Year One Exam 4. Dali's World (DW) Roy Dali founded Dall's World (DW), which owns four adventure parks employing 342 peo

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Year One Exam 4 Dali S World Dw Roy Dali Founded Dall S World Dw Which Owns Four Adventure Parks Employing 342 Peo 1 (66.06 KiB) Viewed 92 times

Year One Exam 4. Dali's World (DW) Roy Dali founded Dall's World (DW), which owns four adventure parks employing 342 people The parks offer adventure activities such as high wire and mountain biking. DW's target market is teenagers and adults. DW's mission statement is "safety and affordability at DW are the most important reasons for a great time for all". DW uses predatory pricing its competitors are theme parks and adventure centres. However, social trends are changing. Many teenagers prefer social networking rather than adventure activities. DW's sales revenue and profits are falling. Roy discussed with senior managers two possible growth strategies: Option 1 Through extensive promotion, attract children and adults with disabilities and access requirements to the parks. This approach would require specialized training for existing stafi. No modifications to the parks would be required. Option 2 Offer corporate team-building activities. DW would develop specially designed programmes for senior leadership teams to spend three days in newly built conference centres located at the parks. Corporate teams would engage in adventure activities together and then discuss strategic options for their organizations. Option 2 could be highly profitable. DW could charge high prices for these programmes. However, some of Roy's senior managers argued that DW should continue to provide "adventures for all" and not just to a group of highly paid senior leadership teams. The two options created major disagreements. Two senior managers, working with Roy since the creation of DW, threatened to resign if Option 2 was implemented. Two other senior managers argued that without Option 2 many jobs at DW were under threat. (a) Define the term target market. [2 marks] (b) Explain two roles of DW's mission statement. [4 marks) (c) Explain one advantage and one disadvantage for DW of using a predatory pricing strategy. [4 marks) (d) Using the Ansoff matrix, evaluate the two possible growth strategies for DW. [10 marks]