Farm Management Essay
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Farm Management
Assess the current capacity of ‘Holly Farm’ and critically evaluate the optional ways of achieving the intended growth in the number of visitors, bearing in mind that capital investment is not available, although self-financing revenue earning ventures can be considered.
1. Introduction
This piece examines the case of Holly Farm, and the plan proposed by Gillian Giles to attempt to boost the number of visitors attending the farm. Holly Farm is currently quite a successful example of a farm that has diversified into visitor activities to boost its overall revenue levels. However, the farm has now reached a point at which visitor levels are relatively steady, and hence the farm is failing to grow its revenue significantly. This piece will thus investigate the current situation at the farm, including the current visitor numbers and the projected capacity for the farm. This data will then be used to determine the extent to which the farm can try to attract more visitors and the strategies that could be used to achieve this. This analysis will take place assuming that the farm is unable to raise further capital investment, other than through additional services that will also generate revenue.
2. Analysis and current situation
Car park capacity
Coach spaces
6
Car spaces
40
Average visitors per coach
35
Average visitors per car
3
Daily coach visitor capacity
210
Daily car visitor capacity
120
Total daily capacity
330
Current visitor numbers
April
May
June
July
August
September
October
Total
Visitors
1,200
1800
2800
3200
3400
1800
600
14,800
Days open
16
16
16
16
16
16
16
112
Weekend days open
8
8
8
8
8
8
8
56
Week days open
8
8
8
8
8
8
8
56
Average weekend day visitors
100
150
233
267
283
150
50
176
Average weekday day visitors
50
75
117
133
142
75
25
88
Daily car park capacity
330
330
330
330
330
330
330
330
Weekend utilisation
30.3%
45.5%
70.7%
80.8%
85.9%
45.5%
15.2%
53.4%
Weekday utilisation
15.2%
22.7%
35.4%
40.4%
42.9%
22.7%
7.6%
26.7%
Daily milking parlour capacity
200
200
200
200
200
200
200
200
Weekend milking parlour visitors
80
120
187
213
227
120
40
141
Weekday milking parlour visitors
40
60
93
107
113
60
20
70
Weekend utilisation
40.0%
60.0%
93.3%
106.7%
113.3%
60.0%
20.0%
70.5%
Weekday utilisation
20.0%
30.0%
46.7%
53.3%
56.7%
30.0%
10.0%
35.2%
The analysis of the current situation is based on the following assumptions:
On average, each coach visiting the farm will contain 35 visitors, and each car will contain 3 visitors. This is to account for the number of single parent families and families with only one child that may visit the farm.
The proportion of visitors by coach and by car are roughly proportional to the respective visitor capacity for coach and car visitors
The car and coach spaces cannot be used flexibly, i.e. coaches cannot park in the car spaces and vice versa
The milking sheds can support 80 people per hour for a period of two and a half hours, thus they have a daily capacity of 200
The visitors are spread roughly evenly throughout each month
90% of visitors arrive after 12:30pm, and the visitors that arrived before 12:30pm at still there at this time. As such, around 1pm all visitors to the farm are at the farm and hence all need a car park space
The analysis indicates that the farm is currently very close to its maximum visitor capacity in July and August, with 80.8% and 85.9% capacity utilisation in the car park on these days. With 80% of visitors going to the milking parlour, the parlour itself is already over capacity on these days, with capacity utilisation levels of 106.7% and 113.3% respectively. It must be assumed therefore that some visitors that would have liked to have visited the milking sheds were unable to do so due to the capacity constraints.
3. Different scenarios
Two primary scenarios have been considered. The first is where the farm engages in widespread promotional activity designed to boost overall levels of attendance by 50%. The second is where the farm engages in targeted promotional activity designed to encourage school visits during the week, thus boosting weekday attendance levels by 50%. The analysis for these two scenarios is shown below:
3.1 Boost visitor demand by 50% on all days
Projected visitor numbers
April
May
June
July
August
September
October
Total
Visitors
1,800
2,700
4,200
4,800
5,100
2,700
900
22,200
Days open
16
16
16
16
16
16
16
112
Weekend days open
8
8
8
8
8
8
8
56
Week days open
8
8
8
8
8
8
8
56
Average weekend day visitors
150
225
350
400
425
225
75
264
Average weekday day visitors
75
113
175
200
213
113
38
132
Daily car park capacity
330
330
330
330
330
330
330
330
Weekend utilisation
45.5%
68.2%
106.1%
121.2%
128.8%
68.2%
22.7%
80.1%
Weekday utilisation
22.7%
34.1%
53.0%
60.6%
64.4%
34.1%
11.4%
40.0%
Actual average weekend day visitors
150
225
330
330
330
225
75
238
Actual average weekday day visitors
75
113
175
200
213
113
38
132
Total weekend day visitors
1200
1800
2640
2640
2640
1800
600
13320
Total weekday day visitors
600
900
1400
1600
1700
900
300
7400
Total visitors
1800
2700
4040
4240
4340
2700
900
20720
Daily milking parlour capacity
200
200
200
200
200
200
200
200
Weekend milking parlour visitors
120
180
264
264
264
180
60
190
Weekday milking parlour visitors
60
90
140
160
170
90
30
106
Weekend utilisation
60.0%
90.0%
132.0%
132.0%
132.0%
90.0%
30.0%
95.1%
Weekday utilisation
30.0%
45.0%
70.0%
80.0%
85.0%
45.0%
15.0%
52.9%
It should be noted that, for this scenario, as the capacity of the car park is limited to around 330 people per day, some visitors who wish to visit the farm on weekends in July and August will be unable to do so. The farm will thus have maximum average daily weekend visitor numbers during these months of 330. A plan should thus be put in place to manage capacity on these days, and ensure that visitors do not travel a long way only to find there is no space in the car park.?
3.2 Boost visitor demand by 50% for weekdays only
Projected visitor numbers
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