Boston-Ansoff Enterprise
Question 2: Using additional data explain why the holiday packages
Using the data we can create a conclusion on how the holiday packages have performed either as ‘favourable’ or ‘adverse’. Favourable variances are costs in terms of revenues occur when the actual revenues are greater than the budgeted or standard revenues. This also means that it’s good for the company as it means they are making profit as they are spending less money. Whereas, adverse variances are achieved when the actual performance is worse than the expected results, or making a loss in their estimation of finance. * Looking at the data the ‘UK summer’ package budget was £150,000 however the actual was £89,000 so the variance is £61,000 which means the company didn’t sell the packages that they wanted to sell but they sold under their budget that means it’s adverse as it’s not reaching to its budget. According to the data provided it also shows that summer in the UK was particularly wet compared to both Europe and USA. This explains that why people didn’t spend on the UK summer package as the weather was not good they might have planned to go somewhere else than coming to UK. * Euro summer package’s budget was £250,000 however the actual was £312,000 which means that it’s favourable as they have sold more packages then the budget required and the variance was £62,000 which is the profit made by Euro summer. There are many reasons that; it might have been favourable because looking at the data, it provides information saying that the exchange rate of £ to US$ climbed to nearly £1:$2 from £1:$1.25 was strong against the euro. This shows that as the Euro rate has increased some people can’t afford to pay large amount of money to go to the holidays so they don’t bother getting the package. * Euro Ski budget was also favourable as their budget was £350,000 and the actual was £128,000 and the variance was £222,000 which means it’s adverse so that shows that made a loss. It can be due to the same reason as the rate has increased in Euro and some people cannot afford to go to Euro Ski as it can be too expensive for them. * Lastly, the US Ski budget was £150,000 however the actual was £225,000 so the variance was 75,000; this shows that it is Favourable as the USA Ski resorts reported an abundance of snow and also USA resorts had ab early booking sale which substantially reduced costs; this shows that more people will be buying the US package.

Question 3: provide a suggestion on how to improve on sales for any packages that in difficulty.
There are many suggestions that can be made to the packages so they can improve the sales for packages that are in difficulty such as UK summer package this is in difficulty due to the fact that summer in the UK was particularly wet compared to both Europe and USA but to improve this difficulty by using marketing strategies so providing offers and vouchers for people as this will grab people’s attention because most of the people expect to pay less money for packages than taking into account weather etc.
Secondly, the Euro Ski made a loss as well because the report showed that there were avalanches in the Swiss Alps; which shows due to the heavy snow falling from the mountain people stopped going there as it’s dangerous for them. However, the package for Euro Ski can improve this by choosing another country like Finland or Iceland etc, rather than choosing Swiss Alps in Switzerland, where there is average snow for people to Ski.