Live the Adventure Ltd is deciding whether to expand its existing operations or to offer winter activity holidays in Europe in order to grow - Edexcel - A-Level Business - Question 2 - 2019 - Paper 3

To find the values for B and D based on the 4 Quarter Moving Average:

• B (4 Quarter Moving Average for 2016 Q4) = 73.75

• D (4 Quarter Moving Average for 2017 Q1) = 78.75

1. Winter Activity Holidays:

   • Live the Adventure Ltd has noted a decline in sales during the winter months compared to the peak seasons.

   • By offering winter activities (e.g., skiing, snowboarding), they can stabilize their income across the year.

   • This strategy may tap into a larger market and diversify risks associated with seasonal fluctuations.

   • They can leverage existing skills and infrastructure, requiring minimal additional investment.

2. Expanding Existing Operations:

   • Continuing to enhance offerings in existing locations (Shropshire and Nepal) can help improve profitability during peak seasons.

   • This could include expanding their range of activities, which may attract a broader customer base.

   • Additionally, investing in staff training and better resource allocation can enhance service quality and customer satisfaction.

Recommendation:

• The preference for the second option (winter holidays) could potentially provide a more secure growth avenue by smoothing out cash flows, addressing seasonal revenue challenges.