour’s Strategy in 2016 – Strategic Management

Under Armour’s Strategy in 2016

How Big a Factor Can the Company Become in the $250 Billion Global Market for Sports Apparel and Footwear?

 Assignment Questions

1. How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Please complete a Five Force Analysis to support and explain your solution in detail..

2. Does Under Armour have any resource strengths or competitive capabilities that qualify as a distinctive competence? Please list and explain your comments.

3. What does a SWOT analysis reveal about the overall attractiveness of Under Armour’s situation?

4. Which one of the five generic competitive strategies discussed in Chapter 5?

5. What is impressive about Under Armour’s financial performance during the 2011-2015 period (as shown in case Exhibit 1)? Please employ numbers, ratios, etc. to justify your conclusions.

6. What 3-4 top priority issues do Kevin Plank and Under Armour management need to address and what recommendations would you make to Under Armour’s senior management team?

Reference:

Title: Crafting & Executing Strategy: The Quest for Competitive Advantage  Author: Thompson, Peteraf, Gamble, & Strickland  Publisher: McGraw Hill Irvin  Ed/Year: 21st Edition; 2018  ISBN-13: 9781259899645

Use APA Citation Style

 

Your submission should be between 3 and 7 pages, using APA format. 

-Spell and Grammar Check

-Provide Intro, brief summary of Under Armour

-Cite per APA 6th

 
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Skills for Building Personal Credibility and Influencing Others

Chapter 8

Skills for Building Personal Credibility and Influencing Others

© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

 

 

 

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Lecture Script 6-1

Chapter Outline

Building credibility

Communication

Listening

Assertiveness

Conducting meetings

Effective stress management

Problem solving

Improving creativity

© McGraw-Hill Education

 

 

Building Credibility

Credibility: Ability to engender trust in others

Leaders with high levels of credibility are seen as trustworthy

Tend to have a strong sense of right and wrong

Comprises the following components:

 

Expertise: Technical competence, organizational knowledge, and industry knowledge

Trust: Clarifying and communicating one’s values and building relationships with others

© McGraw-Hill Education

 

 

Figure 8.1: The Credibility Matrix

Source: G. J. Curphy, Credibility: Building Your Reputation throughout the Organization (Minneapolis Personnel Decisions International, 1997)

Jump to Figure 8.1: The Credibility Matrix , Appendix

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Lecture Script 6-4

Expertise and Trust: Credibility Matrix

Leaders are grouped in four quadrants in the credibility matrix

First quadrant: Leaders have high levels of expertise and trust

Likely to be seen by others as highly credible

Second quadrant: Leaders do not follow through with commitments, are new to the firm, or have not invested time in building relationships with followers

Third quadrant: Leaders may be new college hires or new to the industry

Lack technical competence, organizational or industry knowledge, or time to build relationships with coworkers

Fourth quadrant: Leaders are promoted from among peers or transferred from another department within the company

The former may need to develop leadership knowledge or skills and the latter technical competence if they wish to increase their credibility

© McGraw-Hill Education

 

 

Figure 8.2: A Systems View of Communication

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Lecture Script 6-6

Communication, 1

Effective communication: Ability to transmit and receive information with a high probability that the intended message is passed from sender to receiver

Quality of a leader’s communication is positively correlated with subordinate satisfaction and productivity and quality of services rendered

Effectiveness of the communication process depends on the successful integration of all the steps in the communication process

Effective communication skills give leaders and followers greater access to information relevant to important organizational decisions

 

© McGraw-Hill Education

 

 

Communication, 2

Communication breakdowns

Causes

Purpose of the message was unclear

Leader’s or follower’s verbal and nonverbal behaviors were inconsistent

Message was not heard by the receiver or the message may be misinterpreted

Often lead to blaming someone else for the problem

Communication model can minimize conflict associated with communication breakdowns

© McGraw-Hill Education

 

 

Communication, 3

Leaders can improve their communication skills through the following means:

 

Determining the purpose of the communication

Choosing an appropriate context and medium for the message

Sending clear verbal and nonverbal signals

Actively ensuring that others understand the message

© McGraw-Hill Education

 

 

Listening, 1

Good leaders and followers recognize the value of two-way communication

Listening to others is just as important to effective communication as expressing oneself clearly

