Live the Adventure Ltd is a family business founded in 1984 which operates a leading UK activity centre in Shropshire - Edexcel - A-Level Business - Question 2 - 2019 - Paper 3

The 4 Quarter Moving Average for 2016 Q4 can be calculated by averaging the last four quarters’ totals:

$B = \frac{530 + 550 + 570 + 590}{4} = 59.75$

Thus, B is calculated as 59.75.

To find the 4 Quarter Total for 2017 Q1, sum the sales for the last four quarters leading to Q1 2017. Those are:

• 2016 Q2: 550
• 2016 Q3: 570
• 2016 Q4: 590
• 2017 Q1: 610

Thus:

$C = 550 + 570 + 590 + 610 = 2320$

Therefore, C is 2320.

The 4 Quarter Moving Average for 2017 Q1 can be calculated as:

$D = \frac{550 + 570 + 590 + 610}{4} = 605$

Hence, D equals 605.

Given the data points calculated:

• A = 590
• B = 59.75
• C = 2320
• D = 605

1. Analysis of Winter Activity Holidays:

   • Live the Adventure Ltd’s potential to expand into winter activities aligns with growing trends in tourism. Expanding into skiing and snowboarding could attract a new customer base and help even out seasonal peaks.

2. Current Strengths and Customer Base:

   • The current increase in sales suggests a positive trend, but winter operations could further diversify sources of revenue.

3. Non-Financial Considerations:

   • Introducing winter activities may require additional training for staff, which involves costs but ensures quality service.
   • Geographic diversity (operating in Europe) may reduce dependence on the Shropshire market, allowing turrets to cope with variable demand.

Recommendation: Live the Adventure Ltd should choose to offer winter activity holidays in Europe due to the forecasted potential for growth and customer base diversification.