PGA PGM Level 1 Study Guide with Complete Solutions

A personal development summary details interests, strengths, weakness, and future personal development steps. (T / F) - ANSWER-True What must every professional understand about evaluation? - ANSWER-evaluation is crucial to career advancement regardless of specific career choices. evaluation is a continuous process. How might a golf professional discover interests? - ANSWER-exploring industry opportunities, connecting with people in the industry, and gaining first hand experience at golf facilities are ways to reveal specific interests. the goal is to discover a career where interests often align with job opportunities. What is part of the Explore stage in the Career Planning Process? - ANSWER-exploration often overlaps with evaluation. identifying career options requires thorough exploration in the golf business. It is best to narrow one's focus to a specific job when exploring career options. (T / F) - ANSWER-False Explain the difference between a core industry segment and an enabled industry segment. - ANSWER-Core industry produce goods and services used to play the game and operate facilities. Enabled industry produce other economic activity that the game of golf enables such as tourism and residential construction. PGA.org/Jobs provides information on industry positions, networking, resume writing, and interviewing? (T / F) - ANSWER-True What is the difference between a career ladder and a career lattice? - ANSWER-Ladder-linear or directly upward career progression Lattice- combination of sideways and upward career movements A career lattice characterizes an upward career progression. (T / F) - ANSWER-False Why is it important to develop a personal vision statement? - ANSWER-provides a direction to career; vision statement is a brief description of an ideal future as a PGA professional "Increase merchandise sales in the golf shop" is an example of a SMART goal. (T / F) - ANSWER-False What is provided in the "Strategies to Succeed" section of the Career Fitness Manual? - ANSWER-provides a helpful starting point for developing goals. it lists various approaches to take while drafting a career path Core skills are those that are useful in many golf industry positions (T / F) - ANSWER-True How can you utilize the Work Experience Portfolio to write a resume? - ANSWER-can be used to focus resume content and align it to a particular position What part of the resume concisely describes a summary of skills and qualifications gained from work experience as a golf professional? - ANSWER-action statements or "power statements" concisely describe a summary of skills and qualification gained from work experience as a golf professional Responsible, involved, and helped are effective action words to create a power statement. (T / F) - ANSWER-False What are ways to connect with other professionals who have industry experience to gather information about the industry? - ANSWER-informational interviewing and shadowing, and networking are meaningful connections and stay informed about opportunities A resume should begin with listing education first and then work experience. (T/ F) - ANSWER-False It is recommended a resume include all relevant golf-specific skills. (T / F) - ANSWER-True Why should a resume be updated? - ANSWER-a resume is intended to be a working document developed throughout your career. evolving skills and experiences should be communicated in a manner that indicates educational and professional advancement to demonstrate your value and impact at a facility. What are the key points to remember when using a power statement? - ANSWER--use short and concise bullet points -begin each point with a power verb -statement should be result based -use stats to quantify -sequence bullets to align "Increased hard good sales by 25% by offering multiple demo days" is an example of a power statement? (T / F) - ANSWER-True "Brought in more events increasing revenues" is an example of a power statement. (T / F) - ANSWER-False Why is it important for the employer to determine the relevant skill sets when hiring? - ANSWER-employers often hire for one set of skills, but replace professionals after determining a different set of skills was necessary to succeed in the position What is a quantitative result produced by a Rainmaker? - ANSWER-drives revenue either through new member sales, increased rounds by existing golfers or promoting and serving outside groups PGA Member who has earned Specialized status is qualified to pursue the PGA Master Professional Program. (T / F) - ANSWER-False Career Consultants provide fee-based services to employers. (T / F) - ANSWER-False What is the appropriate source for providing a member or associate with help in job networking, career counseling, and resume writing? - ANSWER-pga career consultants through The Work Experience Portfolio is a document used to help validate the candidate's skillsets. (T / F) - ANSWER-True What are common mistakes to avoid when networking? - ANSWER--asking for favors -not utilizing a list