Leaders are only as good as the information they have, which usually comes from watching and listening to what is going on around them

The best listeners are active listeners

Passive listeners are not focused on understanding the speaker

© McGraw-Hill Education

 

 

Listening, 2

Active listening improves understanding and visibly demonstrates respect toward the speaker

Can be improved in the following ways:

 

Demonstrating nonverbally that you are listening

Actively interpreting the sender’s message

Attending to the sender’s nonverbal behavior

Avoiding defensive behavior

© McGraw-Hill Education

 

 

Assertiveness, 1

Assertive behavior and assertiveness skills are composed of behavioral, knowledge or judgment, and evaluative components

Individuals exhibiting assertive behavior are able to stand up for their own rights, or their group’s rights, in a way that also recognizes the concurrent right of others to do the same

Differs from acquiescence and aggression

Acquiescence: Avoiding interpersonal conflict entirely either by giving up and giving in or by expressing one’s needs in an apologetic, self-effacing way

Aggression: Attaining objectives by attacking or hurting others

© McGraw-Hill Education

 

 

Figure 8.4: Relationships between Assertiveness, Acquiescence, and Aggression

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Lecture Script 6-13

Assertiveness, 2

Leaders who fail to be assertive with friends and peers run the risk of becoming victims of the Abilene paradox

Abilene paradox: Occurs when someone suggests that the group engage in a particular activity or course of action but no one in the group really wants to do the activity, and this feeling is expressed only after the activity is completed

 

Ways to behave more assertively

Use “I” statements

Ask for help when required

Learn to say no to others

Monitor one’s inner dialogue

Be persistent without becoming irritated, angry, or loud

© McGraw-Hill Education

 

 

Conducting Meetings

Can help accomplish goals, exchange information, and maintain open lines of communication

 

Guth and Shaw’s tips for conducting meetings

Determine whether a meeting is necessary

List the objectives

Stick to the agenda

Provide pertinent materials in advance

Pick a time and place as convenient as possible for all participants

Encourage participation

Take minutes for the record

© McGraw-Hill Education

 

 

Effective Stress Management, 1

Stress: Process by which one perceives and responds to situations that challenge or threaten him or her

Responses may include:

 

Increased levels of emotional arousal

Changes in physiological symptoms

Increased perspiration, heart rate, cholesterol level, or blood pressure

Often occurs in situations that are complex, demanding, or unclear

Can either facilitate or inhibit performance, depending on the situation

Stressors: Characteristics in individuals, tasks, organizations, or the environment that pose some degree of threat or challenge to people

 

© McGraw-Hill Education

 

 

Effective Stress Management, 2

Guidelines for effective stress management

Monitoring stress levels of oneself and one’s followers

Identifying the cause of stress

Practicing a healthy lifestyle

Learning how to relax

Developing supportive relationships

Keeping things in perspective

Applying the A-B-C Model to change self-talk

A: Triggering event

B: Your thinking

C: Feelings and behaviors

© McGraw-Hill Education

 

 

Steps for Effective Problem Solving

Identify problems or opportunities for improvement to ensure that the task is clear

 

Analyze the causes of the problem using cause-and-effect diagram and force field analysis

 

Develop alternative solutions using procedures such as the nominal group technique

Nominal group technique: Group members write down ideas on individual slips of paper, which are later transferred to a whiteboard or flipchart for the entire group to work with

 

Select and implement the best solution based on established criteria

 

Assess the impact of the solution using measurable criteria of success

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Figure 8.5: A Cause-and-Effect Diagram

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Lecture Script 6-19

Figure 8.6: Force Field Analysis Example: Starting a Personal Exercise Program

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Lecture Script 6-20

Improving Creativity

Brainstorming stimulates creative thinking in groups

Seeing things in new ways enhances creativity but it can be difficult because of a mental block known as functional fixedness

Can be overcome in the following ways:

 

Thinking in terms of analogies

Putting an idea or a problem into a picture rather than into words

Leaders can use power constructively to encourage the open expression of creative ideas

Forming diverse problem-solving groups increases creativity, but may also increase conflict

© McGraw-Hill Education

 

 

Summary

Every leader should be equipped with the following skills:

 

