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 1 - 2019 - Paper 3

To find the value of B (the 4-quarter moving average for 2016 Q4) and D (the 4-quarter moving average for 2017 Q2), we need to calculate these based on the last four quarters.

• B: The 4-quarter total for 2016 Q4 includes the sales from 2017 Q1 (610), 2016 Q4 (590), 2016 Q3 (290), and 2016 Q2 (280):

  $B = \frac{610 + 590 + 290 + 280}{4} = \frac{1770}{4} = 442.5$

• D: For 2017 Q2, the sales are 630, along with sales from Q1 (610), Q4 (590), and Q3 (320):

  $D = \frac{630 + 610 + 590 + 320}{4} = \frac{2150}{4} = 537.5$

Live the Adventure Ltd can consider two options:

1. Expanding existing operations in Shropshire:

   • There is a rise in sales over multiple quarters, indicating successful business performance and an opportunity for growth.
   • Existing staff might be better utilized and trained to retain skilled personnel.
   • Keeping operations local reduces the risks associated with entering a new market.

2. Offering winter activity holidays in Europe:

   • This new venture could diversify income streams, helping to balance sales through seasonal variations.
   • There exists an untapped market that could yield additional revenue during off-peak periods.

Recommendation: Given the upward trend of sales and the potential for increased revenue through winter activities while still evaluating the impact on current operations, Live the Adventure Ltd should adopt the second option of expanding into winter activities in Europe. This strategy promises greater growth potential by harnessing seasonal opportunities while not overlooking the strengths exhibited in their current operations.