of questions prepared beforehand -making excessive demands when initially reaching out -using their name without permission when reaching out to contacts A PGA professional needs to accept the initial terms of employment offered by the perspective employer or risk losing out on the job offer. (T / F) - ANSWER-False List factors that should be considered when evaluating a job offer. - ANSWER--location of the facility -job description -salary and benefits -coworkers -level of responsibility -challenge of the job -long range potential -compatibility with management What factors should the candidate be informed about before negotiation can begin? - ANSWER-after considering all potential expenses and income sources, the employer and applicant can begin negotiations on compensation Percentage of potential income should be considered when negotiating a fixed salary with incentive compensation. (T / F) - ANSWER-True List elements of a basic benefits package that may be provided by an employer. - ANSWER-vacation, health insurance plan, dental care and vision insurance, retirement package, educational expenses, dues paid, meals, use of facility A phone allowance is considered a basic benefit. (T / F) - ANSWER-False When is a bottom line approach appropriate for a job candidate to use? - ANSWER-appropriate when a job candidate will be generating income from specific golf operations, such as teaching and merchandising and combining that income from the employer with a salary Pension plans can constitute a significant amount of compensation. (T / F) - ANSWER-True The process for developing a business plan starts before you establish the goals you would like to achieve for the shop's coming year. (T / F) - ANSWER-True According to the Business Planning Model, a business plan should build on and refine the operational plan. (T / F) - ANSWER-True Who should provide direction for creating the business plan at a golf operation? - ANSWER-PGA Professionals Long-range planning should initially assume an adversarial relationship between neighboring facilities that directly compete with each other. (T / F). - ANSWER-False What is the usual business destination for long-range planning? - ANSWER-3-5 year plans that identify a future "destination" for a business; includes long term goals and financial forecast to help business achieve its vision What is the most significant benefit of strategic business planning? - ANSWER-gives the organization a competitive advantage and enables it to successfully meet its objective Helping establish a starting point for goals, objectives, and related strategies is an appropriate use of the SWOT analysis. (T / F) - ANSWER-True Financial forecasts should be based on historical data derived from a linear trend analysis. (T / F) - ANSWER-True You are in the process of completing a business plan for the golf shop. Initial forecasts of sales, expenses, and profit have been made. Past data has been analyzed and important inside and outside factors have been identified. What is the next step to be taken towards completing the plan? - ANSWER-Monitor Performance-(the final stage of business planning) A golf professional is purchasing a golf course. The business plan he presented to his banker included his history of successfully operating similar facilities, budget projections for the first five years under his management, and objectives and strategies for reaching his goals. The banker rejected his loan application because of missing information. What important element is missing from the business plan? - ANSWER-Define the business: facility's purpose and direction including core values, vision and mission; foundation of the entire business planning process A vision defines the short-term objectives that must be accomplished in the upcoming year. (T / F) - ANSWER-False A facility profile defines the overall culture of the business. (T / F) - ANSWER-True The projected customer base of certain golf facilities located in the United States could assume members drawn from international markets. (T / F) - ANSWER-True A yield analysis is used to compile a facility's historical data on the number of rounds played. (T / F) - ANSWER-False What is the process called when the manager reviews total rounds to determine who is playing and when? - ANSWER-Yield Analysis Mission statements should include a definition of the facility's underlying financial model. (T / F) - ANSWER-False A sound mission statement defines the long-term vision and core values of a facility. (T / F) - ANSWER-True It is appropriate to address the role of the employee in the mission statement. (T / F) - ANSWER-True The interpretation of quantitative data is less susceptible to differences of opinion than qualitative data. (T / F) - ANSWER-True Customer demographics is an internal factor. (T / F) - ANSWER-False What type of information is typically provided by qualitative data? - ANSWER-informs the team about the quality of the business offerings, such as conditions of the course, enjoyment/satisfaction of customers, flavor of