HTM 3202 Financial Management in Hospitality and

Tourism2015/16, Semester 1

Lecturer Dr. YongHee KimOffice TH717Contact 3400-2184; yhkim@ polyu.edu.hkConsultation Hours

Tues. 3:30pm–4:30pm, Wed. 11:30am–12:20am, or by appointment

Tutor Mr. Tom BuOffice TH 506Contact 3400-2304; tom.bu@connect.polyu.hkConsultation Hours

Tues. 9:30am–11:30am, Wed. 10:30am–11:30am, orby appointment

Lecture Times Wednesdays 3:30pm –5:20pmClassroom THB100

Tutorial Times SEM001 Mon. 3:30pm – 4:30pm TH304

SEM002 Mon. 1:30pm – 2:30pm TH304

SEM004 Mon. 9:30am – 10:30am TH304

SEM003 Tue. 8:30am – 9:30am TH304

SEM007 Tue. 2:30pm – 3:30pm TH304

SEM005 Wed. 8:30am – 9:30am TH304

SEM006 Wed. 1:30pm – 2:30pm TH304

SUBJECT DESCRIPTION

This subject is designed to provide students with a basic understanding of the concepts and skills of financial analysis and financial management applicable to the hospitality and tourism industry. Topics covered in this subject pertain to managerial decision-making that aim at enhancing firm value andhence maximizing shareholders' wealth.

1

SUBJECT LEARNING OUTCOMES

A. Professional Competence • Comprehend various theories of financial management applicable to the industry. • Identify and describe the financial management characteristics of the industry.

B. Critical Thinkers • Critically assess and analyze the financial condition and performance of firms. • Critically assess the financing opportunities available and explore their markets.

D. Innovative Problem Solvers • Analyze and appraise hospitality and tourism-related activitiesand projects based on various appraisal techniques, discounting and decision methods, and determine the most appropriate decision in the hospitality and tourism environment.

TEACHING AND LEARNING METHODS

1. Interactive Lectures in terms of discussion and example sharing will be used to deliver the basic financial knowledge, theories, models, and techniques to the students.

2. Tutorials will be conducted to further examine contemporary financial management issues in the hospitality and tourism industry.

3. Case studies may be employed for students to make a decision, often placing themselves in the position of the decision-makers in a specific simulated situation.

4. Group project may be employed by asking students to form ateam of four to six people and undertake a research project, a case study or a capital expenditure project associated withexisting hospitality and tourism financial management issues.

2

5. Guest speakers may be invited to provide students an opportunity to learn first-hand knowledge, practices, and issues as related to contemporary hospitality and tourism financial management.

ASSESSMENT

Assessment Type Weight Due DatesExercises Individual 20% ContinuousMid-term test Individual 25% Oct. 14 (Week 7)

Group Project- Report- Peer review

Group WrittenAssignmentIndividual

20%5%

Nov. 27 (Fri.)6:00pm

Final Exam Individual 30% TBC

Exercises (20%)

The exercises are selected from the textbook and students are expected to complete them individually. These are numerical questions and students are required to hand in their answer sheetat the weekly tutorial. Late submission will receive ‘0’ credit.

Mid-term Test (25%)

The 2-hour mid-term test will have a mixture of multiple choice, true/false, and matching questions. The test will be comprehensive and hence all materials covered until the date of the test will be included.

3

NO supplementary/deferred/make-up test will be allowed unless a student has a legitimate reason that can be substantiated with documentary proof. Otherwise, absence from the mid-term test will result in ‘0’ credit.

Group Project (25%)

The aim of the project is to practically apply the capital budgeting decision techniques to different investment scenarios. Each group, consisting of 4-6 members, will analyzea specific scenario, which will be communicated during the semester. By integrating the concepts learnt during the course, each group should compare costs and benefits of the assigned scenarios according to the capital budgeting decisionmethods analyzed in class.

(1) Group Written Report (20%): The written report should be 1500-2000 words, excluding executive summary, appendices, and references. The report should be a comprehensive presentation of the computationsand discussions of your decisions.

