Use the data in Extract D, calculate the values of A, B, C and D and, using other non-financial information, evaluate these two options Live the Adventure Ltd should choose in order to grow - Edexcel - A-Level Business - Question 2 - 2019 - Paper 3

To determine the value of B (the Q4 2016 variation) and D (the Q2 2017 variation), we refer to the variations calculated in the table.

3. Calculate B:

   • The four-quarter moving average for 2016 Q4 is calculated as follows: $B = \text{Moving Average (Q4 2016)} - \text{Sales (Q4 2016)}$
   • Given that A = 560 and the sales for Q4 2016 are 590, we find: $B = 560 - 590 = -30$

4. Calculate D:

   • For Q2 2017, the sales are 630.
   • The moving average for Q2 2017 is: $D = \text{Moving Average (Q2 2017)} - \text{Sales (Q2 2017)}$
   • The moving average from Q1 2017 (610) is used, thus: $D = 610 - 630 = -20$

Thus, B = -30 and D = -20.

Given the data, we can evaluate two options:

1. Continue existing operations:

   • Live the Adventure Ltd is experiencing consistent growth in sales.
   • Retaining and training staff may lead to better service quality, increasing customer satisfaction and retention.

2. Offer winter activity holidays:

   • This can diversify revenue and increase customer base, addressing off-peak months.
   • However, it requires investment and may face operational challenges.

In conclusion, while maintaining current operations may yield steady growth, expanding into winter activities could provide new opportunities but comes with risks. Thus, careful consideration of the operational capacity is vital before deciding.