“Analyze the methods that Polar Ices could use to tackle its under-utilization of capacity in the winter months” [7 out of 7, 2001]

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Chris Larham’s analysis of the methods that Polar Ices could use to tackle its under-utilization of capacity in the winter months [7 out of 7, 2001] can be opened in a print-friendly text document format here
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“Analyze the methods that Polar Ices could use to tackle its under-utilization of capacity in the winter months” [7 out of 7, 2001]

Two methods that Polar Ices could use are discounting and seasonal staffing contracts.

Discounting in the winter months means a reduction of prices as seasonal demand drops. Seasonal staffing contracts would allow Polar Ices to keep staffing levels adequate to satisfy demand – thus, summer contracts could be used.

In analysis, discounting is a short-term method that will stimulate demand in off-peak times of sale, through price cuts. Consumers will be encouraged to buy the product in the out-of-season months, due to the attractive prices. This will increase the capacity-utilization and keep turnover and liquidity regular. By only employing extra staff during the summer, Polar Ices will save money during the winter months, increasing liquidity.

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34-year-old father of three wonderful children [William, Seth, and Alyssa]. Works as an Assistant Technical Officer in the Sterile Services Department of Treliske Hospital, Cornwall. Enjoys jogging, web design, being a bit of a geek, and supporting Arsenal FC. Obtained a BA degree in English from the University of Bolton in 2008, and has continued to gain qualifications in a diverse range of subjects thereafter.

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Posted in AS Level Business Studies [A1]

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