It is required to explain the rationale behind the thoughts and discussions with appropriate resources and references (e.g., books, journals, newspaper, trade magazine, etc.). Also, it is required to use proper citations within the text and to create a reference list at the end of the essay (i.e., APA style).

Format requirement:Length: 1500-2000 words excluding executive summary, appendices, and references

Paper: A4 Font: size 12; Times New RomanOthers: double spacing; 1″ margins all round; double-sided printing

Students should submit a hard copy of the report to General Office by Nov. 27, 2015 (Fri ), 6:00pm. Please notethat late submission will receive ‘0’ credit. No exceptions.

4

(2) Peer Review (5%): The final element of the group project assessment is a peer evaluation. Each member of the team will assess his/her fellow team members and him/herself on the contribution made to the team.

This component of the assessment will not be altered by the instructor and will not be shared directly with other team members; it is confidential. This will comprise 5% ofthe total subject grade. Details of the assessment will beprovided during the tutorial.

Final Exam (30%)

This summative examination focuses on your knowledge and intellectual skills and your ability to apply concepts by testing your understanding of financial management in hospitality and tourism. The exam takes the form of a formal written 2-hour examination and requires the completion of multiple choice questions, problems and/or essays. A formula sheet will be provided and you will be allowed to use a calculator.

5

Grades

SubjectGrade Descriptions Elaboration on subject grading description

A+ ExceptionallyOutstanding

The student's work is exceptionally outstanding. It exceeds the intended subject learning outcomes in all regards.

A OutstandingThe student's work is outstanding. It exceeds the intended subject learning outcomes in nearly all regards.

B+ Very GoodThe student's work is very good. It exceeds the intended subject learning outcomes in most regards.

B GoodThe student's work is good. It exceeds the intended subject learning outcomes in some regards.

C+ WhollySatisfactory

The student's work is wholly satisfactory. It fully meets the intended subject learning outcomes.

C SatisfactoryThe student's work is satisfactory. It largely meets the intended subject learning outcomes.

D+ BarelySatisfactory

The student's work is barely satisfactory. It marginally meets the intended subject learning outcomes.

D Barely AdequateThe student's work is barely adequate. It meets the intended subject learning outcomes only in some regards.

F InadequateThe student's work is inadequate. It fails to meet many of the intended subject learning outcomes.

TEACHING AND LEARNING SCHEDULE

6

Lecture ScheduleWk Date Topic Readings

1 Sep. 2 Introduction to the courseIntroduction to Financial Management

SOWCh. 1

2 Sep. 9Financial Markets and Financial

InstrumentsReview of Financial Statements

Ch. 2Ch. 3

3 Sep. 16 The Relationship between Risk andReturn Ch. 4

4 Sep. 23 Time Value of Money (Part I) Ch. 5

5 Sep. 30 Time Value of Money (Part II) Ch. 5

6 Oct. 7 Fixed-Income Securities: Bonds and Preferred Stock Ch. 6

7 Oct. 14 Mid-term Test

8 Oct. 21 Chung Yeung FestivalNo Class (no lecture, no tutorial)

9 Oct. 28 Valuation of Common Stock Ch. 7

10 Nov. 4 Cost of Capital (WACC) Ch. 8

11 Nov. 11 Capital Budgeting and Cash FlowEstimation Ch. 9

12 Nov. 18 Capital Budgeting Decision Methods Ch. 10

13 Nov. 25 ReviewProject Report Due by Nov. 27, 6:00pm

The proposed schedule is subject to change.

READING MATERIALS

Textbook/Assigned Readings:

Chatfield, R. E. & Dalbor, M. C. (2005). Hospitality Financial Management. Pearson.

