You have recently been appointed as assistant financial advisor of company of your own choice operating in the travel and tourism industry. The objective of the company is to expand its operations and to acquire a greater market share in the industry.
You are required to prepare a draft report to be presented to the Board of Directors. The report should also demonstrate your ability to research on relevant theories.
Your report should include:
i. A discussion on appropriate sources of finance in context of the expansion plan. Provide a recommendation of the most appropriate sources of finance to fund the expansion of the operations.
i) An explanation of behaviour of costs (using graphs and examples) and the importance of cost volume and profit (CVP) analysis as a decision-making tool.
ii) A discussion of various pricing strategies available within the context of a travel and tourism industry. Recommend management about an appropriate pricing strategy to achieve its objectives.