PGA Golf Management 3.0 Level 3 Exam
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
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
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
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.
What type of data is cost of goods sold?
Quantitative Data
What information would be most useful to the planning team interested in measuring the
facility's past or current successes?
Quantitative Data; Historical Data
The effectiveness of a golf professional's business plan for managing day-to-day operations in a
golf shop depends on what?
Operational Strategies
,How would opportunities and threats be categorized in a SWOT analysis?
External Factors
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.
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
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
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
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
What should govern the decision to pursue an opportunity?
,The results of the SWOT analysis
What criteria must be used to improve the following objective: "Improve range profits and
customer satisfaction" ?
SMART goals
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
Provide examples of horizontal analyses.
Linear Trend Analysis and Base Year Analysis
What figure is represented in the divisor in the linear trend formula?
Previous Year
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
Golf shop sales of $100,000 yield a gross margin of $30,000. What is the percentage of the cost
of goods sold?
70%
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%
, According to the Business Planning Manual, what is usually the largest contributor to the
bottom-line profit of the facility?
Rounds
What is the formula for Merchandise Net Operating Income?
Revenue - (Cost of Goods Sold + Operating Expenses)
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)
What metric should be part of every forecast regardless of the type of facility?
Revenues and Expenses
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
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
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
What is one of the techniques used to validate assumptions?
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
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
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
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.
What type of data is cost of goods sold?
Quantitative Data
What information would be most useful to the planning team interested in measuring the
facility's past or current successes?
Quantitative Data; Historical Data
The effectiveness of a golf professional's business plan for managing day-to-day operations in a
golf shop depends on what?
Operational Strategies
,How would opportunities and threats be categorized in a SWOT analysis?
External Factors
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.
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
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
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
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
What should govern the decision to pursue an opportunity?
,The results of the SWOT analysis
What criteria must be used to improve the following objective: "Improve range profits and
customer satisfaction" ?
SMART goals
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
Provide examples of horizontal analyses.
Linear Trend Analysis and Base Year Analysis
What figure is represented in the divisor in the linear trend formula?
Previous Year
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
Golf shop sales of $100,000 yield a gross margin of $30,000. What is the percentage of the cost
of goods sold?
70%
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%
, According to the Business Planning Manual, what is usually the largest contributor to the
bottom-line profit of the facility?
Rounds
What is the formula for Merchandise Net Operating Income?
Revenue - (Cost of Goods Sold + Operating Expenses)
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)
What metric should be part of every forecast regardless of the type of facility?
Revenues and Expenses
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
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
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
What is one of the techniques used to validate assumptions?
