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 calculate the four-quarter moving averages:

For 2016 Q4 (B), it’s calculated as follows: $B = \frac{(530 + 550 + 570 + 590)}{4} = 605$ This indicates the average sales for the previous four quarters.

For 2017 Q2 (D), it will use the previous four quarters: $D = \frac{(550 + 570 + 590 + 630)}{4} = 585$

Evaluate the two options:

1. Existing Operations: Live the Adventure Ltd is experiencing a steady increase in sales over the years. This suggests that the current model is working effectively in Shropshire. Maximizing existing resources could prove beneficial and minimize risk.

2. Winter Activity Holidays: Diversifying into winter sports can attract a new customer base, especially in Europe where there may be increased demand. This would mitigate the risk of being dependent on summer activities alone.

Considering existing customer insights and potential market growth, it seems prudent for Live the Adventure Ltd to adopt a dual approach: strengthening existing operations while cautiously expanding into new areas.