Business Analysis

Running head: BUSINESS ANALYSIS
Business Analysis
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BUSINESS ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Current Market Position of the Business.....................................................................................2
Analysis of Performance of the Business....................................................................................3
Variance Analysis........................................................................................................................6
Findings and Recommendations................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

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BUSINESS ANALYSIS
Introduction
The main purpose of this assessment is to analyse the financial performance of Wai Ora
Adventures in order to recommend proper strategies for the purpose of enhancing the revenue
and scale of operations of the business. The business which is being considered in the assessment
is engaged as a tour operator in New Zealand. There has been significant growth in the tourism
industry over the years and this is the main reason that more and more businesses are coming up
in this sector. The business of Wai Ora Adventures provides so much more to the customers
rather than simple tourism which includes adventure sports, one in a lifetime experience and
other tour facilities (Roberts, Hall & Morag, 2017). The assessment would also be including
estimation of a budget for the new year considers a growth rate of at least 30% for revenue and
profits of the business. The budget would be then considered as the basis on which decisions are
to be taken by the management of Wai Ora Adventures regarding the operations of the business
(Purdie, 2013). The assessment considers the main operations of the business of Wai Ora
Adventures which is a best spot for tour. The business is planning to expand the operations of the
business by taking loans and trying to enhance the revenue of the business.
Discussion
Current Market Position of the Business
The business of Wai Ora Adventures is recently opened in New Zealand which provides
the tourists with a place where they can enjoy different types of adventures sports and along with
other facilities. The business provides safe experience to the customers for all kinds of outdoor
sports to build self-esteem, confidence, leadership skills and the ability to work as part of a team.
The company also provides various other facilities such as accommodation, food and transport

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BUSINESS ANALYSIS
facilities to the customers (Keen, 2013). The management of the company wants to enhance the
scale of operations of the business and also enhance the revenue of the business.
The business of Tourism is rapidly increasing in New Zealand as more and more tourist
is choosing the place a potential tourist destination and in addition to this, the domestic tourism
of the country has also increased significantly. As per the NZ statistics, the contribution of the
tourism industry to the overall revenue in 2018 was around $ 39.1 billion (Hendrikx et al., 2013).
The total tourism rate showed an increase of 7.7% which is 2.5% more than the previous year
which shows significant improvement for the business (Wilks, Stephen & Moore, 2013).
Therefore, from the survey results which are available regarding the industry, it is clear that there
is significant scope for growth of the businesses which are operating in such an industry (Buhalis
& Crotts, 2013). The management of Wai Ora Adventures wants to take advantage of such a
situation and thereby enhance the sales and profitability of the business. The management wants
to expand the operations for which an appropriate budget is to be formulated by the management
of the company on the basis of which feasibility analysis of the expansion proposal can be
considered by the business.
Analysis of Performance of the Business
The analysis of the business performance would be on the basis of the financial data
which is available from the financial statement of the business for the period of years which the
management of the company has formulated. The figure for sales of the business is subdivided
into four major market segments which are considered by the management of the company
(Orchiston, 2013). The sales of the business are shown to have decline during the period of 2018
in comparison to previous year analysis (Keen, 2013). The performance of the business is