Assignment $1$: Forecasting

The Akron Zoological Park

During the late $1980$s$,$ global changes in consumer preferences for radial tires, inflation, and changes in governmental priorities, almost resulted in the permanent closing of the Akron Children$$s Zoo. Lagging attendance and a low membership level did not help matters. Faced with uncertain prospects, the city of Akron opted out of the zoo business. In response, the Akron Zoological Park was organized as a corporation to operate the zoo under contract with the city.

Annual Attendance at the Akron Zoological Park

To be successful, the zoo must maintain its image as a quality place for its visitors to spend their time. Its animal exhibits are clean and neat. The animals, birds, and reptiles look well cared for. As resources become available for construction and continuing operations, the zoo also keeps adding new exhibits and activities. The independent organization$$s efforts seem to be working, because attendance increased from $53,353$ in $1989$ to an all$-$time record of $133,762$ in $1994.$

Due to its northern climate, the zoo$$s open season lasts from mid$-$April until mid$-$October. It reopens for $1$ week at Halloween and for the month of December. Zoo attendance depends largely on the weather. For example, attendance was down during the month of December $1995,$ which established many local records for the coldest temperature and the most snow. Variations in weather also affect crop yields and prices of fresh animal foods, thereby influencing the costs of animal maintenance.

In normal circumstances, the zoo may be able to achieve its target goal and attract an annual attendance equal to $40\%$ of its community. Akron has not grown appreciably during the past decade. But the zoo became known as an innovative community resource, and as indicated in the table, annual paid attendance has doubled. Approximately $35\%$ of all visitors are adults. Children account for one half of the paid attendance. Group admissions remain a constant $15\%$ of attendance.

The zoo does not have an advertising budget. To gain exposure in its market, it depends on public service announcements, the zoo$$s public television series, and local press coverage of its activities. Many of these activities are only a few years old and are a strong reason why attendance has increased.

Although the zoo is a nonprofit organization, it must ensure that its income sources equal or exceed operating and physical plant costs. Its continued existence remains totally dependent on its ability to generate revenues while reducing its expenses.

Assignment Description

In this assignment, you will analyze the revenue generation and cost management strategies of the Akron Zoological Park. The zoo faced significant challenges in the late $1980$s but managed to turn its fortunes around through innovative approaches. Your task is to evaluate the factors influencing the zoo's attendance, revenue sources, and cost management practices.

Instructions

Introduction

$1.$ Provide a brief overview of the Akron Zoological Park and the challenges it faced in the late $1980$s$.$

$2.$ Highlight the importance of revenue generation and cost management for the zoo's continued existence.

Factors Influencing Attendance

$1.$ Analyze the factors that affect the zoo's attendance, such as changes in consumer preferences, inflation, and governmental priorities.

$2.$ Discuss the significance of maintaining a quality image through clean and well$-$cared$-$for animals, new exhibits, and activities.

$3.$ Examine the impact of weather variations on attendance and the zoo's seasonal operating schedule.

Revenue Generation

$1.$ Explain the sources of revenue for the Akron Zoological Park.

$2.$ Discuss the importance of community support and the zoo's reputation as an innovative community resource in attracting visitors.

$3.$ Evaluate the effectiveness of the zoo's marketing and promotional strategies, considering its reliance on public service announcements, television series, and local press coverage.

Cost Management

$1.$ Outline the cost management practices implemented by the zoo.

$2.$ Discuss the importance of aligning income sources with operating and physical plant costs.

$3.$ Analyze the challenges faced by the zoo in reducing expenses while ensuring its continued existence as a non$-$profit organization.

Financial Performance

$1.$ Analyze the growth in attendance and revenue over the years, as indicated in the provided table.

$2.$ Evaluate the zoo's ability to achieve its target goal of attracting $40\%$ of its community annually.

$3.$ Discuss the significance of maintaining a balanced financial performance for the sustainability of the Akron Zoological Park.

Conclusion

$1.$ Summarize the key points discussed in the assignment, including the factors influencing attendance, revenue generation strategies, and cost management practices.

$2.$ Emphasize the importance of effective revenue generation and cost management for the long$-$te