Building credibility

Communication

Listening

Assertiveness

Conducting meetings

Effective stress management

Problem solving

Improving creativity

 

© McGraw-Hill Education

 

 

Appendices

 

Figure 8.1: The Credibility Matrix, Appendix

The slide contains a 2 by 2 grid, which is divided into four quadrants. Outside the grid, the top-left corner is labeled high, the bottom-left corner is labeled low, and the bottom-right corner is labeled high. The y-axis of the square is labeled trust. It has five points marked on it. Starting from the bottom, the points are 1, 2, 3, 4, and 5. The x-axis of the grid is labeled expertise. It has five points marked on it. Starting from the left, the points are 1, 2, 3, 4, and 5. Within the grid, each quadrant contains a number. The upper-left quadrant contains the number 4. The lower-left quadrant contains the number 3. The lower-right quadrant contains the number 2. The upper-right quadrant contains the number 1.

Jump back to Figure 8.1: The Credibility Matrix

© McGraw-Hill Education

 

 

Figure 8.2: A Systems View of Communication, Appendix

Six rectangles are presented in this figure. Starting from the left, the first rectangle is labeled intention. Three questions are listed below this rectangle. The questions are what do you want to accomplish?, is your purpose clear?, and who needs to hear you? An arrow from the first rectangle points to the second rectangle. The second rectangle is labeled expression. 10 questions are listed below this rectangle. They are what medium?, consistent verbally and nonverbally?, expressed with receiver’s frame of reference in mind?, expressed in terms receiver will understand?, too much information expressed too quickly?, important points emphasized?, might message be ambiguous to others?, is message confounded by sender’s feelings?, biases or invalid assumptions about receiver?, and are you communicating directly with the receiver or through others? An arrow from the second rectangle points to the third rectangle, labeled reception. Five points are listed below this box. They are was it seen?, was it heard?, were there competing messages or other noise?, are there reasons the receiver wittingly or unwittingly may have filtered the information?, and has time or the medium of transmittal diluted or changed the message? An arrow from the third rectangle points to the fourth rectangle, labeled interpretation. Three questions are listed below this rectangle. They are was it understood?, do the receiver’s ego needs interfere with understanding?, and do the receiver’s biases or assumptions interfere with understanding? An arrow extends from the last question under interpretation and points to the fifth rectangle at the bottom of the image. This rectangle is labeled feedback. There is a sub point within the rectangle, which reads did you communicate what you intended? Three points are listed below the rectangle. They are history of prior communications, context of relationships and common practices, and concurrent events. An arrow extends from the fifth rectangle and points to the sixth rectangle, labeled new intentions. The sixth rectangle is placed below the questions listed under the first rectangle, labeled Intention.

Jump back to Figure 8.2: A Systems View of Communication

© McGraw-Hill Education

 

 

Figure 8.4: Relationships between Assertiveness, Acquiescence, and Aggression, Appendix

Three lines form an unfinished triangle in the image. There are three labels where the lines of the triangle should meet. The label at the top reads assertiveness. The label at the bottom-left corner of the triangle reads acquiescence. The label at the bottom-right corner of the triangle reads aggression.

Jump back to Figure 8.4: Relationships between Assertiveness, Acquiescence, and Aggression

© McGraw-Hill Education

 

 

Figure 8.5: A Cause-and-Effect Diagram, Appendix

The content in the box reads our day-long workshop was a disaster. The first box above the arrow reads people. An arrow from this box points to the horizontal arrow at the center of the figure. Three points are listed below this box. Starting from the top, the first point reads timing of workshop interfered with another mandatory meeting. The second point reads many participants unclear about workshop’s purpose. The third point reads participants not notified until last minute. Arrows from each of these points point to the arrow that extends from the box labeled people toward the arrow at the center of the figure.

The second box above the horizontal arrow is labeled agenda. An arrow from this box points to the horizontal arrow at the center of the figure. Three points are listed below this box. Starting from the top, the first point reads didn’t finish the final and most important activity. The second point reads not enough time for discussion. The third point reads not well designed to meet needs of this group. Arrows from each of these points point to the arrow that extends from the box labeled agenda toward the arrow at the center of the figure.

