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

For the 4 quarter moving average in 2016 Q4, the value of B is:

[ B = 73.75 ]

For 2017 Q1, the 8 period total is 610:

[ C = 610 ]

For the 4 quarter moving average in 2017 Q1, the value of D is:

[ D = 76.25 ]

The sales figures indicate a steady growth of sales, particularly from 2015 to 2017. This suggests that Live the Adventure Ltd is experiencing increasing demand, particularly in Q3, where sales peaked. However, in Q4 of 2016 and 2017, a more concerning trend arises: the moving average shows variability indicating potential fluctuations in customer demand.

This highlights a reliance on seasonal patterns that can be unpredictable.

The 8 period total and moving averages depict a positive trend but also highlight periods of reduced sales performance. Moving towards winter activity holidays would diversify the portfolio and may balance seasonal sales trends. It could also leverage existing resources during off-peak times in the UK and Nepal, stimulating more consistent revenue throughout the year.

Considering both financial analyses and non-financial factors, it would be prudent for Live the Adventure Ltd to pursue winter activity holidays in Europe. This diversification approach can mitigate risks associated with seasonal variations and capitalize on growing interest in adventure sports. Moreover, additional marketing could attract a broader customer base throughout the year.