food... "now" and "why" things happen What examples would be considered internal data sources for planning purposes? - ANSWER-staffing, course maintenance, types of amenities, and business marketing and promotions-basically any info that can be generated onsite Cost of goods sold is an example of qualitative data. (T / F). - ANSWER-False What information would be most useful to the planning team interested in measuring the facility's past or current success? - ANSWER-quantitative data on the annual revenue of past/present performances The utility of your business plan for managing day-to-day operations in a golf shop depends on your ability to manage internal factors. (T / F) - ANSWER-True The SWOT analysis would treat opportunities and threats as factors that usually can be controlled by the facility. (T / F) - ANSWER-False The results of a SWOT analysis could be sufficient justification for the abandonment of a core business function. (T / F) - ANSWER-True Staff evaluations are a relevant data source for a SWOT analysis. (T / F) - ANSWER-True How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs? - ANSWER-it would do poorly because it is a threat to the golf course. The economy of the local community would not do as well. Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose? (T / F) - ANSWER-True Trends in local consumer spending would be most useful for evaluating a core business function (T / F) - ANSWER-True What should govern the decision to pursue an opportunity? - ANSWER-How long will the opportunities be viable? Which opportunities must be acted on immediately? and which later? Consider the following statement as part of a business plan: "Improve range profits and customer satisfaction." According to the Business Planning course, this statement is an example of an objective. (T / F) - ANSWER-False The new manager of a ten-year-old private course, currently doing an average of 5,000 tournament rounds per year, proposes to increase tournament rounds by 50% by the end of next year. This proposal meets the criteria for an effective business objective as presented in the Business Planning Course Manual. (T / F) - ANSWER-False "Develop and promote group lesson programs aimed at women and juniors "is an example of an effective business objective. (T / F) - ANSWER-False What important characteristic is missing in the business objective: "Increase pro shop sales next year?" - ANSWER-It's not specific or meaningful. it does not include a specific outcome of how much increase in pro shop sales they will achieve. Which characteristic of goals and objectives is described as capable of being observed, recorded, and measured? - ANSWER-Specific- objective must be tied to specific outcomes that can be observed, recorded, measured What is the functionally significant difference between goals and objectives? - ANSWER-Goals=measurable long term desired outcome that takes 3-5 years to achieve Objectives=short term outcome within a fiscal year to achieve a long term goal. A facility's financial objectives could be achieved through operational strategies alone. (T / F) - ANSWER-False The following agenda was part of a golf range business plan: "Purchase 175 dozen new range balls and rotate usage three times a year. Who: Head Professional. When: End of First Quarter. Cost: $1500." According to the Business Planning course, describe the business plan component represented by this statement? - ANSWER-objective, strategy, and action plan What is an example of a financial strategy? - ANSWER-increasing/decreasing fees in one or more department; borrowing money for investment purposes What would be the most appropriate initial response to facility income not meeting projections? - ANSWER-it would be appropriate to modify their actions in order to achieve the objectives, after carefully monitoring results Calculating yield involves knowing the relationship between the amount utilized and the amount available. (T / F) - ANSWER-True Gross profit is what remains after calculating the difference between revenue and cost of goods. (T / F) - ANSWER-True Linear trend analysis and base year analysis are examples of vertical analyses. (T / F) - ANSWER-False The divisor in the linear trend formula-average percentage is the number of years of change being measured. (T / F) - ANSWER-False Conducting a base year analysis is a good choice for a facility that has just completed a project that added nine new holes to the original 9-hole course. (T / F) - ANSWER-True Golf shop sales of $100,000 yield a gross margin of $30,000. What is the percentage of the cost of goods? - ANSWER-70,000/100,000=0.7 70% What is the definition of the "cost of goods sold?" - ANSWER-represents the value (at cost) of all merchandise sold to customers, stolen, lost, damaged, or destroyed during a period of time If the gross target margin for your golf shop were 40 percent, what would be the target percentage for your cost of goods sold? - ANSWER-total merchandise sales (100)-cost of goods sold=gross margin(40); then cost of goods sold would