Academic and Trade Journals

7

Tourism Management, International Journal of Hospitality Management, International Journal of Contemporary HospitalityManagement, Cornell Hospitality Quarterly

Tutorial ScheduleWeek Date Seminars Topic Readings

1Aug. 31 001/002/

004No TutorialSep. 1 003/007

Sep. 2 001

2Sep. 7 001/002

004 Self – introduction andIntroduce to the course

SOW and Ch. 1Sep. 8 003/007

Sep. 9 001

3Sep. 14 001/002

004Financial Markets andFinancial InstrumentsReview of Financial

Statements

Ch. 2Ch. 3Sep. 15 003/007

Sep. 16 001

4Sep. 21 001/002

004 The Relationship betweenRisk and Return Ch. 4Sep. 22 003/007

Sep. 23 001

5Sep. 28 001/002

004 No Tutorial(Mid-Autumn Festival)

Sep. 29 003/007 Time Value of Money (Part I) Ch. 5Sep. 30 001 Time Value of Money (Part I) Ch. 5

6

Oct. 5 001/002004 Time Value of Money (Part I) Ch. 5

Oct. 6 003/007 Time Value of Money (PartII) Ch. 5

Oct. 7 001 Time Value of Money (PartII) Ch. 5

7

Oct. 12 001/002004

Time Value of Money (PartII) Ch. 5

Oct. 13 003/007 Fixed-Income Securities:Bonds and Preferred Stock Ch. 6

Oct. 14 001 Fixed-Income Securities:Bonds and Preferred Stock Ch. 6

8

Oct. 19 001/002004

No TutorialOct. 20 003/007

Oct. 21 0019 Oct. 26 001/002

004Mid - term test review

8

Oct. 27 003/007

Oct. 28 001

10Nov. 2 001/002

004Valuation of Common Stock Ch. 7Nov. 3 003/007

Nov. 4 001

11Nov. 9 001/002

004Cost of Capital (WACC) Ch. 8Nov. 10 003/007

Nov. 11 001

12Nov. 16 001/002

004 Capital Budgeting and CashFlow Estimation Ch. 9Nov. 17 003/007

Nov. 18 001

13Nov. 23 001/002

004Capital Budgeting DecisionMethods and Review theFinancial Management Ch. 10Nov. 24 003/007

Nov. 25 001

ACADEMIC INTEGRITY

Academic integrity exists when students do their academic work in an honest and ethical manner, following the conventions and code of practice of their chosen discipline or profession.

The University believes that academic integrity is central to the mission of a university, and expects its students to adhere to high standards of academic integrity in all assignments and examinations.

a) Violations of Academic Integrity

The University views any violations of academic integrity a serious disciplinary offence because it seriously undermines the value of theteaching, learning and research of the University. Students who cheatin their academic work limit their learning because they have not undergone the learning experience intentionally designed to help themto gain the specific knowledge or skills. At the same time, if some students cheat in the assessment and get a good grade, it is not fairto the others who are honest and do their own work. Finally, academicdishonesty will tarnish the reputation of the programme and its graduates and in the long run, diminish the value of the degree or education from the University.

9

Students should therefore refrain from committing any acts of academic dishonesty, which include but are not limited to the following:

b. Cheating

Copying answers from another student during tests/examinations, orfor assignments

Using unpermitted materials or aids during tests, examinations, orother forms of assessment

Asking/paying someone else to complete an academic activity, do anassignment or sit a test/examination

c. Plagiarism

Copying the work (part or whole) of another student and submittingit as one’s own

Using other people’s ideas, words, or other forms of works in one’s own work without proper citation and/or acknowledgement of the source

Submitting the same paper (or a significant portion of it) for credit in more than one subject

Students should read the details on “Plagiarism” given in the Student Handbook.

d. Unauthorised collaboration or help

Collaborating with other students in doing an individual assignment beyond what is specifically permitted by the teacher

Getting unauthorised help from others in performing an academic activity or doing an assignment

e. Fabrication and Falsification

Creating fake data, research procedures or results in assignments,laboratory or project reports

Creating fake citations or bibliography Forging or altering information, record or other documents

relating to study

f. Aiding academic dishonesty

Allowing another student to copy one’s own assignment for submission for credit

Allowing another student to copy answers during tests or examinations

10

Completing an assignment or academic work, or taking a test or examination for another student

g. Honesty during examinations/tests The University takes academic dishonesty in tests, examinations

and assignments very seriously, and will take disciplinary actionsagainst those who commit it. Students should read the Examination Regulations set out in the Student Handbook.

