Question

. You are a business consultant to the Northern Virginia snow skiing industry. Wintergreen Ski Resort has asked for your help this coming season to determine business strategy and how to create a plan for realizing maximum profit. Using economic analysis, what advice would you give management for the times to open and close the season? (Extra Credit for 10 possible points)

Answer 1

Ans) In order to earn profits for seasonal  service business few important economic concepts need to be taken into account :- 1) law of variable proportion  which states that if more and more variable factor that is labour is employed firstly output increases with an increasing rate than with decreasing rate and after that it started to decline but never reaches zero. For the Wintergreen ski resort the recruitment should be based on the exact requirement in the season , that is no overstaffing and focus should be made for contract based employment so as to reduce cost 2) Welfare : The firm should psy maximum attention to ensure the environmental issues and should take steps to preserve the environment 3)Consumer behavior-: The firm should keep in mind that maximum utility is availed by the customer the service should be best in class 4) Cost analysis should be done in an efficient manner so that the firm can reduce them and increase the profit 5) Competitive advantage - The firm should have modern technology , so as to have competitive advantage over competitors 6) Business cycle- the Wintergreen ski resort should analyse the cycle of the adventure sports as they are in boom or recession and even forecast the trend to beat the competition. 7) Efficient allocation of resources should be done and a right way is to be find to make the process such as trainning , equipment handling , and monitoring the sports events from logistic to food and drinks facilities .8) Keeping an eye on the macroeconomic variables such as income , employment and inflation to device sound business policy which can be to expand the business 9) Providing additional benifits such as heath check up and yoga, etc 10) Increasing employee satisfaction as it will help them motivated