be 60% According to the Business Planning Course Manual, what is usually the largest contributor to the bottom-line profit of the facility? - ANSWER-rounds What is the formula for Merchandise Net Operating Income? - ANSWER-revenue- (cost of goods sold + operating expenses)= net operating income What events would cause a change in the forecast for golf shop expenses? - ANSWER-labor, maintenance, training, hourly workers What metric should be part of every forecast regardless of the type of facility? - ANSWER-rounds: directly affects the health of most of the departments and revenue sources at a facility. Consider the following table. Based on trend analysis, what forecast would be made on the number of weekend rounds that will be played in year five? YEAR: 12345 WEEKENDROUNDS: 16,000 14,500 16,800 17,400 ? - ANSWER-process: (y2-y1)/y1 + (y3-y2)/y2 + (y4-y3)/y3= .101/3=0.034 y4 x 0.034=591 y4+591= 17,991 You are concerned about a decline in business growth. What method would be most effective in portraying your overall financial history? - ANSWER-linear trend analysis For the purpose of developing a business plan, what is the best description of trend analysis? - ANSWER-calculates the percentage change up or down from year to year in an individual line item;gives planners a good understanding of past performance...evaluates positive and negative trends over time The total annual sales for a golf shop for the past five years are listed below: T otal Year Annual Sales 1 $ 98,000 2 $100,000 3 $123,000 4 $121,000 5 $133,000 Based on a simple trend projection, what is the most reasonable expectation for the coming year? What is the average percent change? - ANSWER-process: [(y2-y1)/y1 + (y3-y2)/y2 + (y4-y3)/y3 + (y5-y4)/y4]/4 =0.08 =8% Assumptions are necessary for forecasting numbers. (T / F) - ANSWER-True- must be kept with business plan and financial forecasts What is one of the techniques used to validate assumptions - ANSWER-scenarios and sensitivity analysis; historical review; expert review What best describes sensitivity analysis? - ANSWER-generate several scenarios by entering different values for assumptions; process that helps you consider best/worst case scenarios and how they will affect performance Next year you will be replacing a long-time golf shop employee with a new assistant who has considerable sales experience and selling skills. You will be paying this new staff member a higher salary. What is a reasonable assumption for you to make? - ANSWER-golf shop revenues increase due to new marketing techniques In his first year at a golf club, the Head Professional has made some assumptions about how improvements in customer services will increase the coming year's sales volume. What technique could be used to best test these assumptions? - ANSWER-expert review= to test their assumptions and run them by experienced professionals Your employer is contemplating an increase in weekend green fees. She would like to know how this increase might affect the number of rounds played. What would provide her with the best estimate? - ANSWER-historical review= finding analogous situations in the past ex. to test how price increases might affect volume The skills of a golf professional include knowing that rounds, memberships, golf cars, tournaments, and merchandise generate revenue for a facility. (T / F) - ANSWER-True Opening a new driving range 5 miles away would be a relevant factor for making assumptions about the number of rounds likely to be played in the coming year. (T / F) - ANSWER-False A capital budget is used for large-value items such as equipment and fixtures. (T / F) - ANSWER-True The utility of a business plan for managing day-to-day operations depends on the accuracy of your assumptions. (T / F) - ANSWER-False In a cash budget, transactions are only recognized at the time they occur. (T / F) - ANSWER-False Depreciation allowances must be accounted for in a cash flow budget. (T / F). - ANSWER-False Your finalized operating budget will show whether or not you have the money to pay. (T / F) - ANSWER-False A cash budget records cash and credit transactions. (T / F) - ANSWER-False What information should form the basis of a golf shop's 12-month operating budget? - ANSWER-full time staff, wages, utilities What is the correct budget category for labor forecasts? - ANSWER-it goes under golf expenses under the operating budget What is usually broken down into categories based on product lines or shop activities? - ANSWER-revenues; cost of goods sold; gross margin; labor; rent; utilities; marketing and promotions; insurance; education and travel; golf car leases, payments, and expenses; depreciation; interest; tax A cash flow budget is primarily concerned with what measure? - ANSWER-how much money a facility will have in the bank at the end of the month or week; whether or not a facility has enough money to pay the bills An important feature of a cash budget is cash flow patterns for the past 12 months are clearly indicated. (T / F) - ANSWER-True What method do managers use to increase