Question

1. Explain what are a trend analysis, ratio analysis, and the scatter plot? 2. Most hospitality companies’ managers were promoted from lower positions. Why do you think most companies like to hire from within (promote employees)?

Answer 1

Trend analysis is a technique to predict the future based on observed trends in the current data. Trend analysis is used in technical analysis to predict the stock price movements.

Ratio analysis is a fundamental analysis tool in analysis stock performance. This quantitative technique provides insight into the liquidity of a company, efficiency, profitability from the financial statements of the company. It is used to compare the financial ratios of many companies.

Scatter plot is a mathematical graph to plot the values of two variables using the Cartesian coordinates. The pattern is used to identify correlations between the variables. Scatter plots are used to compare the stock performance of two companies. In cricket, scatter plots are used to compare the run rate of two competing teams.

Most companies hire from within as it is inexpensive to hire the employees with experience in the company operations and processes. The company can save considerable time and money in training when hired from within. When the company employees are hired or promoted, the learning curve becomes short as they are familiar with the management and systems of the company. Hiring from within is an excellent talent retention strategy adopted by the companies. This is seen as an investment in employee knowledge and skills by keeping the key people working for the firm by boosting their morale by recognizing and promoting them to higher positions with excellent benefit packages. In the case of hospitality companies, management relies more on experience rather than on educational qualification. Hence in this industry, managers are mostly hired from lower positions as a result of many years in experience understanding the company processes and procedures in a practical manner.