(PolyU 2012/13 Student Handbook pages 53-55)

CLASSROOM ETIQUETT

The following expectations are to enhance your ability to learn in this class, to avoiddisruption and distraction, and to improve the quality of the classroom experience. Repeatedfailure to meet these expectations may result in a lower grade for the course.

1. Please arrive on time to class, greet your teacher and stay forthe entire class period. Late arrivals and early departures aredisruptive.

2. If you arrive late, please quietly take a seat at the back of theclassroom. Similarly, in the rare event that you must leave classearly (e.g. for a medical appointment), email the teacher inadvance, then sit close to the rear door and leave asunobtrusively as possible. If you can’t be there on time or mustalways leave early because of a class or work conflict, pleaseseek specific permission from the teacher.

3. During exams, ask permission before leaving to use the restroom.Try to use the restroom before coming to class.

4. If participation is counted as part of your grade, missing classcould negatively impact your grade. It is important for you toattend the “Professor for a Day” and take part actively indiscussion.

5. When class begins, please stop your conversations.

6. Wait until class is completely over before putting your materialsaway in your backpack, standing up, or talking to friends.

7. Mobile phones should be turned off. No talking on mobile phones,text messaging, or emailing on laptops and desktop computersduring class. Wait until after class to return any calls received.

11

8. No listening to electronic recording devices during class.

9. Do not read magazines, newspapers, and any other material notrelevant to the lesson during class.

10. Food and drink are discouraged in class. (There may be times thatyou need a beverage or small snack during class. Avoid bringing inmeals or food that is noisy when unpackaged or chewed).

11. Show respect for your teacher and fellow classmates. Do notinterrupt someone who is speaking. It is fine to disagree with anidea but not okay to ridicule or make fun of another person andhis/her ideas. Raised voices, derogatory language, name-calling,and intimidating behavior will NOT be tolerated.

12. Do not disturb others by engaging in disruptive behavior.Disruption interferes with the learning environment and impairsthe ability of others to focus, participate, and engage.

13. English should be used in classrooms and laboratories . Allclassroom activities, such as group discussions and presentations,should be conducted in English.

Adapted from “Establishing Classroom Etiquette and Dealing with Disruption – Suggested Expectations To Include In A Syllabus” by Office of Student Judicial Affairs, University of California, Davis.

SHTM 12 Points of Teaching Practice

SHTM faculty members aim to create a positive learning environmentfor our students to help them learn effectively and develop intohospitality and tourism professionals. We will:

1) Treat students with respect and with integrity and developand maintain professional relationships with students basedupon their best interests;

2) Be consistent by setting and maintaining expectations andpace of work for all students;

3) Manage student behaviour and classroom incidents fairly,sensitively and consistently, using rewards and sanctionssensibly;

12

4) Prepare our subjects thoroughly and keep up to date withsubject content and pedagogy to help students learn andapply;

5) Present issues and subject content from a holistic viewpoint;6) Encourage learners to think critically and creatively and to

move beyond knowledge acquisition and textbook learning;7) Apply good principles of assessment and provide students with

timely feedback on their progress;8) Consider student feedback, and use it to improve our

teaching, and the learning and attainment of our students;9) Communicate clearly, making skilful use of a variety of media

to interact productively with students on an individual orcollective basis;

10) Seek to use a range of teaching strategies and resourcesto cater for the needs of different students and variedlearning styles;

11) Establish standards of behaviour, timekeeping andprofessionalism to ensure a classroom environment mostconducive to learning;

12) Reflect on and act to improve our own professionalpractice, contribute to our own professional development, andengage in life long learning.

Note:1-3 deal with classroom behaviour and expectations4-6 deal with teaching quality, including Outcome Based Education7-8 are to do with assessment and evaluation9-10 are to do with teaching strategies11-12 are to do with professional development

13