PGA Golf Management 3.0 Level 3 Exam Latest Update

PGA Golf Management 3.0 Level 3 Exam 1. What makes interpretation of quantitative data more desirable than qualitative data? Quantitative information is clearly defined and less susceptible to differences of opinion among people interpreting the data 2. Why is customer demographics an external factor? Because external factors are the things that affect the business from the outside, and customer demographics impact the business and are not within the business 3. What type of information is typically provided by qualitative data? Qualitative data informs the planning team "how" and "why" things are happening. Qualitative data often informs the planning team about the quality of the business offerings, such as condition of the course, enjoyment, or satisfaction of customers 4. What examples would be considered internal data sources for planning purposes? These include staffing, course maintenance, types of amenities, and business marketing and promotions- basically anything that can be generated on site. 5. What type of data is cost of goods sold? Quantitative Data 6. What information would be most useful to the planning team interested in measuring the facility's past or current successes? Quantitative Data; Historical Data 7. The effectiveness of a golf professional's business plan for managing day-to-day operations in a golf shop depends on what? Operational Strategies 8. How would opportunities and threats be categorized in a SWOT analysis? 9. How might the results of a SWOT analysis affect core business functions? A properly organized and prioritized SWOT analysis gives a summary of the current state of the facility's business, but it also helps determine the direction the business should take. The SWOT provides valuable input when developing new goals, objectives, and strategies for improvement later in the business planning process. 10. When conducting a SWOT analysis for Human Resources, what are examples of relevant data sources? Job descriptions, hiring and training, scheduling, evaluating and continuing education 11. How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs? There may be a decrease in rounds and revenue earned; negative effect 12. When defining a business, what are examples of weaknesses that may be disclosed by performing a SWOT analysis? If a merchandise line is not selling well, is it important enough to devote money and energy to improve sales, or should the merchandise line be dropped in favor of one that will sell better?; any internal aspects 13. What is being evaluated when reviewing information data from trends in local consumer spending? Whether a threat is internal or external; local customer spending is external- determine what is effecting the trends 14. What should govern the decision to pursue an opportunity? The results of the SWOT analysis 15. What criteria must be used to improve the following objective: "Improve range profits and customer satisfaction" ? SMART goals 16. 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. What criteria is missing from this proposed goal? The objective is not realistic 17. Provide examples of horizontal analyses. Linear Trend Analysis and Base Year Analysis 18. What figure is represented in the divisor in the linear trend formula? Previous Year 19. What type of analysis would be best for a facility that has just completed a project that added nine new holes to the original 9-hole course? Base Year Analysis 20. Golf shop sales of $100,000 yield a gross margin of $30,000. What is the percentage of the cost of goods sold? 70% 21. If the gross target margin for your golf shop were 40 percent, what would be the target percentage for your cost of goods sold? total merchandise sales (100)-cost of goods sold=gross margin (40); then cost of goods sold would be 60% 22. According to the Business Planning Manual, what is usually the largest contribuRounds tor to the bottom-line profit of the facility? 23. What is the formula for Merchandise Net Operating Income? Revenue - (Cost of Goods Sold + Operating Expenses) 24. What events would cause a change in the forecast for golf shop expenses? Major events (natural disaster or pandemic) or the economy (ex. golf shop expenses may increase if they suddenly have to bring in more golf shirts because the shop is selling through the current inventory) 25. What metric should be part of every forecast regardless of the type of facility? Revenues and Expenses 26. You are most concerned about a decline in business growth. What method would be most effective in portraying your overall financial history? Linear Trend Analysis 27. For the purpose of developing a business plan, what is the best description of trend analysis? The percentage change up or down from year to year. Gives a good understanding of past performance; historical data 28. By understanding the factors that could potentially affect forecasts, what can PGA Professionals make about how the numbers will change to construct better financial forecasts? Use Linear Trend Analysis; using historical data to create a better forecast 29. What is one of the techniques used to validate assumptions? Scenarios and Sensitivity Analysis, Historical Review, Expert Review 4 / 56 PGA Golf Management 3.0 Level 3 Exam Study online at 30. What best describes sensitivity analysis? Generating scenarios by entering different values for the assumptions. Generating several different scenarios, both optimistic and pessimistic, helps determine which assumptions and projections make the most sense for the business. Helps identify possible best and worst-case scenarios and how they affect performance. 31. 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? Productivity will increase, golf shop sales will increase, member experience will increase, offsetting the higher salary 32. In his first year at Meadows 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? Expert Review: run ideas by more experienced professionals for feedback 33. 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? Sensitivity Analysis/ Historical Trend 34. How would the opening of a new driving range 5 miles away likely be a relevant factor in the business plan for the coming year? For making assumptions about the number of rounds likely to be played in the coming year 35. A capital budget would be used for what type of items? Large value items- clubhouse, new mowers, etc. 36. How does the accuracy of your assumptions affect the business plan? Affects the utility of your business plan 37. When are transactions recognized in a cash budget? At the time they occur 38. In what type of budget is depreciation recorded? Capital Budget 39. What is the end result of finalized operating budget? Will show whether or not you have the money to pay; expected expenses 40. What is the purpose of a cash budget? To record cash and credit transactions 41. What information should form the basis of a golf shop's 12-month operating budget? Rounds/ Historical Data of rounds and merchandise sales 42. What is the correct budget category for labor forecasts Golf expenses, rounds, operation, how busy you are, service expectation- OPERATING EXPENSES 43. What is usually broken down into categories based on product lines or shop activities? Revenues 44. A cash flow budget is primarily concerned with what measure? Reflecting actual dollar amounts in and out of the bank so you can pay bills 45. Projecting an accurate cash flow budget is largely based on what knowledge? The previous year's cash flow; Historical Data 46. What method do managers use to increase their knowledge of financial performance and controls? They chose a few key performance metrics to track through regular budget reports 47. What is the most significant benefit of a point-of-sale system to a manager? It can easily track revenues, inventory, service, tee sheet reservations, course usage, labor hours, and possibly even customer demographics. It can also automatically calculate the amount above or below plan the actual numbers are at the end of every day, week, and month 48. What does a performance metric provide? Gives the professional an idea of the financial health of the operation 49. What is an example of a performance metric? Rounds, Yield Management, Revenues per Round, COGS and a Percentage of Sales, Gross Margin as a Percentage of Sales, Inventory Turnover Rate, etc. 50. What is reasonable adjustment to a financial strategy for an underperforming budget? Raising greens fees, cut labor, etc. FINANCIAL STRATEGIES 51. What would a facility do in Step 4 of the business planning model to remain solvent in the event of unforeseen eternal changes?