their knowledge of financial performance and controls? - ANSWER-spot audits:crucial in tracking and controlling inventory and financial performance What is the most significant benefit of a point-of-sale system to a manager? - ANSWER-most of them automatically calculate the amount and/or percentage above or below....plan the actual numbers at the end of the day, week and month What does a performance metric provide? - ANSWER-to track the performance of the facility What is one example of a performance metric? - ANSWER--number of rounds -yield management -revenues per round -COGS as % of sales -gross margin as a % of sales Raising or lowering green fees is a reasonable response to an underperforming budget. (T / F) - ANSWER-True Revising forecasts and budgets is one way to keep a business solvent in the event of unforeseen external changes. (T / F) - ANSWER-True Changing the budget when the facility is falling short of budget projections is both unacceptable and unproductive. (T / F) - ANSWER-False What is the baseline reason for analyzing variances? - ANSWER-better to spot variances early and take remedial action before they escalate into major business concerns Customer acquisition costs often exceed customer retention costs. (t/f) - ANSWER-True As customer requirements are met, they become customer expectations. (t/f) - ANSWER-False What is the primary product of the golf business according to the Customer Relations Manual? - ANSWER-golfer's experience at a facility and most direct way to create a positive experience is to provide exceptional service What single variable has research shown to be most closely associated with long term financial performance? - ANSWER-"relative perceived product quality" what customers defined as quality A moment of truth occurs when an employee evaluates the service they are going to provide. (t/f) - ANSWER-False Moments of truth occur each time facility employees come into contact with customers. (t/f) - ANSWER-True An interactive "moment of truth" opportunity occurs when a customer's bag has been incorrectly tagged at the bag drop. - ANSWER-True According to the Customer Relations Manual, what must accompany good interpersonal skills to achieve high quality relations with your members and customers? - ANSWER-procedures to guide and support them An upset customer is concerned about the lack of action to speed up play. He seeks out the golf professional to express his displeasure. What needs to be in place for the golf professional to resolve the situation? - ANSWER-challenging situation interpersonal skill-showing undertsanding A clear policy on how to handle customers who arrive late for a tee time is an example of a procedure to be followed in a routine situation. (t/f) - ANSWER-False The Head Professional is explaining the club's "no starting from the 10th tee" policy to a foursome that has attempted to do so. He explains the reasoning for the policy and politely extends an invitation to place them as the next group off #1 tee. This scenario illustrates the concept of the dual perspective of customer relations interactions. (t/f) - ANSWER-False The task-relationship connection concept allows that a foundation for successful future relations can be built by attending to the customer relationship without the presence of a task focus. (t/f) - ANSWER-False Aside from relationships, what do all customer interactions involve? - ANSWER-the task-what the service provider and customer are trying to accomplish Time is a factor affecting the value of any resource. (t/f) - ANSWER-True Expectations are a key requirement for good customer relations (t/f) - ANSWER-True Running out of scorecards indicates a breakdown of what key requirement for good customer relations? - ANSWER-resources What is defined as the means available to support staff in completing a task? - ANSWER-resources Detailed policies and procedures lie at the heart of which one of the three elements necessary to support the delivery of superior customer service? - ANSWER-systems The Head Professional made the following observations at the staging area for a shotgun event: Area was fully staffed. Necessary supplies were available. Cars were missing towels, scorecards, and divot sand. A breakdown in what key customer relations requirement would most likely account for this situation? - ANSWER-systems The "supporting" strategy is appropriate when one is clear about what needs to be done and the other person accepts the organizational role assignments. (t/f) - ANSWER-False The extent to which one wants to control the outcome of an interaction is one of the features that distinguishes the four interaction strategies from each other. (t/f) - ANSWER-True "Modifying your ideas to include other's contributions" is more likely to be part of the supporting strategy than the involving strategy. (t/f) - ANSWER-False The successful use of the directing strategy characteristically involves encouraging others to find a solution and then helping them to understand your role in implementing it. (t/f) - ANSWER-False