The first box below the horizontal arrow is labeled facilities and materials. An arrow from this box points to the horizontal arrow at the center of the figure. Three points are listed above this box. The first point reads hot, crowded room. The second point reads not enough handouts to go around. The third point reads because of inadequate parking, many people showed up late. Arrows from each of these points point to the arrow that extends from the box labeled facilities and material toward the arrow at the center of the figure.

The second box below the horizontal arrow reads other major causes. An arrow from this box points to the horizontal arrow at the center of the figure. One point is listed above this box. It reads minor causes. Three arrows below this sentence point to the arrow that extends from the box labeled other major causes.

Jump back to Figure 8.5: A Cause-and-Effect Diagram

© McGraw-Hill Education

 

 

 

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Lecture Script 6-27

Figure 8.6: Force Field Analysis Example: Starting a Personal Exercise Program, Appendix

The figure is divided into two by a dashed vertical line. Below this line is a label that reads present equilibrium point. The left side of the figure is labeled driving or promoting forces. Six points are listed below this label. Arrows extend from each of the points and point to the dashed vertical line at the center of the figure. The points are concern for health, dissatisfaction with appearance, boyfriend or girlfriend a health nut, group of work associates will enter local 10 k run, feeling heavy or have been gaining weight, and company encourages fitness activities at lunch. The right side of the figure is labeled restraining forces. Four points are listed below this label. Arrows extend from each of the points and point to the dashed vertical line at the center of the figure. The points read schedule already full, unskilled at popular recreational sports, no regular exercise partners, and rationalization, for example, I won’t exercise but I’ll eat better. A vertical dashed line extends from the last horizontal arrow in this section. This line is labeled desired equilibrium point.

Jump back to Figure 8.6: Force Field Analysis Example: Starting a Personal Exercise Program

© McGraw-Hill Education

 
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Turnip Plaza Hotel Case

The Turnip Plaza Hotel

Mark Piper was employed for several years as a tour guide at the Turnip Plaza Hotel in Port Austin, Michigan. Turnip Plaza is one of Colossal Corporation’s luxury hotel holdings, strategically located near Lake Huron’s famous Turnip Rock. Over the years, Mark developed a reputation as one of the most skillful tour guides in Michigan. He would guide tourists through extreme kayaking, hiking, and camping adventures in and around the Great Lakes. He was often requested by name by tourists visiting the hotel and was featured on extreme sports television. His high adventure kayaking tours brought in significant revenue for the hotel.

One month ago, Mark was approached by Stacey Nguyen, the manager of the Huron Overnight Inn—a rival company of Turnip Plaza. Stacey offered Mark a substantial salary increase to leave Turnip Plaza and come to work for her. Mark agreed to think about this offer and get back to Stacey in 48 hours. When he returned to Turnip Plaza, he asked several of his colleagues what they thought about the offer. One of them immediately went to Turnip Plaza’s manager, Edward Griffin, and told him the details of Stacey’s offer to Mark.

Upon hearing of the offer, Edward called Mark into his office and said: “If you stay with Turnip Plaza, I promise that next month you will receive a promotion with a 50 percent raise and a guaranteed contract for a two-year term.” This sounded good to Mark, and he turned down the offer from Stacey to stay with Turnip Plaza. However, last week, shortly before Mark was to receive his new contract, he was dismissed from Turnip Plaza because of corporate restructuring due to concerns about the increased liability risks of managing high adventure tours through Colossal’s hotels. Although Mark has not taken any formal action at this point, the vice president is concerned that Mark might try to hold Turnip Plaza to Edward’s promise.

Your task is to research the legal and ethical issues associated with this situation and write a minimum 6 page report to the vice president answering the following questions:

1. What legal theories might Mark use to try to legally enforce Edward’s promise? Explain the elements of these theories and how they apply to the facts of this scenario.

2. If Mark were to file a lawsuit and win, what sort of damages or other remedies might he be entitled to? Include your reasoning and any evidence that led you to your conclusions.

3. Finally, regardless of the legal implications, the vice president would like your view on the ethical issues. Does Turnip Plaza have an ethical obligation to fulfill the promise made by Edward to Mark? Is it      right to lay off Mark under these circumstances? What should Turnip Plaza      do from an ethical perspective? Use ethical theory and principles to      analyze these questions.

** Use the resources and learning topics provided and list any other resources utilized **

 
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